Viewing Expert Paul Harris, CFA | StockChase
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Compiling comments that experts make about stocks while on public TV.

Viewing Expert

Paul Harris, CFA , Portfolio Manager and Partner

Avenue Investment Management


Date Signal Chart Symbol Company Opinion Price
2017-05-01 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Market. The earnings’ numbers this week are looking good. People were worried about top line growth and whether it is going to come through the last several quarters. Reuters were somewhere between 7% and 9% growth coming out of the US. There is also very good top line growth coming out of Canada. EPS numbers were a little better than expected. Part of that has to do with oil companies actually making money. Even if you take out the oil companies, we are still seeing better bottom line numbers as well. Earnings’ profile expectations were dampened a little going into it, but are actually pretty good. Also, guidance going forward was not that bad. We are going through another week of many, many companies reporting this week, and he expects we will see that they are pretty good. Also, global economies are actually doing better.


Price:
$0.020
Subject:
GLOBAL
Bias:
OPTIMISTIC
Owned:
_N/A
2017-05-01 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Interest rates? Feels rates are going to be relatively low for a longer period of time than people think. What determines the long end of the curve (10-30 year bonds), is where inflation is. Unless you have a dramatic increase in inflation, you are not going to see interest rates go up dramatically. You are seeing a bigger issue that is happening in the global economy, where demographics, low productivity, etc. are capping the ability for an economy to grow dramatically.


Price:
$0.020
Subject:
GLOBAL
Bias:
OPTIMISTIC
Owned:
_N/A
2017-05-01 COMMENT Must be logged in to use chart AAPL-Q Apple

An inexpensive technology stock. Wishes they would pay more of a dividend, simply because they have so much cash. The trouble is, a lot of earnings come from one product. That product can continue to grow, and is a very high margin product for them. Their service area is growing as well. Have a lot of cash, and they buy back a lot of shares. There is a good upgrade cycle on the phone. Their services business is additive, but not great. If they were allowed to bring their overseas cash back to the US, that would substantially help them out because they could buy back more of their shares.


Price:
$146.580
Subject:
GLOBAL
Bias:
OPTIMISTIC
Owned:
Yes
2017-05-01 COMMENT Must be logged in to use chart ACQ-T AutoCanada Inc.

He likes this and feels there’s higher upside on the stock. They purchase auto dealerships and then centralize the back offices, cutting their cost structure down. It is the service side where they make all the money. When new management came in, they cut the dividend and the stock collapsed. He bought it at around $18-$20. He likes that their dividend is a reasonable dividend now, and they have decided they are going to only buy 1 or 2 places a year. Originally, they were geographically in Alberta and BC, which hurt them in the last several years. They are trying to diversify geographically across Canada.


Price:
$23.700
Subject:
GLOBAL
Bias:
OPTIMISTIC
Owned:
Yes
2017-05-01 TOP PICK Must be logged in to use chart BAC-N Bank of America

They have some very good businesses and are cutting costs through the use of technology. Trading at 11X earnings. Have lots of Tier 1 capital which was at 13.6% in the last quarter. Trading at less than BV of $24.30. Dividend yield of 1.3%. (Analysts’ price target is $26.)


Price:
$23.610
Subject:
GLOBAL
Bias:
OPTIMISTIC
Owned:
Yes
2017-05-01 PAST TOP PICK Must be logged in to use chart BMW-GR Bayerische Motoren Werke AG

(A Top Pick June 16/16. Up 20%.) A great company. QE in the US drove up a lot of purchasing going forward, which was the reason for the great participation in cars. It happened in Europe, but not to the same extent and he thinks that is going to happen. Also, people were really worried about China, but China has done quite well for them. They care about their business, the technology, and everything that goes into it. Management is happy to give up margin, because they have a view of the future, which makes a lot of sense. They don’t do things for the short term, they do things for the long-term.


Price:
$0.000
Subject:
GLOBAL
Bias:
OPTIMISTIC
Owned:
Yes
2017-05-01 TOP PICK Must be logged in to use chart BX-N Blackstone Group LP

A private equity company. In the bad times, they were able to buy a lot of assets, which they have either sold right now or will continue to sell. Recently bought about $100 billion in cash, which is sitting on their balance sheet, which they can use to buy other things. Thinks it is worth somewhere in the $50-$60 range. Pays a very strong dividend of 7.8%. (Analysts’ price target is $35.)


