Latest Expert Opinions

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
September 18, 2018

He is neutral on this. The company has transformed its business over the last 20 years from printing newspapers to making cardboard boxes. This is both, a great growth industry and a very mature industry. The company sells at 15x earnings, which is a relatively high multiple for a mature business. International Paper is the leader in the industry, so the company is safe, but it will probably just continue to plug along. He would look elsewhere for an opportunity.

International Paper Co(IP-N)
September 18, 2018

He is neutral on this. The company has transformed its business over the last 20 years from printing newspapers to making cardboard boxes. This is both, a great growth industry and a very mature industry. The company sells at 15x earnings, which is a relatively high multiple for a mature business. International Paper is the leader in the industry, so the company is safe, but it will probably just continue to plug along. He would look elsewhere for an opportunity.

Bruce Murray
CEO & Chief Investment Officer, The Murray Wealth Group
Price
$53.720
Owned
No
BUY
BUY
September 18, 2018

This is one of the few Canadian companies he owns. He likes it. He likes the potential of the business, and the leverage to higher rates. The stock rose in expectation of higher rates and dropped off when the main increases were postponed. The company struggled with its US business, but now the company is stronger, the dividend is fine and will gradually increase. Eventually the Asian expansion will pay off and the stock will probably move to the low $30’s, which is where many people have set a target price. He would nibble away at it at this price. He would buy a lot more at $20 and would sell some at $32.

Manulife Financial(MFC-T)
September 18, 2018

This is one of the few Canadian companies he owns. He likes it. He likes the potential of the business, and the leverage to higher rates. The stock rose in expectation of higher rates and dropped off when the main increases were postponed. The company struggled with its US business, but now the company is stronger, the dividend is fine and will gradually increase. Eventually the Asian expansion will pay off and the stock will probably move to the low $30’s, which is where many people have set a target price. He would nibble away at it at this price. He would buy a lot more at $20 and would sell some at $32.

Bruce Murray
CEO & Chief Investment Officer, The Murray Wealth Group
Price
$23.150
Owned
Yes
COMMENT
COMMENT
September 18, 2018

A questioner noted that the stock had dropped a lot but was now rising on a rumour of a possible buyout. Murray responded that he doesn’t know the company well enough to recommend buying, holding or selling. He noted that discount brokerage market in the US has become very competitive with heavy advertising of low prices, low fees and of interest rates on cash reserves. Their incomes are being squeezed. E*Trade is a good long-term business. As more people retire, they will manage their investments as a hobby. So he would not be afraid of this stock, but he doesn’t know whether the stock is overpriced at this level. If the PE is 15-20x, he thinks it is OK. (Analyst's price target 17.74.)

ETrade Financial Corp.(ETFC-Q)
September 18, 2018

A questioner noted that the stock had dropped a lot but was now rising on a rumour of a possible buyout. Murray responded that he doesn’t know the company well enough to recommend buying, holding or selling. He noted that discount brokerage market in the US has become very competitive with heavy advertising of low prices, low fees and of interest rates on cash reserves. Their incomes are being squeezed. E*Trade is a good long-term business. As more people retire, they will manage their investments as a hobby. So he would not be afraid of this stock, but he doesn’t know whether the stock is overpriced at this level. If the PE is 15-20x, he thinks it is OK. (Analyst's price target 17.74.)

Bruce Murray
CEO & Chief Investment Officer, The Murray Wealth Group
Price
$53.760
Owned
No
BUY
BUY
September 18, 2018

They published results today that surprised negatively on earnings but their growth is very strong and the company is well managed. E-commerce will continue to grow. He thinks FedEx and UPS will continue to benefit from that and their future is fine. The lower earnings come from paying their employees more, which is probably a good investment in the future of the company. He sees today’s drop as a buying opportunity.

FedEx(FDX-N)
September 18, 2018

They published results today that surprised negatively on earnings but their growth is very strong and the company is well managed. E-commerce will continue to grow. He thinks FedEx and UPS will continue to benefit from that and their future is fine. The lower earnings come from paying their employees more, which is probably a good investment in the future of the company. He sees today’s drop as a buying opportunity.

