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

Recent Opinions

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Date Signal Company Expert Opinion Price
2014-12-18 BUY LinkedIn Corporation
LNKD-N
David Burrows

It is aimed at a business consumer and users are prepared to pay.  Great revenue and earnings growth.  Held up well during the decline.  It is an expensive stock, but it is one of those companies that is winning a growing share of the wallet.


Price: $231.840
Subject: NORTH AMERICAN
Bias: CAUTIOUS
Owned: No
2014-12-18 BUY LuLulemon Athletica (US)
LULU-Q
David Burrows

The US market is doing quite well.  The retail sector in the last 3 months was one of the best.  They are going through a little bit of a re-birth and restructuring.  It is performing the way it should.  It has a tail wind.


Price: $53.150
Subject: NORTH AMERICAN
Bias: CAUTIOUS
Owned: Unknown
2014-12-18 PAST TOP PICK LyondellBasell Industries
LYB-N
David Burrows

(Top Pick Nov. 12/13, Up 4.85%) The chemicals pulled back through this fall and he got out.  Thinks natural gas prices will stay low.


Price: $79.260
Subject: NORTH AMERICAN
Bias: CAUTIOUS
Owned: No
2014-12-18 TOP PICK Morgan Stanley
MS-N
David Burrows

There was a lot of regulation coming out of the recession.  MS-N is moving rapidly towards asset management (55% of revenue).  It is a stable business where they deal with a very high end client.  Thinks their dividend could go up 100-150% over the next year.  Believes investors will be prepared to pay a higher multiple as they recognize that risk levels have come down due to new regulations.


Price: $38.100
Subject: NORTH AMERICAN
Bias: CAUTIOUS
Owned: Yes
2014-12-18 SELL Methanex Corp
MX-T
David Burrows

If you are in a decent market and have stocks that are not participating, then perhaps you should move on.  They are running into operational troubles so you should move on and look at something else.  The stock looks broken.


Price: $53.430
Subject: NORTH AMERICAN
Bias: CAUTIOUS
Owned: Unknown
2014-12-18 BUY Open Text
OTC-T
David Burrows

The sector is in favour.  Corporations are making lots of money.  Everybody needs productivity and corporations are willing to invest in this.  Thinks it is in the right neighbourhood. 


Price: $66.090
Subject: NORTH AMERICAN
Bias: CAUTIOUS
Owned: Yes
2014-12-18 DON'T BUY RBC 1 5 Year Laddered Corporate Bond ETF
RBO-T
John DeGoey

Doesn’t like any bond ETF, because he doesn’t like bonds in this environment. This one is good, but for the past 4 or 5 months, this has been trending ever so slightly downwards, and that is what you can expect from most bond positions for the next little while. You are going to go poor slowly. He does not anticipate an interest rate hike this year, or even the year after. When that does happen, bond positions will lose even more money.


Price: $20.040
Subject: PERSONAL FINANCE & ETFs
Bias: UNKNOWN
Owned: Unknown
2014-12-18 DON'T BUY Sherritt International Corp.
S-T
David Burrows

They have exposure in Cuba on one side, but then they have the big mine on the other side.  He would not buy just on the change in political situation in Cuba.


Price: $2.960
Subject: NORTH AMERICAN
Bias: CAUTIOUS
Owned: Unknown
2014-12-18 PAST TOP PICK Vanguard FTSE Developed ex-NA ETF
VDU-T
John DeGoey

(A Top Pick Dec 31/13. Up 3.15%.) Most of this is Europe, which has had a difficult year. Most people have too much money in Canada. Going forward, he thinks Europe will do better than Canada, because of Canada’s large exposure to energy.


Price: $28.040
Subject: PERSONAL FINANCE & ETFs
Bias: UNKNOWN
Owned: Yes
2014-12-18 COMMENT Vanguard FTSE Cdn High Div Yd.
VDY-T
John DeGoey

Bond ETF’s? He can’t recommend any, because there is not a single one that he likes. This is because we are at an all-time low in interest rates, and he doesn’t like bond ETF’s. You might want to consider using a dividend ETF instead. It will be a little more volatile, but there is not a great deal of downside risk if you are buying now. He would recommend Vanguard FTSE Cdn High Dividend Yield  (VDY-T).


