Latest Expert Opinions

Signal
Opinion
Expert
BUY
BUY
July 28, 2020

Canadian rails enjoy a duopoly, but we know that grains and other resources will get shipped. CP is more efficient than CN, and is very well-run. He owns CNR. Investors should own either.

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Canadian rails enjoy a duopoly, but we know that grains and other resources will get shipped. CP is more efficient than CN, and is very well-run. He owns CNR. Investors should own either.

DON'T BUY
DON'T BUY
July 28, 2020
They've been raising a lot of money, even under distress. He hears they were burning $20 million per day until they did layoffs. Problem with airlines is that they don't know when operations will return to normal, while customers are staying away. Airlines must keep paying staff and storing planes. Buying any airline now is an act of courage and tremendous optimism. He hopes things get better, but he won't bet on them now.
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Air Canada (AC-T)
July 28, 2020
They've been raising a lot of money, even under distress. He hears they were burning $20 million per day until they did layoffs. Problem with airlines is that they don't know when operations will return to normal, while customers are staying away. Airlines must keep paying staff and storing planes. Buying any airline now is an act of courage and tremendous optimism. He hopes things get better, but he won't bet on them now.
COMMENT
COMMENT
July 28, 2020
He doesn't know the details of BAC's business. But the US banks have been aggressive in setting aside capital for loan losses. {audio issues during his comment}
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He doesn't know the details of BAC's business. But the US banks have been aggressive in setting aside capital for loan losses. {audio issues during his comment}
DON'T BUY
DON'T BUY
July 28, 2020

Seeking dividends Caveat: You don't get the dividend tax credit as a Canadian investor. For good dividends in Canada: telcos, pipelines, utilities (i.e. Emera, Fortis) and the better investment trusts. He buys a bundle of such dividend payers, but these stocks are still below their February highs, as low as 25%.

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Seeking dividends Caveat: You don't get the dividend tax credit as a Canadian investor. For good dividends in Canada: telcos, pipelines, utilities (i.e. Emera, Fortis) and the better investment trusts. He buys a bundle of such dividend payers, but these stocks are still below their February highs, as low as 25%.

BUY
BUY
July 28, 2020

Telcos & utilities' outlook in the work-from-home era Rogers got hit when sports were cancelled/postponed and their broadcasting business may be impacted if MLB baseball is cancelled. Who knows? With Telus, you're taking less media-related risk. Telus is down 20% from its peak and pays a dividend over 5% that should rise. He sees no problems with telcos and utilities going forward, because the work-from-home trend will support them. But with both classes, some investors consider them boring (flat share price despite high dividend) and moved into growth/tech stocks. The dividend payers are now unloved, but history teaches us that that is precisely when to buy them.

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Telus Corp (T-T)
July 28, 2020

Telcos & utilities' outlook in the work-from-home era Rogers got hit when sports were cancelled/postponed and their broadcasting business may be impacted if MLB baseball is cancelled. Who knows? With Telus, you're taking less media-related risk. Telus is down 20% from its peak and pays a dividend over 5% that should rise. He sees no problems with telcos and utilities going forward, because the work-from-home trend will support them. But with both classes, some investors consider them boring (flat share price despite high dividend) and moved into growth/tech stocks. The dividend payers are now unloved, but history teaches us that that is precisely when to buy them.

BUY
BUY
July 28, 2020

Canadian tech stocks (DOKS - Descartes, Open Text, Kinaxis, Shopify) as a buy-and-hold strategy? His favourite among this narrow class of stocks is CSU. They make good acquisitions shrewdly, which made them grow into the dominant Canadian name. It's a better bet until Shopify starts being consistently profitable.

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Canadian tech stocks (DOKS - Descartes, Open Text, Kinaxis, Shopify) as a buy-and-hold strategy? His favourite among this narrow class of stocks is CSU. They make good acquisitions shrewdly, which made them grow into the dominant Canadian name. It's a better bet until Shopify starts being consistently profitable.

BUY
BUY
July 28, 2020
RY vs. a US bank Banks are grappling with how bad mortgage defaults will be, and how much longer will Ottawa support the economy? All the banks have aggressively built their reserves against bad loans. Traditionally, Canada has more safeguards in place before than America to prevent mortgage defaults. But many are unemployed in Canada now. When wage support stops here, homeowners will have trouble paying their loans. But most Canadian banks are insured by CMHC (that's one safeguard). which will cover such defaults. Given all this, he doesn't feel that Canadian banks are overly exposed to mortgage defaults and doesn't feel the banks are dangerous to own now.
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Royal Bank (RY-T)
July 28, 2020
RY vs. a US bank Banks are grappling with how bad mortgage defaults will be, and how much longer will Ottawa support the economy? All the banks have aggressively built their reserves against bad loans. Traditionally, Canada has more safeguards in place before than America to prevent mortgage defaults. But many are unemployed in Canada now. When wage support stops here, homeowners will have trouble paying their loans. But most Canadian banks are insured by CMHC (that's one safeguard). which will cover such defaults. Given all this, he doesn't feel that Canadian banks are overly exposed to mortgage defaults and doesn't feel the banks are dangerous to own now.