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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
2015-03-31 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Markets. We are dealing with increased volatility in the stock markets. US stock market is trading at about 15-16 times. When you have ultimate yields below 2%, technically from that perspective, the yield from the equity markets is cheap relative to bond rates. In the US there is a 3%-4% GDP growth. Europe is not hurting by quantitative easing, which leads to higher equity markets. The Fed will most probably raise rates, but are not going to raise them aggressively. Just like last year, he thinks the winter was brutally hard for Northeast US and the Midwest, and that definitely impacts GDP growth. Like last year, he won’t be surprised to see 4% GDP growth in the US. European companies are actually making more money because of the opposite effect of US foreign exchange. We still haven’t seen the fall through of consumer behaviour on lower gasoline prices. When you add everything and the fact that rates are going to go up aggressively, he thinks there will be continued earnings momentum and the stock market should gently go up for the next 6-12 months. The most washed out sector is Canada, which has underperformed for 3 years. Considering where the US$ is, he would be a lot more comfortable deploying money into Canada. Valuations are slightly cheaper than in the US.


Price:
$0.020
Subject:
LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias:
BULLISH on CANADIAN MARKET
Owned:
_N/A
2015-03-31 WEAK BUY Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

REITs. There are 2 situations. 1.) Alberta is having a slow down and 2) office and retail seem to be having problems, especially retail, because of e-commerce. That is going to take years to deploy, but it is kind of gnawing at the fringe. When interest rates go up, REITs get hurt, but from a valuation they are neither cheap nor expensive. He would say they are in the 7th inning of a 9 inning game. He wouldn’t expect much from them.


Price:
$0.020
Subject:
LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias:
BULLISH on CANADIAN MARKET
Owned:
Unknown
2015-03-31 DON'T BUY Must be logged in to use chart AAR.UN-T Pure Industrial Real Estatetrust Trust

This is a play on industrial space, which at some point in time can be great to own, but at other times not. However, this is trying to focus and grow more into the US. Good managers. Distribution is safe as they only pay out around 70%-80% of their income coming in. At the late cycle that we are in, he would probably avoid this.


Price:
$5.050
Subject:
LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias:
BULLISH on CANADIAN MARKET
Owned:
No
2015-03-31 BUY Must be logged in to use chart BEI.UN-T Boardwalk REIT

Has been unfairly hit. Incredibly conservative. Doesn’t give as high a yield as Riocan (REI.UN-T), but they have the ability to buy back stock. Have been hurt by about 10%-15% because of Alberta. This is cheap and is probably worth $60-$70 once you look through this cycle.


Price:
$58.950
Subject:
LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias:
BULLISH on CANADIAN MARKET
Owned:
Yes
2015-03-31 DON'T BUY Must be logged in to use chart BNS-T Bank of Nova Scotia

His least favourite of the banks. It has a large exposure to Latin America and is focused on the global market in wholesale banking. The banking world is very competitive right now. This bank is well capitalized and well rated, but Latin America is under stress.


Price:
$63.540
Subject:
LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias:
BULLISH on CANADIAN MARKET
Owned:
No
2015-03-31 TOP PICK Must be logged in to use chart BTB.UN-T BTB Real Estate Investment Trust

Québec industrial, retail and office. The biggest knock is that they had over distributed and were overleveraged. 3 years later, they have increased their distribution. Have had good re-leasing of their properties. Have room to grow and to increase their distributions. Québec and Ottawa are doing just fine in this space. Yield of 8.7%.


Price:
$5.000
Subject:
LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias:
BULLISH on CANADIAN MARKET
Owned:
Yes
2015-03-31 COMMENT Must be logged in to use chart CRR.UN-T Crombie Real Estate Investment Trust

Fantastic assets. They are all mostly anchored in very defensive tenants. Consistency is fantastic. Gives a very good yield. In this late stage of the cycle, you probably want to go defensive. Only trading at around 15X AFFO. Not cheap, but not expensive.