Price:
$30.840
Subject:
GLOBAL
Bias:
OPTIMISTIC
Owned:
Yes
2017-05-01 TOP PICK Must be logged in to use chart CVS-N CVS Health Corp

A pharmaceutical company, long-term care company and a consulting services company. Has a free cash flow yield of about 7%. The CVS business is a good solid business with lots of cash. There are only 2 competitors in the US drug store business. There has been a little slippage on same-store sales, but feels they have straightened that out. Their long-term care business is really important, and he thinks there is good growth here. Thinks the stock is worth around $95. Yield of 2.4%. (Analysts’ price target is $87.50.)


Price:
$81.960
Subject:
GLOBAL
Bias:
OPTIMISTIC
Owned:
Yes
2017-05-01 BUY Must be logged in to use chart DEO-N Diageo PLC

This is a drinks company and their big thing is Johnny Walker and a couple of others. Trading at about 20X earnings. He likes the industry, and it throws up a lot of free cash. They’ve had some trouble with margins in the emerging markets area, but have sorted those out, so there should be better margins going forward. He likes the stock.


Price:
$117.340
Subject:
GLOBAL
Bias:
OPTIMISTIC
Owned:
Unknown
2017-05-01 COMMENT Must be logged in to use chart EQB-T Equitable Group

Very similar to Home Capital (HCG-T) in how they run things. The issue a lot of these companies face is that they are borrowing money at a retail level, which has hurt them a fair bit. Everybody worries about the mortgages, but those are probably fine. The problem is, they have to be funded and the funding is the bad part. If somebody doesn’t trust you when you are funding things, it becomes very difficult. That is exactly what happened in the US in 2008. (CEO just stated that there was no material decline in deposits, and they have just lined up a $2 billion standby credit facility, just in case.)


Price:
$47.350
Subject:
GLOBAL
Bias:
OPTIMISTIC
Owned:
Unknown
2017-05-01 COMMENT Must be logged in to use chart FB-Q Facebook

This company has executed incredibly well. The acquisitions they made have taken off and done very well. If anybody wants to do online advertising, there are only 2 places to go now, this one and Alphabet (GOOG-Q). They are getting stronger and stronger, and have the capacity to go out and buy their competition.


Price:
$152.460
Subject:
GLOBAL
Bias:
OPTIMISTIC
Owned:
No
2017-05-01 DON'T BUY Must be logged in to use chart HCG-T Home Capital Group

When people look at this, they always go on about the mortgages and how good they are, default rates, etc., and that is not relevant at all. What is relevant, is their deposits. If you look at the 4th quarter balance sheets, they have about $9 billion that can do at any time within a year. The reality is, it is a liquidity issue. They are losing deposits, which is the biggest crux of the problem. Even the $2 billion they have is probably not enough. It may give them some time to try and sell themselves, but whether it provides the liquidity they need if someone continues to take money out, it could be very, very hard. The mortgages are fine. He would not own the stock here.


Price:
$6.960
Subject:
GLOBAL
Bias:
OPTIMISTIC
Owned:
No
2017-05-01 DON'T BUY Must be logged in to use chart HSBC-N HSBC Holdings P L C

This has a great Asian franchise, but if you want to own a global bank, he would prefer J.P. Morgan (JPM-N) or Bank of America (BAC-N), which he feels are much more suited to those areas. If you wanted something more retail oriented, he would own Lloyds (LLOY-LN). They have been restructured as much is they should, and that has really hurt them. (See Top Picks.)


Price:
$41.280
Subject:
GLOBAL
Bias:
OPTIMISTIC
Owned:
No
2017-05-01 PAST TOP PICK Must be logged in to use chart KHC-Q Kraft Heinz Company (merged)

(A Top Pick June 16/16. Up 8%.) He still likes this. Putting Kraft and Heinz together they were able to cut costs, increase margins, and now it is time to start to grow the top line. Kraft is predominantly a US company where Heinz more of a global company. He would like to see them push North American Kraft products through the Heinz network, which is where there would be upside.


Price:
$89.470
Subject:
GLOBAL
Bias:
OPTIMISTIC
Owned:
Yes
2017-05-01 COMMENT Must be logged in to use chart MG-T Magna Int'l. (A)

You have to consider what the auto cycle look like. There has been a strong run-up in auto sales in the last 2-3 years, and people are thinking that is going to come down. That may be true, but this company is more of an international company, so if auto sales are 1%-3%, this company should do a little better because they supply other parts of it. This is not expensive, trading at about 7X earnings and 4.7X EV to EBITDA, and it has a decent yield. You are going to have to wait it out a little longer to see a stabilization in the auto cycle. This company has the ability to grow, not only through acquisition, but they can grow in Asia as well.


Price:
$57.420
Subject:
GLOBAL
Bias:
OPTIMISTIC
Owned:
Unknown
Showing 1 to 15 of 2,389 entries
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