Price: $30.830
Subject: PERSONAL FINANCE & ETFs
Bias: UNKNOWN
Owned: Unknown
2014-12-18 PAST TOP PICK Vanguard MSCI Emerg. Mkt. ETF
VEE-T
John DeGoey

(A Top Pick Dec 31/13. Up 6.58%.) It has done okay in the past little while. Emerging markets have had a bit of a tough time with a pullback in the past 4-5 months. He continues to insist that emerging markets are the most under owned asset class in Canada. This is a long-term hold.


Price: $27.560
Subject: PERSONAL FINANCE & ETFs
Bias: UNKNOWN
Owned: Yes
2014-12-18 DON'T BUY Vermilion Energy Inc
VET-T
David Burrows

You are trying to pick a bottom here. but he thinks this sector will be weak for some time.  This one will not bounce back to $100.  They don’t have the same tail wind they used to have.  Take a look at some other sectors that do have a tailwind.


Price: $55.380
Subject: NORTH AMERICAN
Bias: CAUTIOUS
Owned: Unknown
2014-12-18 COMMENT Vanguard Global ex-US Real Estate
VNQI-Q
John DeGoey

International stocks have had a bit of a bad run. This one is ex-US real estate. Has been beaten up at bit. He would not use it for more than 3%-4% of your portfolio. It’s fine and will be low cost.


Price: $54.650
Subject: PERSONAL FINANCE & ETFs
Bias: UNKNOWN
Owned: Unknown
2014-12-18 TOP PICK Vanguard US Total Mkt Ind ETF
VUN-T
John DeGoey

(A Top Pick Dec 31/13. Up 22.19%.) He likes the US market probably more than any other market in the world. It gets you out of Canada. It is extremely broad with over 1000 names. There are a lot of small-cap names in it, which generally outperforms large cap stocks.


Price: $33.500
Subject: PERSONAL FINANCE & ETFs
Bias: UNKNOWN
Owned: Yes
2014-12-18 DON'T BUY Verizon Communications
VZ-N
David Burrows

Telecom has been acting a little better recently.  Interest rates will stay lower longer than people think.    But VZ-N is not going to be one of the winners.  Prefers T-T, which he owns.


Price: $47.050
Subject: NORTH AMERICAN
Bias: CAUTIOUS
Owned: No
2014-12-18 STRONG BUY Wells Fargo
WFC-N
David Burrows

3% dividend, likely to have accelerated dividend growth going forward, strong balance sheet, and very little commercial risk. US financials are likely to have a tailwind going forward. 


Price: $55.210
Subject: NORTH AMERICAN
Bias: CAUTIOUS
Owned: Unknown
2014-12-17 N/A A Comment -- General Comments From an Expert
A Commentary
Gordon Reid

Energy. Has limited exposure with about 8% weighting to oil. The oil companies he has exposure to, although senior, have been impacted to a degree, but are going to be the long-term beneficiaries of this episode. This is a classic cycle where things are good, people become overextended, debt to cash flows get extreme, banks turn their backs on exploration companies and the larger, more stable  producers gobble them up at cheaper prices. He expects that this will happen again. Although he has an 8% exposure to oil, he also has some beneficiaries in the retail space that will benefit from this type of situation. This spurs spending at all levels of the economic strata, but it also increases confidence. That not only increases the multiplier effect of dollars being spent, but the velocity of those dollars being spent.


Price: $0.020
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: _N/A
2014-12-17 N/A A Comment -- General Comments From an Expert
A Commentary
Gordon Reid

Gordon Reid’s website articles. Everybody is welcome to read these articles on such things as estate taxes, T11 35 requirements if you hold foreign assets, wills and will estate allocations, market timing, simple math on bonds and how they actually work, etc. He also asks for ideas from anybody on an article and what they would like to see. You can email him at .


