Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
January 26, 2018

Likely to post solid future growth longer-term. Currently, we have spiking bond yields, which impacts telco valuations. This one is at a level that is not cheap, trading at 17.5X 2018. However on Q3 they guided to lower CapX for the 1st time since 2010. That's a suggestion they have built most of their footprint. Also, they beat on new subscribers both wireless and wireline. He models them growing EPS at 15% for 2017-2019. With this pullback, because of the climb in bond yields, you can write a Put and oblige yourself to own it at $45, and get a nice little premium.

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Telus Corp (T-T)
January 26, 2018

Likely to post solid future growth longer-term. Currently, we have spiking bond yields, which impacts telco valuations. This one is at a level that is not cheap, trading at 17.5X 2018. However on Q3 they guided to lower CapX for the 1st time since 2010. That's a suggestion they have built most of their footprint. Also, they beat on new subscribers both wireless and wireline. He models them growing EPS at 15% for 2017-2019. With this pullback, because of the climb in bond yields, you can write a Put and oblige yourself to own it at $45, and get a nice little premium.

PARTIAL BUY
PARTIAL BUY
January 26, 2018

The effective payout ratio is 142% for 2017, which is something not sustainable. However, their balance sheet isn't bad, trading at 2.2X 2019 debt to cash flow. Valuation has improved quite a bit. It’s a high, high quality company that has just been caught in the middle of the storm with ECO prices having dropped the way they have. He models 10% production growth over the next few years. They have great assets and are very capital efficient. In a taxable account, it’s something you could be nibbling on. Dividend yield of 4.3%.

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Arc Resources Ltd (ARX-T)
January 26, 2018

The effective payout ratio is 142% for 2017, which is something not sustainable. However, their balance sheet isn't bad, trading at 2.2X 2019 debt to cash flow. Valuation has improved quite a bit. It’s a high, high quality company that has just been caught in the middle of the storm with ECO prices having dropped the way they have. He models 10% production growth over the next few years. They have great assets and are very capital efficient. In a taxable account, it’s something you could be nibbling on. Dividend yield of 4.3%.

PARTIAL BUY
PARTIAL BUY
January 26, 2018

He predicted the end of a 17-year downtrend about a year ago, and thinks that continues. A very messy stock. It is still risky, and he doesn't see any earnings until 2019. He’s becoming increasingly confident in their revenue story, and sees 16% compounded annual revenue growth over the next couple of years. Sees their balance sheet continuing to improve. He can see 17X 2019 for the first time in a long time. You could be nibbling at this in a taxable account.

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He predicted the end of a 17-year downtrend about a year ago, and thinks that continues. A very messy stock. It is still risky, and he doesn't see any earnings until 2019. He’s becoming increasingly confident in their revenue story, and sees 16% compounded annual revenue growth over the next couple of years. Sees their balance sheet continuing to improve. He can see 17X 2019 for the first time in a long time. You could be nibbling at this in a taxable account.

BUY
BUY
January 26, 2018

A story of higher interest rates. They’ve been thriving in an environment of rising institutional allocations, going to real assets in lieu of bond yields. You have to ask yourself how low are interest rates likely to be for the next 5-10 years. If you believe we are in a lower for longer interest rate environment over the next 3-5 years, it is not a bad time to be picking away at this. He is modelling 13% pre-cash flow growth per share 2017-2019. Feels you could buy this on its current dip.

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A story of higher interest rates. They’ve been thriving in an environment of rising institutional allocations, going to real assets in lieu of bond yields. You have to ask yourself how low are interest rates likely to be for the next 5-10 years. If you believe we are in a lower for longer interest rate environment over the next 3-5 years, it is not a bad time to be picking away at this. He is modelling 13% pre-cash flow growth per share 2017-2019. Feels you could buy this on its current dip.

COMMENT
COMMENT
January 26, 2018

All the energy infrastructure and pipelines have pulled off a little, with higher interest rates. There is commercial support now for Keystone, which gives another $2-$6 to the stock. Even without that, he sees this probably going to $72 over the next 12 months. The company indicated they are going to grow their dividend 8%-10% out to 2021. 60% payout ratio. He models 8% earnings per share growth. On these higher interest rate concerns, you can be buying at this time, or better yet, Sell a Put and oblige yourself to own it at $55 and get paid a nice little premium. Dividend yield of 4.3%.

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TC Energy (TRP-T)
January 26, 2018

All the energy infrastructure and pipelines have pulled off a little, with higher interest rates. There is commercial support now for Keystone, which gives another $2-$6 to the stock. Even without that, he sees this probably going to $72 over the next 12 months. The company indicated they are going to grow their dividend 8%-10% out to 2021. 60% payout ratio. He models 8% earnings per share growth. On these higher interest rate concerns, you can be buying at this time, or better yet, Sell a Put and oblige yourself to own it at $55 and get paid a nice little premium. Dividend yield of 4.3%.

BUY
BUY
January 26, 2018

He sees the dividend as being sustainable. They can grow their Free Cash Flow per Share 9%, for 2017-2019. The company recently gave guidance they’ll continue to grow their dividend 10% per year, out to 2020. The concern here is the regulatory approval for the Line 3 replacement risk. He thinks that it goes forward. Feels this is a buying opportunity. Dividend yield of 7.8%.

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He sees the dividend as being sustainable. They can grow their Free Cash Flow per Share 9%, for 2017-2019. The company recently gave guidance they’ll continue to grow their dividend 10% per year, out to 2020. The concern here is the regulatory approval for the Line 3 replacement risk. He thinks that it goes forward. Feels this is a buying opportunity. Dividend yield of 7.8%.

PAST TOP PICK
PAST TOP PICK
January 26, 2018

(A Top Pick Jan 18/17. Up 39%.) Acquired by Pembina (PPL-T).

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Veresen Inc (VSN-T)
January 26, 2018

(A Top Pick Jan 18/17. Up 39%.) Acquired by Pembina (PPL-T).