Latest Expert Opinions

Signal
Opinion
Expert
TOP PICK
TOP PICK
April 17, 2018

Provide healthcare and insurance, including Medicaid, to employees for companies. 11,000 Americans a day reach age 65 so that's a tailwind for their Medicaid business. Meanwhile, more US states are offloading their Medicaid admin to companies like Anthem. Well-run. Growing dividend and attractive valued vs. their peers and the index. (Analysts' price target $276.59)

Anthem Inc (ANTM-N)
April 17, 2018

Provide healthcare and insurance, including Medicaid, to employees for companies. 11,000 Americans a day reach age 65 so that's a tailwind for their Medicaid business. Meanwhile, more US states are offloading their Medicaid admin to companies like Anthem. Well-run. Growing dividend and attractive valued vs. their peers and the index. (Analysts' price target $276.59)

Ashley Misquitta, CFA
Senior Portfolio Manager, Empire Life
Price
$229.520
Owned
Yes
TOP PICK
TOP PICK
April 17, 2018

High customer satisfaction rating. Solid balance sheet with a ton of net cash that it will return to shareholders over time. As people in emerging markets transition to faster phone systems, Apple with benefit. Apple users buy more stuff, basically. Apple can be a little volatile, but take advantage of that. (Analysts' price target $193.03)

Apple (AAPL-Q)
April 17, 2018

High customer satisfaction rating. Solid balance sheet with a ton of net cash that it will return to shareholders over time. As people in emerging markets transition to faster phone systems, Apple with benefit. Apple users buy more stuff, basically. Apple can be a little volatile, but take advantage of that. (Analysts' price target $193.03)

Ashley Misquitta, CFA
Senior Portfolio Manager, Empire Life
Price
$178.240
Owned
Yes
TOP PICK
TOP PICK
April 17, 2018

There's a growing transition to do-it-for-me as society ages. so their in-house contracting business is growing and--guess what--they'll buy Lowe's products. Lowe's has been a little behind Home Depot in growth, but Lowe's is cheaper with more upside with lots of free cash flow. (Analysts' price target $105.86)

There's a growing transition to do-it-for-me as society ages. so their in-house contracting business is growing and--guess what--they'll buy Lowe's products. Lowe's has been a little behind Home Depot in growth, but Lowe's is cheaper with more upside with lots of free cash flow. (Analysts' price target $105.86)

Ashley Misquitta, CFA
Senior Portfolio Manager, Empire Life
Price
$86.160
Owned
Yes
BUY
BUY
April 17, 2018

Crescent Point Energy is in play at the moment, with a lot of shareholder activism. If you set that aside and look at the underlying value of the company, it is wildly undervalued. The company trades at 3.4 times Enterprise Value to Cash Flow (EV = Market Value + Debt) / Cash Flow. Compare that to booked reserves and they have proved, developed producing reserves (wells onstream) of 5. The price is so low because there is a historical dislike of some of the management team, partially because they issued paper in the past when they said they weren’t going to. That is an overhang on the share price. Between shareholder activism and the underlying price of oil, the company offers a low risk way to gain meaningful leverage to the current and future price of oil and also looks promising as an M&A target. This is a significant portion of his portfolio.

Crescent Point Energy is in play at the moment, with a lot of shareholder activism. If you set that aside and look at the underlying value of the company, it is wildly undervalued. The company trades at 3.4 times Enterprise Value to Cash Flow (EV = Market Value + Debt) / Cash Flow. Compare that to booked reserves and they have proved, developed producing reserves (wells onstream) of 5. The price is so low because there is a historical dislike of some of the management team, partially because they issued paper in the past when they said they weren’t going to. That is an overhang on the share price. Between shareholder activism and the underlying price of oil, the company offers a low risk way to gain meaningful leverage to the current and future price of oil and also looks promising as an M&A target. This is a significant portion of his portfolio.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$9.840
Owned
Yes
DON'T BUY
DON'T BUY
April 17, 2018

This is a tough investment. The company is trying to preserve cash, paying down debt and not growing. As a microcap with too much debt, he doesn’t see a lot of upside at this time.

This is a tough investment. The company is trying to preserve cash, paying down debt and not growing. As a microcap with too much debt, he doesn’t see a lot of upside at this time.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$1.300
Owned
No
BUY
BUY
April 17, 2018

Has been doing a good job diversifying their revenue to more US exposure, by recently buying Tucker, which is a niche pressure pumper in the US. This also diluted down ARC Financial from 66% to 61% ownership. Companies that have a large private equity sponsor get a liquidity discount. As ARC’s share diminishes, the discount will improve. Because of the pipeline uncertainty in Canada, people crave US exposure. They’ve been paying down debt and will be net cash next year. They trade at 3x enterprise value to free cash flow with a 19% cash flow yield. This could easily rise 50% to get back to a semblance of a normal multiple.

Has been doing a good job diversifying their revenue to more US exposure, by recently buying Tucker, which is a niche pressure pumper in the US. This also diluted down ARC Financial from 66% to 61% ownership. Companies that have a large private equity sponsor get a liquidity discount. As ARC’s share diminishes, the discount will improve. Because of the pipeline uncertainty in Canada, people crave US exposure. They’ve been paying down debt and will be net cash next year. They trade at 3x enterprise value to free cash flow with a 19% cash flow yield. This could easily rise 50% to get back to a semblance of a normal multiple.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$10.370
Owned
Unknown
DON'T BUY
DON'T BUY
April 17, 2018

He bought Spartan a few days ago, just before Vermillion made its offer for Spartan. He thought he was buying an undervalued company with meaningful leverage to the oil price and was surprised to see the takeout offer by Vermillion. He sold the company at a loss. A few points to consider: 1. The company has been shopped a few times over the past couple of years. The management team was looking for an exit. So the metrics for this deal should not be taken as reflecting the broader market of Canadian mid-cap light oil companies. There are other factors, such as performance warranties, motivating management to sell. These were all disclosed, but they are significant. There is such a lack of interest, in this market, in small and midcap energy stocks that it is understandable why a management team would just say “Screw it” and sell the company.

He bought Spartan a few days ago, just before Vermillion made its offer for Spartan. He thought he was buying an undervalued company with meaningful leverage to the oil price and was surprised to see the takeout offer by Vermillion. He sold the company at a loss. A few points to consider: 1. The company has been shopped a few times over the past couple of years. The management team was looking for an exit. So the metrics for this deal should not be taken as reflecting the broader market of Canadian mid-cap light oil companies. There are other factors, such as performance warranties, motivating management to sell. These were all disclosed, but they are significant. There is such a lack of interest, in this market, in small and midcap energy stocks that it is understandable why a management team would just say “Screw it” and sell the company.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$6.320
Owned
No