Stockchase Daily News RSS The Days Comments by Experts http://www.stockchase.com/ en A Comment -- General Comments From an Expert <p><span style="color: red; font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"><strong>Markets. </strong></span><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Thinks the markets will go higher. Valuations are looking a little stretched, but there is no other game in town. Commodities don&rsquo;t look attractive, bonds don&rsquo;t look attractive, real estate has been good but he doesn&rsquo;t see that going much higher. We are in a multi-decade bull market movement in equities. It has gone on for 5 or 6 years now, but what kills a bull market are recessions, and he doesn&rsquo;t see this, at least not south of the border. The likelihood is that we are marching towards an eventual Fed tightening. Whether it is in the 1<sup>st</sup> half or the 2<sup>nd</sup> half of next year is hard to predict, but he tends to be in the 1<sup>st</sup> half. Once we see that happening, it will be clear that the rally in bonds is over, once and for all. Money that is sitting in bonds is eventually going to have to find a home, and he thinks that is going to be in equities. Equities in this low rate low inflation environment still offer good value, even at this level. You have to pick your best horse, and he thinks that is in US equities, simply because the US has the best fundamentals anywhere in the globe. Because growth is strong and it is rebounding, you want to be in cyclicals i.e. 1) industrials, 2) technology and 3) energy-later cycle, but keep in mind that energy will be quite weak in its financials. And then energy and materials much later.</span></p> http://www.stockchase.com/opinions/view/141122 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141122 A Comment -- General Comments From an Expert <p><span style="color: red; font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"><strong>Energy.</strong></span><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"> OPEC is debating whether to reduce the quota, which is roughly 30 million barrels a day. It really comes down to Saudi Arabia and what they want to do. Saudi Arabia and Iran do not exactly see eye to eye. Nor does Iran and Venezuela, etc., etc. There are huge agendas which has a lot to do with 1) religion, and 2) who is facing sanctions. All of this is weighing on energy, so there is no consensus. However, the history of OPEC has been one of making a statement and then cheating amongst themselves. Thinks oil will remain under pressure, so for oil investors, that is bad news.</span></p> http://www.stockchase.com/opinions/view/141123 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141123 Bombardier Inc (B) <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Longer term, more than a year, it has a very attractive future. Fundamentals are quite good and the stock is inexpensive on a multiple basis. The issue short term, less than a year, is essentially a weaker future. Spending a lot of money, so are incurring a lot of capital expenditure to develop the C series. The ramp to development of the C series order book is not all that clear. There have been a lot of issues with the C series. It will probably be a year before he is ready to commit money.</span></p> http://www.stockchase.com/opinions/view/141124 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141124 Westjet Airlines <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Chairman has trimmed his personal stake by over $40 million, but still owns over 1% of the company. If this was because of tax planning, which it often is, that is a fair enough reason. If you see more than one insider, particularly the CFO, that would be a worry. This doesn&rsquo;t change his opinion. In the Canadian Airlines, you are seeing an expansion. This one has no union and strong growth ahead of it. Low cost base because of its model. Thinks this continues to grow.</span></p> http://www.stockchase.com/opinions/view/141125 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141125 Baytex Energy Corp <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Likes that this is heavy oil. It has been a great stock looking out over the past 10 years or so, but it has been very disappointing. Sold most of his holdings, because it just wasn&rsquo;t working. The issue for all oil companies is oil and oil prices. Oil is $76 and he expects we will touch $60 before we touch $80 again. The term structure and the futures are telling you that, and also he doesn&rsquo;t see strong global growth. (Absent the US and to a lesser extent Canada.) Doesn&rsquo;t see the dividend being an issue at present.</span></p> http://www.stockchase.com/opinions/view/141126 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141126 Hudbay Minerals Inc. <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Sees this being flat for 1-1.5 years. Doesn&rsquo;t see any growth. One of your more defensive names because of its cash position, but it is a muddled mixture of zinc, a little bit of copper and gold now. Well run company and a good company, but truthfully the sector that looks the best is copper. He would suggest you buy Lundin (LUN-T), followed by Teck resources (TCK.B-T) and forget about this one.