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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
2015-08-27 N/A A Comment -- General Comments From an Expert
A Commentary
Michael Bowman

Markets. He has never seen the market so oversold as it was on the weekend. Has trouble with the 10% correction. The rally back to uneven has to be longer than 24 hours. Doesn’t think it was a correction, but doesn’t know what it was. If you look at the cause of it on Monday, a couple of hedge funds in the US along with the US$, were quite offside and they were going to shut down the position to hedge that position, and shorted the S&P 500. We have to look at our conventional way of valuing stocks. It is different this time. Stock markets are not driven by analysis; they are driven basically by investor behaviour. We have all kinds of issues in the marketplace now. We have to re-evaluate things and realize that markets are driven by weather, terrorism, geopolitical events, etc. 84% of trades are done by computer trading and only 16% are done by individuals. We have to be looking at stock charts because it tells you what the actions of investors were, throughout that time period of looking at the chart. Investor psychology and investor behaviour is what now drives the marketplace.


Price: $0.020
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: _N/A
2015-08-27 N/A A Comment -- General Comments From an Expert
A Commentary
Michael Bowman

Energy. Company’s earnings have been fantastic. They mostly have hedges in place until the end of the year, so they are doing lots of production, which forces the price of oil up. He thinks oil is going up a little bit higher when all these hedges come off at the end of 2015.


Price: $0.020
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: _N/A
2015-08-27 COMMENT A Comment -- General Comments From an Expert
A Commentary
Michael Bowman

Which ETF for a best one-year return, oil or gold? A lot of companies are selling oil at a lot higher prices, $75-$95, so they are continually pumping out production. But in 2016, those hedges are going to come off and he thinks production is going to cease in 2016, and a barrel of oil will go higher which will create a demand situation. Remember that the oil situation is not about demand, it is about supply. He is not a “gold” guy. There is no demand from India or Central Banks for gold. He would not be buying anything gold for the next 12 months.


Price: $0.020
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Unknown
2015-08-27 N/A A Comment -- General Comments From an Expert
A Commentary
Michael Bowman

Impact of interest rates on US healthcare or multifamily residential REITs? REITs are basically leveraged companies. They borrow money to buy assets. Rates are still extremely low. If they are 50 basis points and they go up to 60 basis points, it is not going to really make much difference. He has no problem with interest rates going higher. Residential US REITs is a good buy.


Price: $0.020
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: _N/A
2015-08-27 N/A A Comment -- General Comments From an Expert
A Commentary
Michael Bowman

How do you screen and start into ETF’s? You have to think of whether you want a broad sector, a healthcare sector, a bank sector, etc. Try to pick a sector, and then you can find a listing for all the ETF’s for that sector. Then you need to look at what the MER’s are. Some can be quite large. Also, look to see what the weighting is; is it market cap weight or equal weight.


Price: $0.020
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: _N/A
2015-08-27 N/A A Comment -- General Comments From an Expert
A Commentary
Michael Bowman

Maximum holding of any one ETF in a portfolio? A 5% position would not be overly diversified. If you are looking at a broad ETF, he would hold no more than 7%. If you are looking at a sector ETF, you are basically looking at one security, so he would limit it to 5%, or 7% if you are feeling really confident about the sector.


Price: $0.020
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: _N/A
2015-08-27 N/A A Comment -- General Comments From an Expert
A Commentary
Stan Wong

Markets. It has been an interesting ride. Really hard to assess whether we have seen the market bottom. The last couple of days have really made us feel a little bit more confident. This has been a “made in China” correction. Who knows what kind of policy will come out that will either impress or “not impress” investors. There could be a retest of lows that investors should be aware of. Thinks the present bout of volatility is going to last days or weeks, rather than quarters or years. Doesn’t think we are going into a prolonged correction, certainly not a bear market. He has been taking the opportunity of buying some large cap names that he has been watching for some time. Really impressed with how cheap they became. Had about 15%-20% cash and as of today is down to about 10%-15%, still a high cash component, to take advantage of any possibilities that still may come.


Price: $0.020
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: _N/A
2015-08-27 TOP PICK American Tower
AMT-N
Michael Bowman

We all love to hate the towers that are out there, but this company owns about 70,000 of them, mostly in the US. They just picked up another 4,000 international towers. Earnings were up about 13% last quarter. They secured another $649 million in acquisitions. There is a consolidation going on in the industry and this company leads the way. The dividend is only 1.89%, so he is looking at it for capital gain. The dividend did increase 29% last quarter and the company has targeted a 20% dividend growth going forward.


Price: $93.870
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 DON'T BUY Alibaba Group Holding
BABA-N
Stan Wong

Charts look a bit negative. Price is below all the moving averages, the 50, 100 and the 200 day, and are trending lower. The reason is most likely because it is in China. Trading at 27X forward earnings with a 23% long-term growth rate, but that growth rate could be volatile given what is happening there.


Price: $70.840
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: No
2015-08-27 COMMENT Bank of America
BAC-N
Michael Bowman

Bank of America (BAC-N) or Morgan Stanley (MS-N)? Thinks there is a lot more value in US banks than in Canadian banks. Doesn’t really have a preference between these 2. The US Bank ETF is a pretty good buy in here. What would really help you is to look at a stock chart and look at the 40 week or 200 day moving average and look where the stock is compared to that average, because it should supply some support.


Price: $16.440
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Unknown
2015-08-27 BUY Bank of America
BAC-N
Stan Wong

Just under the 200 day moving average. He likes it. A lot of its mortgage legacy and litigation issues are behind it, so that bodes well. The economy is getting better. Pretty cheap at .75 Price to BV.


Price: $16.440
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: No
2015-08-27 HOLD Brookfield Asset Management (A)
BAM.A-T
Stan Wong

He continues to like this company. One of the best management teams out there. Pays a decent dividend of 1.5%, which is probably going to grow by 5%-6% on a yearly basis. There is growth through its real estate and its different operations.


Price: $42.210
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 DON'T BUY Bombardier Inc (B)
BBD.B-T
Michael Bowman

This is so hard to value. We know that the business jets have been weak, which leads to lower margins. Somebody needs to take this company out behind the barn and shoot it. He can’t see any sense in buying this.


Price: $1.220
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: No
2015-08-27 COMMENT Baytex Energy Corp
BTE-T
Michael Bowman

A very innovative company. They have the Eagleford shale play in Texas. He doesn’t know why they would have completely cut the dividend, other than they feel that they have a better place to put that money than to pay it back to shareholders. A great company.


Price: $6.180
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Unknown
2015-08-27 COMMENT Cameco Corporation
CCO-T
Michael Bowman

Spot uranium has been moving higher. If you pick up some of this here, you will get a slow rate of return. It looks like Japan is going to get back on line now with their reactors. China has talked about doing that as well. You are not going to get any kind of explosive growth, but if you are wanting to buy some uranium, this is the one to buy. He thinks you will see it start to slowly move higher.


