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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
2015-02-25 TOP PICK Facebook
FB-Q
Gordon Reid

Has been looking at this for a long time and what put him over the top was the sheer size of having 1.39 billion in monthly average users. Some of their purchases such as Instagram and Messenger are doing incredibly well. Also, the advertising trends are very exciting. Mobile for example, which grew 100% year-over-year, is leading the way from an advertising standpoint with Facebook. However, when you look at the statistics, 25% of the US adult media time is done on Mobile, yet only 11% of advertising dollars are aimed at Mobile. There is a lot of room to catch up, so that will be in favour for Facebook. He sees another Google coming along.


Price: $79.560
Subject: US EQUITIES
Bias: BULLISH
Owned: Yes
2015-02-25 DON'T BUY Fairfax Financial
FFH-T
Michael Sprung

This can be somewhat volatile. It is basically an insurance business with a high dependence on what they earn on the investment side of the equation. Recently announced an acquisition of an insurer and reinsurer in the UK, which long-term has an exceptional combined ratio of about 96%, which means their underwriting is positive. In the last month it has come up from $600-$650, so it can be quite volatile. He would buy it at a lower Price to Book than what it is today.


Price: $652.000
Subject: CANADIAN LARGE
Bias: CAUTIOUS
Owned: No
2015-02-25 PAST TOP PICK Fortis Inc.
FTS-T
Michael Sprung

(A Top Pick March 7/14. Up 30.63%.) Made a big acquisition in the US, which is probably the point where people were having doubts. This was a game changer for them and gave them more exposure to the US. The foreign exchange has certainly worked in their favour. Good management. Thinks the 3.5% dividend is very safe. He continues to hold, but wouldn’t be adding to his position at this price.


Price: $38.550
Subject: CANADIAN LARGE
Bias: CAUTIOUS
Owned: Yes
2015-02-25 BUY on WEAKNESS CGI Group (A)
GIB.A-T
Michael Sprung

Has shown a great deal of growth over the last number of years, a lot of it through acquisitions. People would like to see a little more organic growth. They have been expanding in Europe, and margins there have been a bit more under pressure. Trading at about 15X earnings and 2X BV. Has an ROE of around 20%, so it isn’t really, really expensive, but not at the point where he would be jumping in. He would like to see it 15%-20% lower.


Price: $53.570
Subject: CANADIAN LARGE
Bias: CAUTIOUS
Owned: No
2015-02-25 DON'T BUY Gilead Sciences Inc.
GILD-Q
Gordon Reid

They are getting competition now so they have to charge less for their products. He has been very skittish and cautious on this company. What you saw on the surface was this fast growing low multiple company, which looked almost too good to be true. They charge an enormous amount of money for their hepatitis C drug, but they are now getting a lot of competition. Insurers are now negotiating with their competition.


Price: $104.430
Subject: US EQUITIES
Bias: BULLISH
Owned: No
2015-02-25 DON'T BUY Corning Inc
GLW-N
Gordon Reid

Has always resisted this because of his fear of a commoditization, i.e., falling prices. In the LCD world we have seen that. This company has done well because they have been smart in running their business. Based on a valuation level and his fear, he wouldn’t Buy this one.


Price: $24.600
Subject: US EQUITIES
Bias: BULLISH
Owned: No
2015-02-25 TOP PICK Hudbay Minerals Inc.
HBM-T
Michael Sprung

Over the last few years, they have been putting a lot of money into developing Constancia in Peru, a major copper, molybdenum, gold project, which started to come on stream in the last quarter and will ramp up this year into production. As they do, their production profile goes up quite sharply. Cash flow should increase with this. Last quarter was a little bit affected with some unscheduled shutdowns in one of their mines. Yield of 0.19%.


Price: $10.590
Subject: CANADIAN LARGE
Bias: CAUTIOUS
Owned: Yes
2015-02-25 PAST TOP PICK Home Depot
HD-N
Gordon Reid

(A Top Pick Feb 26/14. Up 45.53%.) Not an inexpensive stock. He expects them to make about $5.50 a share in 2015, which puts the multiples in the low 20s. They continue to outperform and surprise on the upside.


