Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
July 25, 2017

Has owned some of this for a long time, and the only reason he hasn’t sold it is that he doesn’t want to pay the tax. The company has been treading water and is down about 7% year to date. It has been pursuing a growth by acquisition strategy, and doing it by raising its dividend to attract investors, and selling stock to pay for the dividend. They have been selling stock endlessly for 10 years now. They’ve exhausted the investment community. Very, very complex balance sheet.

Enbridge (ENB-T)
July 25, 2017

Has owned some of this for a long time, and the only reason he hasn’t sold it is that he doesn’t want to pay the tax. The company has been treading water and is down about 7% year to date. It has been pursuing a growth by acquisition strategy, and doing it by raising its dividend to attract investors, and selling stock to pay for the dividend. They have been selling stock endlessly for 10 years now. They’ve exhausted the investment community. Very, very complex balance sheet.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$52.130
Owned
Yes
COMMENT
COMMENT
July 25, 2017

This has done an exceptionally good job of moving up the food chain and increasing prices to $5. The strengthening Cdn$ is going to help a little, because they source a lot of their product internationally. A very, very well-run company. The one company that is not susceptible to the Amazon (AMZN-Q) potential problems. Trading at a pretty rich valuation.

This has done an exceptionally good job of moving up the food chain and increasing prices to $5. The strengthening Cdn$ is going to help a little, because they source a lot of their product internationally. A very, very well-run company. The one company that is not susceptible to the Amazon (AMZN-Q) potential problems. Trading at a pretty rich valuation.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$123.050
Owned
No
COMMENT
COMMENT
July 25, 2017

Trading at an incredibly good valuation. It is now 3X the size it was 3 years ago. Management has done an outstanding job. They did a large acquisition early this year which he thinks kind of exhausted and sapped up a lot of demand. There have been all kinds of rumours that they are having problems with wells not working, but that is absolutely not true. One of the best balance sheets in the country. They are under spending on their capital and overproducing on their production.

Trading at an incredibly good valuation. It is now 3X the size it was 3 years ago. Management has done an outstanding job. They did a large acquisition early this year which he thinks kind of exhausted and sapped up a lot of demand. There have been all kinds of rumours that they are having problems with wells not working, but that is absolutely not true. One of the best balance sheets in the country. They are under spending on their capital and overproducing on their production.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$6.250
Owned
Yes
COMMENT
COMMENT
July 25, 2017

This has held in pretty well as all good dividends paying stocks did. The big issue with big telcos in general is that half their earnings, interest, tax and appreciation comes from their wire line business. That business is dying slowly. Their offset to that has been acquisitions, boosting their dividend greater than their earnings through tax strategies, their mobile strategy and their forays into advertising and sports content. This is just above investment grade and he would not call it a safe dividend stock.

BCE Inc. (BCE-T)
July 25, 2017

This has held in pretty well as all good dividends paying stocks did. The big issue with big telcos in general is that half their earnings, interest, tax and appreciation comes from their wire line business. That business is dying slowly. Their offset to that has been acquisitions, boosting their dividend greater than their earnings through tax strategies, their mobile strategy and their forays into advertising and sports content. This is just above investment grade and he would not call it a safe dividend stock.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$58.170
Owned
Unknown
COMMENT
COMMENT
July 25, 2017

An exceptionally volatile stock. It produces copper in dangerous parts of the world. Lots of companies are having problems these days with governments, not getting good enough deals. You have to be really careful. This is going to track the Chinese stock market pretty carefully. The company is well-run. Has a lot of debt. If you are going to invest in stocks like this, make sure it is the appropriate amount in your portfolio and don’t own too much.

An exceptionally volatile stock. It produces copper in dangerous parts of the world. Lots of companies are having problems these days with governments, not getting good enough deals. You have to be really careful. This is going to track the Chinese stock market pretty carefully. The company is well-run. Has a lot of debt. If you are going to invest in stocks like this, make sure it is the appropriate amount in your portfolio and don’t own too much.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$14.000
Owned
Unknown
STRONG BUY
STRONG BUY
July 25, 2017

He likes this bank, and purposely decided to own US banks rather than Canadian. This is a really well-run bank. A strong corporate lender. There is a resurgence in their energy book which is a positive. Good dividend yield of 4.1%.

He likes this bank, and purposely decided to own US banks rather than Canadian. This is a really well-run bank. A strong corporate lender. There is a resurgence in their energy book which is a positive. Good dividend yield of 4.1%.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$56.440
Owned
No
COMMENT
COMMENT
July 25, 2017

Why would you want to be lending money to a society that is already one of the most indebted societies of the world, Canada, to the most disadvantaged people that are the least capable of paying their loans? The company makes its money selling couches and TVs, and lending them money to do so. Lending money to generate sales is never a good idea.

goeasy (GSY-T)
July 25, 2017

Why would you want to be lending money to a society that is already one of the most indebted societies of the world, Canada, to the most disadvantaged people that are the least capable of paying their loans? The company makes its money selling couches and TVs, and lending them money to do so. Lending money to generate sales is never a good idea.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$28.000
Owned
No