Price: $0.020
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: _N/A
2014-12-17 N/A A Comment -- General Comments From an Expert
A Commentary
David Baskin

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


Price: $0.020
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: _N/A
2014-12-17 N/A A Comment -- General Comments From an Expert
A Commentary
David Baskin

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


Price: $0.020
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: _N/A
2014-12-17 N/A A Comment -- General Comments From an Expert
A Commentary
David Baskin

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


Price: $0.020
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: _N/A
2014-12-17 N/A A Comment -- General Comments From an Expert
A Commentary
David Baskin

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


Price: $0.020
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: _N/A
2014-12-17 N/A A Comment -- General Comments From an Expert
A Commentary
David Baskin

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


Price: $0.020
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: _N/A
2014-12-17 HOLD Apple
AAPL-Q
Gordon Reid

Continues to think this is a good company. Changed considerably from when he 1st purchased 7-8 years ago. The iPhone 6 is their newest product, but there are other things coming down the pipe, including the Apple watch, which he thinks will get more attention as it is launched. Also, ApplePay, which could redefine this company in the next 3-5 years. Trades at a very reasonable multiple of about 15X earnings. Ex-cash it would be considerably less than that. Still have about $150 billion cash globally. Since Steve Jobs, their capital allocation policy has changed dramatically and now they pay a very fine dividend as well as buying back a lot of stock. They buy back about 6% of the float per year. In China now and have just scratched the surface on their deal with China Mobile.


Price: $109.410
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 TOP PICK Boeing
BA-N
Gordon Reid

Traded down a little on the oil story. This is kind of illogical. The thesis is that with lower oil prices, the drive for new fuel efficient airplanes will be lessened, which doesn’t make a lot of sense to him. It is the competitive landscape that matters. One airline against another as beneficial margins and competitive margins lead to pricing decisions. They have a $375 billion backlog, which is pretty much clear sailing through the end of the decade in terms of their delivery schedule. Thinks you could probably see a mid-teens type long-term growth. Dividend yield of 2.95%.


Price: $125.060
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 BUY Brookfield Asset Management (A)
BAM.A-T
David Baskin

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


Price: $56.250
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 PAST TOP PICK BCE Inc.
BCE-T
David Baskin

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


Price: $52.610
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 PAST TOP PICK Progressive Waste Solutions Inc
BIN-T
David Baskin

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


Price: $34.890
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 BUY Bank of Nova Scotia
BNS-T
David Baskin

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


Price: $65.030
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 PAST TOP PICK Clean Harbors
CLH-N
Gordon Reid

(A Top Pick Jan 2/14. Down 18.89%.) A solid company, but the valuation has been depressed because of its relationship to oil and gas. This is a services company that owns Safety-Kleen, and they take care of hazardous materials for the oil/gas industry. Feels that longer-term it has an opportunity to recover, when spending recovers in the oil patch. If he feels that it will recover in a short term he will probably stay with it, but if it is going to be mired in the whole energy issue longer term, he might move on.


Price: $49.750
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 COMMENT Canadian Natural Rsrcs
CNQ-T
David Baskin

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


Price: $34.530
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 COMMENT Canadian National R.R.
CNR-T
David Baskin

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


Price: $78.160
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: No
2014-12-17 COMMENT Ensco PLC
ESV-N
Gordon Reid

Has fallen quite a bit. Longer-term, this as an opportunity to not only recover, but to move up in terms of price. They are a deepwater driller. They have contracted 63% of their deepwater rigs for the next 18 months. The risk is going to be the day rates going forward. If oil stays down at these levels, there is no question that day rates will suffer. 10.3% dividend is high. They probably have the financial capability to pay it, but in this type of environment, a lot of companies would view it as quite responsible to draw back and to cut the dividend somewhat, in order to husband the cash. Feels this stock is okay.


