Latest Expert Opinions

Signal
Opinion
Expert
TOP PICK
TOP PICK
October 6, 2017

(Changing to Maxar Technologies (MAXR-T).) Just finished the DigitalGlobe acquisition which was a perfect fit. Satellites is a growth market, but is sort of lumpy. DigitalGlobe adds the software that interprets all the data. Plus, the acquisition brings in US presence giving better access to US intelligence and US military and US sales. This is trading at a big discount to all the aerospace firms.

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(Changing to Maxar Technologies (MAXR-T).) Just finished the DigitalGlobe acquisition which was a perfect fit. Satellites is a growth market, but is sort of lumpy. DigitalGlobe adds the software that interprets all the data. Plus, the acquisition brings in US presence giving better access to US intelligence and US military and US sales. This is trading at a big discount to all the aerospace firms.

TOP PICK
TOP PICK
October 6, 2017

After the last quarter, this came under a little pressure. The stock has a great, long term growth story. A lot of software companies have got a hard time migrating from the old “sell a license” to Cloud-based businesses where they have recurring revenue. This company has done it. Dividend yield of 1.6%. (Analysts’ price target is $40.)

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Open Text (OTEX-T)
October 6, 2017

After the last quarter, this came under a little pressure. The stock has a great, long term growth story. A lot of software companies have got a hard time migrating from the old “sell a license” to Cloud-based businesses where they have recurring revenue. This company has done it. Dividend yield of 1.6%. (Analysts’ price target is $40.)

COMMENT
COMMENT
October 6, 2017

He is very positive on its outlook. The key is the recurring revenue opportunities, particularly in China, where he sees a huge explosion in the number of planes that will be fitted with their system. They are currently installed as an option on the Airbus airframe. Now doing tests with Boeing (BA-N) which could be significant. By 2020, all planes must have the ability to be tracked, and this company’s advantage is that they have a link that goes out to a satellite allowing them to be found very quickly. Also, their equipment can save money on fuel, scheduling maintenance, etc.

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He is very positive on its outlook. The key is the recurring revenue opportunities, particularly in China, where he sees a huge explosion in the number of planes that will be fitted with their system. They are currently installed as an option on the Airbus airframe. Now doing tests with Boeing (BA-N) which could be significant. By 2020, all planes must have the ability to be tracked, and this company’s advantage is that they have a link that goes out to a satellite allowing them to be found very quickly. Also, their equipment can save money on fuel, scheduling maintenance, etc.

COMMENT
COMMENT
October 6, 2017

This has “push to talk” radios. Motorola has a huge installed base of “push to talk”, and the industry is moving away from the 2G network. A lot of carriers are forcing people off the 2G network, because they want to use the frequency for more profitable things, and are moving towards 3G and 4G networks. This company has a solution. In addition, they have new software and other applications that will give them an opportunity for recurring revenue. It has done extremely well, and there is a pretty good runway over the next 2-3 years as they do the conversion for the existing Motorola system.

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This has “push to talk” radios. Motorola has a huge installed base of “push to talk”, and the industry is moving away from the 2G network. A lot of carriers are forcing people off the 2G network, because they want to use the frequency for more profitable things, and are moving towards 3G and 4G networks. This company has a solution. In addition, they have new software and other applications that will give them an opportunity for recurring revenue. It has done extremely well, and there is a pretty good runway over the next 2-3 years as they do the conversion for the existing Motorola system.

COMMENT
COMMENT
October 6, 2017

Ranks in the top 10% of his quant model. Year-over-year earnings gain of 62% plus 43% sales growth. The outlook is positive. Earnings are expected to grow 15% in the coming year. There is a great opportunity for them to be able to continue to grow for the next 2-3 years.

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Ranks in the top 10% of his quant model. Year-over-year earnings gain of 62% plus 43% sales growth. The outlook is positive. Earnings are expected to grow 15% in the coming year. There is a great opportunity for them to be able to continue to grow for the next 2-3 years.

DON'T BUY
DON'T BUY
October 6, 2017

Ranks 267 out of 700 stocks, so is roughly in the top 3rd. Not cheap, with EV to EBITDA at 17.5X trailing. That is against a fairly modest 5% year-over-year EBITDA growth. A fairly stable business. Earnings estimates are expected to grow from $.67 to $.87 in 2017. He would look at other opportunities for both growth and income.

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Park Lawn Corp (PLC-T)
October 6, 2017

Ranks 267 out of 700 stocks, so is roughly in the top 3rd. Not cheap, with EV to EBITDA at 17.5X trailing. That is against a fairly modest 5% year-over-year EBITDA growth. A fairly stable business. Earnings estimates are expected to grow from $.67 to $.87 in 2017. He would look at other opportunities for both growth and income.

COMMENT
COMMENT
October 6, 2017

Their specialty is smaller 30-foot buses instead of a typical 40-foot bus. Has a smaller turning circle and is less expensive. They are creative in getting lower costs in manufacturing. Bought a frame from China, but ended up adding a bunch of US parts to get a “Made in USA” certification. Earnings are expected to almost triple from $.05 in 2017 to $.15 in 2018, relatively expensive, compared to the stock price. Analysts are predicting $.24 for 2019, giving a more reasonable 10X PE multiple. Thinks there is very good growth for them as well as their competitor, New Flyer (NFI-T).

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Their specialty is smaller 30-foot buses instead of a typical 40-foot bus. Has a smaller turning circle and is less expensive. They are creative in getting lower costs in manufacturing. Bought a frame from China, but ended up adding a bunch of US parts to get a “Made in USA” certification. Earnings are expected to almost triple from $.05 in 2017 to $.15 in 2018, relatively expensive, compared to the stock price. Analysts are predicting $.24 for 2019, giving a more reasonable 10X PE multiple. Thinks there is very good growth for them as well as their competitor, New Flyer (NFI-T).