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

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Michael Sprung , President

Sprung Investment Management

Address
25 Adelaide Street East, Suite 500
Toronto, ON
M5C 3A1

Contact Info
Telephone: 416-934-7160
Email:
Website: http://www.sprunginvestment.com/


Date Signal Chart Symbol Company Opinion Price
2015-02-25 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Economy. Here we are 6 years after the crisis and not only have we had all the geopolitical problems, it is like the world has been having a huge experiment in the monetary policies. No one quite knows how it is all going to turn out. It almost seems to be a race for the bottom in currency wars the way people are lowering their bank rates. Some are even negative now. Quantitative easing is also spreading across the world. At the same time, the US$ has been so strong that it is almost like people have been cutting rates to become more competitive. At what point does the US become unhappy with this? He thinks it is beginning to seep a little bit into US manufacturing, but nonetheless their economy seems to be the one that is strong and growing. It has been the place to be the last couple of years. In Canada we have had the opposite effect through oil prices collapsing, which is also having ripple effects across our economy. As a value investor, to position yourself over the next business cycle, you have to figure out where you want to be, how you want to do it and try to figure out what opportunities are going to come from these kinds of changes that are happening. That is what he is struggling with now.


Price:
$0.020
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
_N/A
2015-02-25 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

What metrics do you focus on, as to whether a stock should be classified as Growth or Value? As a value manager, he tries to judge what he is paying for against what he is getting now, and is likely to be there in the future. He is looking much more for organic growth rather than through acquisitions. If you are looking at stocks in any one industry, growth stocks are generally going to have higher multiples, whereas value managers are probably going to be buying more return on equity.


Price:
$0.020
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
_N/A
2015-02-25 TOP PICK Must be logged in to use chart ARE-T Aecon Group Inc

One of the largest Canadian construction companies. Has been hit as a large proportion of their earnings come from energy related areas. However, they are also very big in infrastructure. Trading close to BV. Management over the last couple of years has achieved a significant turnaround in the operating efficiency of the company. A sale of their exposure to the Quito Peru airport, is also a positive to their balance sheet. Yield of 3.05%.


Price:
$11.800
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
2015-02-25 DON'T BUY Must be logged in to use chart BBD.B-T Bombardier Inc (B)

This is quite a controversial company. He has not recommended this one for some period of time. It is highly levered. Has been very disappointed in the development of the C series. Having a flight test very soon, so a lot of what happens to the stock will be dependent on the results of that. Recently had to do quite a large issue. At these levels, this is a speculation rather than an investment.


Price:
$2.600
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
No
2015-02-25 COMMENT Must be logged in to use chart BNP-T Bonavista Energy Corp

Has been hammered along with a lot of other energy stocks, but this has always been one of the better managed companies in the group. It is proportionately more exposed to natural gas. With the current pricing of energy commodities, you have to ask how safe the dividend is. This management has always been better at executing in the oil/gas area. For people that are looking for more speculation in their portfolio, this might be a small piece of their portfolio because it could have tremendous upside relative to the downside.


Price:
$7.210
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
No
2015-02-25 COMMENT Must be logged in to use chart BNS-T Bank of Nova Scotia

We have seen a mix of earnings coming out from the banks. On this one, you are dealing with a different kind of international diversification. Not sure that their exposure to South America and the Caribbean are going to be a big positive catalyst right now. He does like this bank and thinks it is fairly well priced at the current levels. Dividend yield of 4%.


Price:
$65.820
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
2015-02-25 PAST TOP PICK Must be logged in to use chart CVE-T Cenovus Energy

(A Top Pick March 7/14. Down 24.69%.) He just participated in a recent equity issue they just did. Management has been very proactive. They have taken a couple of rounds of cutting back their CapX for the next couple of years and have raised equity to shore up their balance sheet. It is a tough environment for these companies, but these assets are 30-50 year assets. Expects cash flows are going to be severely hit this year. However, given a turnaround in pricing somewhere along the line, this is going to come back fairly quickly.


