Latest Expert Opinions

Signal
Opinion
Expert
SELL
SELL
May 7, 2019
They sell water and gas heaters to the US residential market, but their expansion into China has caused pain with a big drop in Q1 revenues. They're very good managers in a niche market. Trades at 20x earnings, but growth has really softened. Share price is too high. The downside will come from weakening US home sales. Other headwinds: China tariffs. He'd exit here.
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A.O. Smith (AOS-N)
May 7, 2019
They sell water and gas heaters to the US residential market, but their expansion into China has caused pain with a big drop in Q1 revenues. They're very good managers in a niche market. Trades at 20x earnings, but growth has really softened. Share price is too high. The downside will come from weakening US home sales. Other headwinds: China tariffs. He'd exit here.
COMMENT
COMMENT
May 7, 2019
A grand slam, though they are facing more competition. He wishes he had bought this. China doesn't use credit cards and rather they use online payments--this is a longterm headwind. But Visa's free cash flow is great. Apple Pay is also coming.
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Visa Inc. (V-N)
May 7, 2019
A grand slam, though they are facing more competition. He wishes he had bought this. China doesn't use credit cards and rather they use online payments--this is a longterm headwind. But Visa's free cash flow is great. Apple Pay is also coming.
COMMENT
COMMENT
May 7, 2019
The impact of global warming Climate change will have an impact (flooding), so property casualty companies can raise rates--they can reprice every year. He likes this sector. Climate change will impact these companies, but not negatively.
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The impact of global warming Climate change will have an impact (flooding), so property casualty companies can raise rates--they can reprice every year. He likes this sector. Climate change will impact these companies, but not negatively.
BUY WEAKNESS
BUY WEAKNESS
May 7, 2019
A cyclical stock, so wait till it's beaten up. AA is in good shape with strong cash flow and they're a low-cost producer. China has cut back on capacity, so we're close to a turn.
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Alcoa (AA-N)
May 7, 2019
A cyclical stock, so wait till it's beaten up. AA is in good shape with strong cash flow and they're a low-cost producer. China has cut back on capacity, so we're close to a turn.
DON'T BUY
DON'T BUY
May 7, 2019

It's suffering like Kraft with almost no revenue or earnings growth with a PE of 20. Their brands are not the best.

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It's suffering like Kraft with almost no revenue or earnings growth with a PE of 20. Their brands are not the best.

COMMENT
COMMENT
May 7, 2019
The whole drug sector is under pressure, because every country is managing costs, including America. It's a cash flow industry struggling to maintain growth. Revenues are flatlining. But it's a defensive sector with solid, growing dividends, so he's reluctant to sell them.
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The whole drug sector is under pressure, because every country is managing costs, including America. It's a cash flow industry struggling to maintain growth. Revenues are flatlining. But it's a defensive sector with solid, growing dividends, so he's reluctant to sell them.
DON'T BUY
DON'T BUY
May 7, 2019
Trades at a high 25x earnings for a rock-solid group of beverages with decent dividend growth. Overall, it's too pricey for him.
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Diageo PLC (DEO-N)
May 7, 2019
Trades at a high 25x earnings for a rock-solid group of beverages with decent dividend growth. Overall, it's too pricey for him.