Latest Expert Opinions

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Opinion
Expert
COMMENT
COMMENT
April 24, 2018

In response to a question about the impact of the Minnesota judge’s recommendation today of a route for its pipeline that Enbridge likes less: He doesn’t own Enbridge but he saw the news. He sees this as a temporary setback, doesn’t think this will have a material longer term effect on the price or the dividend. However, this might temporarily affect Canadian oil flows south.

In response to a question about the impact of the Minnesota judge’s recommendation today of a route for its pipeline that Enbridge likes less: He doesn’t own Enbridge but he saw the news. He sees this as a temporary setback, doesn’t think this will have a material longer term effect on the price or the dividend. However, this might temporarily affect Canadian oil flows south.

Colin Stewart
CEO & Portfolio manager, JC Clark Investments Ltd.
Price
$27.480
Owned
No
DON'T BUY
DON'T BUY
April 24, 2018

He has owned this before. The stock has been very tough recently. The business used to have monopoly positions with licenses that protected their investment. Recently, licenses have been awarded to other companies and this puts into question their monopoly position. This had read to a revaluation of the company. The company also has a fair bit of leverage on its balance sheets, and with recent stock performance, it is not in a position to raise capital.

He has owned this before. The stock has been very tough recently. The business used to have monopoly positions with licenses that protected their investment. Recently, licenses have been awarded to other companies and this puts into question their monopoly position. This had read to a revaluation of the company. The company also has a fair bit of leverage on its balance sheets, and with recent stock performance, it is not in a position to raise capital.

Colin Stewart
CEO & Portfolio manager, JC Clark Investments Ltd.
Price
$4.670
Owned
No
BUY
BUY
April 24, 2018

He stills owns it in his funds, likes the company. Met with the CEO and thinks they are doing all the right things. He thinks that small-cap Canadian stocks are generally out of favor and this stock is suffering from that broader problem. The stock is not widely followed. They are also being penalized for lower EBITDA margins than expected. Positives: the company is aggressively investing in its brands and growing rapidly. They are in the right spaces--as organic foods. A comparable company in the US would trade at 3 to 5x revenue and Greenspace is trading at just over 1x. He thinks this is very cheap. If it can’t grow into its own multiple, he thinks it might be taken over. (Analysts’ price target is 2.37$)

He stills owns it in his funds, likes the company. Met with the CEO and thinks they are doing all the right things. He thinks that small-cap Canadian stocks are generally out of favor and this stock is suffering from that broader problem. The stock is not widely followed. They are also being penalized for lower EBITDA margins than expected. Positives: the company is aggressively investing in its brands and growing rapidly. They are in the right spaces--as organic foods. A comparable company in the US would trade at 3 to 5x revenue and Greenspace is trading at just over 1x. He thinks this is very cheap. If it can’t grow into its own multiple, he thinks it might be taken over. (Analysts’ price target is 2.37$)

Colin Stewart
CEO & Portfolio manager, JC Clark Investments Ltd.
Price
$1.230
Owned
Yes
BUY
BUY
April 24, 2018

He thinks this is a successful investment, run by one of the most successful American investors of our time. However, there is headline risk in the company when the management of the company passes from Warren Buffett.

He thinks this is a successful investment, run by one of the most successful American investors of our time. However, there is headline risk in the company when the management of the company passes from Warren Buffett.

Colin Stewart
CEO & Portfolio manager, JC Clark Investments Ltd.
Price
$196.800
Owned
Yes
BUY WEAKNESS
BUY WEAKNESS
April 24, 2018

He likes this company very much and has owned it in the past. This is the only public company in Canada in the self-storage space, so it offers a scarcity value. It is a consolidator of storage companies. The trends are all going the right way for this type of business over the next 20 years--people are living in smaller spaces and need storage. His only concern is that the stock is a little expensive now. He sold it at a profit and is waiting for it to come back down before buying again.

He likes this company very much and has owned it in the past. This is the only public company in Canada in the self-storage space, so it offers a scarcity value. It is a consolidator of storage companies. The trends are all going the right way for this type of business over the next 20 years--people are living in smaller spaces and need storage. His only concern is that the stock is a little expensive now. He sold it at a profit and is waiting for it to come back down before buying again.

Colin Stewart
CEO & Portfolio manager, JC Clark Investments Ltd.
Price
$2.480
Owned
No
HOLD
HOLD
April 24, 2018

He just picked this up for one of his funds. When banks sell off more than 10%, as the Candian ones have over the past year, he pays attention. There's been talk of a housing slowdown, which of course effects banks, since credit could slow down. He likes RY among the Canadian banks, because RY has U.S. exposure, and is doing a lot in technology. Safe to hold.

Royal Bank (RY-T)
April 24, 2018

He just picked this up for one of his funds. When banks sell off more than 10%, as the Candian ones have over the past year, he pays attention. There's been talk of a housing slowdown, which of course effects banks, since credit could slow down. He likes RY among the Canadian banks, because RY has U.S. exposure, and is doing a lot in technology. Safe to hold.

James Telfser
Partner & Portfolio Manager, Aventine Management Group
Price
$96.550
Owned
Yes
DON'T BUY
DON'T BUY
April 24, 2018

He generally likes the spirits and liquor business. Corby is one of the leading players in Canada but there are international companies in this space. Pernod Ricard owns a controlling interest in this company and appears unwilling to pay out the cash balance in the company as a dividend or take it private or do anything else to unlock value. This is why he exited his position. He likes the company, it pays a good dividend, it runs a stable long-term business, but it doesn’t look to be generating a high enough total return at this time. On the other hand, in a market like the present one, owning a stable cash-producing business like a liquor business is not a bad idea.

He generally likes the spirits and liquor business. Corby is one of the leading players in Canada but there are international companies in this space. Pernod Ricard owns a controlling interest in this company and appears unwilling to pay out the cash balance in the company as a dividend or take it private or do anything else to unlock value. This is why he exited his position. He likes the company, it pays a good dividend, it runs a stable long-term business, but it doesn’t look to be generating a high enough total return at this time. On the other hand, in a market like the present one, owning a stable cash-producing business like a liquor business is not a bad idea.

Colin Stewart
CEO & Portfolio manager, JC Clark Investments Ltd.
Price
$19.600
Owned
No