Viewing Expert Gordon Reid | StockChase
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Compiling comments that experts make about stocks while on public TV.

Viewing Expert

Gordon Reid , President

GoodReid Investment Counsel

Address
47 Colborne Street
Suite 400
Toronto, ON
M5E 1P8

Contact Info
Telephone: 416.364.0890
Toll Free: 1.888.466.3734
Fax: 416.364.1788
Email:


Date Signal Chart Symbol Company Opinion Price
2017-05-02 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Market. The long-awaited recovery from 2008 started to take place some months before the election results were in, but the Trump victory, and more importantly the double win by the Republicans in the Congress and Senate, were the catalysts to accelerate the market’s confidence that things would change and that we would get more of a pro-growth, pro-cyclical type of market. The S&P 500 has been flirting with the record high of $2400, and wouldn’t be surprised to see a break out above that by year-end. We went 5 quarters in a row from middle to late 2015 to 2016, with falling earnings year-over-year. That has changed with this quarter looking at 12.5% growth in earnings in the US, probably 10% for the full year, and there is still that confidence that the regulation and the long-awaited tax reform will be a boost for earnings. He sees a pretty good economic outlook for the US.


Price:
$0.020
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
_N/A
2017-05-02 COMMENT Must be logged in to use chart ADBE-Q Adobe Systems

This has been a wonderful performer on a stock basis. One thing that has always been a bit of a pause for him is its valuation. It has high expectations of future earnings, cash flow and revenue growth, and has satisfied those expectations, but at the very minute it doesn’t, there is a freefall waiting to happen before it moves back into a normalized valuation. Because of this, he has not participated.


Price:
$135.000
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
No
2017-05-02 COMMENT Must be logged in to use chart BAC-N Bank of America

Probably the most levered bank to interest rate moves, so if you expect interest rate moves and want to participate, management has been quoted as saying that for every 1% move in interest rates upwards, it accrues $5.3 billion to the bottom line. This works out to about $.50 a share, and even at a modest multiple of 10 or 12 times, you are looking at $5-$6 for every 1%. A good place to be.


Price:
$23.530
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Yes
2017-05-02 TOP PICK Must be logged in to use chart CAA-N CalAtlantic Group Inc.

(His theme today is economically sensitive stocks, and ones that have disappointed lately.) This is a homebuilder, a cyclical business. It is an example of one that does not fit the quarterly earnings pattern, because there are a lot of moving parts. Trading at a very reasonable multiple, but the latest quarter was a little disappointing because margins were challenged, as you often see with homebuilders. As margins go like they did last quarter, the price drops, an opportunity for a long-term investor to get involved. Trading at 1X Book and 10X earnings, and grew revenue 13% year-over-year. Dividend yield of 0.5%. (Analysts’ price target is $41.)


Price:
$35.230
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Yes
2017-05-02 COMMENT Must be logged in to use chart CSX-Q CSX Corp

Hunter Harris was with CN, and then went to CP. There is no question that from an operational standpoint, things improved, but he would argue from a pretty severe trough when all the rails were pretty distressed. He is a result oriented individual, but takes a short-term view using quarterly results. Prefers a longer-term individual.


Price:
$51.490
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Unknown
2017-05-02 TOP PICK Must be logged in to use chart CTB-N Cooper Tire & Rubber

(His theme today is economically sensitive stocks, and ones that have disappointed lately.) This has done well over the years. They are in the replacement tire business. Tire volumes are expected to grow 4% annually for the foreseeable future. Recent earnings were disappointing, but it was well understood that rubber prices had risen. When that happens, costs of goods rise and margins shrink. One shouldn’t take a quarterly view of that. This is trading at 9X earnings. Dividend yield of 1.1%. (Analysts’ price target is $48.)


Price:
$37.500
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Yes
2017-05-02 DON'T BUY Must be logged in to use chart DIS-N Walt Disney

Still one of the great companies, but you have to look at what is making it great. It could be the theme parks, or maybe the movie production. When looking at the numbers you see that about 44% of revenues come from ABC and ESPN. ESPN is something you have to look very closely at. Is the cord cutting and the deep bundling of network TV going to continue? Last week, they laid off a huge number of people, which tells you something. At the multiple it is trading at, he would probably pass.


