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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
2015-01-07 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Energy. It has been a very precipitous decline and he saw nothing that was predicting anything like this. Whatever the reasons, we are in a new paradigm as far as energy stocks are concerned. As a value investor and looking out over a five-year period, what you should be doing is very selectively initially taking some position in the companies that are likely going to benefit most from a very bad environment. A number of companies are likely not to survive and will soon be victims of M&A activity. Investors should initiate positions in the very high quality companies. Doesn’t know where the bottom of this is likely to be, but suspects that we are below the threshold where the new normal might end up. Don’t think we will see $100 for some time. In a situation where you have supply greater than demand, there is going to be a period where things run off and it will take a while for that supply to diminish. A lot of these companies, particularly those that are highly levered, are going to keep their wells going because they have to make debt payments and they need the cash. That can only last so long because banks are going to start to stop giving credit. This will initiate a whole new reorganization in the industry.


Price:
$0.020
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
_N/A
2015-01-07 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Markets. Canada is going to be hurt by the lack of participation in the energy sector, but he still thinks we are going to see more growth. The US economy seems to be firing on all cylinders, and for the moment they seem to be carrying the weight of the world on their shoulders. He believes Canada will benefit from that. Our lower Cdn$ will help to some extent. Ontario and Québec will be carrying most of the weight. Going forward, he believes we will see growth beginning to pick up again. Just not sure how long this process might take. China is still growing at 7%, and could well be bottoming out in terms of how low that will go. They are already becoming a much more major factor in global GDP.


Price:
$0.020
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
_N/A
2015-01-07 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Oil versus natural gas. Natural gas did not participate with oil when it was going up and has been a little bit stickier as oil declined. There has been an oversupply of inventory in natural gas. At current prices, the marginal cost of production of putting new production in place for natural gas is somewhat higher than what current prices would justify. Longer-term he expects we will see natural gas prices recover. We will not see the volatility in natural gas that we are seeing in oil. You have to watch the companies you are investing in, because a lot of companies are involved in both areas. Look for companies with the best balance sheet and best management that will take advantage of any opportunities.


Price:
$0.020
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
_N/A
2015-01-07 COMMENT Must be logged in to use chart AC-T Air Canada (B)

Doesn’t really like owning airline stocks, but this one has done extremely well and should be quite a beneficiary of lower fuel prices, which constitutes a good portion of their costs. The multiples are fairly high now. The expansion is going to have to be awfully successful to justify current multiples. Doesn’t like industries that are so capital intensive and highly unionized as this company is.


Price:
$11.750
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
No
2015-01-07 COMMENT Must be logged in to use chart BMO-T Bank of Montreal

What are the strengths and weaknesses relative to other Canadian banks? For a long time it was penalized. They had invested a lot of shareholder capital in Harris in the Chicago area, and the return on their capital over many years has really not been that great. Lately it has been doing a lot better, particularly with expansions they have made in that area. We have often seen this trading at a discount to the other banks, but last year they were probably the best performing bank in the sector. Right now this is selling at a little bit of a discount in the sector at 1.6X Book with the yield of over 4%. He would prefer other banks at this time. He wants banks with a lot of scope like the Royal (RY-T) or high ROE like the CIBC (CM-T).


Price:
$79.560
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Unknown
2015-01-07 COMMENT Must be logged in to use chart BNS-T Bank of Nova Scotia

Bank of Nova Scotia (BNS-T) or Toronto Dominion (TD-T)? He thinks banks are the place to be. Financials overall are relatively good places to be in the current environment. Bank of Nova Scotia (BNS-T) and Toronto Dominion (TD-T) overlap in a lot of areas, but are quite different in terms of their overall characteristics. Scotia is a much more international bank and has been penalized somewhat lately, because of that. TD has done relatively well over the last while. They have certainly made a lot of progress in terms of positioning themselves in the US, but have also some a lot of money in behind that investment, so he feels it is a “wait and see” from a shareholder perspective. Scotia is currently selling at a discount to TD. If you were putting money in to either, on a long-term view he would rather put it into Scotia.


Price:
$63.670
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Unknown
2015-01-07 TOP PICK Must be logged in to use chart CNQ-T Canadian Natural Rsrcs

Over the years, this has been a stock that he has never been able to afford, because on a multiple level it just looked so expensive relative to the others. It has now come off with the group and provides an opportunity. You want to buy the healthy and the strong companies that are able to take advantage of some of the weaker companies that may get into trouble. This is an enviable company from its management and its properties. Yield of 2.8%.


