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Compiling comments that experts make about stocks while on public TV.

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Paul Gardner, CFA , Partner and Portfolio Manager

Avenue Investment Management

Address
47 Colborne Street
Suite 300
Toronto, ON
M5E 1P8

Contact Info
Telephone: 416.482.2004
Toll Free: 888.482.2007
Fax: 416.482.0007
Email:
Website: http://www.avenueinvestment.com/


Date Signal Chart Symbol Company Opinion Price
2015-05-20 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Economy. The Fed met today and the key takeaway seems to be that it is unlikely that rates are going to be raised in June. The bigger issue is September. Do they delay it until next year? That is the big issue. He believes they will probably hike in September, but very, very slowly. A lot of this has to do with normalization of the economy. If you have an economy that is growing decently and there is US growth beyond 2% along with employment growth, don’t you want to normalize a bit? With inflation rates of 1.5%, you should probably have mid-rates of around 2.5% and long rates around 3.5% in the US. The winter was harsh, which impacted economic numbers. With US growing beyond 3%, we have to start now to be putting in higher bond yields, which is what we have seen over the last 6 weeks. Bond prices are down around 3%, which is very aggressive. Probably another 25 basis points of tightening in the bond market will suffice. This is a great environment for corporate earnings with global growth at about 3%, the lowest funding yields we have seen in 2 generations, labour costs not going up that much and trade agreements with global possibilities going on all over the place, so this is a great time to own companies. Thinks equity markets will continue to tick up, not aggressively, but grudgingly. This is the greatest opportunity to be in the equity markets.


Price:
$0.020
Subject:
FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias:
BULLISH
Owned:
_N/A
2015-05-20 COMMENT Must be logged in to use chart AX.UN-T Artis Real Estate Investment Trust

Price has dropped. When rates go up, that generally hurts real estate or REIT market. Very diversified and great managers of assets. Have most of their exposure in Manitoba, Saskatchewan and a little bit in Alberta. Also had diversified over the last 4-5 years getting into the US. In the last quarter their occupancy actually went up, partly due to the US exposure. The biggest concern is the West and its weakness. The office segment is not his favourite place to be. It is only trading at about 12X AFFO. He tends to like the apartment space better. This is cheap and he would probably be a buyer more than anything else.


Price:
$14.350
Subject:
FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias:
BULLISH
Owned:
Yes
2015-05-20 PAST TOP PICK Must be logged in to use chart BAC-N Bank of America

(A Top Pick May 5/14. Up 12.1%.) Trading at .7X BV and 10X earnings. Litigation has now settled down. It is cheap and the recovery in the US is helping them make profits. They are probably going to increase their dividends in the next couple of quarters. Also, interest rate lifts do help financials. He likes it and thinks there is more upside.


Price:
$16.740
Subject:
FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias:
BULLISH
Owned:
Yes
2015-05-20 DON'T BUY Must be logged in to use chart CJR.B-T Corus Entertainment (B)

Had weak numbers the last quarter. It’s a tough business because of CRT decisions on “pick and play”, which really hurt them. Their radio stations are doing all right, but nothing stellar. There is always the issue of what Shaw Communication (SJR.B-T) is going to do with them. The one positive is that it is a very free cash flow positive business. He would avoid this because of the unknown with the CRT.


Price:
$17.880
Subject:
FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias:
BULLISH
Owned:
No
2015-05-20 COMMENT Must be logged in to use chart CRR.UN-T Crombie Real Estate Investment Trust

This is very, very stable and defensive in nature. Most of the stores are grocery defensive assets. The sector will get hurt if interest rates go up, but this REIT can handle it because of the very solid, stable assets. 7% yield.


Price:
$12.830
Subject:
FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias:
BULLISH
Owned:
Unknown
2015-05-20 BUY Must be logged in to use chart CSH.UN-T Chartwell Seniors Housing

This is a better story now. It had invested in retirement homes in Canada and in the US. In the US, you had to deal with regulations, unionization and the rates of return that were poor. They have since exited the US and are trying to make a cleaner story, which is all Canadian. Also, it is a demographic story. Not that expensive. Not a bad Buy now.


Price:
$11.370
Subject:
FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias:
BULLISH
Owned:
No
2015-05-20 COMMENT Must be logged in to use chart CUF.UN-T Cominar Real Estate Inv Tr

Focused in Québec. Quite reasonable trading at about 7X AFFO. Thinks the Québec market is outperforming. Have done a good job of executing. The biggest issue is that they have to keep trying to grow, because the last couple of quarters has had a slowdown in the growth profile.


