Latest Expert Opinions

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DON'T BUY
DON'T BUY
September 4, 2018

This is the major mobile company in a large market. They are experiencing the same problem that other large players are facing: everyone already has a smartphone. There is growth opportunity in China, but he expects to see average revenue per subscriber slowing down. He thinks the big run in that sector has come and gone and is being replaced by Netflix-type companies. In China, there is also a lot of pressure on pricing. Around the world, the mobile communications providers are all becoming more mature businesses.

This is the major mobile company in a large market. They are experiencing the same problem that other large players are facing: everyone already has a smartphone. There is growth opportunity in China, but he expects to see average revenue per subscriber slowing down. He thinks the big run in that sector has come and gone and is being replaced by Netflix-type companies. In China, there is also a lot of pressure on pricing. Around the world, the mobile communications providers are all becoming more mature businesses.

Lorne Steinberg
President & Portfolio Manager, Lorne Steinberg Wealth Management Inc
Price
$48.570
Owned
No
DON'T BUY
DON'T BUY
September 4, 2018

This is a solid company that has good businesses, but it has been dead money for a decade or longer. It is a conglomerate that is driven by Great West Life. Mutual fund companies are suffering from increased disclosure and pressure to reduce fees. He thinks Great West Life is a fine insurer but would much prefer to own Manulife or Sun Life than Power Corp because he thinks they represent better value and have better prospects for growth of earnings and dividends.

Power Corp (POW-T)
September 4, 2018

This is a solid company that has good businesses, but it has been dead money for a decade or longer. It is a conglomerate that is driven by Great West Life. Mutual fund companies are suffering from increased disclosure and pressure to reduce fees. He thinks Great West Life is a fine insurer but would much prefer to own Manulife or Sun Life than Power Corp because he thinks they represent better value and have better prospects for growth of earnings and dividends.

Lorne Steinberg
President & Portfolio Manager, Lorne Steinberg Wealth Management Inc
Price
$28.640
Owned
No
DON'T BUY
DON'T BUY
September 4, 2018

This has had a great run, driven by electronic commerce. It is the best in the business but is not a cheap stock and he would look elsewhere. The e-commerce trend won’t go away, but companies like Amazon and WalMart are talking about other forms of delivery to the door, which could take business away from FedEx. Even if these don’t become significant right away, the company is subject to competition. There is too much disruption in the established industries and this doesn’t offer a margin of safety.

FedEx (FDX-N)
September 4, 2018

This has had a great run, driven by electronic commerce. It is the best in the business but is not a cheap stock and he would look elsewhere. The e-commerce trend won’t go away, but companies like Amazon and WalMart are talking about other forms of delivery to the door, which could take business away from FedEx. Even if these don’t become significant right away, the company is subject to competition. There is too much disruption in the established industries and this doesn’t offer a margin of safety.

Lorne Steinberg
President & Portfolio Manager, Lorne Steinberg Wealth Management Inc
Price
$241.290
Owned
No
DON'T BUY
DON'T BUY
September 4, 2018

He is responding to a question about the impact of privacy or antitrust regulation on Facebook. Facebook is huge and is wildly profitable. However, privacy issues are not going away, and the regulatory environment can only get tougher, at some point. In addition, individuals are getting smarter, and many younger users are not using Facebook. Some of the alternatives are beneficial to Facebook, but others not. User growth has matured. Management has done a fantastic job, but the stock is still priced for significant growth. If the stock misses earnings by even a penny or two, investors might see a 10% to 15% drop in share price, and that could be a time to buy.

Facebook (FB-Q)
September 4, 2018

He is responding to a question about the impact of privacy or antitrust regulation on Facebook. Facebook is huge and is wildly profitable. However, privacy issues are not going away, and the regulatory environment can only get tougher, at some point. In addition, individuals are getting smarter, and many younger users are not using Facebook. Some of the alternatives are beneficial to Facebook, but others not. User growth has matured. Management has done a fantastic job, but the stock is still priced for significant growth. If the stock misses earnings by even a penny or two, investors might see a 10% to 15% drop in share price, and that could be a time to buy.

Lorne Steinberg
President & Portfolio Manager, Lorne Steinberg Wealth Management Inc
Price
$171.160
Owned
No
COMMENT
COMMENT
September 4, 2018

Declared a large special dividend payable later this month. The stock has gone ex-dividend and the stock has dropped to reflect the amount of the dividend. There is no other reason for its recent, large drop.

Norbord Inc (OSB-T)
September 4, 2018

Declared a large special dividend payable later this month. The stock has gone ex-dividend and the stock has dropped to reflect the amount of the dividend. There is no other reason for its recent, large drop.

Lorne Steinberg
President & Portfolio Manager, Lorne Steinberg Wealth Management Inc
Price
$48.820
Owned
Unknown
DON'T BUY
DON'T BUY
September 4, 2018

This was suffering with its entire industry a few years ago but has figured out how to compete and is now doing extremely well. It has strong earnings. He expects acquisitions to be a bolt-on variety (e.g. niches). Grocery is a tough space because of entrenched competition from Amazon, CostCo and Walmart. He is not buying grocery stocks because of the difficulty of this space, but he is very impressed with the management of Kroger and their success in this space.

Kroger Co. (KR-N)
September 4, 2018

This was suffering with its entire industry a few years ago but has figured out how to compete and is now doing extremely well. It has strong earnings. He expects acquisitions to be a bolt-on variety (e.g. niches). Grocery is a tough space because of entrenched competition from Amazon, CostCo and Walmart. He is not buying grocery stocks because of the difficulty of this space, but he is very impressed with the management of Kroger and their success in this space.

Lorne Steinberg
President & Portfolio Manager, Lorne Steinberg Wealth Management Inc
Price
$31.900
Owned
No
TOP PICK
TOP PICK
September 4, 2018

This is a Korean bank. Its earnings are growing in double digits. Its net interest margin is increasing. Its dividend yield is 3.5%. It is expanding via bolt-on acquisitions in Vietnam and elsewhere. It trades at half of tangible book value. Its sector is incredibly cheap. He has met with their management and respects them. Corporate governance issues are not a big consideration for him as they apply to Korean banks. He is concerned about pressure on the banks to lend to small and midsize businesses. So far, this has been a huge benefit but it creates some risk. Some of its customers are among the largest companies in the world. He sees this as a lower-risk financial play. (Analysts’ price target is $55.00)

This is a Korean bank. Its earnings are growing in double digits. Its net interest margin is increasing. Its dividend yield is 3.5%. It is expanding via bolt-on acquisitions in Vietnam and elsewhere. It trades at half of tangible book value. Its sector is incredibly cheap. He has met with their management and respects them. Corporate governance issues are not a big consideration for him as they apply to Korean banks. He is concerned about pressure on the banks to lend to small and midsize businesses. So far, this has been a huge benefit but it creates some risk. Some of its customers are among the largest companies in the world. He sees this as a lower-risk financial play. (Analysts’ price target is $55.00)

Lorne Steinberg
President & Portfolio Manager, Lorne Steinberg Wealth Management Inc
Price
$39.180
Owned
Yes