Latest Expert Opinions

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COMMENT
COMMENT
April 10, 2018

He favors this as a participant in the growth of 5G wireless because its test and measurement business is so relevant. They will provide the tools for the service providers, who will otherwise rely on generic hardware.

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He favors this as a participant in the growth of 5G wireless because its test and measurement business is so relevant. They will provide the tools for the service providers, who will otherwise rely on generic hardware.

DON'T BUY
DON'T BUY
April 10, 2018

He sold his Lloyd’s shares several years ago. He invested with the expectation of some catalysts: that they would expand their business by increasing the number of types of services they provided to each customer and that they would significantly increase their dividend. Neither increased to the extent that he had planned for and he doesn’t see significant catalysts for growth now. (Analysts’ price target is 76p compared to a current stock price of 67 pence).

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He sold his Lloyd’s shares several years ago. He invested with the expectation of some catalysts: that they would expand their business by increasing the number of types of services they provided to each customer and that they would significantly increase their dividend. Neither increased to the extent that he had planned for and he doesn’t see significant catalysts for growth now. (Analysts’ price target is 76p compared to a current stock price of 67 pence).

WATCH
WATCH
April 10, 2018

This is one of a small group of companies that do advanced machine vision. This is a very fine company. Its primary public competitor is Keyence Corporation (KYCCF-5) in Japan, which he has shares in. Their business has slowed a bit this year. They do a lot of project work for large customers, like Apple. He expects it to remain range-bound at least for the first half of this year. He doesn’t own the company now out of mindfulness of the cycles in its business. He is looking for opportunities to get into this stock in the future.

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This is one of a small group of companies that do advanced machine vision. This is a very fine company. Its primary public competitor is Keyence Corporation (KYCCF-5) in Japan, which he has shares in. Their business has slowed a bit this year. They do a lot of project work for large customers, like Apple. He expects it to remain range-bound at least for the first half of this year. He doesn’t own the company now out of mindfulness of the cycles in its business. He is looking for opportunities to get into this stock in the future.

COMMENT
COMMENT
April 10, 2018

They are the largest producer of water heaters in North America and they are the premium brand, and a leading supplier, of water treatment systems in China. There was a tremendous opportunity for buying this stock back when housing starts were low but he was concerned about growth in China and didn’t buy. That was a mistake. The company executed well. As a present investment, his concern is that they still make a lot of their money in China. He is reluctant to commit to the hypothesis that high growth will continue in China. It might, but it might not. Chinese industrial policy might make A.O. Smith vulnerable.

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A.O. Smith (AOS-N)
April 10, 2018

They are the largest producer of water heaters in North America and they are the premium brand, and a leading supplier, of water treatment systems in China. There was a tremendous opportunity for buying this stock back when housing starts were low but he was concerned about growth in China and didn’t buy. That was a mistake. The company executed well. As a present investment, his concern is that they still make a lot of their money in China. He is reluctant to commit to the hypothesis that high growth will continue in China. It might, but it might not. Chinese industrial policy might make A.O. Smith vulnerable.

DON'T BUY
DON'T BUY
April 10, 2018

People see this as a water stock but the universe of water companies is divided up. This is a water utility, along with waste management. The problem with being a water utility is that it offers stable cash flow. If interest rates rise, then the intrinsic value of the cash flow falls. He is concerned about the entire utility space. It has a strong dividend yield so it should trade as a bond proxy. He prefers to be outside of the regulated space for investments in water. He invests, for example, in Strauss Group (SGLJF-5), an Israeli company who has partnered with Haier in China, selling residential water treatment systems at a very attractive price point. They also sell home water treatments in the US and the UK.

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People see this as a water stock but the universe of water companies is divided up. This is a water utility, along with waste management. The problem with being a water utility is that it offers stable cash flow. If interest rates rise, then the intrinsic value of the cash flow falls. He is concerned about the entire utility space. It has a strong dividend yield so it should trade as a bond proxy. He prefers to be outside of the regulated space for investments in water. He invests, for example, in Strauss Group (SGLJF-5), an Israeli company who has partnered with Haier in China, selling residential water treatment systems at a very attractive price point. They also sell home water treatments in the US and the UK.

BUY
BUY
April 10, 2018

This is an Israeli company who has partnered with Haier in China, selling residential water treatment systems at a very attractive price point. They also sell home water treatments in the US and the UK. They offer a razor/blade type of product. The water purifier requires the consumer to buy a subscription to obtain a UV bulb and another proprietary consumable product. This provides an ongoing revenue stream.

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Strauss Group (STRS-IT)
April 10, 2018

This is an Israeli company who has partnered with Haier in China, selling residential water treatment systems at a very attractive price point. They also sell home water treatments in the US and the UK. They offer a razor/blade type of product. The water purifier requires the consumer to buy a subscription to obtain a UV bulb and another proprietary consumable product. This provides an ongoing revenue stream.

COMMENT
COMMENT
April 10, 2018

(A Top Pick June 19, 2017. Down 10%). This is priced in Swiss Francs. The result would look much different in Canadian dollars. They had a very good year in the prior year. Many Swiss companies are relatively flat this year. Often, when the Swiss Franc appreciates, the stocks go flat.

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(A Top Pick June 19, 2017. Down 10%). This is priced in Swiss Francs. The result would look much different in Canadian dollars. They had a very good year in the prior year. Many Swiss companies are relatively flat this year. Often, when the Swiss Franc appreciates, the stocks go flat.