Latest Expert Opinions

Signal
Opinion
Expert
HOLD
HOLD
July 29, 2016

Have done a major restructuring, and did a major acquisition. While a solid company, you are likely not going to see the visibility, i.e., an increase in earnings related to the acquisition, for at least 12 months. He just sold his holdings. Thinks the 4% dividend yield is safe. Below $30 would not be a bad entry point.

DH Corporation (DH-T)
July 29, 2016

Have done a major restructuring, and did a major acquisition. While a solid company, you are likely not going to see the visibility, i.e., an increase in earnings related to the acquisition, for at least 12 months. He just sold his holdings. Thinks the 4% dividend yield is safe. Below $30 would not be a bad entry point.

Lorne Zeiler
Portfolio Manager & Wealth Advisor, TriDelta Financial
Price
$32.250
Owned
No
BUY
BUY
July 29, 2016

When Enbridge (ENB-T) has a mature project, they push it over to this, and then it becomes an income vehicle. Pays a very high dividend. In terms of visibility, they put more projects on so it is trading at a very reasonable multiple. They can easily pay the dividend, which is close to 6% now. They expect 10% plus increases per year going into 2019. If you take the current price and go into 2019, that is going to be a yield of close to 8%. A solid underlying company, but there will be some volatility.

When Enbridge (ENB-T) has a mature project, they push it over to this, and then it becomes an income vehicle. Pays a very high dividend. In terms of visibility, they put more projects on so it is trading at a very reasonable multiple. They can easily pay the dividend, which is close to 6% now. They expect 10% plus increases per year going into 2019. If you take the current price and go into 2019, that is going to be a yield of close to 8%. A solid underlying company, but there will be some volatility.

Lorne Zeiler
Portfolio Manager & Wealth Advisor, TriDelta Financial
Price
$32.500
Owned
Yes
COMMENT
COMMENT
July 29, 2016

Trades at a higher multiple, because it is a better quality company. Very well-managed. There are 3 income streams 1) pharmaceuticals, 2) devices and 3) the consumer. This is basically international. The dividend is likely to grow, but slowly. This is a name that will hold up if we get market declines. He wouldn’t expect significant growth.

Trades at a higher multiple, because it is a better quality company. Very well-managed. There are 3 income streams 1) pharmaceuticals, 2) devices and 3) the consumer. This is basically international. The dividend is likely to grow, but slowly. This is a name that will hold up if we get market declines. He wouldn’t expect significant growth.

Lorne Zeiler
Portfolio Manager & Wealth Advisor, TriDelta Financial
Price
$125.230
Owned
Unknown
TOP PICK
TOP PICK
July 29, 2016

Basically a manufacturer, designer and technology company around plastics and polymers. They also have a refining division. Valuation is really cheap. The company did quite well, particularly when there was a disparity between oil and gas. Trading at about 7X forward earnings. He anticipates earnings to be on a declining scale in 2016, but likely to stabilize in 2017. Dividend yield of 4.52%.

Basically a manufacturer, designer and technology company around plastics and polymers. They also have a refining division. Valuation is really cheap. The company did quite well, particularly when there was a disparity between oil and gas. Trading at about 7X forward earnings. He anticipates earnings to be on a declining scale in 2016, but likely to stabilize in 2017. Dividend yield of 4.52%.

Lorne Zeiler
Portfolio Manager & Wealth Advisor, TriDelta Financial
Price
$75.260
Owned
Yes
TOP PICK
TOP PICK
July 29, 2016

Provides end to end solutions for patient care for small, rural hospitals, acute care facilities and financial planning and accounting software. They made an acquisition and lost some clients as a result, and the stock came down significantly. They see some great synergies, and are actually ahead of schedule. There are a lot of positives going on with the company. It has a great pipeline. They figure about 150% growth in terms of sales. There is a new compliance regulation coming out, which a lot of smaller players will not be able to comply with. Trading at about 11X forward earnings. Dividend yield of 6.46%.

Provides end to end solutions for patient care for small, rural hospitals, acute care facilities and financial planning and accounting software. They made an acquisition and lost some clients as a result, and the stock came down significantly. They see some great synergies, and are actually ahead of schedule. There are a lot of positives going on with the company. It has a great pipeline. They figure about 150% growth in terms of sales. There is a new compliance regulation coming out, which a lot of smaller players will not be able to comply with. Trading at about 11X forward earnings. Dividend yield of 6.46%.

Lorne Zeiler
Portfolio Manager & Wealth Advisor, TriDelta Financial
Price
$39.640
Owned
Yes
TOP PICK
TOP PICK
July 29, 2016

Rate reset preferreds started coming out in 2008. They declare a dividend which has a formula attached to it. Every 5 years that rate gets reset based on a formula, a 5-year Government bond and some kind of spread. Sold off a lot last year, because the yield curve flattened significantly and there was a fear the rate resets were going to be a lot lower. However, what has tended to happen, is that you are now getting yields of about 5.5%. Actually one of the few securities that if interest rates go up, you are going to benefit from it. He could see about 5%-10% growth, plus reset rates going higher if rates do increase.

Rate reset preferreds started coming out in 2008. They declare a dividend which has a formula attached to it. Every 5 years that rate gets reset based on a formula, a 5-year Government bond and some kind of spread. Sold off a lot last year, because the yield curve flattened significantly and there was a fear the rate resets were going to be a lot lower. However, what has tended to happen, is that you are now getting yields of about 5.5%. Actually one of the few securities that if interest rates go up, you are going to benefit from it. He could see about 5%-10% growth, plus reset rates going higher if rates do increase.

Lorne Zeiler
Portfolio Manager & Wealth Advisor, TriDelta Financial
Price
$9.960
Owned
Yes