Latest Expert Opinions

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Opinion
Expert
DON'T BUY
DON'T BUY
November 21, 2017

This has issues on multiple levels. They’ve had to raise capital twice in the last 12-18 months. He has a real issue with financial institutions where there is a question about capital. Looking at their lines of business, they are particularly concentrated in fixed income, relative to their peers. Not sure of being a huge fan of the high-yield area. The RNBS (mortgage-backed bonds?) space needs a very particular catalyst. RNBS is well below normal because of the function of Dodd Frank requiring banks to have skin in the game when they issue mortgages.

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Credit Suisse Group (CS-N)
November 21, 2017

This has issues on multiple levels. They’ve had to raise capital twice in the last 12-18 months. He has a real issue with financial institutions where there is a question about capital. Looking at their lines of business, they are particularly concentrated in fixed income, relative to their peers. Not sure of being a huge fan of the high-yield area. The RNBS (mortgage-backed bonds?) space needs a very particular catalyst. RNBS is well below normal because of the function of Dodd Frank requiring banks to have skin in the game when they issue mortgages.

COMMENT
COMMENT
November 21, 2017

An equity which has a tendency to do well when resource stocks in Canada are not. Has done well because they it is perhaps the 1 out of 10 Canadian companies which is actually a good company. It’s always on his Watch List. They are producing very attractive returns and in some areas, are best in class.

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Dollarama Inc. (DOL-T)
November 21, 2017

An equity which has a tendency to do well when resource stocks in Canada are not. Has done well because they it is perhaps the 1 out of 10 Canadian companies which is actually a good company. It’s always on his Watch List. They are producing very attractive returns and in some areas, are best in class.

COMMENT
COMMENT
November 21, 2017

Doesn’t follow this closely. Canadian operations appear to be excellent and well run and have a strong position in the market. Looking at lifecos in general, in the current environment where it is very difficult to get investors deposits in SEG funds, it is the change in interest rates that is really going to impact earnings growth. If interest rates go up, then lifecos benefit because the present value of liabilities is reduced. It also has exposure to Asia, so you have to make a call on this factor.

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Manulife Financial (MFC-T)
November 21, 2017

Doesn’t follow this closely. Canadian operations appear to be excellent and well run and have a strong position in the market. Looking at lifecos in general, in the current environment where it is very difficult to get investors deposits in SEG funds, it is the change in interest rates that is really going to impact earnings growth. If interest rates go up, then lifecos benefit because the present value of liabilities is reduced. It also has exposure to Asia, so you have to make a call on this factor.

COMMENT
COMMENT
November 21, 2017

On his Watch List rather than his Recommended List. Had owned this for several years and it had been a very strong performer. Prefers Sherwin Williams (SHW-N) which has an acquisition that will give them synergies, and are in a position where the business is more resilient.

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Home Depot (HD-N)
November 21, 2017

On his Watch List rather than his Recommended List. Had owned this for several years and it had been a very strong performer. Prefers Sherwin Williams (SHW-N) which has an acquisition that will give them synergies, and are in a position where the business is more resilient.

COMMENT
COMMENT
November 21, 2017

Merging with Essilor (EI-FP), the leading lens producer, and a lot of people view this as very positive, but isn’t sure he feels the same. Luxottica is the parent of LensCrafters, and he wonders why they would do business with their competitor. Prefers Hoya Corp (7741-JP).

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Luxottica (LUXTY-5)
November 21, 2017

Merging with Essilor (EI-FP), the leading lens producer, and a lot of people view this as very positive, but isn’t sure he feels the same. Luxottica is the parent of LensCrafters, and he wonders why they would do business with their competitor. Prefers Hoya Corp (7741-JP).

COMMENT
COMMENT
November 21, 2017

Not a fan. Haven’t been able to make it clear exactly what they are trying to do. Some years their targets are gross margins, and other years it’s ROI. Thinks they are betwixt and between. Regardless of what guidance they give on capital expenditures, they are going to spend more.

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Intel (INTC-Q)
November 21, 2017

Not a fan. Haven’t been able to make it clear exactly what they are trying to do. Some years their targets are gross margins, and other years it’s ROI. Thinks they are betwixt and between. Regardless of what guidance they give on capital expenditures, they are going to spend more.

COMMENT
COMMENT
November 21, 2017

A conglomerate, which makes it harder to analyse. Some of their businesses are on the upswing and some are on the downswing. He would rather be more focused, unless it is very deeply discounted, which he doesn’t believe it is.

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United Technologies (UTX-N)
November 21, 2017

A conglomerate, which makes it harder to analyse. Some of their businesses are on the upswing and some are on the downswing. He would rather be more focused, unless it is very deeply discounted, which he doesn’t believe it is.