Latest Expert Opinions

Signal
Opinion
Expert
HOLD
HOLD
January 30, 2018

All Canadian banks have been home runs since the financial crisis. They are all in slightly different businesses. Toronto Dominion (TD-T) is more in the US, Royal (RY-T) is more in capital markets, etc. This one is more of a domestic bank and focused on retail and wealth management, so they are a bit less dynamic. If you own, hang onto it and just leave it alone. The banks are in good shape, as long as the Canadian consumer credit situation holds up.

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All Canadian banks have been home runs since the financial crisis. They are all in slightly different businesses. Toronto Dominion (TD-T) is more in the US, Royal (RY-T) is more in capital markets, etc. This one is more of a domestic bank and focused on retail and wealth management, so they are a bit less dynamic. If you own, hang onto it and just leave it alone. The banks are in good shape, as long as the Canadian consumer credit situation holds up.

TOP PICK
TOP PICK
January 30, 2018

A very technology value added aluminum company, which is a leader in all their businesses, aerospace, auto, engineered products. Very technology oriented. It’s somewhat cyclical, but he sees earnings growing by at least 25%-30% a year for the next few years. A very, very cheap stock. Sees significant upside. Dividend yield of 0.81%. (Analysts' price target is $31.)

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Arconic Inc (ARNC-N)
January 30, 2018

A very technology value added aluminum company, which is a leader in all their businesses, aerospace, auto, engineered products. Very technology oriented. It’s somewhat cyclical, but he sees earnings growing by at least 25%-30% a year for the next few years. A very, very cheap stock. Sees significant upside. Dividend yield of 0.81%. (Analysts' price target is $31.)

TOP PICK
TOP PICK
January 30, 2018

This has been buying back shares like crazy. Bought back about a 3rd of shares outstanding. They are still sitting with a ton of cash. They make the Gorilla glass for iPhones. Fibre optics, which was their big business back in the late 90s, has re-emerged again. Also has some other businesses that are related in the medical business and the emissions business. A double-digit grower selling at about 13X this year's earnings, so it is really, really cheap. Dividend yield of 1.91%. (Analysts' price target is $33.95.)

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Corning Inc (GLW-N)
January 30, 2018

This has been buying back shares like crazy. Bought back about a 3rd of shares outstanding. They are still sitting with a ton of cash. They make the Gorilla glass for iPhones. Fibre optics, which was their big business back in the late 90s, has re-emerged again. Also has some other businesses that are related in the medical business and the emissions business. A double-digit grower selling at about 13X this year's earnings, so it is really, really cheap. Dividend yield of 1.91%. (Analysts' price target is $33.95.)

TOP PICK
TOP PICK
January 30, 2018

If this were trading in the US, it would be double the share price. It’s selling for half its intrinsic value. The company has been making money through good times and bad times, so they haven’t been cyclical. One reason is that they have always had zero debt. About a 3rd of the market cap is sitting in cash. The steel cycle is very strong, but the stock has not responded, it’s just lagging, and therefore this is an opportunity. Dividend yield of 2.06%.

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Yodogawa Steel (5451-TYO)
January 30, 2018

If this were trading in the US, it would be double the share price. It’s selling for half its intrinsic value. The company has been making money through good times and bad times, so they haven’t been cyclical. One reason is that they have always had zero debt. About a 3rd of the market cap is sitting in cash. The steel cycle is very strong, but the stock has not responded, it’s just lagging, and therefore this is an opportunity. Dividend yield of 2.06%.

DON'T BUY
DON'T BUY
January 30, 2018

Hunter Harrison was the CEO at the time of his passing. His approach was a very rigid, cost cutting, precision railroad, and to drive the Operating Ratio down as far as he possibly could. This was at the cost of good business. The OR right now is at about 65%, pretty low. It's not an easy railroad to run. It’s highly reliant on coal. Trading at about 21 or 22 times earnings. He would pass on this.

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CSX Corp (CSX-Q)
January 30, 2018

Hunter Harrison was the CEO at the time of his passing. His approach was a very rigid, cost cutting, precision railroad, and to drive the Operating Ratio down as far as he possibly could. This was at the cost of good business. The OR right now is at about 65%, pretty low. It's not an easy railroad to run. It’s highly reliant on coal. Trading at about 21 or 22 times earnings. He would pass on this.

COMMENT
COMMENT
January 30, 2018

Amazon (AMZN-Q) or Netflix (NFLX-Q)? Doesn't own either. Prefers Disney (DIS-N) as their pending purchase of 21st-Century Fox is going to remove the shackles and people are going to stop thinking of it as a cord cutting situation with lower subscriber participation, but more in terms of a streaming competitor to these 2. (See Top Picks.)

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Amazon.com (AMZN-Q)
January 30, 2018

Amazon (AMZN-Q) or Netflix (NFLX-Q)? Doesn't own either. Prefers Disney (DIS-N) as their pending purchase of 21st-Century Fox is going to remove the shackles and people are going to stop thinking of it as a cord cutting situation with lower subscriber participation, but more in terms of a streaming competitor to these 2. (See Top Picks.)

COMMENT
COMMENT
January 30, 2018

Amazon (AMZN-Q) or Netflix (NFLX-Q)? Doesn't own either. Prefers Disney (DIS-N) as their pending purchase of 21st-Century Fox is going to remove the shackles and people are going to stop thinking of it as a cord cutting situation with lower subscriber participation, but more in terms of a streaming competitor to these 2. (See Top Picks.)

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Netflix Inc. (NFLX-Q)
January 30, 2018

Amazon (AMZN-Q) or Netflix (NFLX-Q)? Doesn't own either. Prefers Disney (DIS-N) as their pending purchase of 21st-Century Fox is going to remove the shackles and people are going to stop thinking of it as a cord cutting situation with lower subscriber participation, but more in terms of a streaming competitor to these 2. (See Top Picks.)