Latest Expert Opinions

Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
December 13, 2018
(A Top Pick Jul 24/18, Down 19%) Great company. Exceptionally profitable. Trading at 7 and 1/2 normalized earnings. Once they get over the big scandal. That will cost them $2 billion and they made $13 billion last year in profits. The best company in taking advantage of dysfunctional markets in the world. Global leader in investment banking. Pristine balance sheet. Good value. Just added to his position.
Goldman Sachs(GS-N)
December 13, 2018
(A Top Pick Jul 24/18, Down 19%) Great company. Exceptionally profitable. Trading at 7 and 1/2 normalized earnings. Once they get over the big scandal. That will cost them $2 billion and they made $13 billion last year in profits. The best company in taking advantage of dysfunctional markets in the world. Global leader in investment banking. Pristine balance sheet. Good value. Just added to his position.
John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$175.920
Owned
Yes
DON'T BUY
DON'T BUY
December 13, 2018
Was the decision to cut the dividend a dumb move? That was necessary. Management is like a gang that can't shoot straight. They destroyed this business by making an acquisition in the US. Very disappointed investment. They sold it at around $20. They are trading utilities companies like day trading. Only investment bankers are making money off this company in the last 5 years.
Altagas Ltd(ALA-T)
December 13, 2018
Was the decision to cut the dividend a dumb move? That was necessary. Management is like a gang that can't shoot straight. They destroyed this business by making an acquisition in the US. Very disappointed investment. They sold it at around $20. They are trading utilities companies like day trading. Only investment bankers are making money off this company in the last 5 years.
John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$15.050
Owned
No
DON'T BUY
DON'T BUY
December 13, 2018

A company that is an investment banker's Christmas present everyday. They pursued a growth story and sold off assets to finance that growth. A lousy performer. They have destroyed value by boosting dividend. Maybe they turn the whole thing around. Other than financial engineering there is no reason to own this company. Lousy balance sheet. They have grown so much and portfolio managers own so much of it, they need to find new investors and he doesn't think they will find new investors.

Enbridge(ENB-T)
December 13, 2018

A company that is an investment banker's Christmas present everyday. They pursued a growth story and sold off assets to finance that growth. A lousy performer. They have destroyed value by boosting dividend. Maybe they turn the whole thing around. Other than financial engineering there is no reason to own this company. Lousy balance sheet. They have grown so much and portfolio managers own so much of it, they need to find new investors and he doesn't think they will find new investors.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$43.110
Owned
No
COMMENT
COMMENT
December 13, 2018
One of the best operators in Canada. As long as the price of crude is above $60 is going to be fine. Canada has a severe problem. We are not a country, we are a bunch of people with different interests. We can't build things. The energy business is a tough business. A quality company. Generates huge free cash flow. He prefers Cenovus Energy (CVE-T) that has more leverage and as it has a cheaper valuation. It could be a potential target for CNQ to buy at about a 30% premium.
One of the best operators in Canada. As long as the price of crude is above $60 is going to be fine. Canada has a severe problem. We are not a country, we are a bunch of people with different interests. We can't build things. The energy business is a tough business. A quality company. Generates huge free cash flow. He prefers Cenovus Energy (CVE-T) that has more leverage and as it has a cheaper valuation. It could be a potential target for CNQ to buy at about a 30% premium.
John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$35.300
Owned
Unknown
BUY
BUY
December 13, 2018

As long as you believe that energy prices have to trade at some level above marginal cost globally, this company is a good purchase here. Well funded. Trading at 3 times normalized earnings. Everybody hates it. International investors are not coming to Canada as long as they don't see we can work as a country and sell our product and find more of it.

Baytex Energy Corp(BTE-T)
December 13, 2018

As long as you believe that energy prices have to trade at some level above marginal cost globally, this company is a good purchase here. Well funded. Trading at 3 times normalized earnings. Everybody hates it. International investors are not coming to Canada as long as they don't see we can work as a country and sell our product and find more of it.

John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$2.450
Owned
Unknown
WATCH
WATCH
December 13, 2018
A tremendous Canadian success story. The only concern is that they are growing so big and it gets to a period of time that you start losing economies of scale. The other thing is the funny share structure that the family wants to change and investors are not that happy about it. He would be cautious.
A tremendous Canadian success story. The only concern is that they are growing so big and it gets to a period of time that you start losing economies of scale. The other thing is the funny share structure that the family wants to change and investors are not that happy about it. He would be cautious.
John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$67.840
Owned
Unknown
TOP PICK
TOP PICK
December 13, 2018
If you avoid the noise, it is trading at 8 times earnings. Easily a $250 stock that generates very attractive returns in two years. Yield is 1.8% (Analysts’ price target is $260.00)
Goldman Sachs(GS-N)
December 13, 2018
If you avoid the noise, it is trading at 8 times earnings. Easily a $250 stock that generates very attractive returns in two years. Yield is 1.8% (Analysts’ price target is $260.00)
John O'Connell, CFA
Chairman and CEO, Davis Rea
Price
$175.920
Owned
Yes