Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
January 12, 2017

This is in a bit of a decline. Media assets are not exactly thrilling assets to hold right now. There is not a lot of growth. Their dividend is pretty well covered, so it is pretty safe. You are just not going to get the multiple expansion. Think of this as just a dividend payer, and hope that earnings turn around. The dividend yield is going to keep a bit of a floor under the stock, so you don’t really have to worry about that. Hopefully the media cycle can turn around a little. He sees better income opportunities elsewhere. Dividend yield of 8.7% may be a little rich.

This is in a bit of a decline. Media assets are not exactly thrilling assets to hold right now. There is not a lot of growth. Their dividend is pretty well covered, so it is pretty safe. You are just not going to get the multiple expansion. Think of this as just a dividend payer, and hope that earnings turn around. The dividend yield is going to keep a bit of a floor under the stock, so you don’t really have to worry about that. Hopefully the media cycle can turn around a little. He sees better income opportunities elsewhere. Dividend yield of 8.7% may be a little rich.

James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$13.130
Owned
No
COMMENT
COMMENT
January 12, 2017

Just looking at the numbers, you might think the dividend is not covered and that they have a lot of debt on the balance sheet, but a lot of this has to do with timing. They put a lot of new projects in place. Has a big joint venture with Encana (ECA-T) that is going to come on stream in the next couple of years. Management feels very certain that they are going to sell their US power plant assets, which will create another big cash flow inflow for them. He is not worried about the balance sheet. The dividend is well covered. A very attractive stock to own on the dividend growth side.

Veresen Inc (VSN-T)
January 12, 2017

Just looking at the numbers, you might think the dividend is not covered and that they have a lot of debt on the balance sheet, but a lot of this has to do with timing. They put a lot of new projects in place. Has a big joint venture with Encana (ECA-T) that is going to come on stream in the next couple of years. Management feels very certain that they are going to sell their US power plant assets, which will create another big cash flow inflow for them. He is not worried about the balance sheet. The dividend is well covered. A very attractive stock to own on the dividend growth side.

James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$12.840
Owned
No
WATCH
WATCH
January 12, 2017

One of those “Hail Mary” stocks. You can see where the deep value is in this name and there are a lot of changes going on. Looking at their last quarter and some of the moves they’ve made over the last few quarters, it is definitely encouraging. But you really have to see that translate into numbers. He is still a little skeptical.

BlackBerry (BB-T)
January 12, 2017

One of those “Hail Mary” stocks. You can see where the deep value is in this name and there are a lot of changes going on. Looking at their last quarter and some of the moves they’ve made over the last few quarters, it is definitely encouraging. But you really have to see that translate into numbers. He is still a little skeptical.

James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$9.480
Owned
No
COMMENT
COMMENT
January 12, 2017

Great story and a well-run company. If you think about all the trends that are happening with oil and infrastructure spending, it is hard to say that this company is not going to be pretty active. They definitely have the fundamentals to back them. The problem he has always had is that they always trade at very lofty valuations. Part of that is because of ROC that they make from their truck. He looks around and sees a lot of trucks that are not theirs. They don’t have a high barrier to entry like they used to. Prefers other names, but wouldn’t be too worried given the turnaround, and there is more room for multiple expansion.

Badger Daylighting (BAD-T)
January 12, 2017

Great story and a well-run company. If you think about all the trends that are happening with oil and infrastructure spending, it is hard to say that this company is not going to be pretty active. They definitely have the fundamentals to back them. The problem he has always had is that they always trade at very lofty valuations. Part of that is because of ROC that they make from their truck. He looks around and sees a lot of trucks that are not theirs. They don’t have a high barrier to entry like they used to. Prefers other names, but wouldn’t be too worried given the turnaround, and there is more room for multiple expansion.

James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$31.600
Owned
No
COMMENT
COMMENT
January 12, 2017

This has been a great turnaround story. A great business. He has exposure to the aerospace sector through another company, which he prefers. The chart on this looks great, and the valuation isn’t stretched by any means. If you don’t hold something in the aerospace sector, this would be a high-quality name to own. He doesn’t see a lot of risk in the near term.

CAE Inc (CAE-T)
January 12, 2017

This has been a great turnaround story. A great business. He has exposure to the aerospace sector through another company, which he prefers. The chart on this looks great, and the valuation isn’t stretched by any means. If you don’t hold something in the aerospace sector, this would be a high-quality name to own. He doesn’t see a lot of risk in the near term.

James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$18.660
Owned
No
COMMENT
COMMENT
January 12, 2017

(Market Call Minute.) A long-time favourite, but he is no longer in it. Fundamentally it broke down. The 1st half is supposed to be their strongest, and it is not going to be.

(Market Call Minute.) A long-time favourite, but he is no longer in it. Fundamentally it broke down. The 1st half is supposed to be their strongest, and it is not going to be.

James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$10.220
Owned
No
BUY
BUY
January 12, 2017

(Market Call Minute.) Now is a great time to pick up this high-quality asset, one of the best growth profiles in the space, and one of the best valuations for that level of growth.

(Market Call Minute.) Now is a great time to pick up this high-quality asset, one of the best growth profiles in the space, and one of the best valuations for that level of growth.

James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$31.340
Owned
Unknown