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

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David Baskin , President

Baskin Wealth Management

Contact Info

Website: http://www.baskinfinancial.com/main/

Bio:

Following his early career as a lawyer and banker, David founded Baskin Financial Services Inc. in 1992. The firm, now operating as Baskin Wealth Management, has grown from assets under management of $25 million in 2000 to over $700 million today, with about 500 client families in seven provinces. David appears frequently on national television and radio as a commentator on the markets and is frequently quoted in the press. An enthusiastic sailor and traveller, David and his wife Joan Garson have two adult children. All are actively involved in community and charitable activities. 

Date Signal Chart Symbol Company Opinion Price
2014-12-17 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Markets. The positive showing today was a combination of things. Oil seems to have found a floor, at least for one day. The federal reserve is clearly not in any hurry to raise interest rates. The economic indicators that the Fed is looking at certainly shows there is no inflation. Headline inflation came down sharply today, by 0.3%. Even the core inflation, which strips out energy and food, was very, very reserved, so there is no reason at all to think that the Fed is going to lift interest rates, even in April. In the meantime, the US economy is picking up steam. He has been looking at things to buy, but it has been so volatile lately, he has been sitting on the sidelines and watching. By and large, every stock that he buys, pays a dividend.


Price:
$0.020
Subject:
NORTH AMERICAN - LARGE
Bias:
OPTIMISTIC
Owned:
_N/A
2014-12-17 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Energy. For every winner from oil, there is a loser, in Canada particularly. The redistributive effect of low gasoline prices, particularly for the working poor in the US, is bigger than any policy that the Obama administration has managed to pass in 6 years. In other words, this is putting more spendable cash in the pockets of poor to middle income families in the US, which is going to be used for consumer spending, and is not going to end up in Saudi Arabia or Venezuela or Iran. This is highly positive.


Price:
$0.020
Subject:
NORTH AMERICAN - LARGE
Bias:
OPTIMISTIC
Owned:
_N/A
2014-12-17 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Insurance companies or banks? Insurance companies have traditionally looked for long assets because they have long risks. Right now long bonds are a particularly unrewarding asset class and insurance companies have to find something other to do. This means they are taking more risks. Although he is starting to buy some insurance companies, they are not a substitute for the banks. They don’t have the earnings power or the multiple sources of income that the banks have.


Price:
$0.020
Subject:
NORTH AMERICAN - LARGE
Bias:
OPTIMISTIC
Owned:
_N/A
2014-12-17 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Preferred shares or bonds? 3 good things about preferred shares and 1 bad thing. 1.) They get the dividend tax credit, so you will pay a lower rate of tax than you’d pay on interest from bonds. 2.) The good quality preferred shares by banks or utility companies are currently paying around 3.5%-3.75% for a 5 year maturity, compared to bonds paying about 2.25%. 3.) Since 2009, virtually every preferred share issued in Canada, has been a rate reset preferred share, that will have a change in the dividend rate at the end of the first 5 years, based on an increment of whatever the Canada 5 year bond is paying at that time. The worst thing that can happen is that you have to own it for 5 years, at what might become a lower than market rate in year 3 or year 4. The bad thing about preferred shares is that they are quite illiquid. He prefers the Armageddon Prefs issued by the banks.


Price:
$0.020
Subject:
NORTH AMERICAN - LARGE
Bias:
OPTIMISTIC
Owned:
_N/A
2014-12-17 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Which U.S. listed bank would you prefer? He is concerned about buying European banks for 2 reasons. First of all is currency risks. The euro could easily fall further against the US dollar. Also, they have a lot of suspect sovereign and bank paper from southern Europe that is underperforming. Big US banks are in a good environment right now. He doesn’t own Citibank (C-N) or Bank of America (BAC-N), but thinks they are going to do pretty well. The 2 big investment banks, Goldman Sachs (GS-N) and J.P. Morgan (JPM-N) are also doing well. For a pure commercial bank, Wells Fargo (WFC-N) is probably the class of the field. If he were going to buy another bank, it would probably be Wells Fargo.


Price:
$0.020
Subject:
NORTH AMERICAN - LARGE
Bias:
OPTIMISTIC
Owned:
_N/A
2014-12-17 BUY Must be logged in to use chart BAM.A-T Brookfield Asset Management (A)

Among the smartest management team out there, particularly in Canada. They have a whole variety of assets in real estate, infrastructure, railroads and energy. They also manage a lot of money in funds, in which they get paid a straight up fee plus an override on profits. As those funds build up and get to the tens of billions of dollars, that amounts to an enormous cash flow, which are not assets at risk, just free money at being very good at what they do. Should be a core holding for most Canadians.


Price:
$56.250
Subject:
NORTH AMERICAN - LARGE
Bias:
OPTIMISTIC
Owned:
Yes
2014-12-17 PAST TOP PICK Must be logged in to use chart BCE-T BCE Inc.

(A Top Pick Jan 9/14. Up 22.14%.) This may be the best performer of the major Canadian telcos in 2014. Benefits from being a content provider, as well as owning the tubes the signals go through. Bell Fibe has done pretty well.


