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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 1914
Toronto, ON
M5C 3A1

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


Date Signal Chart Symbol Company Opinion Price
2014-11-21 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Markets. The market correction was very short, but he did buy a few things for a few accounts where he was bulking up on some stocks, but it began to run away from him quite quickly. Thinks we are going to see another leg to the downside going forward. PE multiples are still pretty high. The same problems exist in the world that existed before. There are all the geopolitical issues globally. There is also starting to be a real divergence in monetary policies globally. US is backing off from quantitative easing, but we have Europe and Japan going more towards that direction. There are a lot of mixed signals right now. We are towards the end of the year also, and there are a number of areas, particularly in Canada, that are into tax loss selling, which is putting some pressure on materials and energy stocks, for the next few weeks anyways. US seems to be carrying the world on its shoulders at the moment, and he thinks fundamentals are lagging valuations still.


Price:
$0.020
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
_N/A
2014-11-21 COMMENT Must be logged in to use chart ATD.B-T Alimentation Couche-Tard (B)

This is not a value stock. Has had a very good run. Very smart management. A lot of their growth has been by acquisition. Good operations in Canada and US as well as Europe. He looks at the multiples and can't justify the current price. If you want to play this, Metro (MRU-T) owns about 5%-8%, and has been doing very well lately.


Price:
$38.930
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
No
2014-11-21 TOP PICK Must be logged in to use chart BNS-T Bank of Nova Scotia

Relative valuation has taken a bit of a hit lately, because in their recent quarter they reported a bit of a hiccup in their international operations. It is fairly rare that you are able to buy this bank for a lower Price to Book valuation than its competitors. At current levels, it’s a pretty good place to be. In the meantime, you are being paid 3.8% dividend yield and that dividend is likely to go up in the coming years. Tier 1 capital of about 10.9%.


Price:
$70.000
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
2014-11-21 HOLD Must be logged in to use chart BTE-T Baytex Energy Corp

A well-managed company. Good assets. Doesn't think the balance sheet is in terrible condition. Have been severely affected along with a lot of other oil/gas stocks. Believes it is going to level out from here. If we have some stability in the energy market, he thinks this will come out of this downtrend and reverse itself. Wouldn't be surprised to see this appreciate fairly quickly, should conditions improve a little.


Price:
$30.940
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
No
2014-11-21 HOLD Must be logged in to use chart COS-T Canadian Oil Sands

Where it is trading today, he would not necessarily sell. If you are looking to participate in the oil sands, he might choose a different vehicle, but overall this company is at a level now where it looks reasonably valued. An extremely long-term play.


Price:
$17.650
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Unknown
2014-11-21 BUY Must be logged in to use chart CPG-T Crescent Point Energy Corp

Has reached a valuation where he has started to nibble at it.  Has a very good distribution. Used to depend a lot on their dividend reinvestment plan to finance it, but much less now with their production increasing. They have so much good land position where their future drilling opportunities are quite numerous, and have been very good at executing their strategies. Thinks they will continue to exploit their opportunities in the Bakken and Shaunavon areas. At these levels it is becoming a compelling price for a longer-term investor.


Price:
$36.670
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
2014-11-21 COMMENT Must be logged in to use chart CWB-T Canadian Western Bank

Their dominant operation is in the energy geographies, and he feels that is where a lot of the concerns have rolled in. Selling at a relative discount to the other banks than it used to. Latest quarter has been okay.  Net interest margin was squeezed a little in the last quarter, but those things are transitory. Have a fairly good capital base. Tier one capital is about 8% and thinks they will probably have to increase that over time. Longer term, this is probably a pretty good investment to have. Yield is just a little over 2%. You get a much better yield with some of the other Canadian banks.


Price:
$37.920
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
No
2014-11-21 PAST TOP PICK Must be logged in to use chart ECA-T Encana Corp

(A Top Pick Dec 11/13. Up 10.03%.) This is a company that is really in transition. Have gone from primarily being a gas producer to much more exposure to liquids in a short period of time. What have astounded people are the prices they have got for the assets they have sold. Have also made some very smart purchases.


Price:
$20.880
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
2014-11-21 HOLD Must be logged in to use chart ECI-T EnerCare Inc

Has appreciated fairly sharply in the last short period of time. This is a company with a very low Book Value and selling at a high multiple of Book, but the earnings on that Book are significant, and the cash flow it has been generating has been improving. Just finished acquiring some holdings from Direct Energy. Thinks they are in very good position in the longer term. At the current price, he considers this as a Hold not a Buy.


Price:
$15.520
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Unknown
2014-11-21 DON'T BUY Must be logged in to use chart ENB-T Enbridge

Has a little of this in some accounts, but only from a legacy position. Has been an extremely well run company, but always sold at somewhat of a premium multiple. His problem is that a lot of the pipelines, at over 20X earnings, look expensive at current levels. The price you are paying today is anticipating a lot of future dividend increases. People should be concerned about how much debt is going to be financed for pipeline growth.


Price:
$52.350
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
2014-11-21 COMMENT Must be logged in to use chart FTT-T Finning Int

Very, very dependent on the resource industries, particularly mining, energy as well as construction. Insofar as you can see the economic landscape picking up, this one longer-term is a good industrial holding from here. For him to get interested in it, he would want to see it below $25.


Price:
$27.920
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
No
2014-11-21 PAST TOP PICK Must be logged in to use chart HBM-T Hudbay Minerals Inc.

(A Top Pick Dec 11/13. Up 23.61%.)  A lot of people doubted their ability to finance and bring on the constancy of a mine, which will be coming on stream next year. That will provide a further boost to their valuation. In the meantime, they have done some very smart things by selling a royalty stream into Silver Wheaton (SLW-T).  Management has done a very good job of manoeuvring this company and putting it in place for future production increases. Should there be any appreciation in commodity prices in the next couple of years that will be an added kick to the valuation.


Price:
$9.530
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
2014-11-21 COMMENT Must be logged in to use chart HCG-T Home Capital Group

Very diversified portfolio of mortgages, so he wouldn't be concerned about their exposure to any particular community. Extremely well-managed. Their loan losses are very, very low. Good management team.


Price:
$51.620
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Unknown
2014-11-21 COMMENT Must be logged in to use chart L-T Loblaw Companies Ltd

Has a lot of interesting parts to it. Has gone through a bit of transformation over the last 2 years in terms of reorganizing their supply, putting in SAP systems, etc. There has been some management turnover. Overall it is a lot more efficient than it was 5 years ago. Looking out a few years, you could see them earning around $3.75, a fairly significant multiple from a few years back. It may be a little ahead of itself if it were to go up very quickly from here.


Price:
$61.410
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes
2014-11-21 COMMENT Must be logged in to use chart MFC-T Manulife Financial

Doesn't think this is fully valued right now. They have a very, very strong balance sheet. Required capital is 248%, one of the highest in the industry. Since the financial crisis, they have really de-risked their balance sheet to a great extent, changed their sales mix into products that have more predictable profitability, gotten out of a lot of the market sensitive products. Extremely well-managed. Expects you could see upside from here. Wouldn't be surprised to see the dividend increased in the next year or two.


Price:
$21.910
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Unknown
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