Price: $17.800
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Unknown
2015-08-27 PAST TOP PICK Crescent Point Energy Corp
CPG-T
Stan Wong

(A Top Pick July 23/14. Down 63.93%.) Sold out of this. Doesn’t have a lot of conviction that oil prices are going to rebound. Still likes the company and will probably own it at some point, but for the time being he has rotated out of this into different names.


Price: $14.740
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: No
2015-08-27 BUY Walt Disney
DIS-N
Michael Bowman

Likes this very much here. There was a downgrade on the stock because of some evidence of “cord cutting” on ESPN. That is why the stock dropped off one day last week. The company has a lot of things on their plate and they all seem to tie in together.


Price: $102.170
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 TOP PICK Walt Disney
DIS-N
Stan Wong

The selloff on this began with their cable subscribers being reported to have fallen a bit. However, when you look at their other 3 parts of their business, studios, theme parks and consumer products, those are doing extremely well. They are very integrated company that can produce a film, put it out to TV, sell you a whole bunch of toys, and also put it in their theme parks. These parts override what is happening on the cable side. Cable is only 30% and ESPN is only a fraction of that. Dividend yield of 1.29%.


Price: $102.170
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 BUY Electronics Arts Inc
EA-Q
Stan Wong

Just bought this week. It came down to the 100 day moving average. They are blowing away earnings estimates every single quarter. You are paying a little bit of a premium, but this is certainly a premium name.


Price: $67.160
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 TOP PICK Facebook
FB-Q
Stan Wong

1.5 billion users, which is part of the thesis of why he owns the stock. It is the best stock to own in the social media space. It gives you the opportunity to accumulate ownership in the world’s largest social media company. They are forecasted to grow their long-term earnings by 25% a year.


Price: $89.730
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 PAST TOP PICK 1stTr Large Cap Core E.T.F.
FEX-N
Michael Bowman

(A Top Pick March 5/14. Up 4.16%.) This started out as an ETF company in the US, and now has some ETF’s in Canada. They are going to look at stocks in the S&P 500 based on value and growth. Each company is going to get a score, and the top value companies in the top growth companies are in this ETF.


Price: $43.680
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 TOP PICK iShares Nasdaq BioTech ETF
IBB-Q
Michael Bowman

Everybody should have some biotech in their portfolio. These are companies that develop drugs that help our friends and relatives, and are a very important part of the economy. Extremely volatile. There is probably no other sector out there that will give you such huge potential over such a short period of time. Of the companies with over $500 million market cap, 81% of them are 10% below their 52 week high, and this is a great time to buy it.


Price: $350.910
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 BUY iShares US Healthcare Providers
IHF-N
Stan Wong

A healthcare ETF? When it comes to healthcare ETF’s, a lot of them have a very large weighting in pharmaceuticals. A lot of the larger names have not done very well. This would be a good choice.


Price: $134.050
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 COMMENT iShares DJ Home Construction ETF
ITB-N
Stan Wong

Likes the housing sector. It is improving in the US. One thing that holds him back from holding ETF’s in this space is the slowdown in oil, which is affecting places like Texas. That is a large part of some of these builders. He prefers something like Home Depot (HD-N).


Price: $27.650
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: No
2015-08-27 DON'T BUY Coca-Cola Company
KO-N
Stan Wong

Trading at a pretty high valuation. 19.5X forward earnings, but more important its 6.5% growth rate is pretty weak. 55% of revenues are coming from outside of North America.


Price: $39.270
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: No
2015-08-27 PAST TOP PICK Michael Kors Holdings
KORS-N
Stan Wong

(A Top Pick July 23/14. Down 47.03%.) Sold it in March at $68. Made a little bit of money. Same-store sales really started dropping off and there were concerns about discounting. They are looking to expand into the overseas markets quite a bit, but is this the right time to do those things?


Price: $43.280
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: No
2015-08-27 PAST TOP PICK Loblaw Companies Ltd
L-T
Michael Bowman

(A Top Pick March 5/14. Up 60.55%.) He likes the story for all Canadian grocery stores. This used to be a grocery store, but is now basically a holding company. Only 36% of sales is attributed to groceries. 37% of all sales now are from people who have their loyalty card.


Price: $71.350
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 BUY Linamar Corp
LNR-T
Michael Bowman

Good entry point for a 3-5 year horizon? One thing it has going for it is their Sky Jack division, which is performing extremely well. Also, involved with drive trains, transmissions and engines, and all 3 of these components are very important when it comes to emissions and fuel. He likes it at this price.


Price: $69.400
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Unknown
2015-08-27 DON'T BUY Las Vegas Sands Corp.
LVS-N
Stan Wong

This has 85% Asian revenues. You really have to be comfortable that Asia is about to turn around, which he is not so certain about. Trading below the 250 and 100 day moving averages.


Price: $47.260
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: No
2015-08-27 HOLD McKesson Corp
MCK-N
Stan Wong

The largest pharmaceutical distributor in the US and Canada, as well as the largest healthcare IT provider. They are basically in 50% of all US hospitals. Trading at 15X forward PE with an 11% long-term growth rate, so it is a pretty good valuation. They will do well with what is happening with Obama care. If you own, he would put a stop loss on it.


Price: $198.870
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: Unknown
2015-08-27 COMMENT Magna Int'l. (A)
MG-T
Stan Wong

On his list of names that he wanted to buy this week. Right at the 200 day moving average. The auto cycle is still moving along. The average car in the US is 12 years old, so it is certainly time for a refresh. That will bode well for companies like this.


Price: $65.600
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: No
2015-08-27 COMMENT Morgan Stanley
MS-N
Michael Bowman

Bank of America (BAC-N) or Morgan Stanley (MS-N)? He thinks there is a lot more value in US banks than in Canadian banks. Doesn’t really have a preference between these 2. The US Bank ETF is a pretty good buy in here. What would really help you is to look at a stock chart and look at the 40 week or 200 day moving average and look where the stock is compared to that average, because it should supply some support.


Price: $34.300
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Unknown
2015-08-27 DON'T BUY Micron Technology
MU-Q
Stan Wong

Got stopped out of the stock a couple of months ago. Trading quite cheap at 6X forward earnings. The problem is that it has a lot of exposure to China, which is probably hitting the stock a bit. For the time being he would stay away. From a technical perspective, it doesn’t look too great with the 15, 100 and 200 day moving averages falling quite rapidly.


Price: $15.670
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: No
2015-08-27 TOP PICK Nike Inc
NKE-N
Michael Bowman

The best performing Dow component this year. They had a very good year last year, which was basically because of the World Cup. It was doubtful that they would outperform on the earnings side this year, but they have. Had some issues in China and he thinks China is going to be the growth area for them. Dividend yield of 1.01%.


