Latest Expert Opinions

Signal
Opinion
Expert
SELL
SELL
December 23, 2016

A lot of people took a bath this year. There were a few additional issues that came up. BREXIT hurt them more than expected. The acquisition of Amco was based primarily in Britain, and the currency translation really hurt. Also, they have generic competition for some of their US drugs. When you have a large debt outstanding, there is no room in your equity. Sold his holdings in the high teens. He doesn’t know if they will survive. Take a tax loss today, and then later on you can buy it back.

A lot of people took a bath this year. There were a few additional issues that came up. BREXIT hurt them more than expected. The acquisition of Amco was based primarily in Britain, and the currency translation really hurt. Also, they have generic competition for some of their US drugs. When you have a large debt outstanding, there is no room in your equity. Sold his holdings in the high teens. He doesn’t know if they will survive. Take a tax loss today, and then later on you can buy it back.

John Zechner
Chairman, J. Zechner & Assoc
Price
$2.910
Owned
No
DON'T BUY
DON'T BUY
December 23, 2016

Of the major money-centred banks, he would probably rank this at the bottom of the big 4. They’re going to have more consumer issues over the next year or 2. They’ve had a premium valuation which is going to erode a little.

Wells Fargo (WFC-N)
December 23, 2016

Of the major money-centred banks, he would probably rank this at the bottom of the big 4. They’re going to have more consumer issues over the next year or 2. They’ve had a premium valuation which is going to erode a little.

John Zechner
Chairman, J. Zechner & Assoc
Price
$55.960
Owned
No
HOLD
HOLD
December 23, 2016

Wouldn’t be his top pick, as he sees them having less cash flow generation, and more political risk with some of the jurisdictions they are in. They have a lot of mines on the go right now and having a hard time managing the growth operationally. He is getting a little more bullish on golds. (See Top Picks.)

Yamana Gold Inc. (YRI-T)
December 23, 2016

Wouldn’t be his top pick, as he sees them having less cash flow generation, and more political risk with some of the jurisdictions they are in. They have a lot of mines on the go right now and having a hard time managing the growth operationally. He is getting a little more bullish on golds. (See Top Picks.)

John Zechner
Chairman, J. Zechner & Assoc
Price
$3.430
Owned
Unknown
COMMENT
COMMENT
December 23, 2016

Still a little concerned on software lumber. When Donald Trump takes office, he thinks he is looking to negate a couple of trade deals, and this is probably the easiest one to step on.

West Fraser Timber (WFT-T)
December 23, 2016

Still a little concerned on software lumber. When Donald Trump takes office, he thinks he is looking to negate a couple of trade deals, and this is probably the easiest one to step on.

John Zechner
Chairman, J. Zechner & Assoc
Price
$48.470
Owned
No
COMMENT
COMMENT
December 23, 2016

Conceptually he loves the area they are going to, regarding the payment system, electronic banking, etc. The acquisitions they’ve done in the past 2 years have yet to prove themselves, which is a problem because there is a lot of debt on the balance sheet. Not sure about the quality of assets they acquired in the past year. He would love to see a quarter or 2 of good results.

DH Corporation (DH-T)
December 23, 2016

Conceptually he loves the area they are going to, regarding the payment system, electronic banking, etc. The acquisitions they’ve done in the past 2 years have yet to prove themselves, which is a problem because there is a lot of debt on the balance sheet. Not sure about the quality of assets they acquired in the past year. He would love to see a quarter or 2 of good results.

John Zechner
Chairman, J. Zechner & Assoc
Price
$21.990
Owned
No
COMMENT
COMMENT
December 23, 2016

He still likes this. It has been frustrating, particularly this year. People really seem to have priced the next auto downturn into the stock. Currently trading at 6X this year’s earnings and 5X next year’s. They are one of the best positioned for the increasing use of aluminum. Very strong management. Feels this is exceptionally cheap.

Martinrea (MRE-T)
December 23, 2016

He still likes this. It has been frustrating, particularly this year. People really seem to have priced the next auto downturn into the stock. Currently trading at 6X this year’s earnings and 5X next year’s. They are one of the best positioned for the increasing use of aluminum. Very strong management. Feels this is exceptionally cheap.

John Zechner
Chairman, J. Zechner & Assoc
Price
$8.510
Owned
Yes
PAST TOP PICK
PAST TOP PICK
December 23, 2016

(A Top Pick Dec 7/15. Down 1.83%.) He believes in the IOS operating system, and thinks this is going to move more towards a software company over time. It will get a higher valuation. It won’t be selling 50 million iPhones a quarter, and there might be some margin pressures, but meanwhile it is trading at 11X forward earnings, probably 9X net of all the cash on the balance sheet. This has huge, huge value in it.

Apple (AAPL-Q)
December 23, 2016

(A Top Pick Dec 7/15. Down 1.83%.) He believes in the IOS operating system, and thinks this is going to move more towards a software company over time. It will get a higher valuation. It won’t be selling 50 million iPhones a quarter, and there might be some margin pressures, but meanwhile it is trading at 11X forward earnings, probably 9X net of all the cash on the balance sheet. This has huge, huge value in it.

John Zechner
Chairman, J. Zechner & Assoc
Price
$116.520
Owned
Yes