Price: $116.310
Subject: US EQUITIES
Bias: BULLISH
Owned: Yes
2015-02-25 DON'T BUY Intel
INTC-Q
Gordon Reid

This is a similar situation to Microsoft (MSFT-N) in that they are a very large company and generate a fair bit of cash, but there is really not a lot of traction. Although PCs have had a bit of resurgence, long term he doesn’t think much has changed in terms of predictions that it will be a falling situation.


Price: $33.945
Subject: US EQUITIES
Bias: BULLISH
Owned: No
2015-02-25 PAST TOP PICK KB Home
KBH-N
Gordon Reid

(A Top Pick Feb 26/14. Down 28.79%.) A few months ago they came out with a warning that their gross margins were not going to be as good as the Street thought they were going to be. This was because they were paying a much higher price for land. Stock sold off into the high $1100 and he thought it was just too much. The trend in the industry is still very, very positive. He’ll be looking to see if there is a better place to be.


Price: $14.150
Subject: US EQUITIES
Bias: BULLISH
Owned: Yes
2015-02-25 COMMENT Laurentian Bank
LB-T
Michael Sprung

Being one of the smaller banks, it is not one that people spend a lot of time on, which is possibly why it is always sold at a significant discount to the others. However, they are also a much more constrained in their market and in the outlook to expand earnings. When he looks at the projections, he doesn’t see the kind of growth in earnings that people are looking for. In compensation for that, you are taking a much higher dividend yield. If that is what you are holding it for, it is not a bad place to be.


Price: $49.850
Subject: CANADIAN LARGE
Bias: CAUTIOUS
Owned: No
2015-02-25 BUY Manulife Financial
MFC-T
Michael Sprung

Canadian banks or Manulife (MFC-T)? Until recently, he thought lifecos showed relatively better valuation than banks. The environment has got to the point now where flight to safety might be tilting a little bit more towards banks. Management has done a superb job since they were in trouble previously and had to cut their dividend. Have changed their product mix so that it is a lot less risky and less exposed to equity markets. Have really built up the wealth side of their business giving them good fees.  Expanded in the US through John Hancock and are expanding into Asia quite a bit. A very good long-term hold.


Price: $21.770
Subject: CANADIAN LARGE
Bias: CAUTIOUS
Owned: Yes
2015-02-25 COMMENT Metro Inc (A)
MRU-T
Michael Sprung

We have seen great performance out of the consumer staples lately, and this is no exception. They still have a very good dividend yield. Latest quarter was quite strong and they announced a 3 for 1 stock split. They also increased the dividend. If he owned, he would be looking as to where he would start taking profits. Multiples are getting fairly pricey.


Price: $35.720
Subject: CANADIAN LARGE
Bias: CAUTIOUS
Owned: No
2015-02-25 DON'T BUY Microsoft
MSFT-Q
Gordon Reid

Oracle (ORCL-N) or Microsoft (MSFT-N)? Hasn’t owned this for years. Looking at their fundamentals, you will see that they are a very large company generating a good amount of cash, but are having trouble really gaining traction. Some areas of their business are doing well but not large enough to have any major impact on the business. The earnings really haven’t gone anywhere.


Price: $43.990
Subject: US EQUITIES
Bias: BULLISH
Owned: No
2015-02-25 DON'T BUY Oracle
ORCL-N
Gordon Reid

nOracle (ORCL-N) or Microsoft (MSFT-N)? Sold his holdings because of waning revenue growth, which still persists. Their revenue growth, at best, is low single digit. You have to look at revenue as the fuel of earnings.


Price: $43.730
Subject: US EQUITIES
Bias: BULLISH
Owned: No
2015-02-25 COMMENT Qualcomm
QCOM-Q
Gordon Reid

Just exited his position at about $70. That was because of a warning on earnings by the company based on 1) their ongoing dispute with the Chinese government and Chinese licensees who weren’t paying, and 2) a major customer, Samsung, who declined to use their major LCD chip. Often times you see things overdone in the market and 1st reactions are very, very negative. The stock dropped down into the low $60.