Price:
$22.190
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
2015-02-25 PAST TOP PICK Must be logged in to use chart ECI-T EnerCare Inc

(A Top Pick March 7/14. Up 45.09%.) In this one, he saw excellent management execution of turning this business around. He continues to own, but wouldn’t be a buyer at current levels.


Price:
$14.710
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
2015-02-25 COMMENT Must be logged in to use chart EFN-T Element Financial

Positioned in the leasing segment of the financial market, an area which has been largely abandoned to some extent by a lot of the larger financial institutions. A well-managed company and is likely to do quite well. However, it is priced very much like a growth stock with a high degree of growth built into the projections. From a price point of view, it is not where he would be comfortable jumping in, but he wouldn’t bet against management.


Price:
$15.420
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
No
2015-02-25 DON'T BUY Must be logged in to use chart FFH-T Fairfax Financial

This can be somewhat volatile. It is basically an insurance business with a high dependence on what they earn on the investment side of the equation. Recently announced an acquisition of an insurer and reinsurer in the UK, which long-term has an exceptional combined ratio of about 96%, which means their underwriting is positive. In the last month it has come up from $600-$650, so it can be quite volatile. He would buy it at a lower Price to Book than what it is today.


Price:
$652.000
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
No
2015-02-25 PAST TOP PICK Must be logged in to use chart FTS-T Fortis Inc.

(A Top Pick March 7/14. Up 30.63%.) Made a big acquisition in the US, which is probably the point where people were having doubts. This was a game changer for them and gave them more exposure to the US. The foreign exchange has certainly worked in their favour. Good management. Thinks the 3.5% dividend is very safe. He continues to hold, but wouldn’t be adding to his position at this price.


Price:
$38.550
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
2015-02-25 BUY on WEAKNESS Must be logged in to use chart GIB.A-T CGI Group (A)

Has shown a great deal of growth over the last number of years, a lot of it through acquisitions. People would like to see a little more organic growth. They have been expanding in Europe, and margins there have been a bit more under pressure. Trading at about 15X earnings and 2X BV. Has an ROE of around 20%, so it isn’t really, really expensive, but not at the point where he would be jumping in. He would like to see it 15%-20% lower.


Price:
$53.570
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
No
2015-02-25 TOP PICK Must be logged in to use chart HBM-T Hudbay Minerals Inc.

Over the last few years, they have been putting a lot of money into developing Constancia in Peru, a major copper, molybdenum, gold project, which started to come on stream in the last quarter and will ramp up this year into production. As they do, their production profile goes up quite sharply. Cash flow should increase with this. Last quarter was a little bit affected with some unscheduled shutdowns in one of their mines. Yield of 0.19%.


Price:
$10.590
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
2015-02-25 COMMENT Must be logged in to use chart LB-T Laurentian Bank

Being one of the smaller banks, it is not one that people spend a lot of time on, which is possibly why it is always sold at a significant discount to the others. However, they are also a much more constrained in their market and in the outlook to expand earnings. When he looks at the projections, he doesn’t see the kind of growth in earnings that people are looking for. In compensation for that, you are taking a much higher dividend yield. If that is what you are holding it for, it is not a bad place to be.


Price:
$49.850
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
No
2015-02-25 BUY Must be logged in to use chart MFC-T Manulife Financial

Canadian banks or Manulife (MFC-T)? Until recently, he thought lifecos showed relatively better valuation than banks. The environment has got to the point now where flight to safety might be tilting a little bit more towards banks. Management has done a superb job since they were in trouble previously and had to cut their dividend. Have changed their product mix so that it is a lot less risky and less exposed to equity markets. Have really built up the wealth side of their business giving them good fees.  Expanded in the US through John Hancock and are expanding into Asia quite a bit. A very good long-term hold.


Price:
$21.770
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
Showing 1 to 15 of 2,808 entries
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