Price:
$13.480
Subject:
LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias:
BULLISH on CANADIAN MARKET
Owned:
Yes
2015-03-31 COMMENT Must be logged in to use chart D.UN-T Dream Office REIT

Focuses on office, retail and a bit of industrial. They used to be focused only in Alberta, but have diversified out of that, but are still about 40%. He doesn’t like the story or their assets and thinks there is going to be real softening in their core businesses in Alberta. Also, doesn’t like the management agreement where they get paid on asset growth, not profitability. Company pays out about 90%, which is a little high, but distribution should be fine.


Price:
$26.350
Subject:
LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias:
BULLISH on CANADIAN MARKET
Owned:
No
2015-03-31 BUY on WEAKNESS Must be logged in to use chart DR-T Medical Facilities Corp.

Recently sold his holdings. They do surgical centres in South Dakota and Oklahoma. A little bit affected by Obama care, but these are specialized centres that get referrals. Have executed incredibly well. Had thought values were a bit stretched, and didn’t think they were going to repeat going forward what they had done in the past. Good managers. He would wait for a cheaper entry point.


Price:
$17.100
Subject:
LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias:
BULLISH on CANADIAN MARKET
Owned:
No
2015-03-31 COMMENT Must be logged in to use chart EXE-T Extendicare Inc

Sold their US holdings, so now it is a cleaner story. Has always thought that in the senior space, the simpler the better. They just acquired Rivera Homes which will help stabilize, as it is accretive to cash flow. As long as they continue executing, there is a chance this will continue going further. Valuation is cheap. They can certainly pay the 7%-8% dividend and there is probably some upside potential. He wouldn’t be surprised if institutions start gravitating towards this sector.


Price:
$7.510
Subject:
LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias:
BULLISH on CANADIAN MARKET
Owned:
No
2015-03-31 DON'T BUY Must be logged in to use chart HCG-T Home Capital Group

Would not want to own this in this late stage housing cycle. They deal with the subprime market. Recently missed their earnings. This space is a very competitive market.


Price:
$42.560
Subject:
LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias:
BULLISH on CANADIAN MARKET
Owned:
No
2015-03-31 COMMENT Must be logged in to use chart INN.UN-T InnVest Reit

Owns a lot of mid-tier hotels. Back in the days when there was a huge recession, and the Cdn$ was at an all-time high and US travellers were at an all-time low and with hotel properties always having to be refurbished, it was a terrible dynamic. Now we are starting to see US tourists come back. This is probably not a bad time to own. He wouldn’t own it because he still thinks it is too risky.


Price:
$5.770
Subject:
LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias:
BULLISH on CANADIAN MARKET
Owned:
No
2015-03-31 DON'T BUY Must be logged in to use chart L-T Loblaw Companies Ltd

4th quarter results were a little disappointing. Valuation trades at 18 to 20 times. Even though they are going to get a bump from Shoppers there is still chronic oversupply in the grocery store business. Too much competition. He would avoid this until it goes down at least 10%.


Price:
$61.920
Subject:
LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias:
BULLISH on CANADIAN MARKET
Owned:
No
2015-03-31 PAST TOP PICK Must be logged in to use chart LNF-T Leon's Furniture

(A Top Pick Feb 11/14. Up 1%.) Took half his position down, because it got ahead of itself at around $18. A fantastic company in one of the worst businesses. Furniture is terrible, so you want the best in class. About 30% of their stores are in Alberta, so there is expectation that furniture sales will go down. There is a partial truth to that, but they are well diversified geographically. He would probably be a Buyer rather than a Seller at this point. It’s early days, but there will be integration and synergies coming from the Brick acquisition.


Price:
$14.610
Subject:
LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias:
BULLISH on CANADIAN MARKET
Owned:
Yes
2015-03-31 COMMENT Must be logged in to use chart LW-T Leisureworld Senior Care Corp

This is generally a very solid business, because you have the province funding the healthcare costs. Good demographics. As a sector, it was always cloudy because of the US exposure, but now they have sold those off and it will be a clean sector. He wouldn’t be surprised if institutions start gravitating towards this sector.


Price:
$14.830
Subject:
LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias:
BULLISH on CANADIAN MARKET
Owned:
No
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