Price: $71.680
Subject: US EQUITIES
Bias: BULLISH
Owned: No
2015-02-25 TOP PICK Regal Beloit
RBC-N
Gordon Reid

Motors, generators, transmissions, drives etc. They recently bought a powered transmission unit from Emerson Electric. This will add $.50 a share in earnings in 2015, and he expects a dollar a share in earnings in 2016. The market really hasn’t caught up with this one and it is a very good buy here. Dividend yield of 1.13%.


Price: $78.210
Subject: US EQUITIES
Bias: BULLISH
Owned: Yes
2015-02-25 COMMENT Russel Metals
RUS-T
Michael Sprung

One question that always comes up with this company is the safety of the dividends. It was always a constant 4%, but is now yielding 6%. They are really exposed to industry and infrastructure. It depends on your outlook for those areas. It has come off a bit, but is not at a level where it has shown up on his screens.


Price: $25.310
Subject: CANADIAN LARGE
Bias: CAUTIOUS
Owned: No
2015-02-25 TOP PICK Royal Bank
RY-T
Michael Sprung

Just reported earnings and he hadn’t expected them to be as good as they were. Feels they have the dominant franchise of the Canadian banks, whether in capital markets or retail. Has been expanding recently in the US with its acquisition in California. If you are going to hold this for a few years, you are still going to do well even though it is up rather sharply today. Yield of 3.96%.


Price: $77.800
Subject: CANADIAN LARGE
Bias: CAUTIOUS
Owned: Yes
2015-02-25 BUY Sunlife Financial
SLF-T
Michael Sprung

Right now there is a real dynamic trade-off between this company and Manulife (MFC-T). He owns both companies. With this one, you have a company with a slightly higher yield. Their last quarter had some disappointing elements because of their US subsidiary. They are well exposed to the US market. Much of their product is much less dependent on interest rates and equity markets. He thinks there is room to own both.


Price: $38.740
Subject: CANADIAN LARGE
Bias: CAUTIOUS
Owned: Yes
2015-02-25 COMMENT Stuart Olson Inc
SOX-T
Michael Sprung

Amongst the construction companies, this may be considered one of the higher risk/reward members. It has come off so much as a large part of their business is tied to the energy and mining markets. However, on the infrastructure side we are seeing growing backlogs. Thinks management has made some significant changes in the structure of the company and how it is exposed. It has a very good chance of making it through this environment and there could be considerable capital appreciation, but it is not without its risks. Feels the dividend of over 7% is all right for the time being. If he sees more and more projects delayed, particularly in the energy side, they are going to have to examine that dividend in probably 2 or 3 quarters out.


Price: $6.800
Subject: CANADIAN LARGE
Bias: CAUTIOUS
Owned: Yes
2015-02-25 PAST TOP PICK Time Warner Inc
TWX-N
Gordon Reid

(A Top Pick Feb 26/14. Up 36.12%.) Had a takeover offer at $85, and he thinks they were wise in turning it down. This company is motivated to return capital to shareholders and stakeholders. Have highlighted long-term goals of $6 a share in 2016 and $8 a share in 2018. If they are anywhere near to getting to those levels, the stock will go much, much higher.


Price: $82.490
Subject: US EQUITIES
Bias: BULLISH
Owned: Yes
2015-02-25 DON'T BUY United Parcel Services
UPS-N
Gordon Reid

Stumbled in the 4th quarter on the cost side. Had a lot of trouble, which seemed to be company specific. Because of that, he would favour FedEx (FDX-N) over this. Also, this is a little more expensive on a valuation basis.


Price: $101.960
Subject: US EQUITIES
Bias: BULLISH
Owned: Unknown
2015-02-25 COMMENT Visa Inc.
V-N
Gordon Reid

They will be splitting 4 for 1 on March 19. In the past, this used to allow people to come into the market with board lots and buy into lower-priced stocks, but in this day and age, that really isn’t an issue anymore. It will have no economic effect whatever. A very good company and growing close to 20% in terms of earnings. Becoming more international in nature now. Close to 60% of their business is international. About 57% of their business is debit cards. A transaction-based company, so it is all volume which is increasing rapidly. Olympics are next year, and card companies do a lot of advertising and get a tremendous amount of traction on major events.