</span></p> http://www.stockchase.com/opinions/view/141127 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141127 Ensign Resource Service Group <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Overall, this name is fine, but is very sceptical about land drilling in Canada given what has happened. We are still infrastructurally charged. Gas lines certainly seem to be something that is happening, but oil pipelines are more problematic. Drilling in Canada has definitely slowed over the last 2-3 years. If you want to &ldquo;trade&rdquo; the name, seeing that there is some seasonality in gas, that would be fine, but he wouldn&rsquo;t make it as a long-term hold.</span></p> http://www.stockchase.com/opinions/view/141128 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141128 Niko Resources <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">If you want to be on one side or the other, then you should Short it and hope to buy it back for less. Doesn&rsquo;t see any catalyst for growth. This company has had a lot of problems.</span></p> http://www.stockchase.com/opinions/view/141129 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141129 Northland Power Inc <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Great company, but he thinks we are going into a rising interest rate environment. This will get slaughtered along with some of the other yield names. Thinks you are looking at 10%-15% downside. You&rsquo;re okay for now, but 6 months to year from now, he would be exiting this name.</span></p> http://www.stockchase.com/opinions/view/141130 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141130 CitiGroup <p><span style="color: red; font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"><strong>(A Top Pick Nov 7/13. Up to 12.43%.)</strong></span><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"> Cheap. Trading at an 8.5X forward earnings multiple, versus the historical 55 year multiple of 15.5 times. Thinks they&rsquo;re going to get their capital plan finally approved in March, which will allow for quite a bit of that cash flow to come back in the form of a dividend.</span></p> http://www.stockchase.com/opinions/view/141131 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141131 Encana Corp <p><span style="color: red; font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"><strong>(A Top Pick Nov 7/13. Up 8.42%.)</strong></span><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"> Thinks the company has done a really good job. A much improved company. Have phenomenal assets. This is the name that should be on every investor&rsquo;s short list of energy names.</span></p> http://www.stockchase.com/opinions/view/141132 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141132 Toronto Dominion <p><span style="color: red; font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"><strong>(A Top Pick Nov 7/13. Up 22.96%.)</strong></span><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"> They have actually lagged in the US, in terms of loan growth. They&rsquo;re not quite getting the follow-through that he would have hoped. It represents the best exposure to the US of any Canadian bank.</span></p> http://www.stockchase.com/opinions/view/141133 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141133 WesternZagros Resources Ltd. <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Still has a positive view on this company, but realistically at this point, given all that is happening and its location, it is going to be a slow grind higher. Have stabilized some of the cash and immediate needs, but he doesn&rsquo;t see this as a home run but at the same time, he doesn&rsquo;t think you have to sell it as the worst is over.</span></p> http://www.stockchase.com/opinions/view/141134 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141134 Dow Chemical <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">This is looking a lot better. There is an activist involved, which is one that tends to get the results. The chemical industry in general is one that is ripe for activism. A very cyclical industry. They tend to do things just at the wrong time. In general there is a renaissance in the chemical industry, because of low gas prices and a resurgence of the US oil/gas industry. This is probably a good time to be in this.</span></p> http://www.stockchase.com/opinions/view/141135 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141135 Bonavista Energy Corp <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Thinks this is okay. Doesn&rsquo;t see a tremendous amount of catalysts for it. He is struggling to find names that will work for investors in the relatively near term, 5-6 months, given his bearish outlook for oil and gas. Fundamentally it is fine and doesn&rsquo;t see any major problems.</span></p> http://www.stockchase.com/opinions/view/141136 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141136 Trinidad Drilling Ltd <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Of the drilling companies, he feels this is one of the better ones. Has a newer fleet and has some geographic diversity. Overall he thinks it is a fine name, but drilling is considerably lower. This is a seasonal trade, so buy it and sell it a little bit later.</span></p> http://www.stockchase.com/opinions/view/141137 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141137 Paramount Resources <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">This is the name that just suffers from any obvious catalyst. Thinks it will go sideways. A decent name.</span></span></p> http://www.stockchase.com/opinions/view/141138 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141138 Connacher Oil and Gas <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">The principal problem is the debt and they are poorly capitalized. Also, price of oil has come under considerable pressure. They are developing long-lived assets, which mean there is really not much probability of bringing forward their cash flows into the here and now.