Price: $28.430
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 COMMENT General Electric
GE-N
Gordon Reid

Dividend is definitely safe. They pride themselves on stability and long-term benefits to shareholders and shareholder value. Have some exposure to Russia, but not extreme and isn’t something that should be factored in. Their oil exposure is something you have to take into account. Have been acquirers of oil properties and oil expertiseover the last several years. In divesting other areas of their business, oil has taken on a larger percentage of their business.


Price: $24.660
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 SELL Gilead Sciences Inc.
GILD-Q
Gordon Reid

He has concerns. This company is often recommended, but he feels the stock price has been largely built on Solvaldi, a hepatitis C drug, which has been incredibly successful, but they have built their financial fortune on the fact that they sell it for $1000 a day in the US. There are competing products coming to market. One is through AbbVie (ABBV-N) and one through Merck (MRK-N). He fears the competitive landscape will change and, although Solvaldi will continue to be an effective drug, it will not get anywhere near the $1000 a day, which will be a big financial headache for the company. If you own, he would recommend that you take profits.


Price: $102.400
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2014-12-17 BUY Google
GOOGL-Q
Gordon Reid

Hasn’t really done very much over the last year. Expectations on the street were fairly high. This company doesn’t give guidance. They are quite independent that way. However, he likes that because he sees a lot of companies giving guidance. If they miss by just a hair, the street reacts very violently; this encourages people to micromanage over short periods. These are long-term assets and have to be viewed that way. Thinks that in 2015 this company is going to do good things. Earnings are probably going to rise in the mid to high 20%s, revenues probably in the 18% range. Trading at less than 20X earnings.


Price: $506.450
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 TOP PICK Google
GOOGL-Q
David Baskin

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


Price: $506.450
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 PAST TOP PICK Goldman Sachs
GS-N
Gordon Reid

(A Top Pick Jan 2/14. Up 6.07%.) Trading right around Book, so it is slowly coming back. Have moved their ROE from mid-single digits into low double digits, so he thinks they have opportunity for expansion of their multiple. It also has its opportunity for organic growth.


Price: $185.030
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 TOP PICK Hexcel Corp
HXL-N
Gordon Reid

A derivative play and they are in the structural materials business. They do the carbon fibre material, and two thirds of their business is with Boeing and Airbus. Between the 2 they have over $1 trillion of airplanes that have been ordered and on the block to be assembled. This company makes about $5 million an airplane, and there are thousands and thousands of them that will be produced over the next decade. Trading at a very reasonable multiple and has a good growth rate of around 15% per year. A fine cash flow company with a cash flow of about 7.5% yield.


Price: $39.910
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 COMMENT IBM
IBM-N
Gordon Reid

Gained a tremendous amount of benefit from a long 4-5 years of cost-cutting, and it was well orchestrated. They clearly articulated how they were going to cut costs to the benefit of the bottom line, and they did that. He has been very cautious on this for a number of years because you can only cut costs so much, before you start to cut to the bone and affect your ability to produce revenue. Revenue has really only grown low single digits for a very long time. The market was paying a multiple much higher than that for growth that had much more sustainability.


Price: $151.930
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Unknown
2014-12-17 DON'T BUY IGM Financial Inc.
IGM-T
David Baskin

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


Price: $44.420
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: No
2014-12-17 DON'T BUY Johnson & Johnson
JNJ-N
Gordon Reid

Made up of 3 major components, the consumer division, the medical device division and pharmaceutical. Trading at about 18X earnings right now, and 2 of the divisions, consumer side and diagnostics, are not doing that well. The pharmaceutical side is the only one that is really doing well. A little too expensive for him. You have to be very pointed in how you buy these companies. Although health companies are good companies, they have outgrown their earnings in terms of valuations. A lot of that was in search of yield.


