Latest Expert Opinions

Signal
Opinion
Expert
BUY WEAKNESS
BUY WEAKNESS
May 15, 2018

There’s only so many gas stations to buy. Over the past years, they have added tremendous value with prepared food in gas stations, and other services. At some point, there is a limit. The EV/EBIDTA ratio is now near the company’s 5-year low. However, the current weakness in Couche-Tard’s price might be transitory and he is interested in buying at this level. Gas retailers have a hard time when gas prices are rising quickly because it is hard to raise retail prices in line with wholesale. However, these companies make it up as prices go down, lowering rates less quickly than wholesale. He continues to be bullish on energy, which suggests further increases in gas prices and further pressure on Couche-Tard. He is looking for an entry point to buy the stock.

There’s only so many gas stations to buy. Over the past years, they have added tremendous value with prepared food in gas stations, and other services. At some point, there is a limit. The EV/EBIDTA ratio is now near the company’s 5-year low. However, the current weakness in Couche-Tard’s price might be transitory and he is interested in buying at this level. Gas retailers have a hard time when gas prices are rising quickly because it is hard to raise retail prices in line with wholesale. However, these companies make it up as prices go down, lowering rates less quickly than wholesale. He continues to be bullish on energy, which suggests further increases in gas prices and further pressure on Couche-Tard. He is looking for an entry point to buy the stock.

James Hodgins
Chief Investment Officer, Curvature Hedge Strategies
Price
$53.850
Owned
No
DON'T BUY
DON'T BUY
May 15, 2018

In the U.S., changes in tax law for MLP’s hurt Enbridge’s ability to drop down assets into a more beneficial tax rate. In Canada, the problems of building new pipelines conflict with Enbridge’s planned future infrastructure projects. He is not worried about the dividend yield. The business would have to get a lot worse before it cuts the dividend. However, if the yield gets up to 7%, which will happen if the stock drops another 10%, he thinks the company will have to look at its yield.

Enbridge(ENB-T)
May 15, 2018

In the U.S., changes in tax law for MLP’s hurt Enbridge’s ability to drop down assets into a more beneficial tax rate. In Canada, the problems of building new pipelines conflict with Enbridge’s planned future infrastructure projects. He is not worried about the dividend yield. The business would have to get a lot worse before it cuts the dividend. However, if the yield gets up to 7%, which will happen if the stock drops another 10%, he thinks the company will have to look at its yield.

James Hodgins
Chief Investment Officer, Curvature Hedge Strategies
Price
$42.520
Owned
No
DON'T BUY
DON'T BUY
May 15, 2018

Natural gas in Turkey. He likes the management team. They went elephant hunting and they bagged the big one. He has owned this stock before, but he is concerned about the geopolitical risk, which has been playing out recently in mining stocks in Turkey.

Natural gas in Turkey. He likes the management team. They went elephant hunting and they bagged the big one. He has owned this stock before, but he is concerned about the geopolitical risk, which has been playing out recently in mining stocks in Turkey.

James Hodgins
Chief Investment Officer, Curvature Hedge Strategies
Price
$5.400
Owned
No
BUY
BUY
May 15, 2018

He has a small long position in it. They had problems with an investment they made a few years ago, but it has turned around, so there is some momentum to the earnings. (Analysts’ price target is 4$)

He has a small long position in it. They had problems with an investment they made a few years ago, but it has turned around, so there is some momentum to the earnings. (Analysts’ price target is 4$)

James Hodgins
Chief Investment Officer, Curvature Hedge Strategies
Price
$3.320
Owned
Yes
COMMENT
COMMENT
May 15, 2018

He owns a small speculative position. Aurora has taken a 17% position. They have an interesting cannabis oil extraction technology that uses microwaves instead of solvent. This is potentially cleaner, yielding purer oil.

He owns a small speculative position. Aurora has taken a 17% position. They have an interesting cannabis oil extraction technology that uses microwaves instead of solvent. This is potentially cleaner, yielding purer oil.

James Hodgins
Chief Investment Officer, Curvature Hedge Strategies
Price
$1.130
Owned
Yes
PAST TOP PICK
PAST TOP PICK
May 15, 2018

(A Top Pick March 26, 2018. Down 16%). This initially popped higher but they preannounced a poor quarter because the market had been stuffed by a promotion. This quarter will be a little weak for the same reason but after that, it will do better. Cipher historically focused on dermatology. With their purchase of Cardiome Pharma Corp’s Canadian assets, they will now also be focused on arrhythmia and other cardiovascular conditions addressed by Cordiome’s drugs. He loves Cipher here. He thinks it is trading at half what specialty pharma companies, like Knight, sell for. He sees this as a good takeover target for Knight and sees it as a potential double.

(A Top Pick March 26, 2018. Down 16%). This initially popped higher but they preannounced a poor quarter because the market had been stuffed by a promotion. This quarter will be a little weak for the same reason but after that, it will do better. Cipher historically focused on dermatology. With their purchase of Cardiome Pharma Corp’s Canadian assets, they will now also be focused on arrhythmia and other cardiovascular conditions addressed by Cordiome’s drugs. He loves Cipher here. He thinks it is trading at half what specialty pharma companies, like Knight, sell for. He sees this as a good takeover target for Knight and sees it as a potential double.

James Hodgins
Chief Investment Officer, Curvature Hedge Strategies
Price
$3.550
Owned
Yes
PAST TOP PICK
PAST TOP PICK
May 15, 2018

(A Top Pick March 26, 2018. Down 3%). This is a play on peoples’ smartphone addictions. Their main current business is a data center that provides cloud services. They also hold a number of licenses of spectrum that will be useful for the 5G expansion. Using the valuation, for its spectrum, that Comcast recently paid for spectrum, this asset brings $10 per share to the value of Terago. He still likes Terago quite a bit at this price. However, the price is based on a catalyst and it is yet to be seen how that will shake out.

TeraGo Inc.(TGO-T)
May 15, 2018

(A Top Pick March 26, 2018. Down 3%). This is a play on peoples’ smartphone addictions. Their main current business is a data center that provides cloud services. They also hold a number of licenses of spectrum that will be useful for the 5G expansion. Using the valuation, for its spectrum, that Comcast recently paid for spectrum, this asset brings $10 per share to the value of Terago. He still likes Terago quite a bit at this price. However, the price is based on a catalyst and it is yet to be seen how that will shake out.

James Hodgins
Chief Investment Officer, Curvature Hedge Strategies
Price
$5.750
Owned
Yes