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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
2015-01-27 N/A A Comment -- General Comments From an Expert
A Commentary
Joey Mack

Why is there such a large market for low yielding bonds of 1% or less? The main answer is liquidity. In GICs, you are locking in your money. What if you need your money in 6 months time?


Price: $0.020
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: _N/A
2015-01-27 N/A A Comment -- General Comments From an Expert
A Commentary
Joey Mack

Interest Rates. The drop of interest rates by the Bank of Canada was a complete surprise. Feels it was the right move. With the situation on real estate in Alberta and the job losses, the move was prudent to prime the pump a little bit. It was a little insurance to help release a little more growth. Expects there will be at least one more cut, if not 2, given the way the market is moving right now. We had a pretty big miss on inflation numbers on Friday when that number started to tick down, Bank of Canada’s primary responsibility is maintaining inflation in the 1%-3% range. Thinks employment numbers in January will not be good.


Price: $0.020
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: _N/A
2015-01-27 N/A A Comment -- General Comments From an Expert
A Commentary
Joey Mack

Bonds. Global government bond yields are at, or near record lows. However, you don’t want to not be in this market now, because when everything else falls apart, this is the market that is going to perform. From a diversification standpoint and your overall portfolio, you definitely want to have some government fixed income and some long-term bonds to balance out the rest of your returns. It has really been a capital appreciation game for the last several years, and he thinks this can continue. In the long run, he thinks the bond market will beat cash. Compared to Europe and Japan, we can still move quite a bit lower, and still generate some pretty good returns for your portfolio. He is more inclined towards corporate and provincial.


Price: $0.020
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: _N/A
2015-01-27 N/A A Comment -- General Comments From an Expert
A Commentary
Joey Mack

What do “D+18” and “FF” mean in corporate bonds? FF is a “Fixed Floater”, which means you have a fixed coupon for the 1st period, after which you have a floating coupon. A pretty complex security, so this is one where you want to talk to your advisor to make sure you know what you are getting into. In Canada the “Fixed Floater” typically gets called. In Europe and America it is not so much the case. Those Fixed Floaters are subordinate bonds of the financial companies, not senior credits. The D+18 means the issuer can Call that bond at any time. They take the then Canada yield at 18 basis points to generate a new price. Typically the 18 basis points is well below what the bond was issued at. This rarely, rarely happens.


Price: $0.020
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: _N/A
2015-01-27 N/A A Comment -- General Comments From an Expert
A Commentary
Joey Mack

3-12 month effects from the recent Bank of Canada rate cut and the European Quantitative Easing on Canadian markets? In his opinion, a lot of the rally in the equity markets has been driven by central bank policies. They have inflated asset prices, and equity markets are one component of that. The European move probably makes Canada look more attractive as a place to invest in. However, Canada is cutting rates because they see sliding growth, which is generally not good for corporate earnings or equities. He doesn’t think rate cuts are going to help drive the TSE further.


Price: $0.020
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: _N/A
2015-01-27 BUY A Comment -- General Comments From an Expert
A Commentary
Joey Mack

Ontario government bonds? This is probably the credit to Buy right now when you look at what is available. BC, Alberta and Saskatchewan trade at well below what Ontario does. Ontario and Manitoba are the ones that you want to look at right now.


Price: $0.020
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: Unknown
2015-01-27 N/A A Comment -- General Comments From an Expert
A Commentary
Joey Mack

Are Strip Bonds a viable investment option? Canada has one of the most well-developed strip bond markets in the world right now. Effectively you are going from an interest bearing instrument to a compounding instrument. For example, you are buying $100 that comes due in 2025, and today you only pay $.70 on the dollar for that. It’s a great way to lock in a rate of return and a great way to compound your interest in a tax-exempt account. You don’t want to do this in a taxable account as even though you are not receiving any interest, you have to pay tax on it every year.


Price: $0.020
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: _N/A
2015-01-27 PAST TOP PICK A Comment -- General Comments From an Expert
A Commentary
Joey Mack

(A Top Pick Feb 24/14. Up 13.17%.) Ville de Montreal 3.5% Sep 1, 2023. This one outstripped what the overall market did. This still looks relatively cheap compared to provincials.