Price: $273.010
Subject: US EQUITIES
Bias: BULLISH
Owned: No
2015-02-25 DON'T BUY Veresen Inc
VSN-T
Michael Sprung

With the buildout of Jordan Cove for the LNG project, their payout ratio now is around 90%. If you were to include in that the project development costs that are currently going in and being capitalized, that payout would be in excess of 100%. In the current environment, he doesn’t think the dividend can last a whole lot longer.


Price: $15.300
Subject: CANADIAN LARGE
Bias: CAUTIOUS
Owned: No
2015-02-25 BUY Walgreens Boots Alliance
WBA-Q
Gordon Reid

He continues to like this company very much. It is a great area to be in. They have the demographic wind at their back with more and more people getting older and needing healthcare. Have a very nice arrangement with AmerisourceBergen (ABC-N) for generic drug supplies.


Price: $80.010
Subject: US EQUITIES
Bias: BULLISH
Owned: Yes
2015-02-25 COMMENT Western Forest Products Inc.
WEF-T
Michael Sprung

Has now pulled back to $2.25, which is around the area where he sold his holdings. Lumber is priced in US$. They sell a lot into the Japanese markets, and with pricing where it is and with the Japanese economy, this has been a natural pullback. They will participate in US housing to some extent. He is not tempted to go back into this at this time.


Price: $2.240
Subject: CANADIAN LARGE
Bias: CAUTIOUS
Owned: No
2015-02-25 DON'T BUY Wal-Mart Stores Inc.
WMT-N
Gordon Reid

As a retailer to a lower demographic, they were supposed to get much of the benefit of lower gasoline prices, but they really haven’t seen it in any great degree. In addition, they have introduced a higher wage scale. This is not great for profit margins, so he has no plans to own this.


Price: $83.570
Subject: US EQUITIES
Bias: BULLISH
Owned: No
2015-02-24 PAST TOP PICK Rakuten Inc
4755-JP
Prakash Hariharan

(A Top Pick Nov 4/14. Up 48.3%.) The AliBaba (BABA-N) of Japan. They have been making some interesting acquisitions.


Price: $0.000
Subject: GLOBAL EQUITIES & DIVIDEND PAYING STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-02-24 N/A A Comment -- General Comments From an Expert
A Commentary
Barry Schwartz

Markets. Stocks at 18X earnings on the S&P 500 sounds expensive, but it’s all about interest rates. Interest rates are low in Canada and it doesn’t look like the US is in any hurry to raise interest rates. That means that anything that drives the cash flow makes that cash flow work even more. He has lots of retired clients that need to live off their portfolios, and they are not paying him a fee plus taxes and inflation, to make 1% on bonds. They would run out of money. If you expect interest rates to stay in a low environment for many, many years, then you want to own dividend and cash flow producing assets. The best assets that he can invest in are stocks. Also, pension funds have to rethink things in order to make their payments so they need to be buying stocks. People are living longer. We all have to ditch our bonds, get rid of our preferred shares, and be in more stocks. This is why the stock market is going up and why he believes the stocks are mispriced. If you believe interest rates are going to stay low, then stocks are roaring cheap.


Price: $0.020
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: _N/A
2015-02-24 DON'T BUY A Comment -- General Comments From an Expert
A Commentary
Barry Schwartz

Gold. The simple answer on this is “Don’t Buy It”. He has no interest in gold and is not going to buy it.


Price: $0.020
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: No
2015-02-24 N/A A Comment -- General Comments From an Expert
A Commentary
Barry Schwartz

TFSA accounts? This is a wonderful vehicle. Great for the young investors. If the government lets it continue and lets it grow over time, people are going to have millions of dollars in their TFSAs when they retire.


Price: $0.020
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: _N/A
2015-02-24 COMMENT A Comment -- General Comments From an Expert
A Commentary
Barry Schwartz

Reset preferred shares? January was not a good month for these. The terrible wrinkle on these is that they were built for a rising rate environment, not a decreasing rate environment. It looks like interest rates are to be cut again. The good news is that they have already taken their hit and if you don’t expect further rate cuts past March, then you can stick with some of them. He wouldn’t Sell, as long as you own good quality preferred shares.


