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

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Date Signal Company Expert Opinion Price
2015-03-31 N/A A Comment -- General Comments From an Expert
A Commentary
Paul Gardner, CFA

Markets. We are dealing with increased volatility in the stock markets. US stock market is trading at about 15-16 times. When you have ultimate yields below 2%, technically from that perspective, the yield from the equity markets is cheap relative to bond rates. In the US there is a 3%-4% GDP growth. Europe is not hurting by quantitative easing, which leads to higher equity markets. The Fed will most probably raise rates, but are not going to raise them aggressively. Just like last year, he thinks the winter was brutally hard for Northeast US and the Midwest, and that definitely impacts GDP growth. Like last year, he won’t be surprised to see 4% GDP growth in the US. European companies are actually making more money because of the opposite effect of US foreign exchange. We still haven’t seen the fall through of consumer behaviour on lower gasoline prices. When you add everything and the fact that rates are going to go up aggressively, he thinks there will be continued earnings momentum and the stock market should gently go up for the next 6-12 months. The most washed out sector is Canada, which has underperformed for 3 years. Considering where the US$ is, he would be a lot more comfortable deploying money into Canada. Valuations are slightly cheaper than in the US.


Price: $0.020
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: _N/A
2015-03-31 WEAK BUY A Comment -- General Comments From an Expert
A Commentary
Paul Gardner, CFA

REITs. There are 2 situations. 1.) Alberta is having a slow down and 2) office and retail seem to be having problems, especially retail, because of e-commerce. That is going to take years to deploy, but it is kind of gnawing at the fringe. When interest rates go up, REITs get hurt, but from a valuation they are neither cheap nor expensive. He would say they are in the 7th inning of a 9 inning game. He wouldn’t expect much from them.


Price: $0.020
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: Unknown
2015-03-31 N/A A Comment -- General Comments From an Expert
A Commentary
Gajan Kulasingam

Markets. The 1st quarter has been very volatile. There have been a fairly number of days where the market has been up 1%, down 1%, and he kind of expected that coming in. Any time you have the Fed move away from a policy that they have had for the last 5 years, you are going to have some dislocation of asset prices. Economic growth has not come in as strong as people had hoped. The rising US$ continues to hurt earnings for the multinationals. Energy prices continue to be low, hurting some of the S&P energy names. Market would like more certainty so that valuations can be recalibrated on a different rate path.


Price: $0.020
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: _N/A
2015-03-31 N/A A Comment -- General Comments From an Expert
A Commentary
Gajan Kulasingam

Industrials. A postsecondary recovery has a normal cycle recovery of 5-6 years and we are already beyond that, and we haven’t gone through a full cycle yet. Transportation still has potential room for value. Short cycle industrials, depending on the end market exposure, have potential value. However, we are past the early cycle and are somewhere between the mid-to late cycle. You want to look at businesses that give you exposure to mid-cycle exposure, preferably non-residential.


Price: $0.020
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: _N/A
2015-03-31 N/A A Comment -- General Comments From an Expert
A Commentary
Gajan Kulasingam

Utilities. He would be cautious. They had a great January and pulled back in February and March, essentially taking all of that back. Still thinks valuations are somewhat risky going into a rising rate environment and would look for specific utilities that are going to give you above average growth, M&A optionality and which have multiple leverage for value creation, either through asset monetization or through dividend growth and buybacks.


Price: $0.020
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: _N/A
2015-03-31 N/A A Comment -- General Comments From an Expert
A Commentary
Gajan Kulasingam

What is the correlation between oil prices and share prices of pipeline companies? There is a fairly high correlation. Today’s oil price does not directly impact today’s cash flow stream, but what does impact is the price of oil over the long term. If oil stays at $30 for 3 years, then the growth and volume going through the pipelines will slow down and start to impair the valuation. The actual commodity spot price should not have a direct valuation.


Price: $0.020
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: _N/A
2015-03-31 DON'T BUY Pure Industrial Real Estatetrust Trust
AAR.UN-T
Paul Gardner, CFA

This is a play on industrial space, which at some point in time can be great to own, but at other times not. However, this is trying to focus and grow more into the US. Good managers. Distribution is safe as they only pay out around 70%-80% of their income coming in. At the late cycle that we are in, he would probably avoid this.


