Latest Expert Opinions

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
March 12, 2018

An expensive stock. It's centric to China and they want to be more global, therefore it's becoming riskier. They have unique businesses like Alipay which is used aggressively within China. It'll be hard to move beyond. He'd rather buy Amazon. Then again, there are a lot of people (customers) in China.

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An expensive stock. It's centric to China and they want to be more global, therefore it's becoming riskier. They have unique businesses like Alipay which is used aggressively within China. It'll be hard to move beyond. He'd rather buy Amazon. Then again, there are a lot of people (customers) in China.

COMMENT
COMMENT
March 12, 2018

Who can afford the A shares? So, buy the B shares instead which are around $200. Maybe Warren Buffet has never split the A shares because he thinks if you want to buy his company, then you just buy it. This forces investors to be long-term holders and not trading his shares. As for succession, he's elevated two people to vice-chair, one running insurance, the other energy. He's been astute, such as buying heavily into names he's loved during 2008. He'll be less involved in owning public shares.

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Who can afford the A shares? So, buy the B shares instead which are around $200. Maybe Warren Buffet has never split the A shares because he thinks if you want to buy his company, then you just buy it. This forces investors to be long-term holders and not trading his shares. As for succession, he's elevated two people to vice-chair, one running insurance, the other energy. He's been astute, such as buying heavily into names he's loved during 2008. He'll be less involved in owning public shares.

PAST TOP PICK
PAST TOP PICK
March 12, 2018

(A Top Pick Feb.23, 2017, Up 23%) Their HIV business continues to grow. Their Hep C business was so good it was curing people too quickly, so their revenue declined. He bought it when the market was undervaluing both businesses. Meanwhile, GILD had lots of cash, so he expected them to do a deal. They did one for a company treating blood cancer, and that's working well. Should continue to grow rapidly and make another acquisition.

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(A Top Pick Feb.23, 2017, Up 23%) Their HIV business continues to grow. Their Hep C business was so good it was curing people too quickly, so their revenue declined. He bought it when the market was undervaluing both businesses. Meanwhile, GILD had lots of cash, so he expected them to do a deal. They did one for a company treating blood cancer, and that's working well. Should continue to grow rapidly and make another acquisition.

PAST TOP PICK
PAST TOP PICK
March 12, 2018

(A Top Pick Feb.23, 2017, Up 23%) The largest private equity company in the world. With $100 billion on hand, they've made astute investments and now, as the markets rise, they can exit on them. (Structured like an LP, so not everyone can own it.) Trades cheaply. It may move into the S&P which will help them.

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(A Top Pick Feb.23, 2017, Up 23%) The largest private equity company in the world. With $100 billion on hand, they've made astute investments and now, as the markets rise, they can exit on them. (Structured like an LP, so not everyone can own it.) Trades cheaply. It may move into the S&P which will help them.

PAST TOP PICK
PAST TOP PICK
March 12, 2018

(A Top Pick Feb.23, 2017, Down 17%) Sold his. They had a primary shareholder, which he expected ACQ to get out of the way, but in fact it became really complicated. Also, from talking to private companies in this sector, the deals ACQ were paying were high. So, it's hard for the deals that ACQ were making to be accretive.

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AutoCanada Inc. (ACQ-T)
March 12, 2018

(A Top Pick Feb.23, 2017, Down 17%) Sold his. They had a primary shareholder, which he expected ACQ to get out of the way, but in fact it became really complicated. Also, from talking to private companies in this sector, the deals ACQ were paying were high. So, it's hard for the deals that ACQ were making to be accretive.

DON'T BUY
DON'T BUY
March 12, 2018

The pharma industry in the late-90s came out with social drugs like viagra, so the market awarded pharma big growth multiples. But then, these stocks came off. Problem is they were never really growth stocks and now the drug industry isn't coming out with new blockbuster drugs. GSK is developing vaccines, which is fine, but overall, he can't see the previous massive expansion in this space. Currently, the multiples are fair for pharma companies. There's also pricing pressure on drugs in the U.S. as we saw during the 2016 election.

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The pharma industry in the late-90s came out with social drugs like viagra, so the market awarded pharma big growth multiples. But then, these stocks came off. Problem is they were never really growth stocks and now the drug industry isn't coming out with new blockbuster drugs. GSK is developing vaccines, which is fine, but overall, he can't see the previous massive expansion in this space. Currently, the multiples are fair for pharma companies. There's also pricing pressure on drugs in the U.S. as we saw during the 2016 election.

BUY
BUY
March 12, 2018

Has good free cash flow yield of 8-9%. The premiere grocery store in Canada. Its trading valuation has come down. Deflation on the grocery side is stabilizing. They spent a lot of money on the technology behind supply chain management, which caused lots of problems, but is now saving them money. Shoppers Drug Mart acqusition is doing incredibly well. Bottom line is growing around 8-10%. Don't expect capital appreciation of past years because competitors have caught up to them. Dividend yield of 1.7%

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Has good free cash flow yield of 8-9%. The premiere grocery store in Canada. Its trading valuation has come down. Deflation on the grocery side is stabilizing. They spent a lot of money on the technology behind supply chain management, which caused lots of problems, but is now saving them money. Shoppers Drug Mart acqusition is doing incredibly well. Bottom line is growing around 8-10%. Don't expect capital appreciation of past years because competitors have caught up to them. Dividend yield of 1.7%