Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
January 12, 2017

Do pipelines get hit if interest rates go up? We now have a scenario where oil prices are rising and there is an issue with infrastructure in Canada and the US. Thinks pipelines are a good investment for a dividend portfolio. Prefers Enbridge (ENB-T), and has recently done a lot of work on Veresen (VSN-T) which offers a much higher dividend yield and are involved in some great projects which will come on stream in the next few quarters. IPL might do fine. You might lose some flows from interest rates. Also if oil does start to rally towards $60 flows might come out of the pipelines and into the ENPs. If looking for a nice dividend in something steady, this would fit that portfolio.

Inter Pipeline (IPL-T)
January 12, 2017

Do pipelines get hit if interest rates go up? We now have a scenario where oil prices are rising and there is an issue with infrastructure in Canada and the US. Thinks pipelines are a good investment for a dividend portfolio. Prefers Enbridge (ENB-T), and has recently done a lot of work on Veresen (VSN-T) which offers a much higher dividend yield and are involved in some great projects which will come on stream in the next few quarters. IPL might do fine. You might lose some flows from interest rates. Also if oil does start to rally towards $60 flows might come out of the pipelines and into the ENPs. If looking for a nice dividend in something steady, this would fit that portfolio.

James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$29.220
Owned
No
HOLD
HOLD
January 12, 2017

No longer just a soda manufacturer. They’ve gotten heavy into the coffee and water delivery business around offices, homes and shops. A high free cash flow business, and they’ve been able to roll up that sector, both in Canada and Europe, on very, very cheap multiples. They’ve put a lot of debt on the balance sheet. While they are generating a lot of free cash flow, it seems the narrative has changed over the last few months. Part of it has to do with the British pound decline. There is a question as to how long they are going to be able to service their debt properly and how long will it take. Sold his holdings, but may look to enter again once they de-lever the business a little.

Cott Corp (BCB-T)
January 12, 2017

No longer just a soda manufacturer. They’ve gotten heavy into the coffee and water delivery business around offices, homes and shops. A high free cash flow business, and they’ve been able to roll up that sector, both in Canada and Europe, on very, very cheap multiples. They’ve put a lot of debt on the balance sheet. While they are generating a lot of free cash flow, it seems the narrative has changed over the last few months. Part of it has to do with the British pound decline. There is a question as to how long they are going to be able to service their debt properly and how long will it take. Sold his holdings, but may look to enter again once they de-lever the business a little.

James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$14.590
Owned
No
COMMENT
COMMENT
January 12, 2017

A recent spinoff from Element Financial. The stock has had a hard time getting anything going. However, the valuation of the business looks compelling and is something he is watching. It should improve if you believe in his thesis that the economy is improving in the US. This is a name that should do well in that environment. He is a bit cautious on this, but is following it.

ECN Capital (ECN-T)
January 12, 2017

A recent spinoff from Element Financial. The stock has had a hard time getting anything going. However, the valuation of the business looks compelling and is something he is watching. It should improve if you believe in his thesis that the economy is improving in the US. This is a name that should do well in that environment. He is a bit cautious on this, but is following it.

James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$3.210
Owned
No
COMMENT
COMMENT
January 12, 2017

Has been following this name for years, but hasn’t been in it for the last couple of years. He is watching very closely in the $60s. Remember, this is a business that has an incredible amount of human capital and intellectual capital. They make some of the biggest and best satellites in the world. The problem with satellites is that it is a very lumpy business, and they are going through one of those tough periods right now, and it really squeezes the margins. It is probably not a bad time to Buy the stock if you are a long-term investor.

Has been following this name for years, but hasn’t been in it for the last couple of years. He is watching very closely in the $60s. Remember, this is a business that has an incredible amount of human capital and intellectual capital. They make some of the biggest and best satellites in the world. The problem with satellites is that it is a very lumpy business, and they are going through one of those tough periods right now, and it really squeezes the margins. It is probably not a bad time to Buy the stock if you are a long-term investor.

James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$68.610
Owned
No
COMMENT
COMMENT
January 12, 2017

His energy outlook is quite bullish. A lot of the skepticism around OPEC will come to pass, and that is what is really holding back the oil price. Doesn’t think it is unrealistic to see a $60-$65-$70 barrel of oil this year. There is a reason why OPEC wanted to cut production out of left field, as they felt it was really important with non-OPEC members. They want the price to normalize. This is one of the names with more torque. If you think oil prices are going to hit $60-$65, this one is still cheap and has a lot of upside.

Precision Drilling (PD-T)
January 12, 2017

His energy outlook is quite bullish. A lot of the skepticism around OPEC will come to pass, and that is what is really holding back the oil price. Doesn’t think it is unrealistic to see a $60-$65-$70 barrel of oil this year. There is a reason why OPEC wanted to cut production out of left field, as they felt it was really important with non-OPEC members. They want the price to normalize. This is one of the names with more torque. If you think oil prices are going to hit $60-$65, this one is still cheap and has a lot of upside.

James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$7.340
Owned
No
COMMENT
COMMENT
January 12, 2017

Of the 3 royalty businesses, this is the one that he would gravitate to if he were going to invest. It has a nice dividend yield which attracts investors. The one issue with these companies is finding good investments that are going to yield and feed that 10% dividend. In the last year, they have been divesting assets, but they have Mr. Lube as well as another real estate asset, which are good assets. He is on the sidelines until he sees something that they actually do. There are better places to get dividend growth.

Of the 3 royalty businesses, this is the one that he would gravitate to if he were going to invest. It has a nice dividend yield which attracts investors. The one issue with these companies is finding good investments that are going to yield and feed that 10% dividend. In the last year, they have been divesting assets, but they have Mr. Lube as well as another real estate asset, which are good assets. He is on the sidelines until he sees something that they actually do. There are better places to get dividend growth.

James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$2.590
Owned
No
PAST TOP PICK
PAST TOP PICK
January 12, 2017

(A Top Pick Jan 6/16. Down 15.85%.) One of the more frustrating names in technology that he has looked at. Has always liked what they do and the valuation always seems reasonable. Generates a lot of cash. Has really scaled back his position in this. At the current price, you are building in pretty much all the downside, and not giving them any opportunity for upside. Security is a big thing they are getting into. Thinks there are better days ahead for them.

Sandvine Corp. (SVC-T)
January 12, 2017

(A Top Pick Jan 6/16. Down 15.85%.) One of the more frustrating names in technology that he has looked at. Has always liked what they do and the valuation always seems reasonable. Generates a lot of cash. Has really scaled back his position in this. At the current price, you are building in pretty much all the downside, and not giving them any opportunity for upside. Security is a big thing they are getting into. Thinks there are better days ahead for them.

James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$2.640
Owned
Yes