Price: $0.020
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: Yes
2015-01-27 BUY A Comment -- General Comments From an Expert
A Commentary
Joey Mack

Rate reset preferreds? The preferred share market is very cheap right now. They really haven’t followed the rally in bonds at all. These are perpetual securities. As much as they have lower interest rates (because a dividend does reset every 5 years), it comes along with some Call risks and a lot of credit risks, because it could remain outstanding forever. They are a good investment, and up to 25% of your fixed income portfolio could be in these. You want to hold them in your taxable portion because of the advantages of the dividend tax credit. Be selective and stay with investment-grade of P2 or better.


Price: $0.020
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: Unknown
2015-01-27 N/A A Comment -- General Comments From an Expert
A Commentary
Mike S. Newton, CIM FCSI

Markets. People were hoping they could finish 2014 with some great holdings and some great returns that they had had for the whole year. The minute the calendar changed, there was a big repositioning amongst a lot of money managers, and this is having a lot of repercussions now. If you look back 30 years at the Canadian market, there were 3 major eras. 1.) There was the whole restock piling of China in the last 7 years and we outperformed the S&P 500 for some period of time. 2.) There was the whole restocking in the 80s as well as some of the postwar periods as well. The commodity cycle was starting to show a lot of weakness about 3 years ago. 3.) This then started showing up in stock prices and in oil, probably in earnest about a year ago. We are now at a point where if oil can consolidate here and give us some breathing room for a little while, we might see a bottoming process here. With the extra drop-down in the Cdn$ after the bank announcement, we are getting an equilibrium here where the question is, do you want to buy a beaten up Canadian infrastructure stock or do you want to convert the currency, hope for some more downside in the Cdn$ and maybe pick up a US bank or a US growth name. This makes it even more confusing for portfolio managers and investors.


Price: $0.020
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: _N/A
2015-01-27 N/A A Comment -- General Comments From an Expert
A Commentary
Mike S. Newton, CIM FCSI

Should I purchase US stocks in US$ or Cdn dollars? He would prefer the US market and a majority of the US names over the Canadian names. Staying in US$ and the US market is still preferable. However, the marginal benefit for the average investor is getting a little long in the tooth.


Price: $0.020
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: _N/A
2015-01-27 BUY Apple
AAPL-Q
Mike S. Newton, CIM FCSI

Half the people think the iWatch is going to be a flop and the other half thinks it is going to be one of those sneaky hits that people just can’t live without. He thinks the stock will trade up because 1) most of the analysts are behind the ball on this and they’ll all raise their targets next week, and he thinks it trades up to $120 in the 1st quarter. The iWatch is coming out in early April, later than everybody expected. A very defensive name to him.


Price: $109.140
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Yes
2015-01-27 PAST TOP PICK Alimentation Couche-Tard (A)
ATD.A-T
Joey Mack

(A Top Pick Feb 24/14. Up 9.48%.) Nov 1, 2019, 3.19%. At that time, he was a little nervous about rates rising which is why he went for the 5 years. Also, on a spread basis, he thought it looked pretty attractive.


Price: $47.770
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: Yes
2015-01-27 PAST TOP PICK Alimentation Couche-Tard (B)
ATD.B-T
Mike S. Newton, CIM FCSI

(A Top Pick Feb 6/14. Up 75.43%.) The Pantry acquisition made a lot of sense. It is amazing to see a Canadian company that is so well regarded globally. He still buys this when new money comes in to his accounts. Not too late to get into it.


Price: $47.600
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Yes
2015-01-27 COMMENT American Express
AXP-N
Mike S. Newton, CIM FCSI

This is not growing at the same massive rate that you are seeing with Visa (V-N) and MasterCard (MA-N). The issue is that they want to keep their service level very high and they want to cater to the elite high end customer, so they really have to walk a fine balance between cutting costs. Their mobile initiatives are excellent. They are also doing Optblue, going after the small merchants, which could be very large. Valuation is pretty attractive versus its 2 rivals. Owning all 3 would not be a bad play either.