Price:
$32.180
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
2015-01-07 DON'T BUY Must be logged in to use chart COS-T Canadian Oil Sands

They have peeled back their dividend. If he were to play the oil sands, he would rather do it through a more integrated fashion, such as a Suncor (SU-T) or Cenovus (CVE-T). If these prices remain depressed, we don’t know how long it might be until we actually see capital investment picking up again, or being able to justify the costs of building these oil sands producers.


Price:
$7.990
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
No
2015-01-07 HOLD Must be logged in to use chart CPG-T Crescent Point Energy Corp

(He has some positions in some small accounts.) An extremely well-run and well-managed company. The properties they bought give them drilling opportunities going forward for a number of years. With prices coming off as severely as they have recently, they have cut back on their capital expenditure plans from about $2 billion to $1.5 billion. Exited 2014 at about 145,000 barrels a day and are expected to average about that amount this year, which would be an increase over 2014. If the environment is still as bad as it is in 6 months, they would have to take a look at the dividend. If there was a turn around in commodity prices, this company would really benefit.


Price:
$25.940
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
2015-01-07 HOLD Must be logged in to use chart CTC.A-T Canadian Tire Corporation Ltd. (A)

Has done extremely well over the last couple of years, and thinks they will continue to do so. This will be a beneficiary with people paying lower prices at the pump. From his perspective, this is sort of out of value territory, but if he didn’t own it, he wouldn’t be selling it. There is some positive momentum in their sales going forward.


Price:
$119.390
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
No
2015-01-07 PAST TOP PICK Must be logged in to use chart ECA-T Encana Corp

(A Top Pick Dec 11/13. Down 19.13%.) They transformed this company significantly over the last number of years, and much more liquids oriented than it used to be. Longer-term, management has done an extremely good job. They transformed the company at a much quicker pace than people anticipated. When looking for companies to participate in, in this troubled sector, you want to pick the survivors, and he believes this will be one of them going forward. Still attractive to him.


Price:
$15.270
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
2015-01-07 PARTIAL SELL Must be logged in to use chart GIB.A-T CGI Group (A)

This has been an awfully good company in terms of their growth. They have managed to increase their revenues. A lot of that has been through acquisitions. Their goodwill has built up a fair amount on their balance sheet. Earnings and cash flow have increased fairly steadily over the last number of years. The market has recognized that and is expecting it to go forward. Selling at about 2.8X BV and almost 17X trailing earnings and almost 10X cash flow. You are going to have to have fairly significant growth to justify that. ROE is high, but with those kinds of multiples you are paying a lot to get that. One of the positives is that a lot of their revenues are generated outside of Canada so they will benefit from their US operations. He wouldn’t buy it at current levels. If you have owned it for quite a while, consider taking some profits.


Price:
$43.850
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
No
2015-01-07 DON'T BUY Must be logged in to use chart HBC-T Hudson Bay Co.

This did extremely well over the last year. Had quite a remarkable turnaround in terms of managing to get their sales up. Relative to a lot of other major retailers, their sales per square foot are still quite a bit less. The profitability of the company is something that concerns him. A lot of people have bought in on the momentum on the turnaround. They have more sales, but he is not sure that the margin that those sales are generating will have proportionately greater profits. Multiples are high currently.


Price:
$15.250
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
No
2015-01-07 PAST TOP PICK Must be logged in to use chart HBM-T Hudbay Minerals Inc.

(A Top Pick Dec 11/13. Up 26.6%.) The sector didn’t do that well, but this has held up extremely well, when looking at a breakdown of the other material stocks. The main reason is that Constancia is coming on stream over the next year. At current prices, this still represents pretty good value, particularly within the sector, and would still be a Buy.


Price:
$9.740
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
2015-01-07 HOLD Must be logged in to use chart LNR-T Linamar Corp

This has done extremely well lately, and is up close to 60% last year. The environment has been really good. This really ties in with what has been happening in oil/gas. Lower gas prices would normally spur demand for automobiles. With the expansion we are seeing in the US economy, this may actually happen. However, this is selling at over 2.5% and almost 3% times BV and 14X earnings and 8X cash flow. You have to see continued growth going out for a while in order to justify those kinds of multiples. Valuations are in the neighbourhood where he would not be buying.


Price:
$69.440
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
Showing 1 to 15 of 2,786 entries
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