Latest Expert Opinions

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
February 22, 2017

Last summer the company was talking about sales execution of $350 million from 2016 to 2018. He questioned that. They were about a third of the way through their fiscal year and were predicting executed sales of $180 million. First-quarter results came in with only $1.1 million. In November, the OSC put the company under a disclosure review, and so they had to put out a press release rewording the press releases. Also, had to amend their annual information form. Expects there may be a further delay in the roll-out of their mass production. He calculates they are sitting on 4 years’ worth of inventory from their German plant that they acquired. Thinks they are going to have to do an equity issue and there is going to be dissolution of some existing shareholders. There are better places to put your money.

Electrovaya Inc. (EFL-T)
February 22, 2017

Last summer the company was talking about sales execution of $350 million from 2016 to 2018. He questioned that. They were about a third of the way through their fiscal year and were predicting executed sales of $180 million. First-quarter results came in with only $1.1 million. In November, the OSC put the company under a disclosure review, and so they had to put out a press release rewording the press releases. Also, had to amend their annual information form. Expects there may be a further delay in the roll-out of their mass production. He calculates they are sitting on 4 years’ worth of inventory from their German plant that they acquired. Thinks they are going to have to do an equity issue and there is going to be dissolution of some existing shareholders. There are better places to put your money.

Jerome Hass
Portfolio Manager, Lightwater Partners
Price
$2.430
Owned
Unknown
COMMENT
COMMENT
February 22, 2017

He still likes this. Prefers the preferred B shares as opposed to the common, but likes them both. Given what has happened in the rebound in oil/gas, this is probably one of the most leveraged plays on the street having recently bought FirstEnergy. On top of that, the Wealth Management Group put themselves up for sale in the fall, but some of the costs they had when they took over the McQuarrie group are now coming off the books, so he thinks profitability of the Wealth Management Group is going to go up.

He still likes this. Prefers the preferred B shares as opposed to the common, but likes them both. Given what has happened in the rebound in oil/gas, this is probably one of the most leveraged plays on the street having recently bought FirstEnergy. On top of that, the Wealth Management Group put themselves up for sale in the fall, but some of the costs they had when they took over the McQuarrie group are now coming off the books, so he thinks profitability of the Wealth Management Group is going to go up.

Jerome Hass
Portfolio Manager, Lightwater Partners
Price
$4.190
Owned
Yes
COMMENT
COMMENT
February 22, 2017

They indicated taking the company private. There was an update on a press release about a week ago, where they indicated the privatization had 17 expressions of interest. The process started October 31 and the CEO thought it would be about a 6-month process, so by the end of Q2, he expects the process will be completed. Probably worth $2 over the value.

They indicated taking the company private. There was an update on a press release about a week ago, where they indicated the privatization had 17 expressions of interest. The process started October 31 and the CEO thought it would be about a 6-month process, so by the end of Q2, he expects the process will be completed. Probably worth $2 over the value.

Jerome Hass
Portfolio Manager, Lightwater Partners
Price
$18.480
Owned
Yes
COMMENT
COMMENT
February 22, 2017

Recently added a small position to his portfolio. He is quite impressed with management. They have 90% market share in Canada. A nice play on Internet growth as people use the Internet for shopping. Results will be coming out shortly, and there should be decent sized results from the Christmas season.

Cargojet Inc (CJT-T)
February 22, 2017

Recently added a small position to his portfolio. He is quite impressed with management. They have 90% market share in Canada. A nice play on Internet growth as people use the Internet for shopping. Results will be coming out shortly, and there should be decent sized results from the Christmas season.

Jerome Hass
Portfolio Manager, Lightwater Partners
Price
$48.150
Owned
Yes
PAST TOP PICK
PAST TOP PICK
February 22, 2017

(A Top Pick Feb 8/16. Up 20.45%.) Got their Schedule 1 license as a bank in September. Unfortunately, when the results came out in early January, people were looking for immediate benefits, but it normally takes 3-6 months to see the benefits. He still really likes this.

(A Top Pick Feb 8/16. Up 20.45%.) Got their Schedule 1 license as a bank in September. Unfortunately, when the results came out in early January, people were looking for immediate benefits, but it normally takes 3-6 months to see the benefits. He still really likes this.

Jerome Hass
Portfolio Manager, Lightwater Partners
Price
$26.990
Owned
Yes
PAST TOP PICK
PAST TOP PICK
February 22, 2017

(A Top Pick Feb 8/16. Down 16.58%.) Long. (A Pairs trade with a Short on Valeant Pharma (VRX-T). Unfortunately both stocks came down.

Mylan Inc (MYL-Q)
February 22, 2017

(A Top Pick Feb 8/16. Down 16.58%.) Long. (A Pairs trade with a Short on Valeant Pharma (VRX-T). Unfortunately both stocks came down.

Jerome Hass
Portfolio Manager, Lightwater Partners
Price
$42.000
Owned
Yes
PAST TOP PICK
PAST TOP PICK
February 22, 2017

(A Top Pick Feb 8/16. Down 30.57%.)*Short*. He is very proud of this company. There are very few Canadian companies that can say they are a world leader in what they do. Had this as a Short because they tend to be a late stage player in oil/gas. Feels the market got a little bit ahead of itself in pricing this in, but rather than fight the tape, he exited the position.

Shawcor Ltd. (A) (SCL-T)
February 22, 2017

(A Top Pick Feb 8/16. Down 30.57%.)*Short*. He is very proud of this company. There are very few Canadian companies that can say they are a world leader in what they do. Had this as a Short because they tend to be a late stage player in oil/gas. Feels the market got a little bit ahead of itself in pricing this in, but rather than fight the tape, he exited the position.

Jerome Hass
Portfolio Manager, Lightwater Partners
Price
$36.680
Owned
No