Price: $5.050
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: No
2015-03-31 COMMENT Altagas Ltd
ALA-T
Gajan Kulasingam

A great business and one of his preferred names in the energy infrastructure space. Likes their diversified business model. It allows them to deploy capital through multiple different cycles. Great management team. Expects they are going to announce several large projects over the 2nd half of this year or early next year. Thinks they can give you 10% dividend growth. He is a big fan of this.


Price: $42.260
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Yes
2015-03-31 HOLD American Water Works Co. Inc.
AWK-N
Gajan Kulasingam

One of the largest dominated water infrastructure businesses in North America, in both clean and waste water. They continue to win contracts with municipal regions. Have gone through a refinancing, which has allowed them to free up cash flow allowing them to raise their dividend. Solid management. Phenomenal track record of generating stable dividend growth. At these levels he wouldn’t be adding to holdings.


Price: $54.210
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Yes
2015-03-31 BUY Boardwalk REIT
BEI.UN-T
Paul Gardner, CFA

Has been unfairly hit. Incredibly conservative. Doesn’t give as high a yield as Riocan (REI.UN-T), but they have the ability to buy back stock. Have been hurt by about 10%-15% because of Alberta. This is cheap and is probably worth $60-$70 once you look through this cycle.


Price: $58.950
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: Yes
2015-03-31 HOLD Brookfield Infrastucture Partners
BIP.UN-T
Gajan Kulasingam

One of the more unique businesses within his portfolios. Their business strategy is to buy undervalued assets that are sometimes in trouble. They like to recapitalize it, restructure it, grow the business and then sell it and recycle the capital. A very difficult business model to replicate. The 5% distribution model is solid. It has been tough for them to do deals, which is why the stock has held back a little. Recently went into France and expanded into a tower telecom. He is comfortable holding this, but wouldn’t be adding to it.


Price: $57.670
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Yes
2015-03-31 DON'T BUY Bank of Nova Scotia
BNS-T
Paul Gardner, CFA

His least favourite of the banks. It has a large exposure to Latin America and is focused on the global market in wholesale banking. The banking world is very competitive right now. This bank is well capitalized and well rated, but Latin America is under stress.


Price: $63.540
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: No
2015-03-31 TOP PICK BTB Real Estate Investment Trust
BTB.UN-T
Paul Gardner, CFA

Québec industrial, retail and office. The biggest knock is that they had over distributed and were overleveraged. 3 years later, they have increased their distribution. Have had good re-leasing of their properties. Have room to grow and to increase their distributions. Québec and Ottawa are doing just fine in this space. Yield of 8.7%.


Price: $5.000
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: Yes
2015-03-31 PAST TOP PICK Comcast Corp
CMCSA-Q
Gajan Kulasingam

(A Top Pick July 15/14. Up 4.18%.) Acquiring Time Warner Cable (TWC-N). They are looking at the landscape and realizing that it is changing. Within the framework of the incumbent cable and telecom, he feels this is in the best condition to navigate that change in the landscape.


Price: $56.470
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Yes
2015-03-31 COMMENT Capital Power
CPX-T
Gajan Kulasingam

This is essentially an Alberta-based power generator. Within the utility space, this has the most upside exposure and downside risk to Alberta Power prices. Management has done a good job of diversifying away from Alberta, and it generates a significant amount of free cash flow. Over the next 2 years, he thinks it can generate roughly $300 million of free cash flow. If you are looking for a business that gives you merchant power exposure to Alberta at depressed power prices this is interesting, but you have to be cognizant that you are taking on a fair amount of volatility and risk.


Price: $24.510
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Unknown
2015-03-31 COMMENT Crombie Real Estate Investment Trust
CRR.UN-T
Paul Gardner, CFA

Fantastic assets. They are all mostly anchored in very defensive tenants. Consistency is fantastic. Gives a very good yield. In this late stage of the cycle, you probably want to go defensive. Only trading at around 15X AFFO. Not cheap, but not expensive.