Price: $82.400
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Yes
2015-01-27 PAST TOP PICK Boeing
BA-N
Mike S. Newton, CIM FCSI

(A Top Pick Feb 6/14. Up 10.54%.) They capitalized a lot of the costs in building the 787’s, and now they are delivering them. The backlog goes out years. The cash flow will be astounding. They are going to have to do something with that cash and he imagines that it will be returned to the shareholders through buybacks or an increase in the dividends. This is an absolutely phenomenal core holding to have.


Price: $132.480
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Yes
2015-01-27 DON'T BUY Bombardier Inc (B)
BBD.B-T
Mike S. Newton, CIM FCSI

This has been really frustrating for a lot of Canadian investors. They have just come up with a pretty major announcement on shelving their project and laying off people. Wait until it starts to turn up before thinking about buying.


Price: $2.790
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: No
2015-01-27 DON'T BUY Bombardier Inc
BBD.PR.C-T
Joey Mack

What are the chances of the dividend being cut? They are cumulative, so does this is help the situation? Because they are preferred, the company cannot just cut dividends. These shares have to be paid 1st and then the common shares afterwards. The fact that they are accumulative is also positive. They don’t have to pay you a dividend in a quarter, but if they don’t they still owe you the money and it accumulates over time. The risk is what if this company defaults, which could very well happen with this company? It is currently well into junk territory.


Price: $17.270
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: No
2015-01-27 BUY Blackrock Inc.
BLK-N
Mike S. Newton, CIM FCSI

Doesn’t follow this closely, but would be absolutely happy to continue holding if he did own it. He continues to like their iShares ownership franchise. He wouldn’t be afraid to pick it up here and hold for a while.


Price: $351.480
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: No
2015-01-27 TOP PICK Chicago Bridge & Iron Co.
CBI-N
Mike S. Newton, CIM FCSI

He gives this with a strong advisory to keep your position very small as an initial position. Shares sold off 55% since its highs. Most of the Street is readjusting down on it. He thinks it has been discounted down to a much more onerous scenario than what might play out. Most of their business is from the downstream liquefied gas. The riskier part is not a big a part of their business. Yield of .72%. Only take a 1% position in this and make sure you have a stop in it.


Price: $39.000
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Yes
2015-01-27 COMMENT Cineplex Inc
CGX-T
Mike S. Newton, CIM FCSI

Very well-managed. They are doing a lot of initiatives in the VIP theatres, a lot of things with their Scene card, loyalty programs. Recently announced the new Wreckroom concept. They are going to succeed.


Price: $45.610
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Unknown
2015-01-27 HOLD Canadian National R.R.
CNR-T
Mike S. Newton, CIM FCSI

This is still his preferred rail name. If you pay too much attention to the research, it will tell you it is overvalued and you get nervous. He has just kind of put this thing away, and his Stop will tell him when he is getting into the Yellow zone.


Price: $85.160
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Yes
2015-01-27 COMMENT Constellation Software Inc.
CSU-T
Mike S. Newton, CIM FCSI

This is a growth by acquisition. There is going to come a point where there is compression in the earnings, but the whole sector is not experiencing this right now. The whole sector’s in a bull market and it is going to stay there.


Price: $365.630
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Yes
2015-01-27 HOLD Fairfax Financial
FFH-T
Joey Mack

2021 bond paying 6.4% per annum. Fairfax is one of those unique credits in the bond market. It is BBB, so it is still an investment great company. This is a great one to look at. It has had a pretty good run, but offers a pretty decent little spread over Canada bonds right now.


Price: $664.090
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: Unknown
2015-01-27 COMMENT iShares Cdn Financial Monthly Income ETF
FIE-T
Joey Mack

These iShares basically take all the dividends, repayments, etc., so the yields can get quite high. Pretty much a flow through. This gives you all of the big banks and the big insurers in Canada along with bonds and preferred shares. It is kind of a funny blend and not one he would recommend.


Price: $7.040
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: No
2015-01-27 DON'T BUY CurrencyShare Swiss Franc
FXF-N
Mike S. Newton, CIM FCSI

There is a school of thought that the Swiss are being brutally honest and getting ahead of the game by un-pegging the franc from the euro. This whole central banking coordination is getting very long in the tooth and getting very fragile. Why would you want to bother playing something that has some of the moving parts that are completely out of your control? He would just want to avoid this space.


