Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
December 15, 2017

Doesn't cover this one actively. They did a deal in the US that looks accretive. He prefers Penbina (PPL-T) which has a much better growth rate and a clearer thesis. The payout ratio, it is something like 5% of free cash flow, and he thinks you are going to be fine in terms of the dividend.

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Altagas Ltd (ALA-T)
December 15, 2017

Doesn't cover this one actively. They did a deal in the US that looks accretive. He prefers Penbina (PPL-T) which has a much better growth rate and a clearer thesis. The payout ratio, it is something like 5% of free cash flow, and he thinks you are going to be fine in terms of the dividend.

BUY WEAKNESS
BUY WEAKNESS
December 15, 2017

This has been a gift that keeps giving. It has done very well over the last few years. He has this trading at 11.1 2018 versus Sun Life (SLF-T) at 11.4. There has been convergence amongst all the insurance companies in Canada. To him, this is a good deal. He models it growing at 9% with a 13% dividend growth. Good balance sheet. On a little bit of a pullback, you could buy this.

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Manulife Financial (MFC-T)
December 15, 2017

This has been a gift that keeps giving. It has done very well over the last few years. He has this trading at 11.1 2018 versus Sun Life (SLF-T) at 11.4. There has been convergence amongst all the insurance companies in Canada. To him, this is a good deal. He models it growing at 9% with a 13% dividend growth. Good balance sheet. On a little bit of a pullback, you could buy this.

BUY
BUY
December 15, 2017

Still trading at close to tangible BV of around 1X. On a PE basis, it is a little more expensive than Toronto Dominion (TD-T), maybe around 14X versus 12X. With rising interest rates, a slightly better net interest margin, a rebounding America, and the corporate tax plan, this company really stands to benefit. This one is going higher.

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Bank of America (BAC-N)
December 15, 2017

Still trading at close to tangible BV of around 1X. On a PE basis, it is a little more expensive than Toronto Dominion (TD-T), maybe around 14X versus 12X. With rising interest rates, a slightly better net interest margin, a rebounding America, and the corporate tax plan, this company really stands to benefit. This one is going higher.

BUY
BUY
December 15, 2017

This probably has a better case for growth than Canadian Pacific (CP-T). Their 10% growth rate is pretty well in the bag with market share gain. They have slightly higher ORs than what the market expects, but that is probably in the stock. He likes this and it will probably go higher.

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This probably has a better case for growth than Canadian Pacific (CP-T). Their 10% growth rate is pretty well in the bag with market share gain. They have slightly higher ORs than what the market expects, but that is probably in the stock. He likes this and it will probably go higher.

BUY
BUY
December 15, 2017

He is modelling 12% EPS growth and is trading at a not a bad multiple compared to the group. He likes this and it will probably go higher. In a pinch, he thinks this is a better value than Canadian National (CNR-T) and it would be one he would be buying.

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He is modelling 12% EPS growth and is trading at a not a bad multiple compared to the group. He likes this and it will probably go higher. In a pinch, he thinks this is a better value than Canadian National (CNR-T) and it would be one he would be buying.

BUY
BUY
December 15, 2017

They cut their dividend, but he sees this as pretty safe with a 60% payout ratio. He models 45% EPS growth. Their balance sheet has gotten much better. The cycle is just starting to come on with equipment makers, and is trading at about a 6-point discount to Finning. Trades at about 13.8X with Finning at around 19X.

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Wajax Corp (WJX-T)
December 15, 2017

They cut their dividend, but he sees this as pretty safe with a 60% payout ratio. He models 45% EPS growth. Their balance sheet has gotten much better. The cycle is just starting to come on with equipment makers, and is trading at about a 6-point discount to Finning. Trades at about 13.8X with Finning at around 19X.

PAST TOP PICK
PAST TOP PICK
December 15, 2017

(A Top Pick Dec 9/16. Up 20%.) Chose this because he thought it was overreacting to NAFTA concerns and to peak auto. It is still cheap trading at 7.5X versus 10X its US peers. He models 8% per share growth. It's a good balance sheet for M&A. Still a good name to be owning.

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Magna Int'l. (A) (MG-T)
December 15, 2017

(A Top Pick Dec 9/16. Up 20%.) Chose this because he thought it was overreacting to NAFTA concerns and to peak auto. It is still cheap trading at 7.5X versus 10X its US peers. He models 8% per share growth. It's a good balance sheet for M&A. Still a good name to be owning.