Latest Expert Opinions

Signal
Opinion
Expert
BUY WEAKNESS
BUY WEAKNESS
May 8, 2019
He looked at it during a recent pullback, but didn't buy. It's a quality company and best in class among North American rails. It continues to improve, but it's pricey and overbought. It's a growth cyclical and so a play on the economic cycle extending.
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He looked at it during a recent pullback, but didn't buy. It's a quality company and best in class among North American rails. It continues to improve, but it's pricey and overbought. It's a growth cyclical and so a play on the economic cycle extending.
WEAK BUY
WEAK BUY
May 8, 2019

Which telco to buy? Canadian telcos are a good place to invest (an oligopoly) though he owns none of them. Headwinds: slower growth compared to 5-10 years ago, especially in the wireline business and people move to cell phones. BCE, then Telus and Rogers in this order have the most exposure to wireline. Therefore, his first choice is Rogers, though he would carefully weigh all of them first.

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Which telco to buy? Canadian telcos are a good place to invest (an oligopoly) though he owns none of them. Headwinds: slower growth compared to 5-10 years ago, especially in the wireline business and people move to cell phones. BCE, then Telus and Rogers in this order have the most exposure to wireline. Therefore, his first choice is Rogers, though he would carefully weigh all of them first.

DON'T BUY
DON'T BUY
May 8, 2019
He sold it a few months ago. Their new petrochem facility transforms Alberta propane into plastic pellets for consumer goods and industrial use. A good idea as Alberta lacks pipelines to move natural gas. $550 million EBITDA from comes this $3.5 billion plant when it comes online in 2021. That's good. However, IPL has been secretive about the plant's progress, and this plant exposes them to the risk of commodity price risk. To offset that, they need to close take-or-pay contracts with other producers of the end product, and IPL hasn't done that. Also, they have problems with storage terminals in Europe--not used to capacity.
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He sold it a few months ago. Their new petrochem facility transforms Alberta propane into plastic pellets for consumer goods and industrial use. A good idea as Alberta lacks pipelines to move natural gas. $550 million EBITDA from comes this $3.5 billion plant when it comes online in 2021. That's good. However, IPL has been secretive about the plant's progress, and this plant exposes them to the risk of commodity price risk. To offset that, they need to close take-or-pay contracts with other producers of the end product, and IPL hasn't done that. Also, they have problems with storage terminals in Europe--not used to capacity.
PAST TOP PICK
PAST TOP PICK
May 8, 2019
(A Top Pick May 16/18, Up 3%) Dividends are important. Their businesses have been doing well, and earnings are up 12%, though the stock price has been flat. His return comes from the dividend. They actually incurred a loss in their last quarterly report, which was surprising, but he expects a good report later this month. You can sleep well owning this long-term.
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(A Top Pick May 16/18, Up 3%) Dividends are important. Their businesses have been doing well, and earnings are up 12%, though the stock price has been flat. His return comes from the dividend. They actually incurred a loss in their last quarterly report, which was surprising, but he expects a good report later this month. You can sleep well owning this long-term.
PAST TOP PICK
PAST TOP PICK
May 8, 2019
(A Top Pick May 16/18, Down 8%) Had a good report today, though it's been a rollercoaster the past year. Oil prices fell off their peak last summer. Also PXT put itself up for auction at the same time. Not good and it didn't work. Earnings reported today up 18% and production 26%. High cash flow and margins and bought back shares the last quarter. Better days are ahead and he likes it.
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(A Top Pick May 16/18, Down 8%) Had a good report today, though it's been a rollercoaster the past year. Oil prices fell off their peak last summer. Also PXT put itself up for auction at the same time. Not good and it didn't work. Earnings reported today up 18% and production 26%. High cash flow and margins and bought back shares the last quarter. Better days are ahead and he likes it.
PAST TOP PICK
PAST TOP PICK
May 8, 2019

(A Top Pick May 16/18, Down 26%) Disappointing, because of overblown fears of a recession that he doesn't expect. This is very cyclical demand for Caterpillar equipment. They reported earnings today and they were in line with subdued expectations. Sales were better than expected and they have partially solved a distribution problem in South America.

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(A Top Pick May 16/18, Down 26%) Disappointing, because of overblown fears of a recession that he doesn't expect. This is very cyclical demand for Caterpillar equipment. They reported earnings today and they were in line with subdued expectations. Sales were better than expected and they have partially solved a distribution problem in South America.

DON'T BUY
DON'T BUY
May 8, 2019
A weak regional bank plagued with operational problems. It won't match the dividend growth of the big banks. This has "value trap" written all over it. Buy one of the big 5 instead.
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A weak regional bank plagued with operational problems. It won't match the dividend growth of the big banks. This has "value trap" written all over it. Buy one of the big 5 instead.