Price: $104.070
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2014-12-17 COMMENT Loblaw Companies Ltd
L-T
David Baskin

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


Price: $60.080
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: No
2014-12-17 TOP PICK Lear Corp.
LEA-N
Gordon Reid

Primarily automotive seating or interior work. Basically provides to all the major producers around the world. The run rate in North America is around 17 million units. Over 20 million units in Europe and over 21 million in Asia. Trading at a very modest multiple of around 10X earnings and has good growth ahead of it. Dividend yield of 0.87%.


Price: $0.480
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 COMMENT LyondellBasell Industries
LYB-N
Gordon Reid

Stock has fallen precipitously. US producers have lost their competitive advantage to Europeans, because ethylene prices have fallen much faster in Europe than in the US. This has created a disadvantage to American producers. However, that can be built back very quickly. These things are very fluid and it depends on the movement and relationship between WTI and Brent, the crack spreads, etc. There is an opportunity here, but remember that it is all based on what your view is on energy prices.


Price: $75.600
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2014-12-17 DON'T BUY Manitoba Telecom Services
MBT-T
David Baskin

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


Price: $27.160
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: Unknown
2014-12-17 BUY Methanex Corp
MX-T
David Baskin

This has suffered from the perception that anything to do with petrochemicals is poison. The stock has taken a major nosedive and thinks it has been way oversold. Methanol is made out of natural gas, which is very inexpensive right now. While the price of methanol has come down, so has the price of input. Feels it is a very good entry point at this level.


Price: $53.150
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 TOP PICK National Bank of Canada
NA-T
David Baskin

Tremendously oversold, along with all the other Canadian banks. At today’s closing price, it is paying about a 4.2% yield and trading at around 9.5X of what he expects they will earn in 2015. Sold off because it has been computed that it has the largest exposure to the Canadian oil industry in its wholesale banking of any of the Canadian banks. He doesn’t see many Canadian oil companies going bankrupt in the next little while. Oil companies are cutting their dividends and cutting their CapX, but that doesn’t mean they are not paying their bank loans. This bank probably has less exposure on loans to oilfield workers and mortgages in Alberta, then the other Canadian banks.


Price: $47.210
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 COMMENT Qualcomm
QCOM-Q
Gordon Reid

Having trouble, not only with the Chinese license situation, but also with the Chinese government which is saying they have a monopoly. They are trying to weaken them. It’s a natural thing for governments to do. This is something that you just have to build into the normal course. Usually they negotiate their way out of these situations and it costs them some money, but long-term, the benefit of this company is that they do have a stranglehold on the chipset market for the smart phone market. This market, for the next 5-10 years, is expected to grow 15%-17% per year. A good story. The future is a little cloudy and this is why he diversifies.


Price: $72.210
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Unknown
2014-12-17 PAST TOP PICK Ryland Group
RYL-N
Gordon Reid

(A Top Pick Jan 2/14. Down 15.56%.) He was early on this. Homebuilding and how the homebuilders did was very lumpy in 2014. We haven’t seen as much of a release in terms of credit as he thought we would. Homebuilders are still really tied up because it is really tough to qualify for a mortgage. It is still at only 1 million homes being formed in the US. Just to keep up with organic growth of population, we need 1.5 million. He is content to stay here and thinks he will be rewarded.


Price: $37.100
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 COMMENT Sherritt International Corp.
S-T
David Baskin

It took a while for Cuba to start opening up with the US. On today’s news, this stock went up over 25%. However, they are still not out of the woods. There is going to be tremendous opposition from the Republicans in Congress, particularly the 3 Republicans of Cuban-American heritage. It is far from clear whether Obama will have the clout, as a lame-duck president, to do what he really wants to do, which is to end the embargo. If he ends the embargo, then there can be trade between the 2 countries of all kinds of assets, and not just this opening salvo of $100 worth of cigars and a trip to a resort.


Price: $2.870
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: No
2014-12-17 TOP PICK Suncor Energy Inc
SU-T
David Baskin

(A Top Pick Jan 9/14. Down 1.74%.) Had looked pretty good in the summer, but not so good now. When you play with commodities, this is what you have to live with. He likes this over all the other oil companies in Canada because it is vertically integrated. It not only has production, but also has refining and retailing. There are no exploration risks. Yield of 3.14%, which is not only sustainable, but might have room to go up.