</span></p> http://www.stockchase.com/opinions/view/141139 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141139 Surge Energy Inc <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">If you own, he would Sell and take your profit, or at least not Buy any more. This is a good story. They have grown through acquisition and the acquisition story has basically dried up out west, so there is not the same degree of options for management to buy. They have 24% production declines through their producing properties, which mean they have to figure out a way to grow production by 24% to remain flat on an annual basis. He doesn&rsquo;t see how they could make this happen.</span></p> http://www.stockchase.com/opinions/view/141140 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141140 Lake Shore Gold <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">A disaster waiting to happen. He sees this as a producer that is very challenged going forward. His overall view on gold is very bearish. Most gold companies start to run into trouble, certainly below $1200 an ounce, but around $1100, $1000 and $1050, you have real issues with virtually everyone. It has debt and really no growth, and gold is going the wrong way.</span></p> http://www.stockchase.com/opinions/view/141141 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141141 Twin Butte Energy <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">This is a &ldquo;steady Eddie&rdquo; player. Given that, he thinks it won&rsquo;t do anything. Dividend is safe and if you are buying it for the dividend, you could buy some. If it&rsquo;s for capital gain, he doesn&rsquo;t think you are going to get any.</span></p> http://www.stockchase.com/opinions/view/141142 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141142 Fortis Inc. <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Nothing wrong with this one, and has been a really good name for investors, because it has been defensive. However, we are in an era where you are going to see growth in the US, and to a lesser degree Canada, and the economy is coming out of 2008-2009 financial crisis in pretty good shape. As a result, he doesn&rsquo;t think you want to be in something that is very defensive. Utilities are the most defensive, because they are monopolies, regulated and have limited growth. A 1% move in Canada could reduce the price of the group, between 10 and 15%. He would be looking to take money from this.</span></p> http://www.stockchase.com/opinions/view/141143 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141143 Suncor Energy Inc <p><span style="color: red; font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"><strong>3 to 5 year hold?</strong></span><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"> He would see lots of growth over that length of time and it is a good idea to invest with that time horizon in mind. This company has long reserves and a lot of optionality in terms of its property as well as a lot of growth. With this long-term horizon, you can&rsquo;t go wrong.</span></p> http://www.stockchase.com/opinions/view/141144 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141144 Whole Foods Market Inc. <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Basically a Hold at best, but probably a Sell. It has had a series of disappointing guidance. There was a lot of worry about margins declining or continuing to decline because of competitive pressures. It was a great story, but right now the bloom is off the rose and he would be avoiding it.</span></p> http://www.stockchase.com/opinions/view/141145 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141145 Element Financial <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Equipment leasing. In a growing and underserved area of the market. He expects to see growth in this market. You can see earnings per share growing at roughly 80% per annum for the next year or so. This will benefit from an eventual recovery in spending on machinery and equipment. A &ldquo;screaming buy&rdquo; right now.</span></p> http://www.stockchase.com/opinions/view/141146 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141146 Apple <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Looking at technology, it has become a bifurcated market. Some of them are just getting smoked and some are struggling, and yet you see this one trading at a relatively low multiple. It really has the best ecosystem in technology. There are well over 50% margins on the iPhone. Don&rsquo;t know what their sales are yet officially, but there are rumours they are in the 60 million+ already. He thinks it is certainly worth north of $150 a share. Yield of 1.58%.</span></p> http://www.stockchase.com/opinions/view/141147 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141147 Newmont Mining (US) <p><span style="color: red; font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"><strong>*Short*</strong></span><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"> Hates gold companies and gold prices. We are in for another decade or more of disappointment. This is one of the few material names in the US, so it is widely held by generalists, but what it doesn&rsquo;t have going for it is growth. Has had no growth for years. Huge issues with debt at $6.8 billion. It needs to spend roughly $2.6 billion over the next year or so, just to maintain production. If the Swiss don&rsquo;t vote for gold to be backed by the central bank reserve, then gold will be under pressure and gold stocks will be very, very weak. Yield of 0.51%.