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: #ff0000;"><strong>Markets.</strong></span> Built up a fair amount of cash leading to the correction and has now put some of this to work. Had taken some of his cues from the market on the US treasury side. Also, just following the technicals in the market, he saw a couple of big rallies into the close in the US, and it looked like the market wanted to go a little bit. Also, there was a <strong>positive in the number of people</strong> being fired in the US. It was more of a tactical decision where he thought the market had overshot on the down side. Has been trimming some of those positions in the last couple of days. Doesn't think we are going to get back to new highs. We have come a long way off from the bottom, so it is prudent to take some money off the table, especially the way the oil price has been struggling.</p> http://www.stockchase.com/opinions/view/139988 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/139988 Canam Group 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;">Makes bridges and industrial buildings. This has had a bit of a wild ride. Had 2 quarters where they really disappointed. The 1st quarter this year was weather related, and this last quarter they missed expectations because their back log was too big. Margins got squeezed and they weren&rsquo;t getting the amount of work done. They have to hire a lot of people to get through that back log. If you hold this name, watch next week when they report to see where this company goes. He thinks it was just 2 short term misses. He has a lot of faith in management.</span></p> http://www.stockchase.com/opinions/view/139989 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/139989 Avigilon 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;">High definition cameras. Loves to follow this name. Had been Short this not too long ago. Feels it might be in for trouble in the near-term. Any time you have a company that has a product or service that is not too difficult to replicate, you know their competitors are going to try to copy. High levels of revenue growth are built into the stock, and he tries to stick to the value side of things which gives you a margin of error.</span></p> http://www.stockchase.com/opinions/view/139990 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/139990 High Arctic Energy Services 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;">A great name. Got knocked around like crazy in the last few weeks, which was completely overdone. They operate in Papua New Guinea, and have recently expanded their operations. Just bought 2 rigs, and they still have to contract the 2nd one. That is the catalyst that will get the shares really moving.</span></p> http://www.stockchase.com/opinions/view/139991 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/139991 Magna Int'l. (A) <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;">An attractive time to look at a company like this. Valuation is still reasonable at around 10X earnings. Auto sales numbers in North America and Europe haven't been that bad. They like to give earnings back to shareholders in the form of buy backs or dividends. Prefers Linamar (LNR-T).</span></p> http://www.stockchase.com/opinions/view/139992 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/139992 Air Canada (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;">Generally likes the airlines. Cdn$ has been causing a bit of headwind, and is not quite being offset by fuel prices. If you step back from all the short-term moves, such as jet fuel and currency, they have been doing some great things. They are really revamping their business. For the last 3 months their numbers have been out of the park. Expects this quarter is going to be a good one.</span></p> http://www.stockchase.com/opinions/view/139993 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/139993 AutoCanada 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;">Valuation is better than it was at $90. The story is that they need to make acquisitions to grow into the multiple that they are at. He would argue that a rollup is great, but there comes a point when rollups aren&rsquo;t great any more. It is hard to find acquisitions and hard to integrate them into the business successfully. Doesn't feel this is in the top 20 names in Canada that you should hold. Looks a lot more attractive for a trade rather than something that he would want to hold for the next 12 months.</span></p> http://www.stockchase.com/opinions/view/139994 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/139994 Bank of Montreal <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 has changed much for the banks, and he has been gun shy for the last year thinking they were going to slip on some of their earnings announcements. They haven't yet. He took a small position in this because of their US exposure. Mortgage rates keep going down, which should be a boost to the banks.</span></p> http://www.stockchase.com/opinions/view/139995 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/139995 Sunlife 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;">If looking for some stability in your portfolio and something for the long-term, this is a great stock. He tends to like insurance companies a little bit better than banks here. Valuations are reasonable. Have really improved their capital ratios, and they have a lot of cash so they can start doing something interesting with that.</span></p> http://www.stockchase.com/opinions/view/139996 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/139996 Manulife 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;">Likes their Asian position. Asia is still growing at a pretty fast clip and is not a concern to him. Prefers Sun Life (SLF-T) which can do a little bit more with their capital.</span></p> http://www.stockchase.com/opinions/view/139997 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/139997 CCL Industries (B) <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 26/13. Up 36.9%.)</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;"> Labels. Growth will be about 3%. Considers this as an anchor position in his portfolios. This gives a lot of kickers, in that they can make acquisitions. Generates a lot of cash. Every acquisition they have made has been hugely accretive.</span></p> http://www.stockchase.com/opinions/view/139998 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/139998 Com Dev International Ltd. <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 26/13. Down 5.69%.)</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;"> Sold his holdings but is now back into it at lower levels. A very lumpy business where you are selling big projects. All the budget constraints on satellites in the US affected them. To offset that, there is positive news coming out of their ExactEarth, which tracks ships, etc. all over the globe through satellite.