Latest Expert Opinions

Signal
Opinion
Expert
HOLD
HOLD
February 13, 2017

It dropped 2 weeks ago, because of the earnings. Some of the investors and analysts took that as a negative. You have to remember that a $45 drop in the stock is pretty small percentage wise. Still one of his favourites. They own “search”, and with Facebook (FB-Q) they own “mobile advertising”, one of the best growth areas out there. They do very smart acquisitions and generate a lot of cash. Still one of the great growth stocks out there. Only trading at about a 20-22 multiple.

It dropped 2 weeks ago, because of the earnings. Some of the investors and analysts took that as a negative. You have to remember that a $45 drop in the stock is pretty small percentage wise. Still one of his favourites. They own “search”, and with Facebook (FB-Q) they own “mobile advertising”, one of the best growth areas out there. They do very smart acquisitions and generate a lot of cash. Still one of the great growth stocks out there. Only trading at about a 20-22 multiple.

John Zechner
Chairman, J. Zechner & Assoc
Price
$819.240
Owned
Yes
COMMENT
COMMENT
February 13, 2017

The glory days of those old growth parameters under Welsh are over. It was a different story back then. Too big a ship to move in the same way. The restructuring in the past couple of years makes sense. In the short term, there are going to be some headwinds as global capital spending slows. The strength of the US$ is a bit of a headwind.

General Electric (GE-N)
February 13, 2017

The glory days of those old growth parameters under Welsh are over. It was a different story back then. Too big a ship to move in the same way. The restructuring in the past couple of years makes sense. In the short term, there are going to be some headwinds as global capital spending slows. The strength of the US$ is a bit of a headwind.

John Zechner
Chairman, J. Zechner & Assoc
Price
$30.040
Owned
Unknown
PARTIAL SELL
PARTIAL SELL
February 13, 2017

Finally had a good quarter, but he thinks it was too much. This has been a very volatile story over the past number of years. Valuation is very rich right now. If you own, he would consider taking some profits.

Sierra Wireless (SW-T)
February 13, 2017

Finally had a good quarter, but he thinks it was too much. This has been a very volatile story over the past number of years. Valuation is very rich right now. If you own, he would consider taking some profits.

John Zechner
Chairman, J. Zechner & Assoc
Price
$32.890
Owned
No
HOLD
HOLD
February 13, 2017

He likes this company. Not only are they strong in infrastructure, but are also strong in energy spending, in particular in their Alberta acquisition they did a couple of years ago. They’ve been improving their operating margins. Volatility was always a big problem, where they got the big giant contracts and ended up losing money because of cost overruns. They’ve got that under better control and are stabilizing the earnings growth.

Aecon Group Inc (ARE-T)
February 13, 2017

He likes this company. Not only are they strong in infrastructure, but are also strong in energy spending, in particular in their Alberta acquisition they did a couple of years ago. They’ve been improving their operating margins. Volatility was always a big problem, where they got the big giant contracts and ended up losing money because of cost overruns. They’ve got that under better control and are stabilizing the earnings growth.

John Zechner
Chairman, J. Zechner & Assoc
Price
$16.680
Owned
Unknown
SELL
SELL
February 13, 2017

Reporting 4th quarter earnings on Wednesday. They’ll have great earnings because of met coal prices. They do 27 million metric tons of coal a year. Coal has probably done $100 better than they expected in the past year. It gave them $2.7 billion in increased earnings in the past year. Met coal prices, after running from $100 to almost $300, have come back down to $160, and expects it will go lower. Thinks the stock is going to be looking at down earnings in the next couple of years. If you own, he would sell it now.

Reporting 4th quarter earnings on Wednesday. They’ll have great earnings because of met coal prices. They do 27 million metric tons of coal a year. Coal has probably done $100 better than they expected in the past year. It gave them $2.7 billion in increased earnings in the past year. Met coal prices, after running from $100 to almost $300, have come back down to $160, and expects it will go lower. Thinks the stock is going to be looking at down earnings in the next couple of years. If you own, he would sell it now.

John Zechner
Chairman, J. Zechner & Assoc
Price
$33.320
Owned
No
TOP PICK
TOP PICK
February 13, 2017

There are worries about the auto sector, and this has been under additional pressure, but he likes the valuation. When you get a stock trading at 5 or 6 times forward earnings, and 3X operating cash flow, you are already assuming the worst. They have a lot of downside protection. He likes the operations. They probably have the best exposure to aluminum in the automobile, which is increasing. European operations are doing well. Capacity is increasing and they are getting higher margins from that. Dividend yield of 1.38%. (Analysts’ price target is $11.68.)

Martinrea (MRE-T)
February 13, 2017

There are worries about the auto sector, and this has been under additional pressure, but he likes the valuation. When you get a stock trading at 5 or 6 times forward earnings, and 3X operating cash flow, you are already assuming the worst. They have a lot of downside protection. He likes the operations. They probably have the best exposure to aluminum in the automobile, which is increasing. European operations are doing well. Capacity is increasing and they are getting higher margins from that. Dividend yield of 1.38%. (Analysts’ price target is $11.68.)

John Zechner
Chairman, J. Zechner & Assoc
Price
$8.700
Owned
Yes
TOP PICK
TOP PICK
February 13, 2017

*Short* They’ve missed expectations 14 quarters in a row, 5 down-years of earnings. Management just said expectations were too high for next year. On their website, they are selling used equipment at a discount, rather than new equipment. Doesn’t see where growth is coming from. Dividend yield of 3.13%. (Analysts’ price target is $98.45.)

Caterpillar (CAT-N)
February 13, 2017

*Short* They’ve missed expectations 14 quarters in a row, 5 down-years of earnings. Management just said expectations were too high for next year. On their website, they are selling used equipment at a discount, rather than new equipment. Doesn’t see where growth is coming from. Dividend yield of 3.13%. (Analysts’ price target is $98.45.)

John Zechner
Chairman, J. Zechner & Assoc
Price
$98.500
Owned
Yes