Price:
$52.610
Subject:
NORTH AMERICAN - LARGE
Bias:
OPTIMISTIC
Owned:
Yes
2014-12-17 PAST TOP PICK Must be logged in to use chart BIN-T Progressive Waste Solutions Inc

(A Top Pick Jan 9/14. Up 36.25%.) Have a lot of operations in the US. Benefited from the weak Cdn$. There is a little bit of consolidation going on in the industry. This is the kind of a company that is a huge winner when fuel prices go down. Also, as the economy expands, there is more commercial garbage to get rid of.


Price:
$34.890
Subject:
NORTH AMERICAN - LARGE
Bias:
OPTIMISTIC
Owned:
Yes
2014-12-17 BUY Must be logged in to use chart BNS-T Bank of Nova Scotia

Has always liked the International exposure. Thinks that their holdings in Mexico, Colombia and Chile are very valuable, as well as their banking interests in Thailand. Pundits aren’t crazy about it right now as they feel this bank presents more risks than the other Canadian banks. He thinks it presents more growth opportunity. Inexpensive and presents a good entry point.


Price:
$65.030
Subject:
NORTH AMERICAN - LARGE
Bias:
OPTIMISTIC
Owned:
Yes
2014-12-17 COMMENT Must be logged in to use chart CNQ-T Canadian Natural Rsrcs

An oil sands company does not have the exploration risks that conventional explorer producers have. One of the advantages that the big oil sands companies have is that a lot of their CapX has gone into their plant. For the maturer ones, like this and Suncor (SU-T), that money has already been spent, so you don’t have to replace every well after you have completed it. This makes it easier to turn the tap on and off in terms of production, because that is mostly labour. He likes the very deep resource pool and that they are becoming more efficient producers. Thinks their breakeven point is in the $50 barrel range. He feels that oil will probably stabilize in the $60s.


Price:
$34.530
Subject:
NORTH AMERICAN - LARGE
Bias:
OPTIMISTIC
Owned:
Yes
2014-12-17 COMMENT Must be logged in to use chart CNR-T Canadian National R.R.

The most efficient railroad in North America. Its operating margins are terrific. Balance sheet is pretty good. Funds from operations are pretty good. There is lots of room to increase the dividend. Although they have weather exposure in Canada and some exposure to the oil industry, they have a well diversified load in excess of 30,000 km of track. The company is fabulous; however, the stock is really expensive. If you could buy this at $60, it would be a terrific buy. He is not sure if it is ever going to go back to $60. He prefers CSX (CSX-N), a high-quality US carrier and trading at a much lower price earnings multiple, and with a higher dividend it is a better buy.


Price:
$78.160
Subject:
NORTH AMERICAN - LARGE
Bias:
OPTIMISTIC
Owned:
No
2014-12-17 TOP PICK Must be logged in to use chart GOOGL-Q Google

A very impressive company. Preeminent in search and preeminent software for mobile devices with their android software. They are the “go to” for advertisers who want to get their message out on any kind of computing device, including mobile devices. You also get what he calls lottery tickets, with the driverless car or whatever they might be developing. This company has almost $100 per share in cash and trading at probably 19X or so 2015 earnings. If you take away the cash, it is trading more like 15X or 16X. Doesn’t pay a dividend but are sitting on $62 billion, which will be burning a hole in their pocket. Feels they are either going to start to pay a dividend or are going to start to buy back shares.


Price:
$506.450
Subject:
NORTH AMERICAN - LARGE
Bias:
OPTIMISTIC
Owned:
Yes
2014-12-17 DON'T BUY Must be logged in to use chart IGM-T IGM Financial Inc.

The mutual fund industry is under pressure and is going to remain under pressure. There are new disclosure requirements coming out in July and he doesn’t know how that will impact it. Exchange traded funds are taking a bite. At the same time, this company has benefited from the stock market upsurge and it is a pretty good yielder. This is not an industry that he would like to be in right now.


Price:
$44.420
Subject:
NORTH AMERICAN - LARGE
Bias:
OPTIMISTIC
Owned:
No
2014-12-17 COMMENT Must be logged in to use chart L-T Loblaw Companies Ltd

Canadian grocery segment is a pretty competitive area. It is a pennies and nickels business. He has always been concerned about the execution risks. They had a famously horrible time reorganizing their distribution warehousing and logistics and had stockouts in stores for years. They may have that under control now. Given that the stock has had a run up, he doesn’t feel compelled to own it.


Price:
$60.080
Subject:
NORTH AMERICAN - LARGE
Bias:
OPTIMISTIC
Owned:
No
2014-12-17 DON'T BUY Must be logged in to use chart MBT-T Manitoba Telecom Services

Everybody thought this was going to be a takeover target and there was going to be a huge amount of value released. That turned out not to be the case. He would go with the big ones rather than this one. The breakup value might be $40, but it is not going to be broken up.


Price:
$27.160
Subject:
NORTH AMERICAN - LARGE
Bias:
OPTIMISTIC
Owned:
Unknown
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