Price: $13.480
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: Yes
2015-03-31 DON'T BUY Capstone Infrastructure
CSE-T
Gajan Kulasingam

This owns and operates several different power generation assets including hydro, thermal, wind and renewable. Has quite a high dividend yield of about 8.5%. Payout ratio on an AFFO basis is about 100%, which will stay there till about 2017 until 80 MW of assets comes on line. He generally does not like to own businesses with a high payout ratio, but he thinks they can manage this. They have Bristol Waters in the UK, which is a regulated business. It was recently given a tariff pricing, and Capstone rejected this because it was too low. This is a bit of a risk. He doesn’t like businesses that have a high payout and low visibility on growth and a leveraged that he is generally not comfortable with.


Price: $3.550
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: No
2015-03-31 COMMENT Dream Office REIT
D.UN-T
Paul Gardner, CFA

Focuses on office, retail and a bit of industrial. They used to be focused only in Alberta, but have diversified out of that, but are still about 40%. He doesn’t like the story or their assets and thinks there is going to be real softening in their core businesses in Alberta. Also, doesn’t like the management agreement where they get paid on asset growth, not profitability. Company pays out about 90%, which is a little high, but distribution should be fine.


Price: $26.350
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: No
2015-03-31 PAST TOP PICK Danaher Corp.
DHR-N
Gajan Kulasingam

(A Top Pick July 15/14. Up 8.95%.) A multi-industrial with exposure to medical devices and your typical businesses as well. In this market, this is one of the better industrials to own, because it doesn’t have exposure to oil and gas. The new CEO has done a great job of navigating shareholders expectations. Feels they have a significant amount of CapX to do a deal. It is an M&A story, and people are waiting for the M&A to happen.


Price: $84.900
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Yes
2015-03-31 BUY on WEAKNESS Medical Facilities Corp.
DR-T
Paul Gardner, CFA

Recently sold his holdings. They do surgical centres in South Dakota and Oklahoma. A little bit affected by Obama care, but these are specialized centres that get referrals. Have executed incredibly well. Had thought values were a bit stretched, and didn’t think they were going to repeat going forward what they had done in the past. Good managers. He would wait for a cheaper entry point.


Price: $17.100
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: No
2015-03-31 COMMENT Emera Inc
EMA-T
Gajan Kulasingam

Fortis (FTS-T) or Emera (EMA-T)? The real difference between these 2 is that one is Western Canada and the other is Eastern Canada. He doesn’t own either. They’re both trading at around 19-20 times earnings, which is a little rich going into a potentially rising rate environment. Between the 2 his preference would be towards this. It has an interesting side in that it is exposed to capacity markets in the Northeast, which just increased their capacity payments significantly higher than what people were expecting, which was a boost to this company’s earnings.


Price: $41.200
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: No
2015-03-31 COMMENT Extendicare Inc
EXE-T
Paul Gardner, CFA

Sold their US holdings, so now it is a cleaner story. Has always thought that in the senior space, the simpler the better. They just acquired Rivera Homes which will help stabilize, as it is accretive to cash flow. As long as they continue executing, there is a chance this will continue going further. Valuation is cheap. They can certainly pay the 7%-8% dividend and there is probably some upside potential. He wouldn’t be surprised if institutions start gravitating towards this sector.


Price: $7.510
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: No
2015-03-31 COMMENT Fluor Corp.
FLR-N
Gajan Kulasingam

This has been unfairly punished because of its exposure to energy. Within the E&C and construction space, this would be one of his preferred names. It has one of the most experienced management teams that can invest and construct large complex LNG, oil and gas, petcom (?) projects. The petcom (?) Industry is the one area where he thinks there is growth coming in 2017-2018. Right now there are expected to be 2 or 3 large ones to be built in the southern US, and this company is one of the largest and leading construction companies in this space. The price is not expensive, but in the short term there is near-term risk if oil continues to get cut back.


Price: $57.160
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: No
2015-03-31 DON'T BUY Fortis Inc.
FTS-T
Gajan Kulasingam

Fortis (FTS-T) or Emera (EMA-T)? The real difference between these 2 is that one is Western Canada and the other is eastern Canada. He doesn’t own either. They’re both trading at around 19-20 times earnings, which is a little rich going into a potentially rising rate environment. Between the 2 is preference would be towards Emera.


