Latest Expert Opinions

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
March 20, 2018

This hit a record high today. This is a great Canadian tech company but he would not buy it at this level. It is overvalued.. It trades at 15x 2018 sales.

Shopify Inc. (SHOP-T)
March 20, 2018

This hit a record high today. This is a great Canadian tech company but he would not buy it at this level. It is overvalued.. It trades at 15x 2018 sales.

Geoff Scott
Institutional Portfolio Manager, Cambridge Global Asset Management
Price
$200.280
Owned
No
BUY
BUY
March 20, 2018

He likes the company. It had some difficulties but is recovering slowly. He likes the prospects for the business. (Analysts’ price target is 89$)

He likes the company. It had some difficulties but is recovering slowly. He likes the prospects for the business. (Analysts’ price target is 89$)

Geoff Scott
Institutional Portfolio Manager, Cambridge Global Asset Management
Price
$76.920
Owned
Yes
DON'T BUY
DON'T BUY
March 20, 2018

This company has been in the news a lot with stories of weak fundamentals and poor management. The practices are probably culturally ingrained and will take a long time to change.

General Electric (GE-N)
March 20, 2018

This company has been in the news a lot with stories of weak fundamentals and poor management. The practices are probably culturally ingrained and will take a long time to change.

Geoff Scott
Institutional Portfolio Manager, Cambridge Global Asset Management
Price
$13.640
Owned
No
COMMENT
COMMENT
March 20, 2018

The company has gone through a remarkable transition, rolling out Rouge and improving the efficiency of their fleet. They have tremendous cash flow and they have to put it to work somewhere. In response to the caller’s question, he comments that they might institute a dividend with all that cash, but he is not sure when. This is a cyclical industry, valuation is high, fixed costs are high and so this is not a company he would invest in.

Air Canada (AC-T)
March 20, 2018

The company has gone through a remarkable transition, rolling out Rouge and improving the efficiency of their fleet. They have tremendous cash flow and they have to put it to work somewhere. In response to the caller’s question, he comments that they might institute a dividend with all that cash, but he is not sure when. This is a cyclical industry, valuation is high, fixed costs are high and so this is not a company he would invest in.

Geoff Scott
Institutional Portfolio Manager, Cambridge Global Asset Management
Price
$29.000
Owned
No
TOP PICK
TOP PICK
March 20, 2018

This was one of his top picks in December 2017 and still is. The issues that have plagued it in 2017 such as the production overhang and the demand issues will alleviate themselves naturally over time. For example, the Alberta government is talking about replacing coal with natural gas for electricity generation. Also the management team is very much aligned with shareholders. (Analysts’ price target is 27.00$)

This was one of his top picks in December 2017 and still is. The issues that have plagued it in 2017 such as the production overhang and the demand issues will alleviate themselves naturally over time. For example, the Alberta government is talking about replacing coal with natural gas for electricity generation. Also the management team is very much aligned with shareholders. (Analysts’ price target is 27.00$)

Geoff Scott
Institutional Portfolio Manager, Cambridge Global Asset Management
Price
$20.610
Owned
Yes
TOP PICK
TOP PICK
March 20, 2018

They are continuing the plan that Hunter Harrison put in place to improve efficiency, drive down the operating ratio, and sell assets. Velocity is up 20% this year: trains are moving faster, which provides better service and increases capacity. CSX is improving its capital profile, with higher cash flow margins. He expects every dollar of revenue to convert to about 30 cents in the future from a historical level of 8 cents. There have been complaints from the customer (shipper) base as a result of all the cost cutting but if CSX keeps improving its operating metrics, the customers’ concerns will be resolved. (Analysts’ price target is 62.92$)

CSX Corp (CSX-Q)
March 20, 2018

They are continuing the plan that Hunter Harrison put in place to improve efficiency, drive down the operating ratio, and sell assets. Velocity is up 20% this year: trains are moving faster, which provides better service and increases capacity. CSX is improving its capital profile, with higher cash flow margins. He expects every dollar of revenue to convert to about 30 cents in the future from a historical level of 8 cents. There have been complaints from the customer (shipper) base as a result of all the cost cutting but if CSX keeps improving its operating metrics, the customers’ concerns will be resolved. (Analysts’ price target is 62.92$)

Geoff Scott
Institutional Portfolio Manager, Cambridge Global Asset Management
Price
$56.970
Owned
Yes
TOP PICK
TOP PICK
March 20, 2018

This is a turnaround story. The company gained a new CEO (Greg Clark) 18 months ago with its acquisition of Blue Coat. He did a great job of turning around that business. Symantec has a strong legacy business that generates cash flow. Clark will help use that cash flow well in the future, probably with more M&A activity (Analysts’ price target is 29.42$)

Symantec Corp (SYMC-Q)
March 20, 2018

This is a turnaround story. The company gained a new CEO (Greg Clark) 18 months ago with its acquisition of Blue Coat. He did a great job of turning around that business. Symantec has a strong legacy business that generates cash flow. Clark will help use that cash flow well in the future, probably with more M&A activity (Analysts’ price target is 29.42$)

Geoff Scott
Institutional Portfolio Manager, Cambridge Global Asset Management
Price
$26.520
Owned
Yes