Price: $108.260
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: No
2015-01-27 TOP PICK First Asset MorniingStar Canada Value
FXM.A-T
Mike S. Newton, CIM FCSI

2 things are facing the average investor. Do want to take that marginal dollar and convert it into US to buy what he thinks is still a very dynamic market. This ETF is based on the MorningStar CPM system, which is well-known with the Bay Street crowd. It is a quant series of factors that looks for valuation and analysts’ upgrades, and narrows it down to 30 stocks. It is 7% in energy where the TSX is 22%.


Price: $14.320
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Yes
2015-01-27 COMMENT CGI Group (A)
GIB.A-T
Mike S. Newton, CIM FCSI

Doing very well and executing in all areas. A major benefit to them is there international business. Only around 20% of their revenue is from Canada, so you are getting a really good clip on the currency. They continue to have a very big business relationship with Bell Canada (BCE-T).


Price: $46.920
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: No
2015-01-27 COMMENT Manulife Financial
MFC-T
Mike S. Newton, CIM FCSI

This is under a lot of pressure. The interest rate scenario is obviously not positive for insurance companies. The CEO wants to get the company up to $4 billion in core revenue, and right now they are at about $3 billion. They are going to need a lot of things to go right in order to get the last billion dollars squeezed out. He is right on the edge about being nervous in owning this name. 50% of their revenues are coming in from abroad including the US and Asia. They need a better market and they need rates to go up for them to do much better from here.


Price: $20.440
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Yes
2015-01-27 COMMENT Qualcomm
QCOM-Q
Mike S. Newton, CIM FCSI

He doesn’t like to own a name where there are all kinds of exogenous factors that he can’t control. When he heard that China was taking this company to task, it looked like it was going to be a bit of a question mark for a while. Also, it hadn’t moved for quite a while. The most recent issue is that Samsung is not going to use their chipset, but Apple is. Because of this, there will be a tug-of-war.


Price: $71.770
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: No
2015-01-27 TOP PICK Rona Inc
RON-T
Joey Mack

5.4% bond maturing Oct 20/16. (He is biased towards the short term because the market still feels fairly expensive. Corporate credit still offers pretty good value.) This is a little under 2 years and yielding over 3% while Canada bonds offer 5%, which is a huge yield pick up. However, it is not an investment great company. They have had some pretty good numbers as of late. He is pretty confident they will be able to refinance fairly easy come 2016.


Price: $12.590
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: Yes
2015-01-27 TOP PICK Russel Metals
RUS-T
Joey Mack

6% bond maturing April 19/22. (He is biased towards the short term because the market still feels fairly expensive. Corporate credit still offers pretty good value.) They have their challenges right now. They are a metals business, so a big part supports oil and gas, but on the other hand there are a lot of maintenance products they provide. Pretty low levered and has a pretty strong balance sheet.


Price: $24.330
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: Yes
2015-01-27 PAST TOP PICK Sherritt International Corp.
S-T
Joey Mack

(A Top Pick Feb 24/14. Up 2.9%.) Sept 24, 2020, 7.5%. He still likes this. Did a great job of terming out their debt right before the meltdown.


Price: $2.140
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: Yes
2015-01-27 PAST TOP PICK Starbucks
SBUX-Q
Mike S. Newton, CIM FCSI

(A Top Pick Feb 6/14. Up 23.46%.) When he chose this, it had seemed like it had been unloved for a little while and had moved sideways. They continue to do a fantastic job and they are seeing a seismic shift in their business to mobile and 7 million new loyalty cardholders that they can convert and monetize and work closely with. Global expansion is huge. Recent earnings that came out were phenomenal.


Price: $88.340
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Yes
2015-01-27 DON'T BUY Transalta Corp
TA-T
Joey Mack

2030 strip bond at 6.2%? With this, you have the coupon payments and you have the bond. Transalta is BB rated and could easily get downgraded to junk in the next couple of years. A junk company could potentially default, and if they do, those interest payments disappear. He would not recommend this company.