Price: $112.620
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 BUY Starbucks
SBUX-Q
Stan Wong

Has dropped down to the 100 day moving average, so that could provide an opportunity. It didn’t drop much during this market decline. There is not a comparable competitor at this point. They are doing all the right things by serving alcohol, getting more into the breakfast foods and getting into tea and different juices.


Price: $55.950
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 PAST TOP PICK First Trust ISE Cloud Comput.
SKYY-Q
Michael Bowman

(A Top Pick March 5/14. Up 0.90%.) This is all about the Cloud. It gives you access to computer services on demand. It has better storage and is a lot cheaper. Has probably been hurt over the last week or so. A little disappointed in its rate of return.


Price: $29.060
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 BUY Sun Life Financial Inc
SLF-T
Stan Wong

Added to his holdings this week on its weakness. Gives you a dividend at 3.6%, which should increase nicely over the next several years by 10%-15% on an annualized basis. Have a good mix of insurance on the asset management side, so they are going to take part when the interest rate moves upward. There are also going to take part in the equity markets doing well.


Price: $42.110
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 HOLD Teck Resources Ltd. (B)
TCK.B-T
Michael Bowman

This company has had some very difficult times. If you own, he would hang onto the stock right here.


Price: $9.070
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Unknown
2015-08-27 TOP PICK UnitedHealth Group Inc
UNH-N
Stan Wong

The largest diversified health care services company providing healthcare benefits and assistance to people in the US and Brazil. Positioned to benefit from Obama care and the aging US population. Growth rate relative to its peers is quite strong. They are going to grow in terms of membership because of what is happening with insurance in the US. Dividend yield of 1.7%.


Price: $117.770
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 DON'T BUY Vanguard MSCI Emerg. Mkt. ETF
VEE-T
Stan Wong

China and Taiwan represents 36% of the holdings in this ETF. If you think the China is going to start moving back up and all the noise is behind it, then it is probably a good ETF to buy. He would stay away from this space. There is some risk when it comes to emerging markets including the rising US$, external debt and fed tightening. In the very near term, you might see a reflex bounce from oversold levels, but in terms of a sustainable, medium or long-term hold, it is probably not a space he would put money in at this time.


Price: $27.920
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: No
2015-08-27 COMMENT Westjet Airlines
WJA-T
Stan Wong

When looking at airlines you have to look at the economy and what is happening to it. There is a lot of uncertainty surrounding the Canadian economy. He would prefer some of the US airlines such as Southwest Airlines (LUV-N).


Price: $24.200
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: No
2015-08-27 PAST TOP PICK SPDR Financial E.T.F.
XLF-N
Stan Wong

(A Top Pick July 23/14. Up 5.16%.) Really likes the financial sector. Interest rates moving up is a positive for banks. The economy, labour market and housing getting better are all positives. Still a Buy.


Price: $23.740
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 DON'T BUY iShares S&P/TSX Capped REIT
XRE-T
Stan Wong

Something you want to be careful of when looking at REITs is that interest rates will eventually move up. This is why you are seeing some weakness in the REIT market in Canada. On top of that when you pile on what is happening with oil prices and what is happening in Western Canada, and how it may flow into eastern Canada, it is probably not a good time to be entering into REITs.


Price: $15.210
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: No
2015-08-27 BUY BMO Equal Weight US Banks ETF
ZBK-T
Stan Wong

This dropped down to the 200 day moving average and has bounced up a little. He likes financials, and is one of the sectors he is focusing on in the US. As interest rates start to move higher, a lot of the legacy issues in terms of litigation, etc. are now behind some of the big money centered banks. He likes the space and will probably start accumulating shares in the banking sector.


Price: $18.830
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: Unknown
2015-08-27 HOLD BMO Low Volatility Cdn Eqty ETF
ZLB-T
Michael Bowman

Everybody should have a low volatility ETF in their portfolio. You are not going to get the big gain that the market is going to get, but you are going to temper that back. If you are looking for a market correction, this is something you would put in your portfolio.


Price: $26.520
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Unknown
2015-08-27 BUY BMO EqWt US HthCare Hedged CAD
ZUH-T
Michael Bowman

Loves healthcare ETF’s. Keep in mind that in this ETF there is the Pfizer’s and the Merc’s. It is important that everybody should have some healthcare in their portfolio. Equal weight will usually outperform market weight.


Price: $42.920
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Unknown
2015-08-27 BUY BMO EqWt US HthCare Hedged CAD
ZUH-T
Stan Wong

A healthcare ETF? When it comes to healthcare ETF’s, a lot of them have a very large weighting in pharmaceuticals. A lot of the larger names have not done very well. The space you want to be in would be more of the biotech and healthcare benefit providers.


Price: $42.920
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: Yes
2015-08-27 COMMENT BMO Dow Jones Indus. Avg. Hedge ETF
ZWA-T
Michael Bowman

We have to remember what a Covered Call is. Money comes into this ETF and there is an obligation to Sell stock at a particular price. Covered Calls can limit your upside. Covered calls look great in a trendless market. You don’t want markets way up and you don’t want markets way down. It definitely adds income to your portfolio. When looking at this, you have to look at the marketplace and get some idea where you think the markets are going.


Price: $18.170
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Unknown
2015-08-27 COMMENT BMO Covered Call Cdn Banks ETF
ZWB-T
Michael Bowman

He likes this and has no problem with the Covered Call Bank ETF. The yield is a lot more than if you bought an individual bank.


Price: $15.690
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: UNKNOWN
Owned: Unknown
2015-08-26 N/A A Comment -- General Comments From an Expert
A Commentary
Stephen Takacsy, B. Eng, MBA

Markets. Resources have been beaten up for couple of years now, and with the slowdown in China that sector has really suffered to the detriment of some of the other sectors on the TSX, which have become terribly expensive. Some examples are Consumer Staples, Consumer Discretionary, Healthcare. They have come down to reality and we are seeing them as reverting to the mean. It creates opportunity on the small and mid-cap side, but the large-caps are terribly overvalued. Thinks Canada has been really oversold here. There are a lot of bargains out there.


