Latest Expert Opinions

Signal
Opinion
Expert
SELL
SELL
November 29, 2017

If he owned this, he would switch to Pepsi (PEP-N). There is more optionality with Pepsi. Coca-Cola has re-franchised their bottling agreements. The margins are relatively high. Pepsi is not as operationally efficient, which means that it is probably a better acquisition target.

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Coca-Cola Company (KO-N)
November 29, 2017

If he owned this, he would switch to Pepsi (PEP-N). There is more optionality with Pepsi. Coca-Cola has re-franchised their bottling agreements. The margins are relatively high. Pepsi is not as operationally efficient, which means that it is probably a better acquisition target.

TOP PICK
TOP PICK
November 29, 2017

This business is probably a lot simpler than people think. They sell equipment that allows people to connect to the Internet. This can include routers and switches, and for the longest time this was their bread-and-butter. All of a sudden, we had the advent of software defined networks. Software was decoupled from hardware. Cisco sold them together, so they encountered some margin pressures. Now they have transitioned where you are starting to see some positive organic growth, focused on security. Looking forward, the Internet of things is a whole bunch of different devices connected to the Internet. That’s a lot of data flowing across the networks, which should benefit companies like this. Trading at 12X earnings. Dividend yield of 3%. (Analysts’ price target is $39.)

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Cisco (CSCO-Q)
November 29, 2017

This business is probably a lot simpler than people think. They sell equipment that allows people to connect to the Internet. This can include routers and switches, and for the longest time this was their bread-and-butter. All of a sudden, we had the advent of software defined networks. Software was decoupled from hardware. Cisco sold them together, so they encountered some margin pressures. Now they have transitioned where you are starting to see some positive organic growth, focused on security. Looking forward, the Internet of things is a whole bunch of different devices connected to the Internet. That’s a lot of data flowing across the networks, which should benefit companies like this. Trading at 12X earnings. Dividend yield of 3%. (Analysts’ price target is $39.)

TOP PICK
TOP PICK
November 29, 2017

Valuation is pretty decent, and actually trades at a discount to its US peer group. It is a large player in Canada. Ultimately it should continue to benefit by growing in the US. Has a very decent free cash flow yield. Has a very predictable reoccurring revenue model that will support its earnings growth. (Analysts’ price target is $24.)

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Morneau Shepell Inc (MSI-T)
November 29, 2017

Valuation is pretty decent, and actually trades at a discount to its US peer group. It is a large player in Canada. Ultimately it should continue to benefit by growing in the US. Has a very decent free cash flow yield. Has a very predictable reoccurring revenue model that will support its earnings growth. (Analysts’ price target is $24.)

TOP PICK
TOP PICK
November 29, 2017

Manufactures sensors mostly. Their biggest market is automotive and is starting to get into non-automotive industries and sectors. They will benefit from the Internet of Things as devices become connected with smarter devices that are aware of what is going on. Trading at about 14X earnings. It should demonstrate relatively low organic sales growth, but has great margins and a relatively dominant position. (Analysts’ price target is $53.)

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Sensata Technologies (ST-N)
November 29, 2017

Manufactures sensors mostly. Their biggest market is automotive and is starting to get into non-automotive industries and sectors. They will benefit from the Internet of Things as devices become connected with smarter devices that are aware of what is going on. Trading at about 14X earnings. It should demonstrate relatively low organic sales growth, but has great margins and a relatively dominant position. (Analysts’ price target is $53.)