Latest Expert Opinions

Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
October 2, 2018

(A Top Pick November 28, 2017. Down 4%). Alcoa suffered from the trade barriers, but with the USMCA agreements, he thinks that the tariffs will come off and Alcoa will do better.

Alcoa(AA-N)
October 2, 2018

(A Top Pick November 28, 2017. Down 4%). Alcoa suffered from the trade barriers, but with the USMCA agreements, he thinks that the tariffs will come off and Alcoa will do better.

Lorne Steinberg
President & Portfolio Manager, Lorne Steinberg Wealth Management Inc
Price
$41.560
Owned
Yes
PAST TOP PICK
PAST TOP PICK
October 2, 2018

(A Top Pick November 28, 2017. Down 26%). This is a compelling buy. Investors are getting a huge dividend, over 5%, from a company that is financially healthy.

ING Groep NV(ING-N)
October 2, 2018

(A Top Pick November 28, 2017. Down 26%). This is a compelling buy. Investors are getting a huge dividend, over 5%, from a company that is financially healthy.

Lorne Steinberg
President & Portfolio Manager, Lorne Steinberg Wealth Management Inc
Price
$12.890
Owned
Yes
PAST TOP PICK
PAST TOP PICK
October 2, 2018

(A Top Pick November 28, 2017. Down 13%). This company trades for less than working capital. You get the whole company for free. Japanese small caps have been hurt over the past 6 months but as trade frictions subside, valuation will become more important again. Futuba makes industrial equipment, such as VFD and OLED displays and touch panels. This is a growth industry and he expects Futaba to do well over the long term.

Futaba Corp(6986-JP)
October 2, 2018

(A Top Pick November 28, 2017. Down 13%). This company trades for less than working capital. You get the whole company for free. Japanese small caps have been hurt over the past 6 months but as trade frictions subside, valuation will become more important again. Futuba makes industrial equipment, such as VFD and OLED displays and touch panels. This is a growth industry and he expects Futaba to do well over the long term.

Lorne Steinberg
President & Portfolio Manager, Lorne Steinberg Wealth Management Inc
Price
$0.010
Owned
Yes
DON'T BUY
DON'T BUY
October 2, 2018

He doesn’t own automotive stocks. From a valuation standpoint, GM looks really cheap, with a single digit multiple. It has suffered very much recently, as has the whole sector. Over time, the trend is reduced car demand with the increase in car sharing, high-speed trains and other public transport. Streets are way too busy. Millenials are not buying cars the way that previous generations have. This is a capital-intensive business. Even to move the fleet to electric motors requires many billions of dollars. It is too hard, and too expensive, for auto companies to keep up with world trends. There are better places for investors’ money.

He doesn’t own automotive stocks. From a valuation standpoint, GM looks really cheap, with a single digit multiple. It has suffered very much recently, as has the whole sector. Over time, the trend is reduced car demand with the increase in car sharing, high-speed trains and other public transport. Streets are way too busy. Millenials are not buying cars the way that previous generations have. This is a capital-intensive business. Even to move the fleet to electric motors requires many billions of dollars. It is too hard, and too expensive, for auto companies to keep up with world trends. There are better places for investors’ money.

Lorne Steinberg
President & Portfolio Manager, Lorne Steinberg Wealth Management Inc
Price
$33.300
Owned
No
DON'T BUY
DON'T BUY
October 2, 2018

When an investor sees a 10% dividend, s/he should understand that the whole world sees the same dividend. The investor should ask whether such a dividend is sustainable. The company has way too much debt and pays out too much cash flow in dividend. The company is a prime candidate for a dividend cut even though its management says it won’t do it. He won’t buy companies that have a lot of debt. Yield 10%. 

Altagas Ltd(ALA-T)
October 2, 2018

When an investor sees a 10% dividend, s/he should understand that the whole world sees the same dividend. The investor should ask whether such a dividend is sustainable. The company has way too much debt and pays out too much cash flow in dividend. The company is a prime candidate for a dividend cut even though its management says it won’t do it. He won’t buy companies that have a lot of debt. Yield 10%. 

Lorne Steinberg
President & Portfolio Manager, Lorne Steinberg Wealth Management Inc
Price
$21.190
Owned
No
HOLD
HOLD
October 2, 2018

Owns a couple of other comparable banks. American banks went down today even as the Dow rose to a record high. Global financial stocks are suffering as the yield curve gets flatter. The Fed indicated that a number of rate increases are coming in the next 12 to 18 months, but if those increases have their main effect on the short end of the yield curve, the result will be the dreaded inverted yield curve, which is almost always a precursor to a slowdown in economic activity. The current spread between the 2-year bond yield and the 10-year yield is only 25 basis points. Banks do best when the yield curve is rising, because banks borrow short and lend long. He would not sell a large bank at this point, but he wouldn’t be surprised to see their prices drop further because of the Fed rate cycle.

Bank of America(BAC-N)
October 2, 2018

Owns a couple of other comparable banks. American banks went down today even as the Dow rose to a record high. Global financial stocks are suffering as the yield curve gets flatter. The Fed indicated that a number of rate increases are coming in the next 12 to 18 months, but if those increases have their main effect on the short end of the yield curve, the result will be the dreaded inverted yield curve, which is almost always a precursor to a slowdown in economic activity. The current spread between the 2-year bond yield and the 10-year yield is only 25 basis points. Banks do best when the yield curve is rising, because banks borrow short and lend long. He would not sell a large bank at this point, but he wouldn’t be surprised to see their prices drop further because of the Fed rate cycle.

Lorne Steinberg
President & Portfolio Manager, Lorne Steinberg Wealth Management Inc
Price
$29.580
Owned
No
DON'T BUY
DON'T BUY
October 2, 2018

This was a Canadian success story that expanded too quickly into markets they didn’t understand. There was a proxy battle as the company has tried to stabilize itself. Competitors like Starbucks are eating their lunch. They rose sharply today on a rumour that they might be considering the cannabis business; however, they have not confirmed those plans. He sees a tough haul for the company ahead, and expects them to close down unprofitable locations. DavidsTea needs to regroup and find itself again, rather than expanding in a new direction.

David`s Tea Inc.(DTEA-Q)
October 2, 2018

This was a Canadian success story that expanded too quickly into markets they didn’t understand. There was a proxy battle as the company has tried to stabilize itself. Competitors like Starbucks are eating their lunch. They rose sharply today on a rumour that they might be considering the cannabis business; however, they have not confirmed those plans. He sees a tough haul for the company ahead, and expects them to close down unprofitable locations. DavidsTea needs to regroup and find itself again, rather than expanding in a new direction.

Lorne Steinberg
President & Portfolio Manager, Lorne Steinberg Wealth Management Inc
Price
$4.160
Owned
No