Price: $0.020
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: _N/A
2015-08-26 N/A A Comment -- General Comments From an Expert
A Commentary
Gordon Reid

Markets. Feels we are in a little bit of No Man’s land and that we are in the later innings of the correction. Corrections are always defined by extent, time, duration, percentage, etc. and he looks at it a little differently. He wants a Correction to have the effect that it is intended to have, i.e. to basically weed out the weak holders in the market, to remind everybody that equities is a risk phased asset and that the risk/reward is intact. Thinks this one is having that affect. What we normally see in Bull Market corrections are the short, sharp corrections versus the Bear Market effect of just wearing you out. This is showing all the markings of a Bull Market correction, with the extreme volatility, reversals, volume fluctuations, etc. We may have a little bit more to go, but he would remind everyone that equities are long term assets, so keep your eye on the horizon and don’t sell into this through any form of panic. This isn’t the end of anything, this is normal. We can move to new highs, but investors have to be selective. Rather than looking at percentages of the depletion of their various stocks, they should be looking at fundamentals. Do they have real growth of revenues, cash flow and earnings? That is going to be the thing that will allow these stock prices to move higher. Just the fact that they have corrected 10% or 20%, doesn’t give them the right to move to a new high.


Price: $0.020
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: _N/A
2015-08-26 COMMENT A Comment -- General Comments From an Expert
A Commentary
Gordon Reid

Industrials? The core issue of the industrials is their international exposure, and the fact that the FX translation has taken anywhere from 5% to 10% off the table for them. He has sold some of his holdings. Had seen that there was a headwind there that wasn’t likely to abate.


Price: $0.020
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Unknown
2015-08-26 DON'T BUY Alcoa
AA-N
Gordon Reid

The problem is that their destiny really isn’t in their control. There has been an imbalance between supply and demand with far too much supply. Have been shuttering production for years to try and create more of a balance, but the wildcard is China which produces a ton of aluminum.


Price: $8.260
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2015-08-26 TOP PICK Apple
AAPL-Q
Gordon Reid

Valuation is barely over 10X earnings. $202 billion of cash on a $635 billion market cap. 89% of that cash is offshore and hard to access, but this is a company that is just a cash machine and doing extremely well. The street forever wants to find a fault, and this month it is China. Their growth in China is dramatic, $13 billion last quarter, up 100% year-over-year, but people are worried. He thinks that in 5 years the iWatch will have proven to be so much more revolutionary than the iPhone, iPad or the iPod. It is not a watch, it is a sensory device. It is going to change our lives. Dividend yield of 1.9%.


Price: $109.690
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 PAST TOP PICK Aegion Corp
AEGN-Q
Gordon Reid

(A Top Pick Aug 20/14. Down 26.15%.) This was the effect of the whole energy complex and where capital budgets were being allocated. It does pipe restoration on pipelines, not just energy, but also water, etc. Thinks this has long-term positive prospects, but it is just the wrong time for it. Sold his holdings in June.


Price: $17.960
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2015-08-26 TOP PICK Boeing
BA-N
Gordon Reid

The visibility on this is fantastic. They have come through their development stage with the 787, a revolutionary airplane. They have developed the 737MAX and the 770X. These are all airplanes that are designed to be more fuel efficient. Fuel efficiency is golden to airlines. They have over a $5 billion backlog, which is about 7 years of sales. This is a cash flow machine. All they are doing right now is spitting out airplanes and delivering them. Not trading at a high multiple. Dividend yield of 2.81%.


Price: $129.340
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 DON'T BUY Alibaba Group Holding
BABA-N
Gordon Reid

To him, this suffers from one fatal flaw, in that it is located in China, and the visibility he has there is extremely limited, so he would pass. He would prefer Amazon (AMZN-Q).


Price: $68.660
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2015-08-26 BUY Bank of America
BAC-N
Gordon Reid

This offers very good opportunity. All the banks will move in sync with each other, because they all suffer from the same malaise, there hasn’t been a catalyst for growth and a lot of hammering on them by the government. These banks are inexpensive and offer good value.


Price: $16.060
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2015-08-26 TOP PICK Badger Daylighting
BAD-T
Stephen Takacsy, B. Eng, MBA

This is a great company. The biggest fleet of hydro-vac trucks in North America, mostly in Canada initially. Have been growing tremendously in the US over the last few years. Got whacked because they had exposure to the oil/gas industry in Western Canada. Very high margin free cash flow business. They are really targeting the utility and municipal segment, and their reliance on the oil/gas segment has come way down. Dividend yield of 1.89%.


Price: $19.290
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 SELL Bombardier Inc (B)
BBD.B-T
Stephen Takacsy, B. Eng, MBA

This is a tough business and if you own, get rid of it. He can’t see it either being taken out or being acquired. Hopefully there won’t be any government bailouts this time.


Price: $1.170
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-08-26 BUY BCE Inc.
BCE-T
Stephen Takacsy, B. Eng, MBA

A great company that is making lots of money. Well-managed. Buy it for the long run. Last week the only sector that was up in Canada was telecoms. It has defensive characteristics and has a place in your portfolio.


Price: $52.630
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 BUY Boralex Inc.
BLX-T
Stephen Takacsy, B. Eng, MBA

Has always liked the renewable energy space, but this was the cheapest with the highest growth. What is holding the stock back right now is that there is a huge convertible debenture issue that is in the money, so there is a lot of arbitraging going on that is sort of capping it at these levels. Once that either gets repurchased or converted this fall, you could see the stock really blast off. Anything in the $13 area is a great Buy.


Price: $12.960
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 COMMENT CitiGroup
C-N
Gordon Reid

Sell Citigroup (C-N) and buy Wells Fargo (WFC-N)? If you understand the differences between the 2 banks and make considered decisions, then you could. He owns both. This one is a valuation play trading at about 70% of tangible Book and the average is at around 160%. Trades at about 10X earnings, while the average bank is around 13X. It just depends on what you are looking for in a bank. They are going to move roughly together, but with a positive economic background, this one might recover more quickly because of the valuation spread.


Price: $52.280
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 BUY on WEAKNESS CCL Industries (B)
CCL.B-T
Stephen Takacsy, B. Eng, MBA

Very well-managed company. Have done a tremendous job of diversifying internationally, and setting up plants around the world. Primarily a labelling business. Well-managed. Try to buy on weakness.


Price: $176.080
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 STRONG BUY Com Dev International Ltd.
CDV-T
Stephen Takacsy, B. Eng, MBA

Has a very bright future. Almost picked it is a Top Pick. A satellite component manufacturer with a very lucrative niche in some of their components for military and commercial purposes. Launched their own fleet of satellites with Exactearth, where they track marine data globally. Just announced a huge deal with Harris Corp. (HRS-N) which is going to launch another 50-60 satellites. They were going to take Exactearth public and the stock ran up to $6. The IPO was pulled because of market conditions.


Price: $4.750
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 DON'T BUY Cisco
CSCO-Q
Gordon Reid

What bothers him is that they haven’t gained any traction over the years, yet the price of the stock has gradually moved up, increasing the multiple. He is looking for growth and he likes companies to improve on their own history. Their product line is continually under fire from competitive forces. If you are going to invest in the Tech space and have some spots available for Tech in your portfolio, there are much better places to go, such as Apple (AAPL-Q) Google (GOOG-Q) and Facebook (FB-Q). (See Top Picks.)


