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

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Greg Newman , Senior Wealth Advisor

ScotiaMcLeod


Date Signal Chart Symbol Company Opinion Price
2014-07-31 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Markets. Feels the market today was hit by the real, genuine, credible fear amongst the Bears that the Fed could be behind the curve. Yesterday there was a 4% GDP print and today there was some wage inflation, the biggest in a lot of years. We saw the 10Yrs race up, and then drop because of all the geopolitical concerns. That is the kind of thing that can bring an air pocket to this market. Feels we are going to have more of a correction. The S&P 500 cut through the 20, 50 and the 100 on the 2-year daily chart. If right, he can see another 4% down on this move, unless there is some other move that comes out. At the end of the day, this will be a real buying opportunity for a whole bunch of different reasons, but there might be a bit of a challenge for this bull market hegemony that we have seen so long. If rates rise for the right reason, this will be fine. He doesn’t think we are going to 4%-5% interest rates. We might have 2.9%, 3% or 3.2%. In low interest rates, what asset class do people want to go into? Feels that markets are very well supported. In any sort of trending market you are going to have days like today.


Price:
$0.020
Subject:
CANADIAN DIVIDEND & DEFENSIVE STRATEGIES
Bias:
OPTIMISTIC
Owned:
_N/A
2014-07-31 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Protection strategies in the event of a substantial market downturn such as 20%? For most people it is about asset allocation. If you have a 50/50 asset mix, equities to fixed income with a tactical swing of perhaps 20% either way, then before the 20% happens, you may want to have only 30% in equities. You also want to own stocks that are doing well. Some will benefit from having an option facility. Others can benefit from being able to Short. Also, Futures makes sense. However, the key here is really experience. He finds that people usually put on protection when it is too late.


Price:
$0.020
Subject:
CANADIAN DIVIDEND & DEFENSIVE STRATEGIES
Bias:
OPTIMISTIC
Owned:
_N/A
2014-07-31 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Hedging and protection strategies? Unless he is really, really confident that a position is going to drop, he won’t ever Buy Puts. The reason why options are so good is because you can write premiums. If you like Bank of Nova Scotia (BNS-T), but you think it has $3 downside from here, you sell Calls and you get a second income. If you like Canadian Natural Resources (CNQ-T), but you don’t want to buy it here because you think it is a little too toppy, you oblige yourself to own it a couple of dollars lower by selling the Puts. So options really make sense that way. If you want protection, then Shorting is the much cleaner, better way almost all the time.


Price:
$0.020
Subject:
CANADIAN DIVIDEND & DEFENSIVE STRATEGIES
Bias:
OPTIMISTIC
Owned:
_N/A
2014-07-31 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Large Canadian banks for protection and growth? The banks are not cheap anymore, they are back to where they were in their heyday before the credit crunch. However, he thinks the capital is going to continue to go into them, and people are going to be surprised at how much higher they can go. Loan growth in Canada is looking pretty good. Although valuations are 12X, they are still a whole lot cheaper than many parts of the market. The best ones to own are the ones that have the highest tier 1 capital ratios, because they have the ability to make the most accretive acquisitions. That would be Bank of Nova Scotia (BNS-T), Royal Bank (RY-T) and the Toronto Dominion (TD-T). Also, the CIBC (CM-T) if they decide not to issue equity.


Price:
$0.020
Subject:
CANADIAN DIVIDEND & DEFENSIVE STRATEGIES
Bias:
OPTIMISTIC
Owned:
_N/A
2014-07-31 SPECULATIVE BUY Must be logged in to use chart AGF.B-T AGF Management (B)

Last quarter it fell. There are concerns about its free cash flow. Paid out $22 million in dividends last quarter, and only earned $14.5 million. However, they do have $233 million in cash, so they can achieve that burn rate for 6-7 years if their business doesn’t turn around. Part of the reason for the big burn last quarter was a bit of a mismatch of capital, timing of the dividend and launch of new growth initiatives. Feels they have a pretty good shot of turning their business around, and asset management continues to be a good place to be. Pretty cheap but more for the risk tolerant.


Price:
$11.820
Subject:
CANADIAN DIVIDEND & DEFENSIVE STRATEGIES
Bias:
OPTIMISTIC
Owned:
Unknown
2014-07-31 TOP PICK Must be logged in to use chart AGU-T Agrium

Everything has happened wrong with the stock. Bad weather, falling nitrogen prices due to China exports, etc. Now you have falling corn prices. Had elevated natural gas prices, but now have lower prices which should help. The bottom line is that farmers are spending only 30% of their budgets on fertilizer, which is the lowest in a decade. He sees the trend normalizing eventually. Sees really big cash flow coming on in 2015, mostly from cost cutting and synergies. Has potential for dividend growth, buybacks as well as a higher share price. This has a very long term secular tailwind of population growth and the need to increase yield per unit of farmland.