Price: $11.090
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: Unknown
2015-01-27 HOLD Verizon Communications
VZ-N
Mike S. Newton, CIM FCSI

This whole space is a hyper competitive scenario. The whole idea of the post-paid, prepaid, contracts, subsidizing the Apple phones is a very intense of business. Cash flow on the top line is phenomenal. Looks pretty cheap versus their competition.


Price: $46.350
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Yes
2015-01-27 TOP PICK Westjet Airlines
WJA-T
Joey Mack

3.287 % bond maturing July 23/19. (He is biased towards the short term because the market still feels fairly expensive. Corporate credit still offers pretty good value.) This is basically a four-year piece of paper yielding 2.5%, but this is an investment great company. Airlines benefit from lower oil prices, which is another reason he likes this one.


Price: $30.830
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: Yes
2015-01-27 TOP PICK Wynne Resorts Ltd.
WYNN-Q
Mike S. Newton, CIM FCSI

70% of their revenue is from Macau. Macau, for the 1st time, saw a pretty dramatic drop in its gaming metrics, and the shares took a hit. Macau does about $44 billion in revenue. It is a 5 hour flight away from 2 billion people. There is a lot of regulatory scrutiny around the name. Gaming revenues started turning round in the 2nd half and he decided to start accumulating this because of valuation and a 4.5% yield. They have a history of doling out special dividends. Dividend of 3.87%.


Price: $155.040
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Yes
2015-01-27 HOLD Exxon Mobil
XOM-N
Mike S. Newton, CIM FCSI

The only oil name that he is ever owned. With all the carnage out there, this name has never breached any kind of Stop. The move down below $50 in oil is very destructive for a lot of different companies. There will be companies that go bankrupt and that get shut in. You end up with the survival of the fittest at the end, and this one will be one of the survivors. This all leads to higher oil prices in the future. It is going to take a while and you are going to have to be very patient.


Price: $90.950
Subject: NORTH AMERICAN - LARGE & ETFs
Bias: CAUTIOUS
Owned: Yes
2015-01-27 COMMENT BMO HighYield Corp Bond US Hedge to CAD ETF
ZHY-T
Joey Mack

Like all high-yield markets, this is not about price appreciation, which is why this has probably traded sideways. However, while it has been trading sideways, it has been paying you about a 6% yield. This is an income strategy. 6% is a pretty good return compared to what the bond market has done in the last 5 years.


Price: $15.300
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: Unknown
2015-01-27 COMMENT BMO Ultra Short-Term Bond
ZST-T
Joey Mack

This has lagged, because basically you are holding T-bills and equal-end type instruments. When you’re starting at 1%, there is not much room for price appreciation. This is more of a cash alternative as opposed to a bond alternative.


Price: $56.020
Subject: FIXED INCOME
Bias: UNKNOWN
Owned: Unknown
2015-01-26 N/A A Comment -- General Comments From an Expert
A Commentary
Don Vialoux

Markets.  We are seeing the Euro recovering after today’s Greek announcement.  The market anticipated it.  The focus now is on QE.  Equities in Europe should move higher.  It is the right time to put your money into emerging markets.  They are outperforming.  EFA-N covers the rest of the world other than North America.  The seasonality is from Feb. to May of each year.  This year we are seeing international markets outperform North American markets.  The strong US dollar is causing companies to give negative guidance, but after January things look very good.


Price: $0.020
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: _N/A
2015-01-26 BUY on WEAKNESS A Comment -- General Comments From an Expert
A Commentary
Don Vialoux

Gold.  Strong from July to October and mid December until the beginning of March.  XGD-T has already had a run as it went into the period of seasonal strength.  It is pulling back now and providing an opportunity to buy on weakness.  HSBC downgraded Canadian gold stocks today so wait until they come down and then buy on weakness.


Price: $0.020
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: Unknown
2015-01-26 N/A A Comment -- General Comments From an Expert
A Commentary
Patrick Horan

Markets.  Stocks are still the best game in town.  Stocks that are geared to a growing economy are the right place to be.  The safety trade is way overbought.  Telcos, grocery stores, utilities, pipelines have all gotten overbought.  There is a lot of momentum money in these stocks and when they get out they get out indiscriminately.  We have seen a lot of fear based investing.  The next step is when people turn away from high multiples. 