Price: $38.580
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: No
2015-03-31 COMMENT Gibson Energy
GEI-T
Gajan Kulasingam

Of the midstream peers that he looks at, this has the most commodity exposure, because of their trucking and terminals business and their oilfield services business. Great management team. Their assets in Edmonton are phenomenal. This is the cheapest of their peers. Trades at a discount, but thinks this is acceptable at certain levels here.


Price: $25.980
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Unknown
2015-03-31 DON'T BUY Home Capital Group
HCG-T
Paul Gardner, CFA

Would not want to own this in this late stage housing cycle. They deal with the subprime market. Recently missed their earnings. This space is a very competitive market.


Price: $42.560
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: No
2015-03-31 COMMENT Innergex Renewable Energy
INE-T
Gajan Kulasingam

He would not be buying this here because he would be a little worried about buying a high yielding utility that is going to have very moderate dividend growth going into a rising rate environment. If you are an income oriented investor, this is a phenomenal company with a great asset. Some of the largest and most dedicated Hydro assets in Canada. Great management team. It should have some of the highest cash flow growth in the next 3 years.


Price: $11.200
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Unknown
2015-03-31 COMMENT InnVest Reit
INN.UN-T
Paul Gardner, CFA

Owns a lot of mid-tier hotels. Back in the days when there was a huge recession, and the Cdn$ was at an all-time high and US travellers were at an all-time low and with hotel properties always having to be refurbished, it was a terrible dynamic. Now we are starting to see US tourists come back. This is probably not a bad time to own. He wouldn’t own it because he still thinks it is too risky.


Price: $5.770
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: No
2015-03-31 COMMENT Keyera Corp
KEY-T
Gajan Kulasingam

Probably has one of the best management teams in the industry. This is a tougher business model to get your head around, because they have a very integrated footprint between terminals and condensates. Just announced a 50% $330 million project with Kinder Morgan (KMI-N). Also, have a joint venture with Enbridge (ENB-T). They do have liberal volume risks on their gas processing plants, but he thinks they can navigate that.


Price: $84.250
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Yes
2015-03-31 COMMENT Kinder Morgan Inc.
KMI-N
Gajan Kulasingam

Had 3 MLPs along with the General Partner Kinder Morgan Inc. The MLPs had grown fairly rapidly. When they grow and start to pay distributions out they have to pay 2% of the cash flow to the general partner, and the remainder gets split with LP units of the MLP. That becomes cost prohibitive as the MLP grows. Because of this, Kinder Morgan collapsed them. This freed up the capital for them to grow to do deals. Income is stable and is going to grow at 10% for the next 5 years. Have done a phenomenal job of navigating through the commodity cycle.


Price: $42.060
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Yes
2015-03-31 DON'T BUY Loblaw Companies Ltd
L-T
Paul Gardner, CFA

4th quarter results were a little disappointing. Valuation trades at 18 to 20 times. Even though they are going to get a bump from Shoppers there is still chronic oversupply in the grocery store business. Too much competition. He would avoid this until it goes down at least 10%.


Price: $61.920
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: No
2015-03-31 PAST TOP PICK Leon's Furniture
LNF-T
Paul Gardner, CFA

(A Top Pick Feb 11/14. Up 1%.) Took half his position down, because it got ahead of itself at around $18. A fantastic company in one of the worst businesses. Furniture is terrible, so you want the best in class. About 30% of their stores are in Alberta, so there is expectation that furniture sales will go down. There is a partial truth to that, but they are well diversified geographically. He would probably be a Buyer rather than a Seller at this point. It’s early days, but there will be integration and synergies coming from the Brick acquisition.


Price: $14.610
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: Yes
2015-03-31 COMMENT Leisureworld Senior Care Corp
LW-T
Paul Gardner, CFA

This is generally a very solid business, because you have the province funding the healthcare costs. Good demographics. As a sector, it was always cloudy because of the US exposure, but now they have sold those off and it will be a clean sector. He wouldn’t be surprised if institutions start gravitating towards this sector.


Price: $14.830
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: No
2015-03-31 PAST TOP PICK Mainstreet Equity Corp
MEQ-T
Paul Gardner, CFA

(A Top Pick Feb 11/14. Up 2.74%.) This is a “wait and see” kind of story. Have a great balance sheet and are getting funding of about 2% through CMHC. Heating costs have dropped. Great management. Trading at about a 20% discount to its NAV, so it is outright cheap here. This is a buying opportunity.