Price: $25.690
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2015-08-26 COMMENT Corby Spirit and Wine (A)
CSW.A-T
Stephen Takacsy, B. Eng, MBA

This is a cash machine with high margins. Had looked at it a few times when they were starting to venture into the US, which tended to scare him a little. It gives you a special dividend once every few years. A pretty safe company.


Price: $19.110
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-08-26 COMMENT CSX Corp
CSX-N
Gordon Reid

Have about 20% coal exposure and their operating ratio is closer to 70. If he were going to go into this area, he would be looking at Union Pacific (UNP-N).


Price: $26.370
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2015-08-26 BUY CVS Health Corp
CVS-N
Gordon Reid

CVS (CVS-N) or Walgreen (WBA-Q)? He owns both and they are both great opportunities. Demographically they are both in a sweet spot with the aging of the population and the need for prescription drugs. Couple that with Obama care, which mandates that people have insurance that will allow them to get those drugs. They just did a deal for Omnicare that provides long-term care for the elderly, and writes a ton of prescriptions. This trades at a couple of multiple points cheaper than Walgreen, and also its earnings predictability is a little bit higher, but he would own both.


Price: $102.870
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 PAST TOP PICK Dana Holding
DAN-N
Gordon Reid

(A Top Pick Aug 20/14. Down 29.81%.) In the car parts business, and one of the very big effects is the China play. China represents something like a 3rd of the total car market. He still likes the company very much. Trading at about 8X earnings. They have bought back a lot of their stock. Backlog is growing quite dramatically, but they have a couple of headwinds. One is China and the other is South America, but this will turn over and change.


Price: $16.560
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 BUY D-Box Technologies
DBO-T
Stephen Takacsy, B. Eng, MBA

Has record profits for the year and recently came out with Q1 results that were out of the ballpark. They sell motion systems, mostly to movie theatres. They are programmed to the action films and collect money from recurring revenues from the sale of the seats. Also, have an industrial segment where they are getting a lot of orders. Expects they are going to have another huge year based on the backlog and the slate of action movies coming out. They sell globally, and only need one deal in China to make 50% more in terms of revenue. Very undervalued.


Price: $0.335
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 TOP PICK DirectCash Payments Inc
DCI-T
Stephen Takacsy, B. Eng, MBA

Trading at about 5.5X EBITDA for a company with low CapX, high free cash flow and recurring cash flow. They made some acquisitions. The biggest ATM network in Canada and Australia, and the 3rd biggest in England. Through their Threshold acquisition they manage the exchange network which manages transactions at thousands of ATM machines. Dividend yield of 12.12% is sustainable with a payout ratio under 60%. In the next quarter and going forward you are going to be seeing increases year-over-year in profitability.


Price: $12.590
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 COMMENT Freeport McMoran Copper & Gold
FCX-N
Gordon Reid

It is amazing how this has fallen. The one lesson you are constantly taught in this business is that you have to think outside of the box. This is heavily leveraged to the commodity complex, particularly copper and gold. It is a fairly leveraged company, and for that reason free cash just disappears when commodity prices fall. He would prefer Rio Tinto (RIO-N) if he were to go into this area. It has a better profile from a balance sheet standpoint.


Price: $7.920
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2015-08-26 PAST TOP PICK Guardian Capital Group
GCG.A-T
Stephen Takacsy, B. Eng, MBA

(A Top Pick Aug 21/14. Down 5.45%.) With the markets behaving the way they are, a company like this is somewhat correlated, because they do manage assets. Have been executing beautifully. They are up in terms of assets under management and their EBITDA year-over-year by double digits. Made some good accretive acquisitions. Buying back stock very aggressively. On valuation, he attributes about $9.00 to the money management business and $13 to their portfolio, which are mainly BMO (BMO-T) shares. They are focusing on growth. At this price it is a great buy.


Price: $17.000
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 DON'T BUY General Electric
GE-N
Gordon Reid

Sold his holdings on the basis of the Alstom deal which he thought was diluted down. Governments were involved and forced the hand of GE. When a CEO is in a position for 15 years and makes a number of moves and they just don’t work out, he thinks it is time for a change.


Price: $24.010
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2015-08-26 BUY Google
GOOG-Q
Gordon Reid

There have been a number of changes to the company in terms of structure. The company will now be called Alphabet, and Google is a division of Alphabet. It is still a company that is involved in Search. They have been successful in monetizing some of their initiatives, most particular YouTube, and have a number of other things that the market is coming to believe will be able to be monetized. Also, have a new CFO that has a more traditional background, and the street likes that. The one thing investors were nervous about was the unpredictability of Google.


Price: $628.620
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 COMMENT Input Capital Corp
INP-X
Stephen Takacsy, B. Eng, MBA

Agriculture streaming company, dealing only in canola. A very seasonal business deploying capital to farmers to increase their crop yield, and then getting some return on capital, over 20%, with some bonus return on the canola crop. We are in a timeframe now where there is going to be very little news, so the stock naturally pulls back at this time of year. Buying it in the low $2 would be the right thing to do. Thinks it has huge potential to apply the same business model to other crops as well.


Price: $2.280
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 DON'T BUY Johnson & Johnson
JNJ-N
Gordon Reid

This has the pharmaceutical, devices as well as the consumer side. They are about one third each of the company. The Pharma side is doing very well. The consumer side has come on very well. The difficulty now is with the diagnostics and devices area, which is pulling the consolidated results down and making the stock just a little bit too expensive for him.


Price: $95.110
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2015-08-26 COMMENT Liquor Stores N. A.
LIQ-T
Stephen Takacsy, B. Eng, MBA

Looked at this a year ago, but thought it was expensive and the dividend was propping up the valuation of the company. Liked their strategy of developing their own brands and selling them in the liquor stores. Dividend yield of 9%.


Price: $11.630
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-08-26 TOP PICK La-Z-Boy Inc.
LZB-N
Gordon Reid

A derivative play on the housing recovery. This company does well when the housing market does well. They are managing their business very well. Not only growing revenue, but are expanding margin. He is expecting about a 250 basis point expansion and margin over the next few years, which will go straight to profits, because it is operating leverage. Dividend yield of 1.17%.


Price: $27.320
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 HOLD Metro Inc (A)
MRU-T
Stephen Takacsy, B. Eng, MBA

Has been a huge winner for decades. A well-managed company in a very competitive market. Great, long term hold, except that it is very expensive today. This is the type of thing you want to buy on weakness.


Price: $35.440
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Unknown
2015-08-26 PAST TOP PICK Neulion
NLN-T
Stephen Takacsy, B. Eng, MBA

(A Top Pick Aug 21/14. Down 27.36%.) Announced a loss of their NHL contract, which was less than 20% of their business. They still have big clients like Rogers, NBA, USC and are growing internationally. He would be an aggressive buyer down at these levels.