Price:
$18.470
Subject:
FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias:
BULLISH
Owned:
Yes
2015-05-20 COMMENT Must be logged in to use chart DIR.UN-T Dream Industrial REIT

A little better positioned than Pure Industrial REIT (AAR.UN-T), and the valuation is slightly cheaper. Even though they got bumps in their overall rents, it is still a very, very tough business. You would want to own this at the beginning of a cycle because you have a lot of alpha. With a recovery of a real estate market this would do quite well. This is a sector that he would not be in now.


Price:
$8.640
Subject:
FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias:
BULLISH
Owned:
No
2015-05-20 COMMENT Must be logged in to use chart HOT.UN-T American Hotel Income Properties

Has US exposure and foreign exchange is helping. The hotel industry has outperformed over the last three quarters, which is not only coming from economic growth in Canada and the US, but also from foreign exchange exposure. There is some pricing power we are seeing in the hotel sector. Probably not a bad investment at this point.


Price:
$10.740
Subject:
FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias:
BULLISH
Owned:
No
2015-05-20 COMMENT Must be logged in to use chart HR.UN-T H&R Real Estate Inv Trust

Getting too diverse for his liking. Good managers and they own a ton of assets. However, they own the US, they own residential, they own office and they own industrial. You have to deal with currency issues. He wants a pure play.


Price:
$22.670
Subject:
FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias:
BULLISH
Owned:
No
2015-05-20 BUY Must be logged in to use chart IPL-T Inter Pipeline

Got hit a bit because of the drop in oil prices. It beat its numbers last quarter and is in the right growth profile. One of those great managed companies that not only manages its assets well, but is a pipeline that is not being interfered with. On a valuation basis, it is cheaper than it was 6 months ago but you still have the growth profile.


Price:
$31.070
Subject:
FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias:
BULLISH
Owned:
Yes
2015-05-20 TOP PICK Must be logged in to use chart MEQ-T Mainstreet Equity Corp

One of the cheaper stocks in the TSX. Trading at about a 20%-25% discount to its NAV. They own the mid-tier apartments (2 or 3 stories) in Edmonton, Calgary and Surrey. They have NOI (net operating income) growth of around 15%. They are refinancing and saving millions of dollars on financing costs. It is too cheap. It should be worth $45-$50. They are doing incredibly well in their numbers last quarter.


Price:
$37.980
Subject:
FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias:
BULLISH
Owned:
Yes
2015-05-20 DON'T BUY Must be logged in to use chart RUF.U-X Pure Multi-Family REIT LP

This buys apartments and residential homes in the US. He loved that space up until a couple of months ago because of the recovery in the US housing market. There is some association with Pure Industrial REIT (AAR.UN-T), and he wants them to do one thing and one thing only. He would avoid this.


Price:
$5.240
Subject:
FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias:
BULLISH
Owned:
No
2015-05-20 DON'T BUY Must be logged in to use chart S-T Sherritt International Corp.

Would you buy their 8% - 2017 bond? He likes the bond side, simply because when they owned the Saskatchewan metallurgical coal deposits, if Cuba and Madagascar failed, he would at least have an asset that he could grab and would make him whole. They have since sold the Saskatchewan holdings and are now left with Madagascar and Cuba, so you are now dealing with the underlying commodity price that keeps rolling off. The bond is being offered out at around 9% in today’s market, which tells you it is distressed. High-yield bonds should be trading at around 7%. Secondly you are going to have to deal with Madagascar, where the operations seem to be coming on, but there was a big delay.


Price:
$2.540
Subject:
FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias:
BULLISH
Owned:
No
2015-05-20 HOLD Must be logged in to use chart STB-T Student Transport of America Ltd.

3rd largest provider of student bus services in the US. They are about to pay most of their dividends in US$’s. Even though they met estimates on EBITDA, their margins were impacted which is why it got hit. A good free cash flow business with a good yield of about 7%. They benefited from low fuel costs, and there is a feeling they are going to get some contract wins coming up in the next couple of quarters. He would want to see their EBITDA and margins stabilize before he would get excited about it.


Price:
$6.180
Subject:
FIXED INCOME, LARGE CAP DIVIDENDS AND REITS
Bias:
BULLISH
Owned:
No
Showing 1 to 15 of 1,127 entries
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