Price: $0.020
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: Yes
2015-02-24 N/A A Comment -- General Comments From an Expert
A Commentary
Prakash Hariharan

Economy. With a pullback in commodity prices, the whole economy has been getting a lot of tailwinds, which has been reflected in some of the companies related to manufacturing in the US as well as retailers. Energy has affected the US equity markets such as Starbucks, fast food companies, retailing groups, which are all hitting new highs. Right now it becomes a difficult exercise to pick the winners. Valuations look stretched to him, but he thinks there is room to grow from where we are.


Price: $0.020
Subject: GLOBAL EQUITIES & DIVIDEND PAYING STOCKS
Bias: OPTIMISTIC
Owned: _N/A
2015-02-24 COMMENT Apple
AAPL-Q
Barry Schwartz

This has become the biggest holding in his portfolio, and he trims back when it becomes 5%-6% of the portfolio. He thinks this is one of the greatest companies in the world and there is still a long runway of growth potential.


Price: $132.170
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: Yes
2015-02-24 HOLD Acadian Timber Corp
ADN-T
Barry Schwartz

The reason to own this is if you believe the US housing market is normalizing and will show more growth, the Canadian housing market continues to show good growth along with demand from Asia. He sees potential for these companies to show more growth. The Cdn$ is dropping, which makes the price of lumber more attractive. There is potential for rising dividends. A good place to be.


Price: $17.450
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: Yes
2015-02-24 TOP PICK American International Group
AIG-N
Prakash Hariharan

There are some interesting tailwinds that he sees in their balance sheet. He thinks you could see this continuing to grow. Book Value had a recalibration in the last 2 quarters. Growth in Book Value is what you are looking for in companies like this. Yield of 0.91%.


Price: $55.040
Subject: GLOBAL EQUITIES & DIVIDEND PAYING STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-02-24 BUY Algoma Central Corp.
ALC-T
Barry Schwartz

Infrastructure is very important and these are long life assets. Shipping is never going to go away and they have ordered a bunch of new ships. Just reported their 4th quarter. Thinks normalized earnings for 2014 were about $1.20 a share and he is looking for $1.30-$1.40 a share in 2015. This is dirt cheap.


Price: $16.950
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: Yes
2015-02-24 TOP PICK Aecon Group Inc
ARE-T
Prakash Hariharan

Got hit badly on account of its whole Western Canada theme where everything was thrown into the dustbin that had the name energy written on it. This is one of the babies that fell into the bath water. A lot of analysts have been revising their target downwards, but there are a bunch of catalysts in this company. One is a 45% ownership of an airport concession as well as its construction business and its backlog. Yield of 3.14%.


Price: $11.470
Subject: GLOBAL EQUITIES & DIVIDEND PAYING STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-02-24 WATCH Alibaba Group Holding
BABA-N
Prakash Hariharan

This is going to be a good company with the surge in e-commerce. Had a very good run, post its IPO, but pulled back because of litigation issues. The factor that could drag this company is the reporting and lack of clarity sometimes. If you get past that hurdle over the next 2-3 quarters, you could see a snap back in the name.


Price: $84.690
Subject: GLOBAL EQUITIES & DIVIDEND PAYING STOCKS
Bias: OPTIMISTIC
Owned: Unknown
2015-02-24 COMMENT Badger Daylighting
BAD-T
Barry Schwartz

Wishy-washy on the business model. They make the trucks that help with the environment. Have some exposure to oil/gas, which is weighing down a lot of different companies. Dividend yield is attractive. He can’t say anything really positive or negative about the name. They were 1st in the market with the trucks, but that doesn’t mean somebody else can’t come in and compete with them heavily. Yield of 1.3%.


Price: $24.840
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: No
2015-02-24 BUY Brookfield Asset Management (A)
BAM.A-T
Barry Schwartz

Has held this for decades and he likes the story. Feels management is a bunch of brilliant people, and they are all focused on creating shareholder value because they are shareholders and owners themselves. In this low interest rate environment, pensions, endowments, etc. are looking for alternative assets to get access to, and one of the ways is to co-partner with this company. Raising lots of money to invest in distressed assets and in long life interest structure assets, and he thinks they are going to make a bunch of money. Just raised the dividend 6%.


Price: $68.670
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: Yes
2015-02-24 DON'T BUY Bombardier Inc (B)
BBD.B-T
Barry Schwartz

He would not touch this stock. The debt is incredibly high and the profit margins are incredibly low. They are in a credit crunch. (See Top Picks.)


