Latest Expert Opinions

Signal
Opinion
Expert
TOP PICK
TOP PICK
December 29, 2016

Now that they have their bank license, it is really going to help in terms of marketing. One of their biggest clients was TD Bank (TD-T). TD said they will deal bank to bank as a lot of the banks want to do, partly from compliance purposes, but the other from capital provisioning. In the next 6 months, he expects they are going to land a lot of the Canadian banks. On top of that, they landed one of the top 3 US banks last summer, and that will start trickling into their earnings which are coming early January. Using the existing customer base, he calculates they are going to be growing revenue at 22% next year, and earnings are going to be up 44%. If you compare that to any of the 8 Canadian listed banks, he would rather have this one. (Analysts’ price target is $38.50.)

Now that they have their bank license, it is really going to help in terms of marketing. One of their biggest clients was TD Bank (TD-T). TD said they will deal bank to bank as a lot of the banks want to do, partly from compliance purposes, but the other from capital provisioning. In the next 6 months, he expects they are going to land a lot of the Canadian banks. On top of that, they landed one of the top 3 US banks last summer, and that will start trickling into their earnings which are coming early January. Using the existing customer base, he calculates they are going to be growing revenue at 22% next year, and earnings are going to be up 44%. If you compare that to any of the 8 Canadian listed banks, he would rather have this one. (Analysts’ price target is $38.50.)

Jerome Hass
Portfolio Manager, Lightwater Partners
Price
$27.500
Owned
Yes
TOP PICK
TOP PICK
December 29, 2016

Produces succinic acid, a standard building block that is used in things like plastic and polymers, for a variety of industries such as auto parts, plastic plants, and even pharmaceuticals. Has the world’s largest succinic acid plant in Sarnia Ontario. Instead of the traditional route, making the product from petrochemicals, they make it from industrial sugars. They can use any of the cheapest sugars, and currently use fructose made from corn. They can do it cheaper than it can be done from a petrochemical. About to launch a 2nd plant which will be in either Louisiana or Sarnia. Going to ramp up production mid-2017, producing $25 million in EBITDA. A name that nobody knows about in Canada. It is going to have a TSX listing. Last week it got a big boost when one of the top 3 Canadian pension funds and one of the top 10 global pension funds made investments in the stock. (Analysts’ price target is $8.73.)

BioAmber Inc (BIOA-N)
December 29, 2016

Produces succinic acid, a standard building block that is used in things like plastic and polymers, for a variety of industries such as auto parts, plastic plants, and even pharmaceuticals. Has the world’s largest succinic acid plant in Sarnia Ontario. Instead of the traditional route, making the product from petrochemicals, they make it from industrial sugars. They can use any of the cheapest sugars, and currently use fructose made from corn. They can do it cheaper than it can be done from a petrochemical. About to launch a 2nd plant which will be in either Louisiana or Sarnia. Going to ramp up production mid-2017, producing $25 million in EBITDA. A name that nobody knows about in Canada. It is going to have a TSX listing. Last week it got a big boost when one of the top 3 Canadian pension funds and one of the top 10 global pension funds made investments in the stock. (Analysts’ price target is $8.73.)

Jerome Hass
Portfolio Manager, Lightwater Partners
Price
$4.930
Owned
Yes
TOP PICK
TOP PICK
December 29, 2016

The CEO said 4 things to improve the share price. 1.) Initiated a dividend, 2) bought back shares, (bought back shares himself) 3) launched a substantial issuer bid, and 4) taking the company private. He has hired Goldman Sachs (GS-N) to do so. Thinks it gets taken out by at least $24, a 30% upside from here. You get a 6.5% of it in yield while waiting. Dividend yield of 6.67%. (Analysts’ price target is $19.69.)

The CEO said 4 things to improve the share price. 1.) Initiated a dividend, 2) bought back shares, (bought back shares himself) 3) launched a substantial issuer bid, and 4) taking the company private. He has hired Goldman Sachs (GS-N) to do so. Thinks it gets taken out by at least $24, a 30% upside from here. You get a 6.5% of it in yield while waiting. Dividend yield of 6.67%. (Analysts’ price target is $19.69.)

Jerome Hass
Portfolio Manager, Lightwater Partners
Price
$18.060
Owned
Yes