Price: $0.790
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 BUY Prism Medical Ltd.
PM-X
Stephen Takacsy, B. Eng, MBA

A great little company. Make equipment for mobility challenged people. Growing very quickly in the US which is way behind Canada in terms of having special equipment in their hospital network. Great margins and great demographic tailwinds behind it. Wouldn’t hesitate to buy at under $11.


Price: $10.400
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 BUY QHR Corp.
QHR-X
Stephen Takacsy, B. Eng, MBA

The core business they are focusing on now is electronic medical software for Canadian physicians. They finally closed down their payment processing in the US, so this is a great entry point. Had some management and board changes so you now have a clean company. It is focused only on software sales in Canada. Revenues last quarter came a little bit under expectations because they are lowering the software installation price to clients, but are still receiving the same recurring revenue going forward. Very, very cheap for a software company.


Price: $1.190
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 PAST TOP PICK Asian Television Network International
SAT-X
Stephen Takacsy, B. Eng, MBA

(A Top Pick Aug 21/14. Down 21.04%.) He likes it even better with the new CRTC rules, because an independent broadcaster in Canada, is going to benefit tremendously from the new “pick and pay” regime and the Skinny package. They have about 400,000 viewers across Canada that watch foreign channels, and are forced to pay $40-$45 for a basic package to get only a few channels that they really want. He can see them increasing profits over the next few years by over 50%.


Price: $2.010
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 BUY Sandvine Corp.
SVC-T
Stephen Takacsy, B. Eng, MBA

A software company that helps manage and analyse traffic over the Internet. Make great margins and they are real innovators. The low $3’s is a very good buying opportunity. Have a lot of cash on the balance sheet. They regularly buy back their stock in the high $2’s, so you are sort of protected on the downside.


Price: $3.070
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 HOLD Transalta Corp
TA-T
Stephen Takacsy, B. Eng, MBA

Incredible that this is so low. The news hasn’t been that bad. They are focusing on renewable energy and dropping that down into Transalta Renewables to get cash back up into the parent company. Transitioning from the old energy/coal fired world into natural gas and have had a lot of maintenance problems. Power prices in Alberta have hit them hard. At these prices he would probably hold on. Don’t try to bottom fish.


Price: $6.640
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: No
2015-08-26 TOP PICK Ten Peaks Coffee Co
TPK-T
Stephen Takacsy, B. Eng, MBA

In a strong growth position now. Their decaf, which is chemical free and organic, is the only one that can use the words Swiss Water in it. They supply big chains like Tim Hortons and McDonald’s in Canada. They are just starting with McDonald’s USA. There is a whole 3rd wave of specialty coffee retailers developing in the US. They have perfected their technology so that you cannot tell the difference between decaf and caffeinated anymore. They are not able to retain the caffeine and resell it, but if they were ever able to do that, it would be icing on the cake. Thinks they can easily do $10 million EBITDA. A very unique, high margin, high barrier to entry, pre-cash flow generating company, that is going to be building a new plant and doubling its capacity. Dividend yield of 3.29%.


Price: $8.200
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 PAST TOP PICK Time Warner Inc
TWX-N
Gordon Reid

(A Top Pick Aug 20/14. Down 5.42%.) Had an absolute stellar report and still the stock got hurt. It is all around this “cord cutting” concept of the advertising model changing from traditional advertising on media mostly TV through cable. This is one of the least affected of all of the media companies. He is very happy with this and it is getting more and more enticing.


Price: $71.670
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 COMMENT UnitedHealth Group Inc
UNH-N
Gordon Reid

He prefers Anthem (ANTM-N), but this one does the job as well. You need critical mass (size) and they both have that. This company recently bought Catamaran, a pharmacy benefit company. This is where you bolt on naturally accretive operations to these companies, and they work very, very well.


Price: $113.460
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2015-08-26 COMMENT Union Pacific Corp
UNP-N
Gordon Reid

Stock has dropped dramatically from $122 to $84, but it was too expensive to start. This brings it down into the 13, 14 multiple, which becomes more reasonable. 20% of their shipments are coal, which is a big negative. Have managed their operating ratio quite well, down to the mid-60s, which is a big positive for them. He is neutral on this.


Price: $84.100
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2015-08-26 BUY Visa Inc.
V-N
Gordon Reid

A very fast growing company and a very simple business model. They process transactions and the sponsoring bank takes on any credit risks. Transactions are increasing at a very rapid rate. About 55% of their business is now done internationally, and about 60% of their business is debit cards. With the correction, they are down to about 20X earnings, and it is an excellent time to make an investment in this company.


Price: $70.690
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 DON'T BUY Whistler Blackcomb Holdings
WB-T
Stephen Takacsy, B. Eng, MBA

A ski resort with some real estate potential. Most of the real estate potential has been milked in the past. You are really betting on the weather and the US$. Pays a pretty hefty dividend, so that tends to support the valuation. He finds it very expensive for what it is. Not a lot of growth potential.


Price: $21.290
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Unknown
2015-08-26 BUY Walgreen Boots Alliance
WBA-Q
Gordon Reid

CVS (CVS-N) or Walgreen (WBA-Q)? He owns both and they are both great opportunities. Demographically they are both in a sweet spot with the aging of the population and the need for prescription drugs. Couple that with Obama care, which mandates that people have insurance that will allow them to get those drugs. CVS trades at a couple of multiple points cheaper and also its earnings predictability is a little bit higher, but he would own both.


Price: $85.380
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 COMMENT Wells Fargo
WFC-N
Gordon Reid

Sell Citigroup (C-N) and buy Wells Fargo (WFC-N)? If you understand the differences between the 2 banks and make considered decisions, then you could. He owns both. This is more of a housing play, the largest originator of mortgages. It is more expensive and more predictable. It just depends on what you are looking for in a bank. They are going to move roughly together, but with a positive economic background, Citigroup might recover more quickly because of the valuation spread.


Price: $52.300
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2015-08-26 BUY Canadian Satellite Radio
XSR-T
Stephen Takacsy, B. Eng, MBA

On a Price to free cash flow basis, this is very, very attractive. Has very little CapX so has a huge amount of free cash flow. Looks at this as a cable company into a car. They’ll be moving the dividend up slowly, but surely, over time. A very, very safe high yielding stock to hide in right now.