Price: $37.570
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: Yes
2015-03-31 COMMENT Parkland Fuel Corp
PKI-T
Paul Gardner, CFA

Strong management. Great execution. They buy tuck in acquisitions as well as large acquisitions. This is all about the retail and the middle side of the oil processing such as fuel delivery. Lost the Suncor (SU-T) contract about 1.5 years ago, but have replaced it. Also, a conservative company from a payout perspective. Dividend is not only sustainable, but he wouldn’t be surprised, if they don’t do as much in acquisitions, they will increase their payouts.


Price: $24.870
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: Yes
2015-03-31 PARTIAL BUY Pembina Pipeline Corp
PPL-T
Gajan Kulasingam

At an interesting entry point. If you are looking to build a position over a long time, you might want to get into this a little bit. This is the largest among the Canadian peers. Have about $6 billion of secured CapX program over the next 3 years, which is going to double their EBITDA. Great management team.


Price: $40.020
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Yes
2015-03-31 PAST TOP PICK Quanta Services
PWR-N
Gajan Kulasingam

(A Top Pick July 15/14. Down 18.2%.) An energy services provider, the largest construction contractor for oil pipeline construction in North America, as well as the transmission distribution business. A phenomenal company. Management has done a great job. They continue to navigate this market and haven’t really lost any contracts. Valuation is very cheap at about 11X earnings. When energy prices recover, this company will have significant upside.


Price: $28.530
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Yes
2015-03-31 DON'T BUY RioCan Real Estate Investment
REI.UN-T
Paul Gardner, CFA

At this point in time this REIT is not one to consider. You are dealing with an onslaught of E-Commerce, and they own a lot of Big Box retailers. It is going to be a struggle. Its not going to kill their business, it’s just that the dynamics doesn’t help them. Great management. He prefers apartment REITs. (He owns their bonds.)


Price: $28.970
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: Yes
2015-03-31 COMMENT Transalta Renewables
RNW-T
Gajan Kulasingam

A much more high-quality business than Transalta (TA-T). Has fully contracted assets. A very yield oriented asset and with the constructed cash flow stream, that makes the dividend very stable. If you want a very stable, income oriented investment, this would be the better of the 2.


Price: $12.550
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Unknown
2015-03-31 DON'T BUY Sherritt International Corp.
S-T
Paul Gardner, CFA

Bonds? He doesn’t own any thing in this company because of 1) the big Ambatovy mine in Madagascar took a little longer and the overall nickel market is terrible. 2.) He had owned their bonds because of their Saskatchewan assets, but once they sold off, it became a lot riskier. The underlying commodity has now sewered. For the bond, they have enough cash flow to do all right, but you need a recovery in the price of nickel.


Price: $2.090
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: No
2015-03-31 COMMENT Student Transport of America Ltd.
STB-T
Paul Gardner, CFA

Just announced they got a big contract in Colorado. Issued equity to pay down their convertible debenture, so they want to get their debt down. Stock has gone sideways, which it is supposed to do, because it is a very steady business. Valuations are not extreme. One the things that helps them is that fuel costs have dropped substantially. Yield of around 6%-7%. Looks interesting.


Price: $6.860
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: No
2015-03-31 HOLD Suncor Energy Inc
SU-T
Paul Gardner, CFA

This is all about oil prices. Oil companies have actually outperformed the oil price, because they are looking on a forward curve. This is one of the best managed and best asset classes for oil and gas development. In the current situation they will probably view the current situation as an opportunity to acquire cheap assets.


Price: $37.010
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: Unknown
2015-03-31 COMMENT Transalta Corp
TA-T
Gajan Kulasingam

A bit of a tough story in the near term. Balance sheet is a little bit levered up and they need to de-lever it. They spun out Transalta Renewables (RNW-T) which unlocked some value. Have a significant amount of assets that they need to drop-down into Transalta Renewables. They’ll take that cash back and de-lever the balance sheet. He thinks they are committed to maintaining an investment grade balance sheet. It is going to take some time for them to work through this cycle, so you are going to have to be patient.


