Latest Expert Opinions

Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
January 30, 2018

(A Top Pick Nov 24/16. Up 48%.) Has held this for years, and it is finally starting to deliver some returns to shareholders. It is still an incredibly cheap stock, trading at way below the market multiple, with $35 billion of net cash on the balance sheet. They'll be raising their dividend by 10% a year until the cows come home.

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Cisco (CSCO-Q)
January 30, 2018

(A Top Pick Nov 24/16. Up 48%.) Has held this for years, and it is finally starting to deliver some returns to shareholders. It is still an incredibly cheap stock, trading at way below the market multiple, with $35 billion of net cash on the balance sheet. They'll be raising their dividend by 10% a year until the cows come home.

PAST TOP PICK
PAST TOP PICK
January 30, 2018

(A Top Pick Nov 24/16. Up 54.41%.) A pure retail bank, so no funny business is going on. They are trading at a very cheap multiple with double digit earnings growth. Also, Europe is recovering, and this bank is a big beneficiary. Dividend yield of 2.8%.

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ING Groep NV (ING-N)
January 30, 2018

(A Top Pick Nov 24/16. Up 54.41%.) A pure retail bank, so no funny business is going on. They are trading at a very cheap multiple with double digit earnings growth. Also, Europe is recovering, and this bank is a big beneficiary. Dividend yield of 2.8%.

COMMENT
COMMENT
January 30, 2018

He is looking at this, because it has fallen off. Banking is increasingly being run by technology, and this bank doesn't really have the scale to build the same kind of platforms that the major banks do. They don't have the flexibility that everyone else does. Consumers are moving more and more to online, and long-term this is the biggest issue this bank is facing. Doesn't think they are an acquisition target, because they are the only unionized bank in Canada. They are dealing with a small market and are trying to get into niche businesses. It is a real struggle, so he would be very careful before stepping in. It appears cheap on the surface, but the question is what kind of an investment are they going to have to make in their business to be sustainable for the long haul.

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Laurentian Bank (LB-T)
January 30, 2018

He is looking at this, because it has fallen off. Banking is increasingly being run by technology, and this bank doesn't really have the scale to build the same kind of platforms that the major banks do. They don't have the flexibility that everyone else does. Consumers are moving more and more to online, and long-term this is the biggest issue this bank is facing. Doesn't think they are an acquisition target, because they are the only unionized bank in Canada. They are dealing with a small market and are trying to get into niche businesses. It is a real struggle, so he would be very careful before stepping in. It appears cheap on the surface, but the question is what kind of an investment are they going to have to make in their business to be sustainable for the long haul.

COMMENT
COMMENT
January 30, 2018

Has looked at this so many times in the last decade. The theme is that they are a low-cost producer of uranium. People want to get away from oil and gas, so nuclear power seems to have some long-term future. Every time he sees an analyst report, uranium prices are going to go up in 2 years time, and this has been going on for decades. It never seems to happen. The company is dealing with a CRA issue on the tax side as well, but it would be manageable.

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Cameco Corporation (CCO-T)
January 30, 2018

Has looked at this so many times in the last decade. The theme is that they are a low-cost producer of uranium. People want to get away from oil and gas, so nuclear power seems to have some long-term future. Every time he sees an analyst report, uranium prices are going to go up in 2 years time, and this has been going on for decades. It never seems to happen. The company is dealing with a CRA issue on the tax side as well, but it would be manageable.

WAIT
WAIT
January 30, 2018

One of the world's great businesses that has been at the top of its game forever. Historically, this has always been a very cyclical business. Their earnings, over time, have been quite cyclical up until the last few years. Chip prices themselves are very cyclical. For a stock like this, you either get in early or wait for the next cycle, so you need to wait for the next cycle.

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Intel (INTC-Q)
January 30, 2018

One of the world's great businesses that has been at the top of its game forever. Historically, this has always been a very cyclical business. Their earnings, over time, have been quite cyclical up until the last few years. Chip prices themselves are very cyclical. For a stock like this, you either get in early or wait for the next cycle, so you need to wait for the next cycle.

COMMENT
COMMENT
January 30, 2018

The 2 biggest parts of this are Great West Life (GWO-T) and Investors Group (IGM-T). Investors Group is the largest mutual fund company in Canada. Mutual fund fees are coming under pressure because of more transparency and disclosure. That is going to put a bit of a cap on this. It is controlled by a family, and he doesn't buy companies that have 2 classes of shares. Dividend yield of 4.9%.

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The 2 biggest parts of this are Great West Life (GWO-T) and Investors Group (IGM-T). Investors Group is the largest mutual fund company in Canada. Mutual fund fees are coming under pressure because of more transparency and disclosure. That is going to put a bit of a cap on this. It is controlled by a family, and he doesn't buy companies that have 2 classes of shares. Dividend yield of 4.9%.

COMMENT
COMMENT
January 30, 2018

Hasn’t been a fan of pipeline stocks for a long time. There has not been great earnings growth for a decade or so, but they’ve been increasing their dividend, which is secure and solid. A minimal growth business, low growth for sure. It’s being hammered by rising interest rates. Dividend yield of almost 6%.

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Enbridge (ENB-T)
January 30, 2018

Hasn’t been a fan of pipeline stocks for a long time. There has not been great earnings growth for a decade or so, but they’ve been increasing their dividend, which is secure and solid. A minimal growth business, low growth for sure. It’s being hammered by rising interest rates. Dividend yield of almost 6%.