Price: $0.020
Subject: NORTH AMERICAN
Bias: BULLISH
Owned: _N/A
2015-01-26 N/A A Comment -- General Comments From an Expert
A Commentary
Don Vialoux

Educational Segment.  He is at the largest ETF conference in the world.  Every ETF provider in the world is there describing their new products.  Greece is a hot topic.  He showed a chart of 10 year Greek bond yields. Yields have really come down.  The question of Greece leaving the Euro could lead to a rocky road in the markets.  What is happening in Greece is having an impact on your portfolio and you have to know how to handle it.  They are projecting the global ETF market will double to over 5 trillion dollars next year.  If Greece defaults on its debt it will have an effect even on North American markets.


Price: $0.020
Subject: NORTH AMERICAN & ETFs
Bias: UNKNOWN
Owned: _N/A
2015-01-26 WAIT A Comment -- General Comments From an Expert
A Commentary
Patrick Horan

Banks.  He is not that positive on the Canadian banks because of oil.  By spring we should know where the price of oil will be.  You want to look at banks in the fall.


Price: $0.020
Subject: NORTH AMERICAN
Bias: BULLISH
Owned: Unknown
2015-01-26 N/A A Comment -- General Comments From an Expert
A Commentary
Patrick Horan

The baby boomers are shifting out of fixed income and into dividend stocks.  They are being forced to.  Some rates in Germany are negative. In Japan it takes 10 years to get a 1% return in fixed income.


Price: $0.020
Subject: NORTH AMERICAN
Bias: BULLISH
Owned: Unknown
2015-01-26 N/A A Comment -- General Comments From an Expert
A Commentary
David Burrows

Markets. We are in a market of haves and have-nots. Capital is constantly being reallocated. Canada had a great cycle on the back of China’s growth and emerging markets, between 2000 and 2012. Since 2012, capital is slowly moving away from commodities, away from emerging markets and back towards consumer led developed economies. Canada still has some big pieces that are tied to that other world. We just have the wrong sectors. He has very close to a 0% Canadian bank weighting in his portfolios. In the US, he is more interested in the regional banks. In Canada, 70% of the market is made up of materials, energy and banks. That makes it tough in the Canadian market. Fortunately there are some great opportunities in the US, and there are some sectors that really benefit from what is going on. This is a market where you pick your spots. There are some great opportunities, and there is some stuff you have to avoid.


Price: $0.020
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH on US MARKET
Owned: _N/A
2015-01-26 WEAK BUY A Comment -- General Comments From an Expert
A Commentary
David Burrows

Gold. Having been out of gold for about 18 months, he recently started back in with some “very partial” positions in some of the equities. The market has been on more of a defensive footing over the last few weeks. If the gold equities start to outperform the metal, that is something that may point to a little bit more strength coming in the future. He does have some concerns about gold, so he is looking at this as a shorter term trade to begin with. He prefers Franco-Nevada (FNV-T), which is a royalty company. Their price held in much better than the group and they have a very defensible business model. The key risk for gold right now is that it is a defensive play, and things in the US are getting better.


Price: $0.020
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH on US MARKET
Owned: Yes
2015-01-26 N/A A Comment -- General Comments From an Expert
A Commentary
David Burrows

Canadian healthcare? Healthcare has probably been one of his 3 Top Picks for 2 years now. It is the biggest industry in the US and highly domestically focused. This was a sector that has been universally underperformed in portfolios. He would prefer a US name such as Actavis (ACT-N), a pharmaceutical company that has roughly 50% of their revenue coming from generic drugs and 50% from branded drugs. A wonderful management team that has been very efficient at creating value. Recently purchased Allergan (AGN-N), which gives them a great opportunity to integrate that business and to generate profitability. Trades at a valuation similar to a generic company, but does have branded drugs which probably make it a little more valuable.


Price: $0.020
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH on US MARKET
Owned: _N/A
2015-01-26 DON'T BUY AGF Management (B)
AGF.B-T
Patrick Horan

They had a dividend cut.  It is very interesting here.  Down another 75 cents would be worth looking.


