Latest Expert Opinions

Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
September 18, 2018

(Past Top Pick, June 14, 2017, Up 3%) His favourite US bank is Goldman Sachs. Trading at 10x earnings, at a discount to its peers; their earnings should grow 15%. They follow a well-diversified model. They won't increase share buybacks or capital, because they need the cash because they are growing so fast. Pays a dividend of 1.4%. They make money in difficult times. US banks as a whole have been stuck the past well, but GS has been doing everything right.

Goldman Sachs (GS-N)
September 18, 2018

(Past Top Pick, June 14, 2017, Up 3%) His favourite US bank is Goldman Sachs. Trading at 10x earnings, at a discount to its peers; their earnings should grow 15%. They follow a well-diversified model. They won't increase share buybacks or capital, because they need the cash because they are growing so fast. Pays a dividend of 1.4%. They make money in difficult times. US banks as a whole have been stuck the past well, but GS has been doing everything right.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$228.890
Owned
Yes
PAST TOP PICK
PAST TOP PICK
September 18, 2018

(Past Top Pick, June 14, 2017, Up 53%) He's excited about its long-term. Apple remains innovative, and that will continue in AI and VR. It's a huge revenue generator, so it increases dividends. Their service business is growing rapidly. Their computers continue to sell at a premium. He expects stock buybacks of $180 billion in the next three years, so EPS will continue to rise. Don't focus on the number of phones they sell each quarter.

Apple (AAPL-Q)
September 18, 2018

(Past Top Pick, June 14, 2017, Up 53%) He's excited about its long-term. Apple remains innovative, and that will continue in AI and VR. It's a huge revenue generator, so it increases dividends. Their service business is growing rapidly. Their computers continue to sell at a premium. He expects stock buybacks of $180 billion in the next three years, so EPS will continue to rise. Don't focus on the number of phones they sell each quarter.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$218.240
Owned
Yes
DON'T BUY
DON'T BUY
September 18, 2018

Emera vs. Fortis Emera doesn't have enough capital to fulfill its growth plans, so they need to raise it while they pay a 5.6% dividend--difficult. He prefers Fortis, which is better capitalized with better growth prospects. But they're both slow growers, not super-accretive. For dividend growth, look to a Canadian bank instead. Dividends: 5.6% vs. 3.9%

Emera Inc (EMA-T)
September 18, 2018

Emera vs. Fortis Emera doesn't have enough capital to fulfill its growth plans, so they need to raise it while they pay a 5.6% dividend--difficult. He prefers Fortis, which is better capitalized with better growth prospects. But they're both slow growers, not super-accretive. For dividend growth, look to a Canadian bank instead. Dividends: 5.6% vs. 3.9%

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$41.380
Owned
Unknown
WEAK BUY
WEAK BUY
September 18, 2018

Emera vs. Fortis Emera doesn't have enough capital to fulfill its growth plans, so they need to raise it while they pay a 5.6% dividend--difficult. He prefers Fortis, which is better capitalized with better growth prospects. But they're both slow growers, not super-accretive. For dividend growth, look to a Canadian bank instead. Dividends: 5.6% vs. 3.9%

Fortis Inc. (FTS-T)
September 18, 2018

Emera vs. Fortis Emera doesn't have enough capital to fulfill its growth plans, so they need to raise it while they pay a 5.6% dividend--difficult. He prefers Fortis, which is better capitalized with better growth prospects. But they're both slow growers, not super-accretive. For dividend growth, look to a Canadian bank instead. Dividends: 5.6% vs. 3.9%

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$42.690
Owned
Unknown
DON'T BUY
DON'T BUY
September 18, 2018

Can't tell its short-term prospects. They've been struggling, but in videogames he prefers Activision Blizzard (ATVI-Q) that he owns; they make the best games. They're getting into the battle royale market with new games. All videogame companies have been under a cloud because of this Fortnite controversy. He expects a 20% in ATVI in the next year.

Electronics Arts Inc (EA-Q)
September 18, 2018

Can't tell its short-term prospects. They've been struggling, but in videogames he prefers Activision Blizzard (ATVI-Q) that he owns; they make the best games. They're getting into the battle royale market with new games. All videogame companies have been under a cloud because of this Fortnite controversy. He expects a 20% in ATVI in the next year.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$112.650
Owned
No
BUY
BUY
September 18, 2018

They make the best games. They're getting into the battle royale market with new games. All videogame companies have been under a cloud because of this Fortnite controversy. He expects a 20% profit in ATVI in the next year.

Activision Blizzard (ATVI-Q)
September 18, 2018

They make the best games. They're getting into the battle royale market with new games. All videogame companies have been under a cloud because of this Fortnite controversy. He expects a 20% profit in ATVI in the next year.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$79.630
Owned
Yes
TOP PICK
TOP PICK
September 18, 2018

Just had a 20% correction, so it's now a good time to look at it. It's down, because it's taking time to get approval for some well pads in northeast BC. He expects they will get approval. But some fast-money investors got out which blasted out this stock. It's well-run with visionary managers. Fast growth. Strong balance sheet. Trading on par with its peers, but outgrowing them easily. Just signed a deal with Altagas to market their propane in Asia through the Ridley Terminal at attractive prices. He bought some personally at $8. Investors are neglecting this. It's a screaming buy. (no dividend, Analysts' price target: $12.03)

Kelt Exploration (KEL-T)
September 18, 2018

Just had a 20% correction, so it's now a good time to look at it. It's down, because it's taking time to get approval for some well pads in northeast BC. He expects they will get approval. But some fast-money investors got out which blasted out this stock. It's well-run with visionary managers. Fast growth. Strong balance sheet. Trading on par with its peers, but outgrowing them easily. Just signed a deal with Altagas to market their propane in Asia through the Ridley Terminal at attractive prices. He bought some personally at $8. Investors are neglecting this. It's a screaming buy. (no dividend, Analysts' price target: $12.03)

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$7.960
Owned
Yes