Price: $35.710
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 COMMENT Teck Resources Ltd. (B)
TCK.B-T
David Baskin

In all of the commodities they produce, the prices have gone down, particularly for coal. The question is, is the dividend of 6.25% sustainable with commodity prices this low. When you see a company with a yield of over 5%, the market is probably telling you that the dividend is not sustainable. He doesn’t see commodity prices rising any time soon.


Price: $14.410
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: No
2014-12-17 COMMENT Thomson Reuters Corp
TRI-T
David Baskin

Has had the best year in about a decade. If you own, you are just kind of breaking even after 10 years. This last year was the good year. He would think the low hanging fruit has been picked now. It is a very difficult area. There is so much content on the Internet and so much of it is free. Also, they are against a very formidable competitor in Bloomberg. He owns some of their bonds.


Price: $46.020
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 COMMENT Twitter, Inc
TWTR-N
David Baskin

Not a stock for the faint of heart and is still a speculative company, because it does not make money yet. Also, it is unclear as to how it is going to make money. If you can’t afford to lose the money, you should not be investing in companies like this.


Price: $35.570
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: No
2014-12-17 DON'T BUY United Parcel Services
UPS-N
Gordon Reid

There are differences between this and FedEx (FDX-N). This company is more of a ground/domestic provider. FedEx is very much skewed to air freight. They said this morning that earnings were “bad”, but thinks that what really happens in a situation like this is that expectations are built in to a level, and if they fail to hit those expectations, they are characterized as “bad”. They had good growth and this is a good company. He tends not to buy these types of companies as they move into their sweet spot of the seasonal delivery time, because that is when they get the most attention and the premium build. He would tend to stay away from companies like this at this time. FedEx is probably the company he would go to, but not at this time.


Price: $108.550
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2014-12-17 HOLD United Technologies
UTX-N
Gordon Reid

A broad industrial. In the aerospace industry through Goodrich, which they bought 2-3 years ago. They own Pratt and Whitney and Sikorsky Helicopter. On the industrial side, they own Otis elevators and Lennox. This year hasn’t been great for them. Their CEO abruptly resigned. The other thing is China growth, which is causing him to look at this a little more closely. China is a big market for Otis and Lennox, and he is looking carefully to see if that growth is slowing and likely to continue to slow. A good core holding, but not a screaming buy.


Price: $113.900
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: Yes
2014-12-17 COMMENT United Technologies
UTX-N
David Baskin

Has been looking at US heavy metal, and this is a diversified heavy industrial company. Traditionally, a lot of their business comes from capital expenditures by big companies. Since the recession in 2007, capital expenditures by major US companies has been very muted, because factories have been under capacity and there hasn’t been a great need to spend a lot of money. He is starting to see a change. As the US economy accelerates, which is what we are seeing, and as employment expands, he is starting to see more CapX, which is very positive for this company. Maybe it’s not a bad time to start thinking about getting back in.


Price: $113.900
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: No
2014-12-17 COMMENT Verizon Communications
VZ-N
Gordon Reid

This is a company that interests him somewhat. Likes that they bought out Vodafone’s portion of the wireless business. It was $130 billion acquisition, and immediately accretive. Not an expensive stock and pays a very fine dividend. (N.B. Dividends from US corporations are treated something like interest income and are fully taxable.) The most recent news was kind of disturbing in that they were having margin problems and troubles from a competitive standpoint in maintaining their pricing model.


Price: $46.440
Subject: US EQUITIES
Bias: OPTIMISTIC
Owned: No
2014-12-17 COMMENT Whitecap Resources
WCP-T
David Baskin

A very popular stock, but vulnerable.


Price: $12.050
Subject: NORTH AMERICAN - LARGE
Bias: OPTIMISTIC
Owned: Unknown
Showing 121 to 180 of 135,292 entries