Latest Expert Opinions

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COMMENT
COMMENT
August 1, 2018

He has been very interested in it based on the news today of Brookfield acquiring it. Brookfield are an astute buyer. There is a 53% premium attached to this transaction based on yesterday’s close which is roughly the gain today. The strategic process has been open for a few months. Brookfield normally make an offer at a lower price and hope the target management team takes it. Are there likely other buyers? He does not think there are. Brookfield may be the only game in town. If hold stock, will hold to see if Brookfield sweetens the pot but once gets close to offer price, would be selling.

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EnerCare Inc (ECI-T)
August 1, 2018

He has been very interested in it based on the news today of Brookfield acquiring it. Brookfield are an astute buyer. There is a 53% premium attached to this transaction based on yesterday’s close which is roughly the gain today. The strategic process has been open for a few months. Brookfield normally make an offer at a lower price and hope the target management team takes it. Are there likely other buyers? He does not think there are. Brookfield may be the only game in town. If hold stock, will hold to see if Brookfield sweetens the pot but once gets close to offer price, would be selling.

BUY
BUY
August 1, 2018

He would sit tight on this one. This is a very consistent growth story in the Canadian technology space. Came out with numbers that were slightly below on top line, operating line and earnings. But miss was small. Amount of organic growth has slowed, but historically organic growth is slow. He would continue to hold this stock. They are a prolific cash machine and very profitable. They are buying back stock and making small acquisitions. Does provide double digit earnings growth so provides good value.

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CGI Group (A) (GIB.A-T)
August 1, 2018

He would sit tight on this one. This is a very consistent growth story in the Canadian technology space. Came out with numbers that were slightly below on top line, operating line and earnings. But miss was small. Amount of organic growth has slowed, but historically organic growth is slow. He would continue to hold this stock. They are a prolific cash machine and very profitable. They are buying back stock and making small acquisitions. Does provide double digit earnings growth so provides good value.

PAST TOP PICK
PAST TOP PICK
August 1, 2018

(A top pick October 18/17, down 5%) This has been underwhelming. Were early in getting involved in the name. Have struggled with the debt load they inherited. But stock is back in gear. They got approval on their Line 3 replacement. They have cleaned up their complex corporate structure. Have divested of some core assets. Has a 6% yield and guidance to grow their dividend 10% over the next year or so.

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Enbridge (ENB-T)
August 1, 2018

(A top pick October 18/17, down 5%) This has been underwhelming. Were early in getting involved in the name. Have struggled with the debt load they inherited. But stock is back in gear. They got approval on their Line 3 replacement. They have cleaned up their complex corporate structure. Have divested of some core assets. Has a 6% yield and guidance to grow their dividend 10% over the next year or so.

PAST TOP PICK
PAST TOP PICK
August 1, 2018

(A top pick October 18/17, down 1%) This one is still in the starting gate. This is the heaviest weighted bank in their portfolio. Scotiabank is the poster child for emerging market exposure with operations in Mexico, Latin America, and South America. They are getting bigger in those geographies. And have double downed on wealth management with the acquisition of MD Management. Sentiment changing in emerging markets should put it back on track.

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(A top pick October 18/17, down 1%) This one is still in the starting gate. This is the heaviest weighted bank in their portfolio. Scotiabank is the poster child for emerging market exposure with operations in Mexico, Latin America, and South America. They are getting bigger in those geographies. And have double downed on wealth management with the acquisition of MD Management. Sentiment changing in emerging markets should put it back on track.

PAST TOP PICK
PAST TOP PICK
August 1, 2018

(A top pick October 18/17, up 22%) This has been a winner and continue to own it. This is a very consistent growth story in the Canadian technology space. Came out with numbers that were slightly below on top line, operating line and earnings. But miss was small. Amount of organic growth has slowed, but historically organic growth is slow. He would continue to hold this stock. They are a prolific cash machine and very profitable. They are buying back stock and making small acquisitions. Does provide double digit earnings growth so provides good value. He is very comfortable with this name.

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CGI Group (A) (GIB.A-T)
August 1, 2018

(A top pick October 18/17, up 22%) This has been a winner and continue to own it. This is a very consistent growth story in the Canadian technology space. Came out with numbers that were slightly below on top line, operating line and earnings. But miss was small. Amount of organic growth has slowed, but historically organic growth is slow. He would continue to hold this stock. They are a prolific cash machine and very profitable. They are buying back stock and making small acquisitions. Does provide double digit earnings growth so provides good value. He is very comfortable with this name.

COMMENT
COMMENT
August 1, 2018

Do not have a final investment decision on the LNG plant project yet. Should have a decision on this project sometime this year. Most are thinking the big LNG plant will get built. Most western Canadian natural gas stocks are very cheap. Western Canada is awash in natural gas and North America does not need it. If LNG gets exported globally, will see an enormous boom. Arc is a low cost, high quality operator in this area and may be some merit to own a small position in hope the plant gets built. There is an element of speculation.

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Do not have a final investment decision on the LNG plant project yet. Should have a decision on this project sometime this year. Most are thinking the big LNG plant will get built. Most western Canadian natural gas stocks are very cheap. Western Canada is awash in natural gas and North America does not need it. If LNG gets exported globally, will see an enormous boom. Arc is a low cost, high quality operator in this area and may be some merit to own a small position in hope the plant gets built. There is an element of speculation.

DON'T BUY
DON'T BUY
August 1, 2018

Earnings were not very good. He would likely not have the nerve to short this stock. Shorting a stock has unlimited downside. Has avoided this sector altogether. Marijuana until proven otherwise is an agricultural commodity. This is not a branded product and does not have the margins of branded products. Is more a show me stock.

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Aphria Inc (APHA-T)
August 1, 2018

Earnings were not very good. He would likely not have the nerve to short this stock. Shorting a stock has unlimited downside. Has avoided this sector altogether. Marijuana until proven otherwise is an agricultural commodity. This is not a branded product and does not have the margins of branded products. Is more a show me stock.