Price: $2.500
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: No
2015-02-24 COMMENT Blackrock Inc.
BLK-N
Prakash Hariharan

Dividend seems to be very high. They have benefited immensely from pretty smart investments in real estate. Now they have come up with 2 big energy funds. Because of its historic investments, the dividend quality will now need to be assessed.


Price: $378.110
Subject: GLOBAL EQUITIES & DIVIDEND PAYING STOCKS
Bias: OPTIMISTIC
Owned: Unknown
2015-02-24 BUY on WEAKNESS Cogeco Cable
CCA-T
Barry Schwartz

This has been a phenomenal story. The most important thing is free cash and what the companies do with it. This company is diversifying by getting into networking, data storage, and into other markets. Rogers (RCI.B-T) owns 32% of them and he doesn’t think it is properly reflected in Rogers’ stock price. He would buy more if this sold off.


Price: $76.300
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: No
2015-02-24 PAST TOP PICK Cineplex Inc
CGX-T
Barry Schwartz

(A Top Pick Feb 5/2014. Up 24.63%.) Movies are still a cheap date and a nice place to take your kids. A lot of seniors go to movies. Last year there were not good movies, but this year everybody is expecting a home run year. So far it has started out very good for them. Every year they raise the price of popcorn. They are diversifying into other areas. Buy on a pullback. There is always potential for it to be taken over. Smart management.


Price: $49.730
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: Yes
2015-02-24 SELL Crescent Point Energy Corp
CPG-T
Barry Schwartz

If he owned this kind of company he would get rid of it in a heartbeat. He doesn’t believe these types of companies’ dividends are sustainable nor that their business plans are sustainable at $50 oil. They have no control over the underlying product they sell.


Price: $31.870
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: No
2015-02-24 COMMENT Discovery Communications Inc
DISCB-Q
Barry Schwartz

A media company in the US. It and the others have really fallen on hard times. The narrative is that the affiliate fees they are getting for cable is going to lessen over time, and new cable channels don’t want to carry them. That is not new news and is already reflected in current prices. There are a lot of smart people involved in these investments. He feels there is going to be some consolidation. Media companies generate so much free cash flow and CapX is minimal. They generate enormous amounts of free cash which they use to buy back stock, make acquisitions and increase dividends. If you are a value investor, this is an area to be looking at.


Price: $34.900
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: No
2015-02-24 DON'T BUY General Electric
GE-N
Prakash Hariharan

Earnings and revenues seem to be flat along with its metrics. The chances of it breaking through $25-$27 are remote.


Price: $25.390
Subject: GLOBAL EQUITIES & DIVIDEND PAYING STOCKS
Bias: OPTIMISTIC
Owned: Unknown
2015-02-24 PAST TOP PICK Corning Inc
GLW-N
Prakash Hariharan

(A Top Pick Nov 4/14. Up 20.4%.) The rationale was its whole exposure to Gorilla Glass, and now the new business, potentially automobiles and other businesses that they are getting exposure to. Good dividend name with power to grow.


Price: $24.780
Subject: GLOBAL EQUITIES & DIVIDEND PAYING STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-02-24 TOP PICK Google
GOOG-Q
Barry Schwartz

One of the best business plans in the world. Advertising is all about a push business. If you want to advertise, you have to spend lots of money, and hopefully people will see it. On the other hand, if people want to look you up, all they have to do is Google you. This is the greatest advertising business model in the world. They make about 95% margin selling keywords. They are using the cash flow to make bets in other areas, which have huge markets such as networking, cable, Google glass, YouTube, etc. They are really under-reporting their earnings because they are investing so much in CapX and R&D. Their earnings would be a lot higher if they weren’t doing that. There is potential for them to start a dividend as well as share buyback.


Price: $536.090
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: Yes
2015-02-24 PARTIAL SELL Intact Financial
IFC-T
Prakash Hariharan

Had a very good run because of the macro economic tailwinds. Fundamentally has a strong management team and it is growing. Stock looks pretty toppy at these levels, but on a fundamental basis it stacks up quite well when compared to others. A good entry point is when it is trading below Book Value and you exit when it is trading at a premium to Book Value. Currently it is trading at a good premium to the Book Value, so it is not a bad idea to take some money off the table.