Price: $11.750
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Unknown
2015-03-31 COMMENT Toronto Dominion
TD-T
Paul Gardner, CFA

In his opinion, this and Royal (RY-T) are the best in class. You not only get stability from the Cdn retail, but also half their assets are in the US. They are just beginning to get synergistic between the 2 countries. Cheap relative to Book Value.


Price: $54.210
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: Yes
2015-03-31 TOP PICK Timbercreek Mortgage Investment
TMC-T
Paul Gardner, CFA

(A Top Pick Feb 11/14. Down 7.12%.) This is a mortgage investment Corp. Has been hurt because they had prepayment issues last year. Has heard that insiders have been aggressive buyers of the stock. A good asset class to own. Yield of 9.33%.


Price: $7.940
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: Yes
2015-03-31 TOP PICK Union Pacific Corp
UNP-N
Gajan Kulasingam

This is his preferred rail company in North America. Serves the Western US with exposure to the Mexican corridor. It serves the region that has the lowest cost basin, so doesn’t have the same negative headwinds as the Eastern rails. Trading at roughly 14.5 X forward earnings. Yield of 2.03%.


Price: $108.310
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Yes
2015-03-31 TOP PICK Veresen Inc
VSN-T
Gajan Kulasingam

New CEO who has done a great job of reshaping the business. Has been very creative with the deals he has done. This company is a high dividend business model, but also has significant growth. Generally it is a difficult juggling act to balance, but the CEO has done a great job of strategically generating cash flow that allows him to pay out the dividend and still fund organic growth. The Ruby pipeline deal is very cash flow accretive. The Encana (ECA-T) joint venture is also cash flow accretive and allows them to fund the dividend while they go out and build Jordan Cove. He expects these to drive the value north of $20-$21 over the next 2-3 years. Yield of 6.01%.


Price: $16.680
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Yes
2015-03-31 TOP PICK Williams Cos
WMB-N
Gajan Kulasingam

This is a General Partner, which for tax purposes is investable by anybody, and is essentially a C Corp (?). They essentially own and operate the largest network infrastructure of energy assets in the Northeast, particularly in the Marsalis and Utica shale blue regions. This is one of the higher prolific liquids rich regions that you want to have exposure to in this market. Management team has been very proactive in extracting shareholder value out of the current business model. Their guidance is for 10%-15% dividend growth based on the current commodity strip. His view is that oil will recover at some point, and when it does the dividend gets rebased back up to north of 18%-20%. Dividend yield of 4.6%.


Price: $50.590
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: Yes
2015-03-31 COMMENT WSP Global Inc.
WSP-T
Gajan Kulasingam

This has been a very busy business having made 2 large acquisitions which they are integrating. A phenomenal story. Management continues to execute on their strategy of core M&A, organic growth and margin enhancement. Dividend is solid. If you want to get access to a European recovery through a Canadian company, this is your company. He would like to get back into this, but probably at a lower valuation.


Price: $41.920
Subject: INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE
Bias: UNKNOWN
Owned: No
2015-03-31 TOP PICK Canadian Satellite Radio
XSR-T
Paul Gardner, CFA

This has been hit too hard and there is real value in it. Came out with weaker numbers and a higher churn last quarter. He believes there are one-offs that will help fuel the growth. The US Sirius XM is hitting new highs, so there is a disconnect between Canada and the US. With new car sales growing and with the used car market they are focusing on, this is a great free cash flow story. Trades at about a 20% discount to its US counterpart. Dividend yield of 7.69%.


Price: $5.500
Subject: LARGE CAP DIVIDEND PLAYERS, REITs & FIXED INCOME
Bias: BULLISH on CANADIAN MARKET
Owned: Yes
2015-03-30 WAIT A Comment -- General Comments From an Expert
A Commentary
Larry Berman CFA, CMT, CTA

Move out of GICSs now?  The time to place new money is not 6 years into a bull market.  When you have had a 20% correction, you can then start averaging into the equity market.


