Latest Expert Opinions

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
August 2, 2016

The project is very large and expensive, and he has difficulty with the feasibility of it. There are others you can invest in, without having to painfully wait it out.

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The project is very large and expensive, and he has difficulty with the feasibility of it. There are others you can invest in, without having to painfully wait it out.

COMMENT
COMMENT
August 2, 2016

This is really a new story. It has been around for a long time, but in terms of developing its high-grade, underground operation, which is deeper than the original, it has rejuvenated the stock. It is now a matter of execution and getting the company to optimal production and generating positive free cash flow. He is very confident in management. Feels the valuation still has room to go.

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This is really a new story. It has been around for a long time, but in terms of developing its high-grade, underground operation, which is deeper than the original, it has rejuvenated the stock. It is now a matter of execution and getting the company to optimal production and generating positive free cash flow. He is very confident in management. Feels the valuation still has room to go.

COMMENT
COMMENT
August 2, 2016

Kind of on the periphery for him. He kept looking and wondering when he wants to buy it. Producing in the Philippines. They are looking to grow through the next mine. Thinks it represents reasonable value for what it has. Pays a dividend which is always nice. Going into this development project probably keeps it off of his fund holdings. He would prefer Kirkland Lake (KGI-T).

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Oceanagold Corp (OGC-T)
August 2, 2016

Kind of on the periphery for him. He kept looking and wondering when he wants to buy it. Producing in the Philippines. They are looking to grow through the next mine. Thinks it represents reasonable value for what it has. Pays a dividend which is always nice. Going into this development project probably keeps it off of his fund holdings. He would prefer Kirkland Lake (KGI-T).

TOP PICK
TOP PICK
August 2, 2016

Just acquired the Mercedes mine from Yamana Gold (YRI-T) for about $140 million, so they are now on the cusp of being a producer. South Arturo in Nevada will be producing any time now with a short mine life, so there are people questioning what happens after 2.5 years. Mercedes is also relatively short with about a 3.5 year reserve life. These are 2 projects the management team feels there is more to.

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Just acquired the Mercedes mine from Yamana Gold (YRI-T) for about $140 million, so they are now on the cusp of being a producer. South Arturo in Nevada will be producing any time now with a short mine life, so there are people questioning what happens after 2.5 years. Mercedes is also relatively short with about a 3.5 year reserve life. These are 2 projects the management team feels there is more to.

TOP PICK
TOP PICK
August 2, 2016

A name he has always been on the fence with. A dry gas producer. A nice way to play a gas recovery with a torque. He likes the Gordondale acquisition, a gas asset that they got from Encana. Did a very successful $700 million equity offering to finance the purchase. This adds a significant component of liquids, so now it is a 24% liquids company, rather than 10%. That helps the margins.

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A name he has always been on the fence with. A dry gas producer. A nice way to play a gas recovery with a torque. He likes the Gordondale acquisition, a gas asset that they got from Encana. Did a very successful $700 million equity offering to finance the purchase. This adds a significant component of liquids, so now it is a 24% liquids company, rather than 10%. That helps the margins.

TOP PICK
TOP PICK
August 2, 2016

A royalty company, and a way of trying to reduce risks and volatility. It is always compared to PrairieSky (PSK-T), but about 4th the size and trades at about a 50% discount in terms of valuation. He likes the valuation and recently bought the equity issue, which he feels gives good torque to oil. It is about two thirds oil. Payout ratio is only two thirds of its cash flow, and about two thirds of that is the actual dividend. Solid balance sheet.

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A royalty company, and a way of trying to reduce risks and volatility. It is always compared to PrairieSky (PSK-T), but about 4th the size and trades at about a 50% discount in terms of valuation. He likes the valuation and recently bought the equity issue, which he feels gives good torque to oil. It is about two thirds oil. Payout ratio is only two thirds of its cash flow, and about two thirds of that is the actual dividend. Solid balance sheet.

COMMENT
COMMENT
August 2, 2016

Has spent a lot of time over the last couple of years focusing on e-commerce. When this company went public, there was a lot of love/hate with a lot of people questioning if they could deliver on the growth people expected. It has done a better than expected job in doing that, not just the one e-Commerce business but a marketplace business, with much higher margin than people expected. His challenge is that property rights in China are not as strong as they are in North America, so you actually have a very creative structure that owns the entity, Alibaba, you are not actually a direct investor in the business. Going forward it is going to be a lot more challenging given the size of the business. As margins have compressed, he doesn’t feel he is being compensated through the valuation today.

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Has spent a lot of time over the last couple of years focusing on e-commerce. When this company went public, there was a lot of love/hate with a lot of people questioning if they could deliver on the growth people expected. It has done a better than expected job in doing that, not just the one e-Commerce business but a marketplace business, with much higher margin than people expected. His challenge is that property rights in China are not as strong as they are in North America, so you actually have a very creative structure that owns the entity, Alibaba, you are not actually a direct investor in the business. Going forward it is going to be a lot more challenging given the size of the business. As margins have compressed, he doesn’t feel he is being compensated through the valuation today.