Price:
$99.400
Subject:
CANADIAN DIVIDEND & DEFENSIVE STRATEGIES
Bias:
OPTIMISTIC
Owned:
Yes
2014-07-31 BUY Must be logged in to use chart ARX-T Arc Resources Ltd

Suffered a little bit because natural gas prices have come down. He is constructive on this name. Just reported and had 110,000 production versus 107,000 that the market was looking for. Their Parkland and Tower assets are having very impressive production growth. His model suggests that this could have 40% earnings growth over the next few years. Payout ratio of 116% on 2015 estimates is pretty good. A pretty clean balance sheet.


Price:
$30.040
Subject:
CANADIAN DIVIDEND & DEFENSIVE STRATEGIES
Bias:
OPTIMISTIC
Owned:
Unknown
2014-07-31 DON'T BUY Must be logged in to use chart ATP-T Atlantic Power Corp.

This one is very tempting, but he doesn’t think the dividend yield is sustainable. As of Q1, the dividend was 3X higher than the free cash flow. Doesn’t think there will be a buyer for them.


Price:
$4.130
Subject:
CANADIAN DIVIDEND & DEFENSIVE STRATEGIES
Bias:
OPTIMISTIC
Owned:
Unknown
2014-07-31 BUY Must be logged in to use chart AX.UN-T Artis Real Estate Investment Trust

They are upping their exposure into the US, which is currently at about 24%. Their goal is 30%. A higher leveraged name, but their balance sheet is improving. He sees in-line growth of around 3.5%, which is equal to its diversified peers. Payout ratio is trending down and looking a lot better.


Price:
$15.550
Subject:
CANADIAN DIVIDEND & DEFENSIVE STRATEGIES
Bias:
OPTIMISTIC
Owned:
Unknown
2014-07-31 HOLD Must be logged in to use chart BBD.B-T Bombardier Inc (B)

The exciting thing here is that they recently had organizational changes. Split their aerospace into 3 different units. Thinks the signal here is that they may be going to try to spin one of them out and try to generate shareholder value. This has really weak free cash flow, and he doesn’t see the business jet market turning around any time soon.


Price:
$3.730
Subject:
CANADIAN DIVIDEND & DEFENSIVE STRATEGIES
Bias:
OPTIMISTIC
Owned:
Unknown
2014-07-31 PAST TOP PICK Must be logged in to use chart C-N CitiGroup

(A Top Pick July 29/13. Down 4.47%.) Had thought this would be a dividend stock by now, but they weren’t allowed to return capital and have been criticized as too big to manage. Q2 was better-than-expected. Credit quality is improving. Still trading well below its tangible estimated Book Value. Tier 1 capital is really high. Still levered to an improving planet and US. Patience should get rewarded on this.


Price:
$48.910
Subject:
CANADIAN DIVIDEND & DEFENSIVE STRATEGIES
Bias:
OPTIMISTIC
Owned:
Yes
2014-07-31 COMMENT Must be logged in to use chart EIF-T Exchange Income

He likes this name. Its 2013 payout ratio is very high, but on his 2014 assumed numbers, from them turning around their West Tower asset. If they can achieve 4.5% margins in 2014 on that asset and 7% in 2015, he models a 55% 2015 payout ratio. If that’s the case, the 9.7% dividend is fine. He also sees it trading at a very fair value of 8.7X 2015 right now.


Price:
$17.210
Subject:
CANADIAN DIVIDEND & DEFENSIVE STRATEGIES
Bias:
OPTIMISTIC
Owned:
Yes
2014-07-31 BUY Must be logged in to use chart FTS-T Fortis Inc.

The UNS transaction is proceeding well and will be modestly accretive to them. This is only a $7 billion company and they have about $8 billion of utility type investments coming online over the next few years. There is a lot of growth here. Also, have potential for a lot of LNG related investments, with their strategic presence in BC.


Price:
$33.550
Subject:
CANADIAN DIVIDEND & DEFENSIVE STRATEGIES
Bias:
OPTIMISTIC
Owned:
Unknown
2014-07-31 BUY Must be logged in to use chart HSE-T Husky Energy

Just had their Q2, which was largely in line. Operationally it looks very good with Liwan up and running and Sunrise on track to start up at the end of 2014. Trading at a discount to its five-year average. He sees good earnings growth at around 21%. Has a $40 target.


Price:
$33.170
Subject:
CANADIAN DIVIDEND & DEFENSIVE STRATEGIES
Bias:
OPTIMISTIC
Owned:
Unknown
2014-07-31 BUY on WEAKNESS Must be logged in to use chart L-T Loblaw Companies Ltd

Had a monster quarter which he thinks was a result of better same-store sales and the spectre of higher inflation in the 2nd half. Company is saying they have $300 million in synergies from Shoppers over the next 3 years. Have an SAP rollout that is intact. He forecasts really good operational earnings growth of about 19% over the next few years, 12% cash flow growth and pretty decent dividend growth of around 7.4%. It is vulnerable that you are not going to get as much inflation in food as the market is positioned for. He would  buy this at a lower price.


Price:
$53.630
Subject:
CANADIAN DIVIDEND & DEFENSIVE STRATEGIES
Bias:
OPTIMISTIC
Owned:
Unknown
Showing 1 to 15 of 453 entries
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