Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
December 15, 2017

This is driven by the economy, sales and web transactions. Has some very, very good monopolistic situations in Canada with a couple of very, very large customers, including Canada Post. It probably has some potential to go from here and will have a good 2018. With giant contracts, a lot of investors come on board in anticipation of those contracts. As they start hitting the revenue growth and earnings growth, some investors may start exiting, so doesn't think you are going to see as great a run over the next 2 years, as there has been in the past 3, but it will have a decent year. A nice solid company.

Show full opinionHide full opinion
Cargojet Inc (CJT-T)
December 15, 2017

This is driven by the economy, sales and web transactions. Has some very, very good monopolistic situations in Canada with a couple of very, very large customers, including Canada Post. It probably has some potential to go from here and will have a good 2018. With giant contracts, a lot of investors come on board in anticipation of those contracts. As they start hitting the revenue growth and earnings growth, some investors may start exiting, so doesn't think you are going to see as great a run over the next 2 years, as there has been in the past 3, but it will have a decent year. A nice solid company.

COMMENT
COMMENT
December 15, 2017

Has beaten this up for years, because they’ve issued a lot of equity. Even with that, their debt has been higher than he has liked. It hasn't really treated shareholders properly in a sector that is not doing very well. One of his least favourite companies in the whole sector. He doesn't see a big reason to own it. However, whenever oil decides to go up again, it will be a "go to" name. It will rally hard when oil goes, but he would rather have a consistent company that is showing better growth and treats their shareholders better.

Show full opinionHide full opinion

Has beaten this up for years, because they’ve issued a lot of equity. Even with that, their debt has been higher than he has liked. It hasn't really treated shareholders properly in a sector that is not doing very well. One of his least favourite companies in the whole sector. He doesn't see a big reason to own it. However, whenever oil decides to go up again, it will be a "go to" name. It will rally hard when oil goes, but he would rather have a consistent company that is showing better growth and treats their shareholders better.

COMMENT
COMMENT
December 15, 2017

Has been hearing about their real estate value for years. The hedge funds are saying this $10 stock has $31 of value if they do something with the real estate valuation. He is not sure how long investors are willing to wait. Meanwhile, the retail business and industry are not doing very well at all. They really have to get it together. Either do something with the real estate, or not. He doesn't like recommending companies that "might" do something.

Show full opinionHide full opinion
Hudson Bay Co. (HBC-T)
December 15, 2017

Has been hearing about their real estate value for years. The hedge funds are saying this $10 stock has $31 of value if they do something with the real estate valuation. He is not sure how long investors are willing to wait. Meanwhile, the retail business and industry are not doing very well at all. They really have to get it together. Either do something with the real estate, or not. He doesn't like recommending companies that "might" do something.

COMMENT
COMMENT
December 15, 2017

Investors have considered this as ridiculously expensive for 10 years now. Everyone talks about the valuation, and meanwhile they continue to grow and continue to execute well. They continue to increase their market share and continue to make investors money. He likes it quite a lot and has just added it to one of his portfolios. At some point they will hit the saturation limit in Canada, and are starting to make inroads into other countries. At some point, a larger entity will probably come in, in order to take over the Canadian dollar market, and guess who they are going to buy. A really good opportunity over the next 3-4 years. As a growth story, this is one of the best in Canada.

Show full opinionHide full opinion
Dollarama Inc. (DOL-T)
December 15, 2017

Investors have considered this as ridiculously expensive for 10 years now. Everyone talks about the valuation, and meanwhile they continue to grow and continue to execute well. They continue to increase their market share and continue to make investors money. He likes it quite a lot and has just added it to one of his portfolios. At some point they will hit the saturation limit in Canada, and are starting to make inroads into other countries. At some point, a larger entity will probably come in, in order to take over the Canadian dollar market, and guess who they are going to buy. A really good opportunity over the next 3-4 years. As a growth story, this is one of the best in Canada.

COMMENT
COMMENT
December 15, 2017

The issue is debt. It is massive. If you look at their 12-month cash flow, it was about $67 million in cash flow for the last 12 months, and the debt is over $1 billion. Those numbers just scare him to death. That wouldn't be so bad if the sector was surging and all the oil/gas producers were massively increasing budgets. He would be very, very cautious on any service or drilling company.

Show full opinionHide full opinion
Precision Drilling (PD-T)
December 15, 2017

The issue is debt. It is massive. If you look at their 12-month cash flow, it was about $67 million in cash flow for the last 12 months, and the debt is over $1 billion. Those numbers just scare him to death. That wouldn't be so bad if the sector was surging and all the oil/gas producers were massively increasing budgets. He would be very, very cautious on any service or drilling company.

SELL
SELL
December 15, 2017

They've had a tough go recently. They missed earnings and sales have been disappointing. Also, doesn't like their balance sheet much, right now. Doesn't think it’s in jeopardy of going under, but they really have to turn around their earnings growth picture, and improve operating performance and drive down costs to get investors interested again. Thinks it is probably dead money for a period of time, until they get 3 or 4 quarters of consistent results. If you own, he would suggest getting out of it and looking at it later when everything looks better.

Show full opinionHide full opinion

They've had a tough go recently. They missed earnings and sales have been disappointing. Also, doesn't like their balance sheet much, right now. Doesn't think it’s in jeopardy of going under, but they really have to turn around their earnings growth picture, and improve operating performance and drive down costs to get investors interested again. Thinks it is probably dead money for a period of time, until they get 3 or 4 quarters of consistent results. If you own, he would suggest getting out of it and looking at it later when everything looks better.

COMMENT
COMMENT
December 15, 2017

Average down? As a general rule, he doesn't ever like averaging down. Mathematically, it has been proven it’s not a good strategy. You have a situation where investors are not liking the company. There are always other investors that are going to throw in the towel after you’ve averaged down. This is interesting, because the company was up for sale in the $8-$9 range many years ago, and is actually quite a well-run gas company that continues to hit new lows, and we are in the middle of tax loss right now, and he thinks there is an opportunity. Wouldn't be really too worried if you bought more, as long as your position limit is within reason. A great company, but in the wrong sector. If you have a few years, it is probably safe to Buy.

Show full opinionHide full opinion

Average down? As a general rule, he doesn't ever like averaging down. Mathematically, it has been proven it’s not a good strategy. You have a situation where investors are not liking the company. There are always other investors that are going to throw in the towel after you’ve averaged down. This is interesting, because the company was up for sale in the $8-$9 range many years ago, and is actually quite a well-run gas company that continues to hit new lows, and we are in the middle of tax loss right now, and he thinks there is an opportunity. Wouldn't be really too worried if you bought more, as long as your position limit is within reason. A great company, but in the wrong sector. If you have a few years, it is probably safe to Buy.