Latest Expert Opinions

Signal
Opinion
Expert
TOP PICK
TOP PICK
October 8, 2020
Stockchase Research Editor: Michael O'Reilly Our Top Pick of SR is as much a seasonal play as it is about fundamental recovery. This natural gas company provides service to 1.8 million homes in Alabama, Missouri and Mississippi, is the 5th largest publicly traded natural gas company, and is viewed as providing essential services heading into the winter. Recent earnings were up 3% over the year and consensus calls for a 9% increase next year. We would trade this with a stop-loss at $50. Yield 4.54% (Analysts’ price target is $72.89)
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Spire Inc. (SR-N)
October 8, 2020
Stockchase Research Editor: Michael O'Reilly Our Top Pick of SR is as much a seasonal play as it is about fundamental recovery. This natural gas company provides service to 1.8 million homes in Alabama, Missouri and Mississippi, is the 5th largest publicly traded natural gas company, and is viewed as providing essential services heading into the winter. Recent earnings were up 3% over the year and consensus calls for a 9% increase next year. We would trade this with a stop-loss at $50. Yield 4.54% (Analysts’ price target is $72.89)
TOP PICK
TOP PICK
October 8, 2020
Stockchase Research Editor: Michael O'Reilly One of the sectors that has benefitted from the pandemic is that of grocers. VLGEA is a under-the-radar grocer that provides a solid divided, backed up by a safe payout ratio. The company just reported a 20% increase in revenues over the year and EPS was up 34%. Its 15.8 PE is half of the sector average and it trades at 1.1 times book. They recently acquired the Fairway Market assets, which included four stores in the NYC area and a distribution centre. We would trade this with a $20 stop-loss and look for upside towards $30 -- 22% potential. Yield 4.11% (Analysts’ price target is $26.90)
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Stockchase Research Editor: Michael O'Reilly One of the sectors that has benefitted from the pandemic is that of grocers. VLGEA is a under-the-radar grocer that provides a solid divided, backed up by a safe payout ratio. The company just reported a 20% increase in revenues over the year and EPS was up 34%. Its 15.8 PE is half of the sector average and it trades at 1.1 times book. They recently acquired the Fairway Market assets, which included four stores in the NYC area and a distribution centre. We would trade this with a $20 stop-loss and look for upside towards $30 -- 22% potential. Yield 4.11% (Analysts’ price target is $26.90)
TOP PICK
TOP PICK
October 8, 2020
Stockchase Research Editor: Michael O'Reilly This medical device company has has been front and centre during the pandemic -- providing six COVID-19 test kits -- including one now that provides results in 15 minutes. The company's other products help patients with chronic cardiovascular, pulminary, and diabetic issues. The company is launching a new non-finger poking glucose monitoring device -- a game changer. A recent pullback in the share price gives an opportunity to enter with reasonable upside. We would trade this with a $97 stop-loss looking to achieve $128 -- 17% upside. Yield 1.34% (Analysts’ price target is $115.12)
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Abbott Labs (ABT-N)
October 8, 2020
Stockchase Research Editor: Michael O'Reilly This medical device company has has been front and centre during the pandemic -- providing six COVID-19 test kits -- including one now that provides results in 15 minutes. The company's other products help patients with chronic cardiovascular, pulminary, and diabetic issues. The company is launching a new non-finger poking glucose monitoring device -- a game changer. A recent pullback in the share price gives an opportunity to enter with reasonable upside. We would trade this with a $97 stop-loss looking to achieve $128 -- 17% upside. Yield 1.34% (Analysts’ price target is $115.12)
SPECULATIVE BUY
SPECULATIVE BUY
October 8, 2020

Execution and funding risk. There are safer names like ENB and PPL. If they pull off this execution on time and on budget, there's meaningful upside. Balance sheet pretty levered. Not as cheap as peers. It can work, but it's a riskier play.

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Inter Pipeline (IPL-T)
October 8, 2020

Execution and funding risk. There are safer names like ENB and PPL. If they pull off this execution on time and on budget, there's meaningful upside. Balance sheet pretty levered. Not as cheap as peers. It can work, but it's a riskier play.

BUY
BUY
October 8, 2020
Likes it a lot. Good EPS growth. Not cheap anymore. If Biden wins, it will favour the renewables. Liked it more a couple of weeks ago in the $18s. Will grow in next 5 years.
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Likes it a lot. Good EPS growth. Not cheap anymore. If Biden wins, it will favour the renewables. Liked it more a couple of weeks ago in the $18s. Will grow in next 5 years.
BUY
BUY
October 8, 2020
Incredibly high dividend of 8.4%, which is sometimes a signal of trouble. Payout ratio pretty stable around 71%. Trading at a compelling 13.3x 2021 PE. Improved balance sheet. Volumes back to pre-Covid levels. Decent 7% EPS growth. Risks on Lines 3 and 5. On balance, nice risk/reward at these levels.
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Enbridge (ENB-T)
October 8, 2020
Incredibly high dividend of 8.4%, which is sometimes a signal of trouble. Payout ratio pretty stable around 71%. Trading at a compelling 13.3x 2021 PE. Improved balance sheet. Volumes back to pre-Covid levels. Decent 7% EPS growth. Risks on Lines 3 and 5. On balance, nice risk/reward at these levels.
DON'T BUY
DON'T BUY
October 8, 2020

Likes it. OK growth rate. Expensive. AQN and FTS are trading at better levels with nice growth rates and dividend growth. Pretty safe area, but a mistake to buy at the top of the range.

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Hydro One (H-T)
October 8, 2020

Likes it. OK growth rate. Expensive. AQN and FTS are trading at better levels with nice growth rates and dividend growth. Pretty safe area, but a mistake to buy at the top of the range.