Price: $5.060
Subject: CANADIAN
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 N/A A Comment -- General Comments From an Expert
A Commentary
Eric Nuttall

Energy. The implosion we have had rivals the great recession, and in fact is worse. In some cases names are trading at all-time lows. Negativity in the energy sector is unparalleled and is really historic. There are 3 reasons he feels people are so bearish on oil. 1.) We are told demand is very weak and there is a fear of Chinese demand falling. 2.) We are awash in oil with Iranian oil hitting the market and US production still up. 3.) The forward Strip with oil below $50 is all the way out to 2017. You can see why people are being far too negative. 1.) Demand today is at record amounts. Year-over-year growth rate is as strong as it has been since coming out of the great recession, so we consume more barrels today than we ever have in history. 2.) We know Chinese demand is weak, but he would love to see the data points that people actually have, because the numbers he has shows record oil imports into China and record gasoline consumption in China. Their demand has been flat lining for 3 years, so it is not a new story. If you remove China, emerging economic oil demand has been growing by 1 million barrels per day, each year for the past decade. At current oil prices, it is impossible for US production to grow and we are months away from it being down year-over-year. Even at $45-$55, US oil production could be down by half a million barrels per day by next year. The worst case of Iran is about 800 hundred thousand barrels a day to come onto the market. That represents 6 months of demand. For the past 5 years, outside of OPEC and the US, production has been falling while the average oil price has been over $100. There are companies that can theoretically still drill wells that have a positive rate of return, and yet are still going bankrupt. This is because the amount of cash flow most companies generate is not enough to offset their decline. 3.) The oil Strip tells us we should be negative. He believes we have to go to 2017 until oil is over $50. Looking historically at the predictive capability of Strip, the R squared is less than 1%. That means that one time out of 100 the Strip is actually accurate.

The valuation of these energy companies is unparalleled. You can get so much value for free, because everybody is so pessimistic. It is a waiting game of maybe 1-2 quarters. If he can buy stocks that are trading at 5X cash flow where he is getting possible reserves, their dividend, of which many are sustainable when we get a rally, stocks can go up by 50%-100%. He personally thinks we will recover to around $55-$60 at some point next year.


Price: $0.020
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: _N/A
2015-08-25 N/A A Comment -- General Comments From an Expert
A Commentary
Jason Donville

Markets. Every now and then the market goes through a chaotic period where it kind of loses itself. It detaches itself from fundamentals and you get either a selloff or equally you get a huge run in the market, but we don’t consider that to be a problem when it is going up. This is the 1st really serious correction in about 4 years and is probably overdue. The important thing is to not lose track that earnings, generally speaking, are coming in line. It is really an issue of supply/demand for stocks as opposed to a big reaction to what is happening on earnings. Ultimately earnings drive where the market is going, and as a consequence this will come to pass in the not too distant future and will be back into a good market. His thesis on growth stocks, which will very much affect the NASDAQ, is that the knowledge based industries are often the most attractive place to be. These stocks can have very volatile moves to the upside. These stocks have been cruising for very, very long time, so if they check back by 10%-15% it might seem like a pretty severe correction. It is a normal course of events that the market has deposits from time to time and sorts itself out. The key thing is that nobody can time the short term movements of the market or trade it. Focus on resilient business models that can grow under any economic circumstances, and when you find you are in a market like this, just ride the storm out.


Price: $0.020
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: _N/A
2015-08-25 N/A A Comment -- General Comments From an Expert
A Commentary
Jason Donville

How do you assess what constitutes a competent and astute management team? When he meets with a new company, the first meeting is to take a measure of the CEO, not the company, and find out what his story is. His theory is that people are not mediocre for 30 years and then become superstars. There are usually a whole bunch of signs of exceeding expectations or outperforming all the way through their career. The smaller the company, the more important the jockey. He would then check out the management team.


Price: $0.020
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: _N/A
2015-08-25 HOLD A Comment -- General Comments From an Expert
A Commentary
Jason Donville

Canadian Banks? Excellent quality and pay good dividends. They don’t have a high enough ROE for his fund, but for somebody who is doing their own thing, having a weighting in banks is terrific. Given all the macro issues in the world right now, he wouldn’t actually buy a single bank. You can own any one of the pick 6 banks. They are all well-managed.


Price: $0.020
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: No
2015-08-25 COMMENT Baytex Energy Corp
BTE-T
Eric Nuttall

The market cap is significantly lower than what they paid for Aurora Oil and Gas, which was their entry into the Eagle Ford. Stock fell from $23-$6 in roughly 2 months. Cut the dividend to zero. They still remain a highly leveraged oil company, so if he is right in his call on oil appreciating to $55-$60, this is a name that could easily go up 100%. The debt is a little concerning. At current oil prices he doesn’t think it is sustainable. If you are bullish on oil with a recovery coming within 6 months, you could do extraordinarily well. If he is wrong on his oil call and it stays around $40-$45 for the next 6-9 months, this is a name that could get into some trouble.


Price: $5.690
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Unknown
2015-08-25 COMMENT Calfrac Well Services Ltd
CFW-T
Eric Nuttall

Trican (TCW-T) or Calfrac (CFW-T)? This is a better company operationally and geographically. Less debt, although they do have a lot of debt as well, so everything is not rosy. His preference would be Canyon Services (FRC-T).


Price: $3.890
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: No
2015-08-25 HOLD Canadian Natural Rsrcs
CNQ-T
Eric Nuttall

This one comes down to your call on oil. If you think we are going to stay at $37-$38 forever, don’t own the stock and don’t buy anything else. Relative to other large caps, this wouldn’t be his top name. He would still lean towards a Cenovus (CVE-T) or Suncor (SU-T), but wouldn’t buy either because they have oil sands exposure. He also questions what the NDP government is going to come out with. They are more leveraged than most and have raw heavy oil exposure that they don’t upgrade, relative to Suncor. If you own it, crystallize a tax loss and roll it into another name that he likes better.


Price: $25.840
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Unknown
2015-08-25 TOP PICK Crescent Point Energy Corp
CPG-T
Eric Nuttall

The most mispriced oil/gas stock in Canada that he can find. Their proved reserves can produce oil for 10 years. At $55 oil, it is trading at 5.5X its total corporate value relative to cash flow. That means you are getting part of the proved reserves for free, their probable reserves for free and all of their own booked inventory for free. It has never traded as cheaply as it has today. Eliminated people’s major concerns and cut the dividend so it is right sized. He has it being sustainable at about $50-$55 or higher. The cash flow is around 2.5X. Eliminated their DRIP so there is no dilution. Dividend yield of 9.02%.


Price: $12.790
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Yes
2015-08-25 PAST TOP PICK Cipher Pharmaceuticals Inc.
CPHR-Q
Jason Donville

(A Top Pick Oct 24/14. Down 33.71%.) They were in a bit of a jam in that they had one particularly strong product but didn’t have a sales force, so they acquired a company in the US to get them a sales force. He could see this was going to drop their earnings, so he sold his position.


