Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
November 29, 2017

Trades on an EV to EBITDA at about 11X. Historically it should trade at around 13X. Thinks it is cheap. This is the pipeline from the oil sands. As all the producers in the oil sands increase their output, they are going to have to put it in some pipe. With a 4% yield and a tremendous cash flow, they have the ability to grow the dividend. It has the potential to go higher.

Inter Pipeline (IPL-T)
November 29, 2017

Trades on an EV to EBITDA at about 11X. Historically it should trade at around 13X. Thinks it is cheap. This is the pipeline from the oil sands. As all the producers in the oil sands increase their output, they are going to have to put it in some pipe. With a 4% yield and a tremendous cash flow, they have the ability to grow the dividend. It has the potential to go higher.

Paul Gardner, CFA
Partner and Portfolio Manager, Avenue Investment Management
Price
$26.910
Owned
Yes
COMMENT
COMMENT
November 29, 2017

Inter-Pipe (IPL-T) or Enbridge (ENB-T)? He likes both. Just bought this at $43. It has slightly more opportunity as they got hit so hard. Both are toll booth investments, but the street is typing this as an oil company. The yield is excellent. If he were being pushed, he would say he likes this one better.

Enbridge (ENB-T)
November 29, 2017

Inter-Pipe (IPL-T) or Enbridge (ENB-T)? He likes both. Just bought this at $43. It has slightly more opportunity as they got hit so hard. Both are toll booth investments, but the street is typing this as an oil company. The yield is excellent. If he were being pushed, he would say he likes this one better.

Paul Gardner, CFA
Partner and Portfolio Manager, Avenue Investment Management
Price
$45.750
Owned
Yes
DON'T BUY
DON'T BUY
November 29, 2017

Had owned this about 2 years ago. Was looking for something on the TSX that had US exposure that would participate when the US housing market recovered. This one did and he sold his holdings at $10. US fundamentals are fine. They have a lot of assets in Arizona, Florida and in the US south. He had problems with the valuation and as to where it could go further on. Not a fan, but the fundamentals are in their favour. He would rather buy something that was cheap and had some valuation protection. 2.3% yield.

Had owned this about 2 years ago. Was looking for something on the TSX that had US exposure that would participate when the US housing market recovered. This one did and he sold his holdings at $10. US fundamentals are fine. They have a lot of assets in Arizona, Florida and in the US south. He had problems with the valuation and as to where it could go further on. Not a fan, but the fundamentals are in their favour. He would rather buy something that was cheap and had some valuation protection. 2.3% yield.

Paul Gardner, CFA
Partner and Portfolio Manager, Avenue Investment Management
Price
$11.250
Owned
No
COMMENT
COMMENT
November 29, 2017

You should look at this as a proxy for the high-yield market. There was a big selloff over the last 6 weeks, because high yields have rallied so hard and so fast, there was a revaluation.

You should look at this as a proxy for the high-yield market. There was a big selloff over the last 6 weeks, because high yields have rallied so hard and so fast, there was a revaluation.

Paul Gardner, CFA
Partner and Portfolio Manager, Avenue Investment Management
Price
$19.150
Owned
Unknown
COMMENT
COMMENT
November 29, 2017

Announced they were going to make close to $1 billion in sales out of the US, and reinvest in multi-resident businesses. This is a strategy that is getting a little tired. His biggest issue is that they are so diversified, such as office, residential, redevelopment, Canada, US, it is too much for an analyst. Thinks they’ve been hurt by this.

Announced they were going to make close to $1 billion in sales out of the US, and reinvest in multi-resident businesses. This is a strategy that is getting a little tired. His biggest issue is that they are so diversified, such as office, residential, redevelopment, Canada, US, it is too much for an analyst. Thinks they’ve been hurt by this.

Paul Gardner, CFA
Partner and Portfolio Manager, Avenue Investment Management
Price
$20.980
Owned
No
COMMENT
COMMENT
November 29, 2017

What's a good blue-chip, dividend paying energy stock for a long term hold? He really, really likes this one, the best in class. Assuming oil ranges from $40-$60, this company is going to gush about $2.5 billion in free cash flow in 2018. They are going to pay down debt aggressively. They’ll also be increasing the dividend.

What's a good blue-chip, dividend paying energy stock for a long term hold? He really, really likes this one, the best in class. Assuming oil ranges from $40-$60, this company is going to gush about $2.5 billion in free cash flow in 2018. They are going to pay down debt aggressively. They’ll also be increasing the dividend.

Paul Gardner, CFA
Partner and Portfolio Manager, Avenue Investment Management
Price
$42.790
Owned
Yes
TOP PICK
TOP PICK
November 29, 2017

He is more bullish on this because the valuation relative to the sector is cheap. Over the next 2 to-3 years, this company is really going to outperform, and it’s all about the fibre to the home. They are going to hook up about 9 million homes, and are about a 3rd to a half through. This has a tremendous amount of free cash flow yielding about 6%. Dividend yield of 4.6%. (Analysts’ price target is $62.)

BCE Inc. (BCE-T)
November 29, 2017

He is more bullish on this because the valuation relative to the sector is cheap. Over the next 2 to-3 years, this company is really going to outperform, and it’s all about the fibre to the home. They are going to hook up about 9 million homes, and are about a 3rd to a half through. This has a tremendous amount of free cash flow yielding about 6%. Dividend yield of 4.6%. (Analysts’ price target is $62.)

Paul Gardner, CFA
Partner and Portfolio Manager, Avenue Investment Management
Price
$61.690
Owned
Yes