Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
January 10, 2017

Visa and MasterCard (MA-N) have been terrific performers over the last few years. There was so much regulation in other parts of financial services, there was no earnings growth, other than a few names. These 2 were getting all of money and valuations kept getting pushed. On earnings valuation, they are in the mid-20s. They’ve actually come down, because they continue to grow and the stocks flattened out a little. When the other parts of financial services, US banks, US brokerage firms start to do better, money will come out of these high flyers. He prefers things like Bank of America (BAC-N), Goldman Sachs (GS-N), Morgan Stanley (MS-N) which are probably going to have similar, if not better earnings growth over the next couple of years.

Show full opinionHide full opinion
Visa Inc. (V-N)
January 10, 2017

Visa and MasterCard (MA-N) have been terrific performers over the last few years. There was so much regulation in other parts of financial services, there was no earnings growth, other than a few names. These 2 were getting all of money and valuations kept getting pushed. On earnings valuation, they are in the mid-20s. They’ve actually come down, because they continue to grow and the stocks flattened out a little. When the other parts of financial services, US banks, US brokerage firms start to do better, money will come out of these high flyers. He prefers things like Bank of America (BAC-N), Goldman Sachs (GS-N), Morgan Stanley (MS-N) which are probably going to have similar, if not better earnings growth over the next couple of years.

COMMENT
COMMENT
January 10, 2017

Sort of a dual company ever since they bought Aurora a couple of years ago, so it has heavy oil assets in Western Canada, and really, really high quality Permian Basin assets in West Texas. It’s older legacy assets are higher cost and the Permian Basin are low cost. They went into this down cycle with too much debt, and got slammed. This is interesting here, because he is constructive on oil prices, and that oil will make its way higher up to the $60 range later this year. Even though that is only a 15%-20% move in oil, it has a much bigger impact on companies like this. He likes this here.

Show full opinionHide full opinion
Baytex Energy Corp (BTE-T)
January 10, 2017

Sort of a dual company ever since they bought Aurora a couple of years ago, so it has heavy oil assets in Western Canada, and really, really high quality Permian Basin assets in West Texas. It’s older legacy assets are higher cost and the Permian Basin are low cost. They went into this down cycle with too much debt, and got slammed. This is interesting here, because he is constructive on oil prices, and that oil will make its way higher up to the $60 range later this year. Even though that is only a 15%-20% move in oil, it has a much bigger impact on companies like this. He likes this here.

COMMENT
COMMENT
January 10, 2017

This looks like it has decent earnings growth into 2017 off of 2016. It has had a big run with the Trump rally, but remember all these life insurance companies fare a lot better in a rate environment where rates aren’t at zero and the curve isn’t flat. It should continue to do better here. There is nothing wrong with this company.

Show full opinionHide full opinion
Manulife Financial (MFC-T)
January 10, 2017

This looks like it has decent earnings growth into 2017 off of 2016. It has had a big run with the Trump rally, but remember all these life insurance companies fare a lot better in a rate environment where rates aren’t at zero and the curve isn’t flat. It should continue to do better here. There is nothing wrong with this company.

COMMENT
COMMENT
January 10, 2017

For US technology, there are a bunch of cross currents for a lot of them. There is a potential big benefit if the US allows repatriation of foreign cash. Some, including this one, would be big recipients. This one continues to grow very, very nicely, both its core business and its YouTube franchise. Has a bunch of businesses that are not generating a lot of profits yet, which at some point could crystallize. A 25% grower trading just over the market multiple at closer to 20X earnings.

Show full opinionHide full opinion

For US technology, there are a bunch of cross currents for a lot of them. There is a potential big benefit if the US allows repatriation of foreign cash. Some, including this one, would be big recipients. This one continues to grow very, very nicely, both its core business and its YouTube franchise. Has a bunch of businesses that are not generating a lot of profits yet, which at some point could crystallize. A 25% grower trading just over the market multiple at closer to 20X earnings.

COMMENT
COMMENT
January 10, 2017

On his radar screen, because it has a growth outlook to its earnings. A very high quality business. It has capital abroad that could be repatriated. The valuation is very, very reasonable at about 12.5X 2017 earnings.

Show full opinionHide full opinion
Cisco (CSCO-Q)
January 10, 2017

On his radar screen, because it has a growth outlook to its earnings. A very high quality business. It has capital abroad that could be repatriated. The valuation is very, very reasonable at about 12.5X 2017 earnings.

COMMENT
COMMENT
January 10, 2017

In the hardware group in technology, Cisco (CSCO-Q) is one of the key names he is taking a close look at. AMD and a number of the semiconductors have had a monstrous run and valuations just aren’t there for an entry point.

Show full opinionHide full opinion

In the hardware group in technology, Cisco (CSCO-Q) is one of the key names he is taking a close look at. AMD and a number of the semiconductors have had a monstrous run and valuations just aren’t there for an entry point.

PAST TOP PICK
PAST TOP PICK
January 10, 2017

(A Top Pick Aug 17/16. Down 13.44%.) A terrific company, and shows up as the highest quality company in its group. Unfortunately, they got painted by the specialty pharmaceutical brush. It is getting a bit of a reprieve right now. He still likes this. It has one of the best growth profiles of any of the specialty pharmaceutical companies. The majority of its businesses are not subject to the same type of price controls that could come under government scrutiny.

Show full opinionHide full opinion
Allergan PLC. (AGN-N)
January 10, 2017

(A Top Pick Aug 17/16. Down 13.44%.) A terrific company, and shows up as the highest quality company in its group. Unfortunately, they got painted by the specialty pharmaceutical brush. It is getting a bit of a reprieve right now. He still likes this. It has one of the best growth profiles of any of the specialty pharmaceutical companies. The majority of its businesses are not subject to the same type of price controls that could come under government scrutiny.