Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
July 25, 2017

Probably interesting, but it does have a “cash flow versus liability problem” for the time being, based on its dividend. It sold off a lot of assets so it pared its balance sheet to pay down debt. It is struggling through the problem of selling one thing, and making sure what they have allows them to grow. It has a good dividend, but presently is not earning enough to pay that. You have to question why they are paying a dividend.

Probably interesting, but it does have a “cash flow versus liability problem” for the time being, based on its dividend. It sold off a lot of assets so it pared its balance sheet to pay down debt. It is struggling through the problem of selling one thing, and making sure what they have allows them to grow. It has a good dividend, but presently is not earning enough to pay that. You have to question why they are paying a dividend.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$25.440
Owned
No
COMMENT
COMMENT
July 25, 2017

Should they buy Altagas’ Gordendale plant? He would be surprised if they would purchase it. A lot of energy companies try to run asset-like programs. He doesn’t think Altagas would want to sell the asset.

Should they buy Altagas’ Gordendale plant? He would be surprised if they would purchase it. A lot of energy companies try to run asset-like programs. He doesn’t think Altagas would want to sell the asset.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$6.270
Owned
Unknown
BUY
BUY
July 25, 2017

An exceptionally strong management team. A good solid balance sheet and a low-cost resource. They own a lot of their infrastructure and have access to many different outputs should one break down. Management team has shifted from being an exploration company to more of a development program. They’ve proven up reserves which are very, very substantial, and well delineated. Their natural gas is very liquids rich, and the wells they are drilling have been very extensive. He thinks this company is easily a double in a more normal energy price environment. Really strong management team which owns about 20% of the company.

An exceptionally strong management team. A good solid balance sheet and a low-cost resource. They own a lot of their infrastructure and have access to many different outputs should one break down. Management team has shifted from being an exploration company to more of a development program. They’ve proven up reserves which are very, very substantial, and well delineated. Their natural gas is very liquids rich, and the wells they are drilling have been very extensive. He thinks this company is easily a double in a more normal energy price environment. Really strong management team which owns about 20% of the company.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$6.560
Owned
Yes
COMMENT
COMMENT
July 25, 2017

Will the deal in the US go through? He owns the receipts, which is the right way to play this. If the deal doesn’t go through you are buying the receipts at $29 which pays a 7% dividend. If the deal doesn’t go through, you get $31 back. He thinks the deal will go through. Things are quiet because it is going through the regulatory hearings.

Altagas Ltd (ALA-T)
July 25, 2017

Will the deal in the US go through? He owns the receipts, which is the right way to play this. If the deal doesn’t go through you are buying the receipts at $29 which pays a 7% dividend. If the deal doesn’t go through, you get $31 back. He thinks the deal will go through. Things are quiet because it is going through the regulatory hearings.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$29.160
Owned
Yes
PAST TOP PICK
PAST TOP PICK
July 25, 2017

(A Top Pick July 6/16. Up 31.77%.) This is still a Buy. It has cancer drugs that work. Very, very profitable. Amazing balance sheet. Very, very strong management team.

Celgene Corp (CELG-Q)
July 25, 2017

(A Top Pick July 6/16. Up 31.77%.) This is still a Buy. It has cancer drugs that work. Very, very profitable. Amazing balance sheet. Very, very strong management team.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$136.440
Owned
Yes
PAST TOP PICK
PAST TOP PICK
July 25, 2017

(A Top Pick July 6/16. Up 11.12%.) A quality name, a quality franchise and well diversified. They create incredibly valuable content that has very, very long shelf life. Their parks, hotels and movie businesses are booming. He believes ESPN will eventually sort itself out. This is still a Buy.

Walt Disney (DIS-N)
July 25, 2017

(A Top Pick July 6/16. Up 11.12%.) A quality name, a quality franchise and well diversified. They create incredibly valuable content that has very, very long shelf life. Their parks, hotels and movie businesses are booming. He believes ESPN will eventually sort itself out. This is still a Buy.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$106.420
Owned
Yes
PAST TOP PICK
PAST TOP PICK
July 25, 2017

(A Top Pick July 6/16. Up 42.24%.) There is a lot of running room and you can still Buy it today. Trading at pretty reasonable valuations.

Facebook (FB-Q)
July 25, 2017

(A Top Pick July 6/16. Up 42.24%.) There is a lot of running room and you can still Buy it today. Trading at pretty reasonable valuations.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$165.280
Owned
Yes