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

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Gordon Reid , President and CEO

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
2014-11-24 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Markets.  Stocks are meandering higher. There is a perception that they are zooming higher because the S&P hit a record level again. That can happen day after day and still be a meandering market. Multiples right now are at about historical levels. 15 years ago we were trading at about 16X expected 2015 multiples, and the long-term average is just a fraction ahead of that at 16.2X. There is not a lot of volatility, so you don’t see big swings in the market. Complacency is always a bit of a worry. Through the October correction, there was a feeling that this might be a bigger correction. The true effect of a correction is to feel some pain. When you have V shaped bottoms, you don’t feel a lot of pain. It is essential that you buy things at the right price and don’t chase and buy high valuations. You never see risk and damage until it is too late. Overall he is constructive on the market and this meandering can continue for awhile.


Price:
$0.020
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
_N/A
2014-11-24 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Tax rules on non-Canadian assets.  For anyone who has over $100,000 cost base in non-Canadian assets, outside of registered plans, you must file a T1135. If you don’t file this form, the fines are up to $25 per day, to a maximum of $2500. (Gordon has an article on his website www.goodreid.com. You sign up for e-articles.)


Price:
$0.020
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
_N/A
2014-11-24 HOLD Must be logged in to use chart AAPL-Q Apple

Not as good a value today as it was 6 months or a year ago. Got to a point where it was priced for extinction. There was no premium built into the stock for innovation. There was a period of time when the capital allocation policy was really not a good one. A lot of that has changed. Also, they are now in China. The latest analysis says that they could do over 70 million units of the iPhone 6, a high-margin product. That will put their gross margin into the 40% range. At this price, it is trading at about 16X earnings, and if you net out the cash you are down into 13X. Still not expensive. Have a policy of capital allocation where they return to the shareholders the equivalent of about 8% of their market cap per year, both in dividends and buybacks. Feels the market is starting to recognize that this company can still innovate.


Price:
$118.625
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Yes
2014-11-24 TOP PICK Must be logged in to use chart AIG-N American International Group

A pretty simple property and casualty business with some wealth management on the side. Trading at a discount to Book Value at about 70% of Book and about 10X earnings. It is trading down here because its ROE is not as high as some of its competitors, but it is getting there. They are doing a lot of the right things. Earnings are being funnelled back to the shareholders. Making money on its underwriting in addition to its investment portfolio. Yield of 0.91%.


Price:
$55.100
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Yes
2014-11-24 COMMENT Must be logged in to use chart BAC-N Bank of America

Every company, sector and industry has valuation metrics that they respond best to. The banks, because they tend to be quite cyclical, don’t respond well to earnings. The thing to look for in banks is Book Value, or more specifically tangible BV. Because of what happened in 2008 with the regulation that came out and having to raise an incredible amount of capital to satisfy the regulators, the banks have struggled a little.  Stock price has fallen to where they are trading at a discount to Book Value. This one is probably around tangible book. His favourite is Citigroup (C-N), which he feels has a good runway ahead of it.


Price:
$17.180
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Unknown
2014-11-24 TOP PICK Must be logged in to use chart BECN-Q Beacon Roofing Supply

2nd largest roofing company in North America. Analysis shows that roofing growth is going to be about 6% per year, over the next number of years. 60% of US homes were built prior to 1980, and if your roof needs replacing, you can only put it off for so long. Trading at a reasonable multiple.


Price:
$29.100
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Yes
2014-11-24 SELL Must be logged in to use chart CSCO-Q Cisco

Feels this is probably being driven more by the market, and less by company fundamentals. They were a high-growth, exciting, cutting-edge technology company 10 years or so ago, but have become a fairly old, staid, slow growth technology company. The 2014 revenues are below the 2013 revenues.


Price:
$27.030
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
No
2014-11-24 PAST TOP PICK Must be logged in to use chart CVS-N CVS Health

(A Top Pick Dec 3/13. Up 38.14%.) Likes this area quite a bit. A domestic play, so you don’t have to worry about the improving US$ against every other currency. They no longer sell cigarettes in their drugstores, and this is a major road that they are going down. Looking to capture insurance contracts, federal contracts, federal health, and this can be highly additive to this company’s operations.


Price:
$90.870
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Yes
2014-11-24 HOLD Must be logged in to use chart DD-N DuPont

A private equity group is trying to divide the company between the old slow growth chemical company and the new high tech agricultural company. The company has stated that they are interested in the creation of shareholder wealth. This is a good situation. They are not trading in an expensive way. He’ll continue to own and let the activists’ stuff work itself out.


Price:
$72.150
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Yes
2014-11-24 TOP PICK Must be logged in to use chart ESV-N Ensco PLC

(A Top Pick Dec 3/13. Down 28.70%.) There has to be stabilization of oil prices. If that happens, money will start to flow back into the sector. They have very strong fundamentals. Their backlog is growing with over 2 years of revenue in backlog. Grew their backlog last quarter by 10%. In the deepwater area, virtually all of their fleet is contracted out a couple of years. When oil stabilizes, you will start to see companies like this return to normalized multiples. Right now they are trading at about 4X EBITDA which is 30%-40% discount to where it should be trading at.


Price:
$39.900
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Yes
2014-11-24 BUY Must be logged in to use chart F-N Ford Motor

Feels the automotive industry has a ways to go. They are at a run rate of about 16-16.5 million units, which he feels could probably grow to 18-18.5 million. The bigger story is in Europe and what their European operations are doing. Have gone from losing $1 billion a year, a couple of years ago, to making some headway. However, recently they got some negative headlines out of Europe. At this price, he wouldn’t have a problem buying this company. Thinks it is probably the best of the automakers and has some upward movement in it. You can probably do well in the next few years.


Price:
$15.670
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Unknown
2014-11-24 COMMENT Must be logged in to use chart FDX-N FedEx

Have a program of cost-cutting and are aiming at $1.6 billion per year in cost savings. The stock has built this in, but he feels there is of a bit more room to go. One of the things that will help this company is jet fuel prices.


Price:
$175.530
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Unknown
2014-11-24 COMMENT Must be logged in to use chart GE-N General Electric

Recently sold his holdings. Didn’t really like the Alstom deal they did in France. It was a good deal when it was first struck and then Siemens came in and made a bid followed by the French government getting involved. Also, thinks the strength of the US$ against the euro is going to continue.


Price:
$27.000
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
No
2014-11-24 SELL Must be logged in to use chart HPQ-N Hewlett-Packard Co

Trying to get ahead with this one is a tough go. The CEO has done a good job, but a good job with a bit of a mess. Have been very poorly managed at the board level and have made some really bonehead moves.


Price:
$37.500
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Unknown
2014-11-24 WAIT Must be logged in to use chart JNJ-N Johnson & Johnson

A well diversified company because it has the consumer side, the pharmaceutical side and the medical device side. The thing he doesn’t like about it now is that it has had a very good run, but the price has eclipsed the rate of growth of the earnings. Valuation has risen into the high teens, and their growth rate just doesn’t support that type of evaluation. This is one that you can wait on and buy from time to time, but he wouldn’t buy it now.


Price:
$106.880
Subject:
US EQUITIES
Bias:
OPTIMISTIC
Owned:
Unknown
Showing 1 to 15 of 1,413 entries
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