Bruce Murray
CEO & Chief Investment Officer, The Murray Wealth Group
Price
$241.580
Owned
Unknown
COMMENT
COMMENT
September 18, 2018

This company grew by rolling up paint suppliers in the US in the auto-finishing business, much like Boyd Automotive except it is a bit upstream, actually supplying the paint in to the shops. The company did well for a while but after they had acquired a big chunk of the industry, their pricing got high. Since then, earnings have been disappointing, their Canadian exposure has been tough with the economy slowing down, and the stock sold off. In addition, the automated driving support features will lead to fewer collisions and hurt the repair business over the longer term. Over the short term, investors could nibble at the stock at this price and then sell it on a bounce. The stock dropped today after the CEO departed abruptly and the company cut its forecast.

Uni-Select Inc(UNS-T)
September 18, 2018

This company grew by rolling up paint suppliers in the US in the auto-finishing business, much like Boyd Automotive except it is a bit upstream, actually supplying the paint in to the shops. The company did well for a while but after they had acquired a big chunk of the industry, their pricing got high. Since then, earnings have been disappointing, their Canadian exposure has been tough with the economy slowing down, and the stock sold off. In addition, the automated driving support features will lead to fewer collisions and hurt the repair business over the longer term. Over the short term, investors could nibble at the stock at this price and then sell it on a bounce. The stock dropped today after the CEO departed abruptly and the company cut its forecast.

Bruce Murray
CEO & Chief Investment Officer, The Murray Wealth Group
Price
$20.810
Owned
Unknown
HOLD
HOLD
September 18, 2018

Dollar stores are favored by the major retail analysts as still having growth opportunity. However, most Canadians see a Dollarama on every corner. They have a dwindling ability to penetrate the Canadian market further through more locations. This company has a big PE and high growth expectations, but its growth ability seems to be slowing. A small miss in this context can have an outsize effect, as appears to have happened to Dollarama this month. He owns a little bit, would not sell his stock at this point, but would not buy more until he sees that the stock has reached its inflection point. He would wait for a couple of quarters, looking at the company’s comments to understand how they now see their growth prospects. Dollarama has some other opportunities in other countries but has not yet shown that these will develop into significant growth.

Dollarama Inc.(DOL-T)
September 18, 2018

Dollar stores are favored by the major retail analysts as still having growth opportunity. However, most Canadians see a Dollarama on every corner. They have a dwindling ability to penetrate the Canadian market further through more locations. This company has a big PE and high growth expectations, but its growth ability seems to be slowing. A small miss in this context can have an outsize effect, as appears to have happened to Dollarama this month. He owns a little bit, would not sell his stock at this point, but would not buy more until he sees that the stock has reached its inflection point. He would wait for a couple of quarters, looking at the company’s comments to understand how they now see their growth prospects. Dollarama has some other opportunities in other countries but has not yet shown that these will develop into significant growth.

Bruce Murray
CEO & Chief Investment Officer, The Murray Wealth Group
Price
$42.030
Owned
Yes
BUY
BUY
September 18, 2018

This has 130 million subscribers globally and there are 1.2 billion cable company subscribers. There’s a long way to go in market penetration. He sees it as still being in a growth phase and compares this to Amazon 10 years ago. After they start running out of new subscribers to add, they can increase revenue through pricing leverage. They are currently very liberal in terms of how many people can watch shows through the same subscription at the same time. Tightening that can raise revenue. They are the first mover in a growing space. He has only a small position but believes it has significant upside over many years.

Netflix Inc.(NFLX-Q)
September 18, 2018

This has 130 million subscribers globally and there are 1.2 billion cable company subscribers. There’s a long way to go in market penetration. He sees it as still being in a growth phase and compares this to Amazon 10 years ago. After they start running out of new subscribers to add, they can increase revenue through pricing leverage. They are currently very liberal in terms of how many people can watch shows through the same subscription at the same time. Tightening that can raise revenue. They are the first mover in a growing space. He has only a small position but believes it has significant upside over many years.

Bruce Murray
CEO & Chief Investment Officer, The Murray Wealth Group
Price
$367.650
Owned
Yes