Price: $88.650
Subject: GLOBAL EQUITIES & DIVIDEND PAYING STOCKS
Bias: OPTIMISTIC
Owned: Unknown
2015-02-24 COMMENT Linamar Corp
LNR-T
Prakash Hariharan

Has always liked this. There is room to grow for all companies connected to the auto industry. Fundamentally the balance sheet is stronger than ever. Has had a very good run. If you are looking at it from a dividend paying perspective, the yield has basically dropped to nothing right now.


Price: $77.090
Subject: GLOBAL EQUITIES & DIVIDEND PAYING STOCKS
Bias: OPTIMISTIC
Owned: Unknown
2015-02-24 DON'T BUY Lloyds TSB Group PLC
LYG-N
Prakash Hariharan

A turnaround situation. There is a catch up in terms of companies that are recalibrating their business and operating efficiencies. Coming close to trading at a higher premium to its Book Value. You need to focus on the earnings power of the company and the return on investment equity. His concern is that there is still room to feel more comfortable given the massive amount of headwinds that these institutions are facing. He would be a little cautious.


Price: $4.890
Subject: GLOBAL EQUITIES & DIVIDEND PAYING STOCKS
Bias: OPTIMISTIC
Owned: Unknown
2015-02-24 PAST TOP PICK Manulife Financial
MFC-T
Prakash Hariharan

(A Top Pick Nov 4/14. Up 5.2%.) This has to decouple from the interest rate outlook to the value proposition. He thinks there is still upside on the stock. From a pure Book Value, pure Coverage Ratio and pure Earnings Power with its exposure to Asia, it still looks interesting to him.


Price: $22.010
Subject: GLOBAL EQUITIES & DIVIDEND PAYING STOCKS
Bias: OPTIMISTIC
Owned: Yes
2015-02-24 BUY on WEAKNESS Magna Int'l. (A)
MG-T
Barry Schwartz

This auto parts giant depends on growing demand for cars, a better economy and low interest rates. He believes the next 3-5 years are going to be very much like the previous 3-5 years, which means a pretty normalized level for car sales. There are better car registrations in Europe now, so that is a good sign. US economy is up and car sales have been very strong. This company supplies auto parts to everybody. Valuation is reasonable. He would buy this on pullbacks.


Price: $127.680
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: Yes
2015-02-24 TOP PICK Morguard Corporation
MRC-T
Barry Schwartz

Has fallen a little recently, and he doesn’t know why because there is enormous value. If you look at all the parts that it has and add it up, it is worth over $200 a share. Thinks the market is missing what is going on with the company. It has recently diversified into investment management, and he thinks there is potential for this to follow the Brookfield Asset Management model, which is to drop-down more assets into the publicly listed REITs and maybe at some point start an investment management publicly traded company and collect the fees as it goes up higher.. Yield of 0.41%.


Price: $150.000
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: Yes
2015-02-24 COMMENT Metro Inc (A)
MRU-T
Barry Schwartz

These types of names have gotten to frothy levels, but on an overall basis, they are not super expensive. They still trade at a below market multiple. There is still growing competition with a lot of ethnic grocery chains popping up. Market share is shrinking for these guys, but they are wonderful operators.


Price: $35.990
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: No
2015-02-24 DON'T BUY Micron Technology
MU-Q
Prakash Hariharan

Stock got hit today because word came out that Samsung, not this company, will do most of the DRAM work for Apple. It looks like a massive deal that Apple has put together. Given the value and the run up in the company, he expects the impact will be felt. He would be cautious right now.


Price: $30.770
Subject: GLOBAL EQUITIES & DIVIDEND PAYING STOCKS
Bias: OPTIMISTIC
Owned: Unknown
2015-02-24 PAST TOP PICK National Bank of Canada
NA-T
Barry Schwartz

(A Top Pick Feb 5/2014. Up 14.86%.) This has held up well. Everybody is concerned about the headlines and the bank exposure to oil, but this is all reflected in the price. Trading at only 9X earnings and getting a 4% dividend.


Price: $46.900
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH
Owned: Yes
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