Latest Expert Opinions

Signal
Opinion
Expert
WATCH
WATCH
July 6, 2018

This is a past holding. It has good price momentum, is in the top 20% of US stocks on that measure. It offers a great return on equity (35%) and has a good balance sheet. However, it is expensive (32x price to earnings) and has been more volatile lately. He will not buy at this time but it is a dominant global brand that he likes.

Nike Inc (NKE-N)
July 6, 2018

This is a past holding. It has good price momentum, is in the top 20% of US stocks on that measure. It offers a great return on equity (35%) and has a good balance sheet. However, it is expensive (32x price to earnings) and has been more volatile lately. He will not buy at this time but it is a dominant global brand that he likes.

Jason Mann
CIO & Co-Founder, Edgehill Patners
Price
$77.280
Owned
No
DON'T BUY
DON'T BUY
July 6, 2018

This is an example of a stock that he would have a short position on. The stock has a very high dividend but its payout ratio is quite high and is therefore at risk. The stock has negative price momentum. They have also had some earnings challenges from their royalty deals. (Analysts’ price target is $19.72)

This is an example of a stock that he would have a short position on. The stock has a very high dividend but its payout ratio is quite high and is therefore at risk. The stock has negative price momentum. They have also had some earnings challenges from their royalty deals. (Analysts’ price target is $19.72)

Jason Mann
CIO & Co-Founder, Edgehill Patners
Price
$16.070
Owned
No
BUY
BUY
July 6, 2018

The stock is close to its 52-week low, dragged down by 2 factors: (a) It is the most international bank and EM markets have struggled this year. A strong US dollar hurts emerging markets. (b) They have done acquisitions and issued shares in the process. He owns this stock despite its price pressure. “You don’t ever go really wrong by buying the Canadian banks.” They are an oligopoly, they have great management teams and they always tend to recover. This is a trading opportunity: good value, good volatility, but weak price momentum at this time.

The stock is close to its 52-week low, dragged down by 2 factors: (a) It is the most international bank and EM markets have struggled this year. A strong US dollar hurts emerging markets. (b) They have done acquisitions and issued shares in the process. He owns this stock despite its price pressure. “You don’t ever go really wrong by buying the Canadian banks.” They are an oligopoly, they have great management teams and they always tend to recover. This is a trading opportunity: good value, good volatility, but weak price momentum at this time.

Jason Mann
CIO & Co-Founder, Edgehill Patners
Price
$75.190
Owned
Yes
BUY
BUY
July 6, 2018

New Flyer has been caught up with some of the other reasonably-priced dividend-paying stocks that have been left behind as people chase growth stocks. This is a global phenomenon, and shows particularly in the US. This company scores in the top 20% on valuation and the top 20% on stability, has given a 22% return on equity and trades at 15x earnings. It offers a good yield (3%) and a low payout ratio. However, it did miss on earnings in the last quarter. They continue to have a backlog and so they have a growth profile ahead of them.

New Flyer has been caught up with some of the other reasonably-priced dividend-paying stocks that have been left behind as people chase growth stocks. This is a global phenomenon, and shows particularly in the US. This company scores in the top 20% on valuation and the top 20% on stability, has given a 22% return on equity and trades at 15x earnings. It offers a good yield (3%) and a low payout ratio. However, it did miss on earnings in the last quarter. They continue to have a backlog and so they have a growth profile ahead of them.

Jason Mann
CIO & Co-Founder, Edgehill Patners
Price
$49.520
Owned
Unknown
DON'T BUY
DON'T BUY
July 6, 2018

This had been a short for him because the utilities were expected to drop in price as interest rates rose--and they did. They were also relatively expensive and Enbridge had a debt problem. However, they have sold assets and are improving their balance sheet. Their payout ratio is now looking meaningfully better than it was. He no longer sees it as a short but he does not recommend it yet as a Buy. They company is still not cheap, interest rates will rise further, and the balance sheet problems are not yet fully resolved. This stock has room to drop further.

Enbridge (ENB-T)
July 6, 2018

This had been a short for him because the utilities were expected to drop in price as interest rates rose--and they did. They were also relatively expensive and Enbridge had a debt problem. However, they have sold assets and are improving their balance sheet. Their payout ratio is now looking meaningfully better than it was. He no longer sees it as a short but he does not recommend it yet as a Buy. They company is still not cheap, interest rates will rise further, and the balance sheet problems are not yet fully resolved. This stock has room to drop further.

Jason Mann
CIO & Co-Founder, Edgehill Patners
Price
$46.530
Owned
No
PAST TOP PICK
PAST TOP PICK
July 6, 2018

(A Top Pick March 30, 2017. Up 4%). This is an example of a high-quality stock that has sold off as the market has chased growth. Airlines have been under pressure because oil prices have been rising. However Chorus doesn’t have this problem. They have no currency exposure or fuel exposure. They are purely an operator on a pass-through basis. They own the planes (JAZZ) but Air Canada owns the routes and subcontracts capacity to Chorus. As long as Air Canada is flying, Chorus makes its margin on the hours flown. They have a high dividend but only a 37% payout ratio. They trade with a high return on equity and are very cheap. They did an equity deal a few months ago that weighed on the stock, but they did it to grow their leasing business. There is no good reason for the declining price of this stock.

(A Top Pick March 30, 2017. Up 4%). This is an example of a high-quality stock that has sold off as the market has chased growth. Airlines have been under pressure because oil prices have been rising. However Chorus doesn’t have this problem. They have no currency exposure or fuel exposure. They are purely an operator on a pass-through basis. They own the planes (JAZZ) but Air Canada owns the routes and subcontracts capacity to Chorus. As long as Air Canada is flying, Chorus makes its margin on the hours flown. They have a high dividend but only a 37% payout ratio. They trade with a high return on equity and are very cheap. They did an equity deal a few months ago that weighed on the stock, but they did it to grow their leasing business. There is no good reason for the declining price of this stock.

Jason Mann
CIO & Co-Founder, Edgehill Patners
Price
$7.240
Owned
Yes
PAST TOP PICK
PAST TOP PICK
July 6, 2018

(A Top Pick March 30, 2017. Up 96%). This company does recreational vehicles (Ski-Doo) and has been doing extremely well since it went public. Even with the big price runup, this company still has decent valuation. It scores in the top 15% on valuation. The valuation is getting more expensive compared to when he invested, but it is still reasonable given the company’s growth profile.

BRP INC. (DOO-T)
July 6, 2018

(A Top Pick March 30, 2017. Up 96%). This company does recreational vehicles (Ski-Doo) and has been doing extremely well since it went public. Even with the big price runup, this company still has decent valuation. It scores in the top 15% on valuation. The valuation is getting more expensive compared to when he invested, but it is still reasonable given the company’s growth profile.

Jason Mann
CIO & Co-Founder, Edgehill Patners
Price
$64.080
Owned
Yes