</span></p> http://www.stockchase.com/opinions/view/141148 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141148 A Comment -- General Comments From an Expert <p><span style="color: red; font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;"><strong>Markets.&nbsp; </strong></span><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">For 18 months, his view has been that we are in a new secular bull market for stocks. Fullbacks are likely to be shallower and shorter lived than we have seen over the last many years. When you have a market that is both growing earnings and a slowly expanding multiple of earnings that investors are prepared to pay, it is a very durable market. For consumer led developed economies, very low inflation is a really great thing. This is because the consumer has a little more money to spend and balance sheets are getting better and there are some big sectors that are big winners from low energy prices and low inflation. This would include transportation and retail. In the US economy, 72% of the activity comes from the consumer. He came out of the move in October, well over 97% invested, so very few of his Stops got hit. The biggest reduction he had from a sector exposure, starting in July and into August, was largely leaving the energy sector. The money was moved more towards things that were more consumer concentric, healthcare centric, transportation centric or technology centric.</span></p> http://www.stockchase.com/opinions/view/141149 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141149 A Comment -- General Comments From an Expert <p><span style="color: #ff0000;">Markets</span>. For 18 months, his view has been that we are in a new secular bull market for stocks. Fullbacks are likely to be shallower and shorter lived than we have seen over the last many years. When you have a market that is both growing earnings and a slowly expanding multiple of earnings that investors are prepared to pay, it is a very durable market. For consumer led developed economies, very low inflation is a really great thing. This is because the consumer has a little more money to spend and balance sheets are getting better and there are some big sectors that are big winners from low energy prices and low inflation. This would include transportation and retail. In the US economy, 72% of the activity comes from the consumer. He came out of the move in October, well over 97% invested, so very few of his Stops got hit. The biggest reduction he had from a sector exposure, starting in July and into August, was largely leaving the energy sector. The money was moved more towards things that were more consumer concentric, healthcare centric, transportation centric or technology centric.</p> http://www.stockchase.com/opinions/view/141151 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141151 American Tower <p class="western">This has been a real success. They own cell towers globally, with about 67% in the US. A couple of years ago they converted into a REIT. This is like an apartment building where you just keep adding floors to it. As the service providers continue to add equipment as data use goes up, they just get more and more revenue. A great company. Thinks we will continue to see more dividend growth. They have a positive runway going forward. Earnings this year should be up 22% and 15%-16% after that. They plan to spend less money over the next couple of years, so will be able to grow their payout substantially and more rapidly.</p> http://www.stockchase.com/opinions/view/141152 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141152 Paramount Resources <p class="western">Stock started to fall well before the price of oil did. Energy is a tough neighbourhood to be in. &nbsp;</p> http://www.stockchase.com/opinions/view/141153 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141153 A Comment -- General Comments From an Expert <p class="western"><span style="color: #ff0000;"><strong>Energy. </strong></span>There is no indication that the weak pricing is about to abate. Has felt for the last 12-18 months, this is a sector where the tide is going out. Commodity prices are dependent on the last dollar of demand, and if production is growing more quickly than supply, then you have a problem. We are going through the greatest oil boom in the history of the US.</p> http://www.stockchase.com/opinions/view/141154 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141154 Trinidad Drilling Ltd <p class="western">Just announced they are going to buy 10% of their float. This is a speculation, and trying to pick bottoms is very difficult. Drillers and equipment companies are about the most cyclical in the energy value chain. There are lots of companies that have the financial data going in their favour, because they are acting as they should in a bull market. You are probably better off focusing in those groups.</p> http://www.stockchase.com/opinions/view/141155 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141155 Kimco Realty Corp. <p class="western">One of the few infrastructure companies in the US that is not a Master Limited Partnership, which has negative tax implications for Canadian investors. This is a way you can be invested in energy infrastructure. Behaving extremely well and is within a whisper of its all-time high. Reduced his exposure by about a 3<sup>rd</sup> because people psychologically could be less favourable because it is attached to energy. Has a little over 4% yield.