Price: $5.760
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: No
2015-08-25 TOP PICK CRH Medical Corp.
CRH-T
Jason Donville

The best small-cap company in Canada that he can recommend. Great management team. 9X 2016 earnings. 31% ROE. He is very comfortable in saying that in 5 years it will be a $25 stock.


Price: $3.930
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 PAST TOP PICK Constellation Software Inc.
CSU-T
Jason Donville

(A Top Pick Oct 24/14. Up 84.82%.) The management team is so good at allocating capital.


Price: $541.110
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 COMMENT Concordia Healthcare
CXR-T
Jason Donville

A great company. We are moving into a world of slow growth because of demographics. Growth is going to be in the new, new things such as pharmaceuticals, healthcare, technology and some consumer products. It is probably not going to be the old-line, mundane industries. Thinks it is going to come under increasing buying interest from large cap managers. Once we get over this turbulence, he can see this going to $120-$130 very quickly.


Price: $91.680
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 BUY DIRTT Environmental Solutions
DRT-T
Eric Nuttall

Stock had a massive rally last year because it was significantly undervalued. When it was approaching $7-$8 he thought valuation was getting a little long in the tooth, so he eliminated his position. There has been about a 40% correction in the last couple of months so he started buying at around $5.25-$5.30. Valuation is compelling. If you follow estimates, they are able to grow earnings by about 75%, and it is trading at around 16X. Raised about $42 million at around $8, so you buy the stock today 40% below where they raised their $42 million. Stock is weak because of exposure to China, but they have zero exposure there. Also, based in Calgary, so they must have enormous exposure to the energy sector, but that is only about 12% of their revenue. On valuation they are paying 16X earnings with 75% growth. About $80 million net cash on the balance sheet.


Price: $4.940
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Yes
2015-08-25 COMMENT easyhome
EH-T
Eric Nuttall

A business model that is egregiously profitable. Instalment lender which lends money to people who wouldn’t otherwise qualify with a bank, so are able to gets slightly higher interest rates. There are long-standing concerns about regulatory risks. Announced last quarter that they will be tightening up their lending standards, so will no longer lend to people at the very bottom of the barrel. It will take time to replace those with new higher grade customers. After 2 crappy quarters, he needs them to put a good quarter for him to have interest in the name again. Incredibly cheap.


Price: $15.200
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Yes
2015-08-25 COMMENT Canyon Services Group
FRC-T
Eric Nuttall

(Market Call Minute.) He wouldn’t necessarily buy this, but if he had a gun to his head, he would buy it over the other 2.


Price: $4.250
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Unknown
2015-08-25 COMMENT Freehold Royalties
FRU-T
Eric Nuttall

(Market Call Minute.) Has been a big buyer in this. His big concern is that Penn West (PWT-T) is their biggest royalty payer so if it goes bankrupt, what happens to their royalty income? It is a bit of a concern, but even excluding that, the stock has been pounded, and the royalty model should hold up a lot better than a conventional A&P model.


Price: $9.030
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Yes
2015-08-25 PAST TOP PICK CGI Group (A)
GIB.A-T
Jason Donville

(A Top Pick Oct 24/14. Up 23.49%.) Still one of his top 5 positions. He has the company at about 11X 2016 earnings. This company grows at 20% year after year. It is a great “buy and hold” stock. It is 20X 2016 cash earnings.


Price: $46.260
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 BUY Grenville Strategic Royalty
GRC-X
Eric Nuttall

Came out with their quarter last week where they announced that operations were fine. They do royalty agreements with companies that would not necessarily qualify for prime credit with the banks. It is normal for this business model to occasionally take a bad debt expense, and write the investment down to zero and then hopefully recover some of it. They did that on a $1 million loan which represented 2.5% of their loan book, and the market cap fell by $20 million. That was an overreaction. Just announced that one of their larger deals was acquired by Hitachi, so it is highly likely that they are going to get bought out. That means they will have more money to deploy. Thinks this sets them up for a dividend increase in 2016. A few more quarters will prove the viability of their business model. A dividend increase would help that along as well. Yielding about 8% and trading at about 16X so it is a good valuation.


Price: $0.600
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Unknown
2015-08-25 COMMENT Granite Oil Corp
GXO-T
Eric Nuttall

There has been pretty heavy insider buying. The challenge is that it is a single asset dividend payer. This gives you concentration risk. Came out with a 1200 barrel a day test in their core play. He is concerned that institutional support will never be huge because of the size of the company and the single asset risk. If you are looking for a fairly steady, low payout hedge producer, it is not terrible, but there are names he likes better. Yield of 6.8%.


Price: $5.600
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Unknown
2015-08-25 COMMENT Long Run Exploration
LRE-T
Eric Nuttall

Debt to cash flow is around 6X, which is high. Cut the dividend to zero, which led to a freefall in the stock. If you were an uber bull on oil, this is the type of name that could go up several fold. Personally it is not his strategy because he thinks he can make 50% or more buying more established names. Higher risk than what he would be comfortable with. In his estimation, they are unable to grow oil at anything remotely close to today’s oil prices. High debt, declining production, declining product pricing which is a tricky situation to be in.


Price: $0.345
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Unknown
2015-08-25 COMMENT MEG Energy Corp
MEG-T
Eric Nuttall

Debt is extremely high. Unless there is a miraculous oil recovery, there can be serious repercussions. If he is right on oil, you could double your money, but if he is wrong, it would be a struggle.


Price: $10.640
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Unknown
2015-08-25 TOP PICK MTY Food Group
MTY-T
Jason Donville

Has ROE every year of 20%, very consistent. Not much of any leverage in the business, and very little economic sensitivity. Extremely well-managed. Trading at 14X 2016 earnings, which is really cheap for this kind of growth. Dividend yield of 1.23%.


Price: $32.670
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-08-25 TOP PICK Northern Blizzard Resources INC
NBZ-T
Eric Nuttall

Has fallen from $18 and he started buying at around $4. This company is 60% hedged on oil production next year, close to $80. Debt to cash flow is below 3X using Strip pricing. Have no debt maturity until 2022. Recently cut the dividend by 50%, and current yield is around 14%. Doesn’t see that being cut anytime soon. They are 100% Saskatchewan, so you have no exposure to the NDP uncertainty.


Price: $3.680
Subject: OIL, GAS & SMALL-CAP CANADIAN
Bias: BULLISH on OIL
Owned: Yes
2015-08-25 COMMENT Nobilis Health Corp
NHC-T
Jason Donville

Just put out a great quarter 2 weeks ago, so he is surprised the stock is still in the $6-$7 range. Really impressed with the way they are running operationally. He thinks the numbers continue to be strong going forward. Really cheap at this level.


Price: $6.380
Subject: GROWTH STOCKS
Bias: OPTIMISTIC
Owned: Yes
Showing 1 to 120 of 143,490 entries
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