Latest Expert Opinions

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COMMENT
COMMENT
September 18, 2017

An investment in this type of company is rather speculative. However, it has certainly settled down. When they came off from about $12 down to $6, there had been some recovery, and the stock has been picking up of late. He doesn’t like the political risks. Feels there is a lot going on behind the scenes that we don’t necessarily know about.

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Canopy Growth Corp. (WEED-T)
September 18, 2017

An investment in this type of company is rather speculative. However, it has certainly settled down. When they came off from about $12 down to $6, there had been some recovery, and the stock has been picking up of late. He doesn’t like the political risks. Feels there is a lot going on behind the scenes that we don’t necessarily know about.

COMMENT
COMMENT
September 18, 2017

Historically there was a boatload of optimism in terms of the fuel cell technology. Over the long-term, the stock has really done not very much. BYD out of China, and others, have developed an electric bus. This is certainly worth keeping an eye on, given the recent strength.

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Historically there was a boatload of optimism in terms of the fuel cell technology. Over the long-term, the stock has really done not very much. BYD out of China, and others, have developed an electric bus. This is certainly worth keeping an eye on, given the recent strength.

COMMENT
COMMENT
September 18, 2017

One of the really interesting things is their economic moat. They own the online consumer, certainly in North America. On companies with wide economic moats, don’t get too cute on what price you should pay. Recent quarterly results were actually abysmal from a net income perspective. If looking to trade in the short term, you might wait for a lower entry point, but for a long-term hold, you could buy it at this level.

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Amazon.com (AMZN-Q)
September 18, 2017

One of the really interesting things is their economic moat. They own the online consumer, certainly in North America. On companies with wide economic moats, don’t get too cute on what price you should pay. Recent quarterly results were actually abysmal from a net income perspective. If looking to trade in the short term, you might wait for a lower entry point, but for a long-term hold, you could buy it at this level.

COMMENT
COMMENT
September 18, 2017

$1,000 in 5-10 years?An ROE over the long-term should also predict the movement of the stock price. For example, if a company has an ROE of 20%, they are increasing the value of the shareholder equity by 20% a year. 20% compounded over a ten-year period actually leads to a fivefold increase in the equity which, theoretically, should also lead to a fivefold increase in the stock price. If you were to multiply the current stock price of this by 5, that gets you relatively close to $1000. However, he doesn’t think it gets to $1000 over the next 5 years, but if they are able to achieve those ROE’s that they have in the past, it wouldn’t shock him. Thinks their runway for growth is long and very good.

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Facebook (FB-Q)
September 18, 2017

$1,000 in 5-10 years?An ROE over the long-term should also predict the movement of the stock price. For example, if a company has an ROE of 20%, they are increasing the value of the shareholder equity by 20% a year. 20% compounded over a ten-year period actually leads to a fivefold increase in the equity which, theoretically, should also lead to a fivefold increase in the stock price. If you were to multiply the current stock price of this by 5, that gets you relatively close to $1000. However, he doesn’t think it gets to $1000 over the next 5 years, but if they are able to achieve those ROE’s that they have in the past, it wouldn’t shock him. Thinks their runway for growth is long and very good.

TOP PICK
TOP PICK
September 18, 2017

An auto body company, a very high ROE generator. The auto body business is fairly fragmented and this company has been a consolidator. He picked this because they have come off from their highs of about $102. A very, very well-run company. Dividend yield of 0.6%. (Analysts’ price target is $110.)

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An auto body company, a very high ROE generator. The auto body business is fairly fragmented and this company has been a consolidator. He picked this because they have come off from their highs of about $102. A very, very well-run company. Dividend yield of 0.6%. (Analysts’ price target is $110.)

TOP PICK
TOP PICK
September 18, 2017

This has a core business in packaging and labelling. They did a transformational acquisition where they bought Avery Labels, and more recently bought Innovia out of the UK, which literally prints plastic money, in Canada, Australia and the UK. It has come off recently from its highs. They’ve been increasing their earnings and dividends. A very well-run company. Dividend yield of 0.8%. (Analysts’ price target is $68.50.)

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CCL Industries (B) (CCL.B-T)
September 18, 2017

This has a core business in packaging and labelling. They did a transformational acquisition where they bought Avery Labels, and more recently bought Innovia out of the UK, which literally prints plastic money, in Canada, Australia and the UK. It has come off recently from its highs. They’ve been increasing their earnings and dividends. A very well-run company. Dividend yield of 0.8%. (Analysts’ price target is $68.50.)

TOP PICK
TOP PICK
September 18, 2017

Debenture.Probably the best capital allocator in Canada. He likes this debenture, because it has a high yield of almost 7%. It is not well known and is under the radar. It also has an element of inflation protection. The yield is rather unique in that it is set at 6.5% plus the trailing CPI inflation rate. If you think inflation is going to pick up, you will get yield reset every year. Yielding 6.3%. (Note: This doesn’t qualify for the dividend tax credit, so Buy it in an RRSP, RIIF or a TFSA account.)

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Debenture.Probably the best capital allocator in Canada. He likes this debenture, because it has a high yield of almost 7%. It is not well known and is under the radar. It also has an element of inflation protection. The yield is rather unique in that it is set at 6.5% plus the trailing CPI inflation rate. If you think inflation is going to pick up, you will get yield reset every year. Yielding 6.3%. (Note: This doesn’t qualify for the dividend tax credit, so Buy it in an RRSP, RIIF or a TFSA account.)