</p> http://www.stockchase.com/opinions/view/141156 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141156 Cisco <p class="western">Corporations are full of cash and don&rsquo;t need to build capacity, but are looking for productivity. One place where they are spending is technology. Technology is expanding very steadily and is one of the best performing groups in the market. This company is not a high growth company like it once was. Have a very strong balance sheet with very steady cash flow growth, buying back shares and increasing their dividend. Expects technology will have a pretty strong market heading into year-end. This would not be his #1 choice. He would prefer Microsoft (MSFT-Q) or Intel (INTC-Q), but you won&rsquo;t get hurt here. <span style="color: #ff0000;"><strong>(See Top Picks.)</strong></span></p> http://www.stockchase.com/opinions/view/141157 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141157 Dow Chemical <p class="western">One of the big input costs for chemicals is natural gas, and prices have been very weak for natural gas. This company benefits when the economy is a little stronger. It concerns him the way chemical stocks sold off in October. He wouldn&rsquo;t want to see this dip below $50, so if you own, use that as a Stop. He would like to see it make a new high by trading through $55. Feels there may be better names. 3.2% dividend yield.</p> http://www.stockchase.com/opinions/view/141158 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141158 Norbord Inc. <p class="western">Any time you are getting a 10% dividend, you have to ask why. This company is not earning the dividend. This stock is not behaving at all. Forest stocks in general are behaving pretty well, so he would prefer to focus on lumber.</p> http://www.stockchase.com/opinions/view/141159 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141159 CI Financial Corp <p class="western"><span style="color: #ff0000;"><strong>(A Top Pick Nov 6/13. Up 3.76%.)</strong></span> He really likes the asset management business. If we are in a secular bull market for equities, the companies that have done a good job managing money are likely to see more dollars come in the door. This company has done a great job. Still likes.</p> http://www.stockchase.com/opinions/view/141160 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141160 Walt Disney <p class="western"><span style="color: #ff0000;"><strong>(A Top Pick Nov 6/13. Up 34.47%.)</strong></span> It is his view that the Cdn$ will continue to back off from the US$, so he has looked at a lot of US ideas. When the consumer has a little more money, the 1<sup>st</sup> thing they spend it on is travel and leisure, and this company plays into that theme. Their franchises in the movie business are exceedingly good.</p> http://www.stockchase.com/opinions/view/141161 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141161 Inter Pipeline <p class="western"><span style="color: #ff0000;"><strong>(A Top Pick Nov 6/13. Up 38.74%.)</strong></span> Thinks that the long-term story for energy infrastructure is intact. You are probably going to get 8%-10% dividend growth for the next 5 years. For this company, it is a necessary piece of infrastructure for the oil sands in Western Canada. It would take a sustained period of very low energy prices for them to curtail their investment. They have very long contracts.</p> http://www.stockchase.com/opinions/view/141162 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141162 Pembina Pipeline Corp <p class="western">This has recently been one of the weaker performers in the group. Because of this, he has reduced his position substantially. In the long run, this is a great industry, because they are long life assets, with long contracts and very little commodity exposure. In the short term they can be impacted psychologically. If you own, consider trimming this or selling it.</p> http://www.stockchase.com/opinions/view/141163 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141163 Amaya Gaming Group Inc. <p class="western">This is a company that people are buying for the future. Have about 200 different games they&rsquo;re selling online and are trying to work their way into the online gaming business through Poker Stars. Potentially an enormous market if they can capture 10% of it. This is a call on the likelihood of online gaming being legalized in various states. There are a lot of risks in that.</p> http://www.stockchase.com/opinions/view/141164 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141164 Brookfield Asset Management (A) <p class="western">A highly predictable company with wonderful underlying assets. Have lots of different types of assets that they manage. It is fee revenue that they generate. Have a great history of continuing to build assets. About 40% of their business is in the US, 20% in Canada and 20% in Australia. There is great visibility in the fee revenue they generate. Management has a great record of allocating capital. This could be a core position in almost any portfolio.</p> http://www.stockchase.com/opinions/view/141165 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141165 Bank of America <p class="western">This has gone through the mill in the last few years. The US banks did a great job in recapitalizing their balance sheets. Has worked its way through all its lawsuits and the US economy is steadily getting better. This bank is getting slowly and steadily better along with it. There is, and continues to be, outsized opportunity for dividend growth.