Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
October 22, 2018

De-regulation is a tailwind for U.S. banks, but loan growth is a challenge. BAC is a lot less risky now than a decade ago. They will return capital to shareholders. The American economy is strong. But keep an eye on this and the U.S.
economy.

Bank of America (BAC-N)
October 22, 2018

De-regulation is a tailwind for U.S. banks, but loan growth is a challenge. BAC is a lot less risky now than a decade ago. They will return capital to shareholders. The American economy is strong. But keep an eye on this and the U.S.
economy.

Ashley Misquitta, CFA
Senior Portfolio Manager, Empire Life
Price
$27.380
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
October 22, 2018

(Past Top Pick April 17, 2018, Up 21%) They're a managed-care provider, providing insurance to a company's employees, as well as seniors, and Medicaid, a state-run program to benefit low-income folks. Increasingly, states are outsourcing this administration of programs to outside companies. 10,000-11,000 people turn 65 everyday in the States and some of those will buy ANTM's product. New CEO has fine experience. Valuation is attractive vs. its peers.

Anthem Inc (ANTM-N)
October 22, 2018

(Past Top Pick April 17, 2018, Up 21%) They're a managed-care provider, providing insurance to a company's employees, as well as seniors, and Medicaid, a state-run program to benefit low-income folks. Increasingly, states are outsourcing this administration of programs to outside companies. 10,000-11,000 people turn 65 everyday in the States and some of those will buy ANTM's product. New CEO has fine experience. Valuation is attractive vs. its peers.

Ashley Misquitta, CFA
Senior Portfolio Manager, Empire Life
Price
$275.730
Owned
Yes
PAST TOP PICK
PAST TOP PICK
October 22, 2018

(Past Top Pick April 17, 2018, Up 15%) Them and Home Depot occupy half the home improvement market. Secular tailwinds are attractive. Handyman skills are declining among consumers, so Lowe's business of sending contractors to houses is growing (and buying supplies for these projects from Lowes). Big share buybacks and heavy free cash flow. Good balance sheet. If there's an economic downturn, yes, their business will get hit, but Lowes will sustain this rough patch.

(Past Top Pick April 17, 2018, Up 15%) Them and Home Depot occupy half the home improvement market. Secular tailwinds are attractive. Handyman skills are declining among consumers, so Lowe's business of sending contractors to houses is growing (and buying supplies for these projects from Lowes). Big share buybacks and heavy free cash flow. Good balance sheet. If there's an economic downturn, yes, their business will get hit, but Lowes will sustain this rough patch.

Ashley Misquitta, CFA
Senior Portfolio Manager, Empire Life
Price
$98.390
Owned
Yes
PAST TOP PICK
PAST TOP PICK
October 22, 2018

(Past Top Pick April 17, 2018, Up 25%) Their customers are fiercely loyal. Unnoticed is their internal semi-conductor development as well as their ability to combine hardware and software. (Also a top pick.)

Apple (AAPL-Q)
October 22, 2018

(Past Top Pick April 17, 2018, Up 25%) Their customers are fiercely loyal. Unnoticed is their internal semi-conductor development as well as their ability to combine hardware and software. (Also a top pick.)

Ashley Misquitta, CFA
Senior Portfolio Manager, Empire Life
Price
$220.650
Owned
Yes
COMMENT
COMMENT
October 22, 2018

They'll merge with Aetna, a managed-care company. The U.S. has to manage its large healthcare costs. CVS has responded by opening mini-clinics for minor ailments, like a sore throat as opposed to seeing a doctor. This is interesting. Two concerns: 1) What will Washington do with rebates around the pharmacy benefit management business; is that a threat? 2) Amazon getting into the pharmacy business.

CVS Health Corp (CVS-N)
October 22, 2018

They'll merge with Aetna, a managed-care company. The U.S. has to manage its large healthcare costs. CVS has responded by opening mini-clinics for minor ailments, like a sore throat as opposed to seeing a doctor. This is interesting. Two concerns: 1) What will Washington do with rebates around the pharmacy benefit management business; is that a threat? 2) Amazon getting into the pharmacy business.

Ashley Misquitta, CFA
Senior Portfolio Manager, Empire Life
Price
$72.840
Owned
Unknown
BUY
BUY
October 22, 2018

The merger has been a good move, taking the best of each company: seed business with agriculture operation, material science with speciality products. They will focus far more on returning on capital, reduce risk with less volatility and generally be a more efficient group of three companies vs. their peers. An interesting opportunity.

DowDuPont Inc. (DWDP-N)
October 22, 2018

The merger has been a good move, taking the best of each company: seed business with agriculture operation, material science with speciality products. They will focus far more on returning on capital, reduce risk with less volatility and generally be a more efficient group of three companies vs. their peers. An interesting opportunity.

Ashley Misquitta, CFA
Senior Portfolio Manager, Empire Life
Price
$56.070
Owned
Unknown
TOP PICK
TOP PICK
October 22, 2018

Terrific long-term. Their eco-system is very strong with loyal customers, and there's a transition from Android phones to iPhones. They have over $100-billion in cash overseas after debt. Most of that will boost the dividend and share buybacks. He disagrees that Apple is no longer innovative, like the A.I. on their phones. Surveys show that iPhones are popular with teens, who will likely stay with Apple when they become adults. (1.32% dividend yield, Analysts' price target: not given)

Apple (AAPL-Q)
October 22, 2018

Terrific long-term. Their eco-system is very strong with loyal customers, and there's a transition from Android phones to iPhones. They have over $100-billion in cash overseas after debt. Most of that will boost the dividend and share buybacks. He disagrees that Apple is no longer innovative, like the A.I. on their phones. Surveys show that iPhones are popular with teens, who will likely stay with Apple when they become adults. (1.32% dividend yield, Analysts' price target: not given)

Ashley Misquitta, CFA
Senior Portfolio Manager, Empire Life
Price
$220.650
Owned
Yes