Price: $0.020
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Unknown
2015-03-30 N/A A Comment -- General Comments From an Expert
A Commentary
Larry Berman CFA, CMT, CTA

Markets.  The leader of the people’s bank of China is suggesting more easing is on the way.  Real Estate has finally started to turn negative.  Markets that go up because of stimulus do not inspire confidence.  He would not put any new money there.  Surveys show C-suite execs are gloomy about the economy.  Retail sales in the US have been weak for the last couple of months.  Canada is an energy market and so only outperforms the world when energy is strong.  Corporate Canada is looking at it and saying that perhaps this is not a great thing for us.  Our job picture is not good.  He thinks business sentiment being negative it is not priced into the market.  Amazon is rolling out their home services business.  They are wildly bullish about bring down the costs, but these products and services Amazon is bringing are deflationary.  ETF costs are another example – they are deflationary also. 


Price: $0.020
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: _N/A
2015-03-30 N/A A Comment -- General Comments From an Expert
A Commentary
Larry Berman CFA, CMT, CTA

Uranium.  He thinks nuclear going forward over 20-30 years is going to be the cleanest source of energy in the world for mass scale.  He is bullish on Uranium, but since the Japan disaster, the world vision has changed on this.  Regardless he is a big believer.  We are in a bottoming phase and it makes sense to have some.  He likes URA-N as a diversified way to play it.


Price: $0.020
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: _N/A
2015-03-30 BUY A Comment -- General Comments From an Expert
A Commentary
Larry Berman CFA, CMT, CTA

Gold is a separate asset class.  He suggests HGY-T to get a yield from the covered call overlay while you wait.  He loves the invention of these covered call strategies.


Price: $0.020
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Unknown
2015-03-30 N/A A Comment -- General Comments From an Expert
A Commentary
Larry Berman CFA, CMT, CTA

Educational Segment.  Canadian vs. the world market since Mar 9/09.  Canadians need to be global investors.  The only incentive is tax considerations.  In non-taxable accounts you must be global.  Consumer discretionary has lead since ’09.  Less than 10% of the top three sectors make up the Canadian index.  Canada has a lot in its index that underperforms the world. 


Price: $0.020
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: _N/A
2015-03-30 N/A A Comment -- General Comments From an Expert
A Commentary
Martin Davies

Markets.  The spread between WTI and Brent is crucial. The WTI price is what we have on this continent and what reflects the storage numbers we have here.  The near month crude prices are lower than those of the future months (co tango).  We have a large pool of extra crude that is sitting in the north US and Canada.  Refiners use this as a cheap source of their input.  Some companies can spend through this trough and others have high debt and high decline properties and so have to cut back on CapX.  There is a wide difference between the haves and the have nots.  The former could be the survivors while the later may not make it. 


Price: $0.020
Subject: CANADIAN OIL & GAS
Bias: OPTIMISTIC
Owned: _N/A
2015-03-30 N/A A Comment -- General Comments From an Expert
A Commentary
Martin Davies

His favourite pipelines are Keystone, Energy East and Gateway.  He prefers the mid stream companies, however.


Price: $0.020
Subject: CANADIAN OIL & GAS
Bias: OPTIMISTIC
Owned: _N/A
2015-03-30 N/A A Comment -- General Comments From an Expert
A Commentary
Gordon Reid

Markets. There are a lot of moving parts, and some of them are counter to each other, such as the strength of the US$ which is probably giving fits to the US Federal Reserve. For somebody in the market who wants to be distinguished for good choices, it is a good time. We have had a long time where there has been a period of very, very low dispersion, where most stocks have tracked each other. He has tweaked his portfolio to take advantage of the stronger US$ going for more domestic type companies and scaling out of those that are more international. Had started to see this trend and started to pare back his international industrial exposure some time ago. He is constructive on the market.


Price: $0.020
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: _N/A
2015-03-30 COMMENT Apple
AAPL-Q
Gordon Reid

Trading well below market multiple, yet it is growing at a faster rate. That tells him that over time it will make that up, and go to levels that will take it to a valuation more in sync with the market. This is not overvalued and has some room in front of it.


Price: $126.370
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-03-30 BUY Advantage Oil & Gas Ltd
AAV-T
Martin Davies

More of a natural gas player.  The balance sheet is in good shape.  They have a very well executed CapX plan.  This is an excellent time to sell the have nots and buy the haves like this one.


Price: $6.700
Subject: CANADIAN OIL & GAS
Bias: OPTIMISTIC
Owned: Unknown
Showing 1 to 60 of 138,531 entries
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