Price: $7.130
Subject: NORTH AMERICAN
Bias: BULLISH
Owned: Unknown
2015-01-26 TOP PICK American Tower
AMT-N
David Burrows

This is a REIT that owns cell towers. About 65% of their revenue comes from North America, so it is fairly domestically focused, although they do have Latin America, India and Germany. It costs them almost nothing to add new capacity. There is very little in the way of capital investment in this business. You can continue to see very strong dividend growth. Yield of 1.49%.


Price: $101.760
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH on US MARKET
Owned: Yes
2015-01-26 DON'T BUY Amazon.com
AMZN-Q
David Burrows

Consumer discretionary is a great sector. He has 25% of his equity portfolios in consumer related companies.(This is not one of them.) There are questions around this company’s ability to ultimately be profitable. There are concerns that they continue to have investments in things that really don’t generate a positive rate of return.


Price: $309.660
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH on US MARKET
Owned: No
2015-01-26 HOLD Alimentation Couche-Tard (B)
ATD.B-T
Patrick Horan

It is on the expensive side.  They have European exposure, but as oil prices come down, gas prices also go down but typically people have more money to go in the store to buy things which is where their margin is.  This is a pretty good time for these guys.  Expects margins to be maintained.  He would wait for 10% more and then exit.  The multiples are pretty high.


Price: $46.950
Subject: NORTH AMERICAN
Bias: BULLISH
Owned: Yes
2015-01-26 SELL American Express
AXP-N
Patrick Horan

There is multiple compression coming into their space.  No one knows how this shakes out.  Step aside and wait for the dust to settle.  The other two are fine to invest in.


Price: $83.300
Subject: NORTH AMERICAN
Bias: BULLISH
Owned: Unknown
2015-01-26 BUY Alibaba Group Holding
BABA-N
Patrick Horan

It is on the expensive side, although it has a lot of growth to it and it would be the reasonable one of the group.  He is bullish on technology and thinks this one will work out just fine.  It just wouldn’t be his favourite stock.  China’s economy would be good for it because they are moving toward a consumer economy.  He thinks you will do fine in it.


Price: $103.990
Subject: NORTH AMERICAN
Bias: BULLISH
Owned: No
2015-01-26 COMMENT Bank of America
BAC-N
David Burrows

There were a lot of people that had a view that interest rates would start to work their way higher. With what is going on in Europe and Japan, there are $7 trillion of fixed income assets globally yielding a negative return. There is tremendous pressure on long-term interest rates, which in general is not good for big money centred banks. Because of this, this one and other similar ones have been under pressure. If you believe that rates may stay lower longer, you would be better off focusing on a regional bank that is less dependent on long-term interest rates. He sold his holdings in this bank. In the financials, he prefers REITs and asset managers that will probably benefit from asset growth in a stronger equity market. Wells Fargo (WFC-N) is attractive and is a direct play on US housing.


Price: $15.850
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH on US MARKET
Owned: No
2015-01-26 BUY Brookfield Asset Management (A)
BAM.A-T
David Burrows

This is the largest position in his portfolios. A collection of very strong cash flow generating assets. We are in a world where return is hard to come by. They are getting great returns in their underlying units, and there is great demand for distribution paying entities. There is a very strong demand for management with hard assets. This is a great, long term hold.


Price: $64.910
Subject: NORTH AMERICAN - LARGE
Bias: BULLISH on US MARKET
Owned: Yes
2015-01-26 DON'T BUY BCE Inc.
BCE-T
Patrick Horan

Management has executed phenomenally here.  Their valuation is not as outrageous as some other areas like utilities and pipes.  He does not see a lot of return left in it.  You are better off with his Top Picks.


Price: $57.870
Subject: NORTH AMERICAN
Bias: BULLISH
Owned: Unknown
2015-01-26 DON'T BUY CitiGroup
C-N
Patrick Horan

This Is his least favourite of the US banks.  They really didn’t do the reform coming out of 2008.  They were slow to do it.  They hung onto legacy businesses.  They have a lot of international exposure and this is the thing that he is cautious on.  He likes American banks in general.


Price: $48.890
Subject: NORTH AMERICAN
Bias: BULLISH
Owned: Unknown
Showing 1 to 60 of 136,433 entries
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