Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
January 6, 2017

High Liner (HLF-T) or Clearwater (CLR-T)? Sold his holdings on this about 3 months ago. Both stocks have had about a 22%-25% haircut in the last 90 days. Both are free cash flow generators, 8.2% for Clearwater and 6.1% for this one. There is $55 million of free cash flow for Clearwater, about 50% more in absolute dollars than on this one. ROE is about the same. The big difference in the coming year, is on the ROE, where it is forecasted to be 21% for this company. In comparison, Clearwater appears to be better value with better growth prospects.

High Liner Foods (HLF-T)
January 6, 2017

High Liner (HLF-T) or Clearwater (CLR-T)? Sold his holdings on this about 3 months ago. Both stocks have had about a 22%-25% haircut in the last 90 days. Both are free cash flow generators, 8.2% for Clearwater and 6.1% for this one. There is $55 million of free cash flow for Clearwater, about 50% more in absolute dollars than on this one. ROE is about the same. The big difference in the coming year, is on the ROE, where it is forecasted to be 21% for this company. In comparison, Clearwater appears to be better value with better growth prospects.

Robert McWhirter
President, Selective Asset Management
Price
$19.160
Owned
No
COMMENT
COMMENT
January 6, 2017

High Liner (HLF-T) or Clearwater (CLR-T)? Both stocks have had about a 22%-25% haircut in the last 90 days. Both are free cash flow generators, 8.2% for this one and 6.1% for High Liner. This has $55 million of free cash, about 50% more in absolute dollars versus High Liner. Analysts are more optimistic on earnings estimates. The big difference in the coming year, is on the ROE, where it is forecasted to be 32% for this company. In comparison, this one appears to be better value with better growth prospects.

High Liner (HLF-T) or Clearwater (CLR-T)? Both stocks have had about a 22%-25% haircut in the last 90 days. Both are free cash flow generators, 8.2% for this one and 6.1% for High Liner. This has $55 million of free cash, about 50% more in absolute dollars versus High Liner. Analysts are more optimistic on earnings estimates. The big difference in the coming year, is on the ROE, where it is forecasted to be 32% for this company. In comparison, this one appears to be better value with better growth prospects.

Robert McWhirter
President, Selective Asset Management
Price
$10.480
Owned
Unknown
COMMENT
COMMENT
January 6, 2017

Ranks 20 in his database. Yield is only about 1.3%, but what you are really hoping for is that earnings continue to grow with a 17.5% ROE. Thinks there is still good opportunity going forward.

Saputo Inc. (SAP-T)
January 6, 2017

Ranks 20 in his database. Yield is only about 1.3%, but what you are really hoping for is that earnings continue to grow with a 17.5% ROE. Thinks there is still good opportunity going forward.

Robert McWhirter
President, Selective Asset Management
Price
$46.390
Owned
Yes
COMMENT
COMMENT
January 6, 2017

You can buy a bag of blood product for about $200, and use this company’s method of extracting the high-value items from it. The 1st one is plasminogen, an orphan drug meaning you don’t have to go through the many years of testing. The stock is reasonably priced. They are also working on a drug PBI4050 which shows some very interesting early indications for reducing fibers. Expects you are going to see good opportunities in cash flow going from 2017 into 2018.

You can buy a bag of blood product for about $200, and use this company’s method of extracting the high-value items from it. The 1st one is plasminogen, an orphan drug meaning you don’t have to go through the many years of testing. The stock is reasonably priced. They are also working on a drug PBI4050 which shows some very interesting early indications for reducing fibers. Expects you are going to see good opportunities in cash flow going from 2017 into 2018.

Robert McWhirter
President, Selective Asset Management
Price
$2.150
Owned
Unknown
COMMENT
COMMENT
January 6, 2017

Average age of machines on a shop floor is about 20 years at roughly $1500 per machine. They can tie them all together and measure productivity. The payback is extremely attractive at about 400%, and the payback is less than 6 months. They work with Cisco (CSCO-Q) to create and reduce concerns between the shop floor and the top floor. They also have a relationship with Mazak, the largest machine tool maker globally with a 1,000,000 ft.² factory in the US, who are going to use their product as well as championing it out to a large number of customers. Thinks 2017 will be an attractive year.

Memex Inc. (OEE-X)
January 6, 2017

Average age of machines on a shop floor is about 20 years at roughly $1500 per machine. They can tie them all together and measure productivity. The payback is extremely attractive at about 400%, and the payback is less than 6 months. They work with Cisco (CSCO-Q) to create and reduce concerns between the shop floor and the top floor. They also have a relationship with Mazak, the largest machine tool maker globally with a 1,000,000 ft.² factory in the US, who are going to use their product as well as championing it out to a large number of customers. Thinks 2017 will be an attractive year.

Robert McWhirter
President, Selective Asset Management
Price
$0.240
Owned
Unknown
COMMENT
COMMENT
January 6, 2017

This has done extremely well, and thinks there will be more upside ahead of them. Copper, metallurgical coal and zinc. Zinc is one of the favourite metals over the next 3-5 years. Trading at 12.8X enterprise value to EBITDA trailing. It is cash flow positive which is very unusual for a mining company. Has a 19% ROE. Copper has been given a new long-term monthly and quarterly Buy, which typically means it goes longer and stronger. Very attractive.

This has done extremely well, and thinks there will be more upside ahead of them. Copper, metallurgical coal and zinc. Zinc is one of the favourite metals over the next 3-5 years. Trading at 12.8X enterprise value to EBITDA trailing. It is cash flow positive which is very unusual for a mining company. Has a 19% ROE. Copper has been given a new long-term monthly and quarterly Buy, which typically means it goes longer and stronger. Very attractive.

Robert McWhirter
President, Selective Asset Management
Price
$27.840
Owned
Unknown
COMMENT
COMMENT
January 6, 2017

Consensus earnings estimate for 2017 is $1.68, which compares to 2016 estimates of $1.61. The 6.7% dividend yield is the big question. Can it be maintained? The payout on 4 quarters of trailing cash flow is 75%. His rule of thumb is, if it pays out more than 100%, it is not sustainable. Cash flow estimate is from $1.75 in 2016, growing to $2 in 2017, a 10% increase. There is a concern that rising interest rates will affect them, but in his view, they have a greater opportunity to end up increasing their business, compared to someone who has a stable portfolio of either apartments or commercial rental properties. There are other income opportunities he would prefer.

Alaris Royalty (AD-T)
January 6, 2017

Consensus earnings estimate for 2017 is $1.68, which compares to 2016 estimates of $1.61. The 6.7% dividend yield is the big question. Can it be maintained? The payout on 4 quarters of trailing cash flow is 75%. His rule of thumb is, if it pays out more than 100%, it is not sustainable. Cash flow estimate is from $1.75 in 2016, growing to $2 in 2017, a 10% increase. There is a concern that rising interest rates will affect them, but in his view, they have a greater opportunity to end up increasing their business, compared to someone who has a stable portfolio of either apartments or commercial rental properties. There are other income opportunities he would prefer.

Robert McWhirter
President, Selective Asset Management
Price
$23.870
Owned
No