Latest Expert Opinions

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Opinion
Expert
BUY
BUY
June 19, 2019

Chartwell vs. Sienna for growth He likes and owns both. CSH's latest report says their operating income grew an impressive 4.7%, but Sienna's was 5.4%. CSH's and Sienna's growth are 5-5.5%. CSH has a low 64% payout ratio, but Sienna is a little cheaper at 12.7x vs. CSH's 15.6x. They're similar in many ways, but Sienna has more room for multiple expansion/upside. But CSH is slightly safer because it has a bigger cap. Both are in a good space with demographics as a tailwind.

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Chartwell vs. Sienna for growth He likes and owns both. CSH's latest report says their operating income grew an impressive 4.7%, but Sienna's was 5.4%. CSH's and Sienna's growth are 5-5.5%. CSH has a low 64% payout ratio, but Sienna is a little cheaper at 12.7x vs. CSH's 15.6x. They're similar in many ways, but Sienna has more room for multiple expansion/upside. But CSH is slightly safer because it has a bigger cap. Both are in a good space with demographics as a tailwind.

BUY WEAKNESS
BUY WEAKNESS
June 19, 2019

Very good company and well-run. There's enough room for this and Amazon to both do well. Buy this on a pullback. He's long held this.

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Walmart Inc (WMT-N)
June 19, 2019

Very good company and well-run. There's enough room for this and Amazon to both do well. Buy this on a pullback. He's long held this.

WEAK BUY
WEAK BUY
June 19, 2019

Dividend safe at 7.5%? CGX has an unsustainable 167% payout ratio to free cash flow. Their PE is pricey. They've spent a lot of non-movie ventures, but movies still account for 45% of business plus 25% in concessions. They need people coming into movie to attain growth. You can buy a little of this like around $23. It's an okay name, but has risk.

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Cineplex Inc (CGX-T)
June 19, 2019

Dividend safe at 7.5%? CGX has an unsustainable 167% payout ratio to free cash flow. Their PE is pricey. They've spent a lot of non-movie ventures, but movies still account for 45% of business plus 25% in concessions. They need people coming into movie to attain growth. You can buy a little of this like around $23. It's an okay name, but has risk.

BUY
BUY
June 19, 2019

Pros and cons. Yes, they won the trial, but there remains a litigation overhang (they should win their appeal). They just had a good quarter, but it was driven by Asia--is this sustainable? He expects 9% EPS growth and 10% annual dividend growth. Trades around 7x. It's outstanding value, but all insurance companies are hurt by falling interest rates. MFC has done a great job diversifying away from that, though.

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Pros and cons. Yes, they won the trial, but there remains a litigation overhang (they should win their appeal). They just had a good quarter, but it was driven by Asia--is this sustainable? He expects 9% EPS growth and 10% annual dividend growth. Trades around 7x. It's outstanding value, but all insurance companies are hurt by falling interest rates. MFC has done a great job diversifying away from that, though.

COMMENT
COMMENT
June 19, 2019

For an RRSP? The bad news is that he expects only 3% EPS growth (vs. 6% for this space). Yes, it's cheap vs. its peers and pays a solid dividend. But CM remains tethered to Canadian real estate, a headwind. The banks will be market performers; he prefers TD or RY or BMO. CM is okay long-term.

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For an RRSP? The bad news is that he expects only 3% EPS growth (vs. 6% for this space). Yes, it's cheap vs. its peers and pays a solid dividend. But CM remains tethered to Canadian real estate, a headwind. The banks will be market performers; he prefers TD or RY or BMO. CM is okay long-term.

COMMENT
COMMENT
June 19, 2019
Gold does well when interest rates go down, which has been happening. Gold has been out of favour since 2012. He expects now, though, to be another head-fake. Gold is basing and it will have its day...soon. But not now. It's a false rally.
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Gold does well when interest rates go down, which has been happening. Gold has been out of favour since 2012. He expects now, though, to be another head-fake. Gold is basing and it will have its day...soon. But not now. It's a false rally.
DON'T BUY
DON'T BUY
June 19, 2019
The dividend is not safe, though it will be maintained. They've had litigation charges and small-caps overall have done poorly in Canada. They also have a lot of leverage. This stock has been hammered till its cheaper than its three-year average. He sees a 13% growth rate. Their payout ratio is 125%, but will be 69% in 2020. If managers are correct about its predictions, you can hold this, but if not, this is risky.
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The dividend is not safe, though it will be maintained. They've had litigation charges and small-caps overall have done poorly in Canada. They also have a lot of leverage. This stock has been hammered till its cheaper than its three-year average. He sees a 13% growth rate. Their payout ratio is 125%, but will be 69% in 2020. If managers are correct about its predictions, you can hold this, but if not, this is risky.