</p> http://www.stockchase.com/opinions/view/141166 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141166 Keyera Corp <p class="western">Stocks pull back naturally, but what you want to avoid is them reversing direction. This one, over the last 4 years, had a very steady series of higher highs and higher lows. Has pulled back recently but the chart did not reverse lower. A great company in its space. There will be great dividend growth going forward.</p> http://www.stockchase.com/opinions/view/141167 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141167 CVS Health <p class="western"><span style="color: #ff0000;"><strong>Walgreen (WAG-N) or CVS Health (CVS-N)?</strong></span> If he had to pick one, it would be this one. It has been a very steady performer. Has nicely growing earnings, about 15% this year and 15% next year. Very highly focused on the consumer. Return on equity has gone from about 11% to about 15% over the last 2 years and is likely to continue to perform quite well.</p> http://www.stockchase.com/opinions/view/141168 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141168 Walgreen Co <p class="western"><span style="color: #ff0000;"><strong>Walgreen (WAG-N) or CVS Health (CVS-N)?</strong></span> If he had to pick one, it would be CVS.</p> http://www.stockchase.com/opinions/view/141169 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141169 Loblaw Companies Ltd <p class="western"><span style="color: #ff0000;"><strong>Loblaws (L-T) or Canadian Tire (CTC.A-T)? </strong></span>He likes retail. This is probably one of his biggest sector weights. He has more US exposure than Canadian. Thinks the best theme you can focus on is home improvement and Canadian Tire fits in there and would be the one that he would choose in a very short run.</p> http://www.stockchase.com/opinions/view/141170 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141170 Canadian Tire Corporation Ltd. (A) <p class="western"><span style="color: #ff0000;"><strong>Loblaws (L-T) or Canadian Tire (CTC.A-T)? </strong></span>He likes retail. This is probably one of his biggest sector weights. He has more US exposure than Canadian. Thinks the best theme you can focus on is home improvement and this company fits in there. This would be the one that he would choose in a very short run.</p> http://www.stockchase.com/opinions/view/141171 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141171 LyondellBasell Industries <p class="western">Chemical companies benefit from low natural gas prices. It makes North American produces very competitive. However, the headwind right now is a very strong US$, which is tough on commodity prices. There is concern that pricing will not hold up for some of these chemical companies. This one is a great cash flow generator. However, it is very close to breaking down and he would like to see it firm up. Also, in the most recent rally, it has rallied less than the market.</p> http://www.stockchase.com/opinions/view/141172 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141172 Tourmaline Oil Corp <p class="western">This company has had tremendous growth and their cash flow has grown very nicely. It&rsquo;s a great company if energy is in favour, but he doesn&rsquo;t see energy making a turn anytime soon. He would avoid this group for now.</p> http://www.stockchase.com/opinions/view/141173 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141173 Lockheed Martin <p class="western">His premise is that sectors go into and go out of favour over periods of time as things shift. We have just gone through a 10-12 year period where defence spending has been curtailed. When that takes place, at some point they spend too little and you start to see politics go the other way. This company has the F 35 fighter jet. It&rsquo;s early days in that program and is probably a 20 year project selling them globally. There is good visibility once they start building an order book. This company has been successful through the downturn and have grown their dividend 19% a year, over the last 5 years. That is likely to accelerate. Expect to see defence spending pick up over the next 18 months. Yield of 3.18%.</p> http://www.stockchase.com/opinions/view/141174 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141174 Wal-Mart Stores Inc. <p class="western">Historically this has really grown in line with the US GDP. They&rsquo;ve most recently had their 1<sup>st</sup> positive same-store sales in a few quarters. He thinks we are going to see a significant pick up from a little more money being in consumers&rsquo; pockets because of low oil prices. Stock has just broken out from a very long consolidation between $65 and $80. Expects there will be good dividend growth and better revenue comps. Relatively low risk. Yield of 2.26%.</p> http://www.stockchase.com/opinions/view/141175 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141175 Intel <p class="western">The undisputed leader in semiconductors. Many would say they are 3 years ahead of their competition when it comes to manufacturing technology, and they are accelerating their pace of innovation. Somewhat economically sensitive. Dominant in data centres, which has rapidly growing revenues. PC market seems to be stabilizing. Will probably grow 10%-12% a year going forward. They&rsquo;re returning cash to shareholders by buying back shares and raising their dividend. It will grow its dividend at 15% per year. Yield of 2.64%.</p> http://www.stockchase.com/opinions/view/141176 Tue, 25 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141176