Price:
$114.370
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
No
2017-05-02 COMMENT Must be logged in to use chart F-N Ford Motor

If needed as a yield play, should there be concern on choppiness? You have to think of these as a total return type process. You are employing your capital to gain a return, and part of that return is your dividend. However, another part is the protection of your capital, and hopefully the growth of your capital. There is no question that the North American auto market is mature, and about 17.5 million units is about it. There is some opportunity in Europe, which is a slightly bigger market than North America, and Asia is even bigger than Europe. The total market is around 65-68 million units, so thinks they will continue to do well, but on a capital basis he doesn’t think there is a lot of hope for a rise in the stock price.


Price:
$10.920
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Unknown
2017-05-02 TOP PICK Must be logged in to use chart FDX-N FedEx

(His theme today is economically sensitive stocks, and ones that have disappointed lately.) About a year ago, it acquired TNT, a European delivery company. They have a huge fleet of 150,000 vehicles, 650 airplanes, and are really getting involved in the e-commerce business. More and more deliveries are coming to our homes. This is going to benefit from changes in technology such as driverless FedEx trucks and drone technology. Dividend yield of 0.9%. (Analysts’ price target is $220.)


Price:
$189.030
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Yes
2017-05-02 DON'T BUY Must be logged in to use chart GIS-N General Mills

There has been food inflation in the environment for some time. This is a company, along with a great many other consumer packaged good companies, that struggles for growth. If they can eke out low single digit growth in many, many of their categories, it is a win for them. As an owner of the stock, you have to be very, very careful, because a lot of these companies have been labelled as stable and good dividend producers, but have been bid up, and you are paying 16, 17 and sometimes 20 times earnings for a company that is growing at 2%, 3% or 5%, a huge risk. He would stay away from the sector.


Price:
$55.920
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Unknown
2017-05-02 SELL Must be logged in to use chart IBM-N IBM

He wouldn’t hold this. For a number of years, they did well by using cost containment. Had a lot of fat on their bones, and became leaner, but you have to look at not just the bottom line, but also revenue growth. If there is no revenue growth, but you see profit growth, that perhaps means the company is doing a good job of managing their business, but revenue is the fuel of earnings. They got so lean that they couldn’t really cut anymore fat. Revenue growth hasn’t been there for a long while.


Price:
$159.100
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Unknown
2017-05-02 COMMENT Must be logged in to use chart MPC-N Marathon Petroleum

From a PE valuation standpoint, refiners tend to work together. You see spreads widen or narrow off the raw product of oil, into the different commercial products. This company has been a good performer over the years. Not having great visibility into the cycle and to the spreads, he would probably pass on making this a core holding.


Price:
$51.420
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Unknown
2017-05-02 DON'T BUY Must be logged in to use chart MSFT-Q Microsoft

This has been on a valuation ladder. For a lot of years it was the darling as a high, high growth company, and deservedly so with a very high multiple. Then it went out of favour and earnings didn’t grow as fast, and it went down the ladder on valuation, to what would now be described as old tech, trading in a low teen multiple. It is now back up the ladder, but in anticipation of new things happening. Some of those new things are happening, but haven’t shown up yet on the income statement. We are really not seeing earnings growth, the way you would expect for a company trading at the multiple it is trading at. He would step aside on this.


Price:
$69.300
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
No
2017-05-02 DON'T BUY Must be logged in to use chart NKE-N Nike Inc

This has been a fantastic story and has done extremely well over the years. However, you have to look forward. Today, the upstart is Under Armour (UA-N) and Adidas (ADS-XETRA) which is taking some of their business. On growth, the company is a little challenged on the Profit and Loss statement to grow earnings as fast as they have, yet the multiple of the company has maintained a fairly lofty level. There are better growth opportunities at lower prices.


Price:
$55.070
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Unknown
2017-05-02 PAST TOP PICK Must be logged in to use chart PCLN-Q Priceline.com Inc.

(A Top Pick March 23/16. Up 44%.) Has been involved with for a long time. Their holding of Booking.Com has been a major home run for them. It was involved in hotel reservations, especially European operations, where there are not a lot of chains, but single owner proprietor hotels, which need exposure.


Price:
$1880.520
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Yes
Showing 1 to 15 of 1,970 entries
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