</span></p> http://www.stockchase.com/opinions/view/139999 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/139999 Open Text <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 26/13. Up 31.83%.)</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;"> Still likes this a lot. Part of the thesis on this was that they were coming out with a whole new product refresh that was going to cause an uptick in license revenue growth, or they were going to use some of their cash to make some acquisitions. Both of those things have happened. Have a big Cloud component now. Their Red Oxygen is now selling very well into their customers. Last quarter they had over 20% license growth. Earnings beat quite handily and margins were growing. Has added to his holdings. Thinks they have good long-term prospects.</span></p> http://www.stockchase.com/opinions/view/140000 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140000 Clearwater Seafoods 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;">A very interesting consumer staple name in Canada which has good upside. Pricing has been very firm on shellfish. This company has a very defined growth strategy, looking for new quotas or companies they can buy to get more supply, to be able to sell more. In the meantime, you are getting a company that generates a reasonable amount of cash. They pay a little dividend, and it is not a bad business to be in. Defensive in that they sell globally. Demand for seafood is picking up. He would wait for a bit of a pullback.</span></p> http://www.stockchase.com/opinions/view/140001 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140001 Empire Company (A) <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>Empire (EMP.A-T) or High Liner (HLF-T)?</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 choose this company. It is defensive in this environment of volatility. The last quarter they reported was quite strong and they beat expectations. Margins had grown. Saw some of the synergies from the Safeway acquisition start to come through, and he thinks this is going to just accelerate. Food inflation has actually been okay.</span></p> http://www.stockchase.com/opinions/view/140002 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140002 High Liner Foods <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><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>Empire (EMP.A-T) or High Liner (HLF-T)?</strong></span></strong><span style="color: #000000; 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 choose Empire.</span></span></p> http://www.stockchase.com/opinions/view/140003 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140003 Element Financial <p>Great story. Doesn't hold, but one of the ones that are at the top of his radar. Looks interesting where it is trading. Made some big deals. He likes companies that make transformational deals where the market is not giving credit. Analysts&rsquo; estimates revisions have been very high. A little higher on evaluation side than where he wants to be, so hasn't<strong> </strong>pulled the trigger yet.</p> http://www.stockchase.com/opinions/view/140004 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140004 DHX Media <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;">Valuation on this is too rich for him. They are building in a lot of the positive news that has happened. It has been a good story.</span></p> http://www.stockchase.com/opinions/view/140005 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140005 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;">This is one that he is watching. You have to be careful in this environment. Sentiment indicators on oil and gas are crazy low, but that doesn't mean they can't get lower. He is looking for some direction on the oil price, which will definitely play into the thesis on a name like this. A cheap name and a high-quality name.</span></p> http://www.stockchase.com/opinions/view/140006 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140006 Liquor Stores N. A. <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;">You have to love how this rallies in all the volatility. Has been following this one for the last 2 years and it has been a complete disappointment. Management has done a great job of getting out there and telling the story of what they are going to do. They have a plan in place. He is getting a little more faith that management is going to be able to do what they say. We are only in the first or second inning of this turnaround. Dividend is safe.</span></p> http://www.stockchase.com/opinions/view/140007 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140007 Tourmaline Oil 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;">Had a nice bounce back but is now hitting lows again. A high-quality name. Good growth story. Superb management team. These are the types of names you want to focus on when we do hit bottom in oil/gas.</span></p> http://www.stockchase.com/opinions/view/140008 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140008 Capital Power <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;">For a long time hold, this is probably one of the better utility names that he likes. A good play. Power prices have been quite low in Alberta where they have a lot of their business. Struggled in this most recent quarter and got hit pretty hard for a utility. A more interesting name, that has more upside in the next 6 to 24 months, would be Brookfield Asset Management (BAM.A-T). </span></p> http://www.stockchase.com/opinions/view/140009 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140009 Brookfield Asset Management (A) <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;">Sold off from its highs of $55. An interesting play that he likes. You are getting real estate, infrastructure, utilities and into the asset management side of their business. Very defensive type business model.</span></p> http://www.stockchase.com/opinions/view/140010 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140010 Encana Corp <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">Has been impressed with this company. All the deals they have been doing recently to transform themselves into what it is today, is going to be good for them in the long run. Balance sheet is a lot cleaner now than it used to be. They are executing on the plan that they set out for themselves. Would look at this one if the market started to turn around.</span></p> http://www.stockchase.com/opinions/view/140011 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140011 Bombardier Inc (B) <p><span style="font-family: 'Times New Roman'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-CA; mso-fareast-language: EN-CA; mso-bidi-language: AR-SA;">A lot of people are Short on this. If they can have a nice earnings beat, he thinks there could be a very nice pop on the stock. If you own, he would not be selling, but holding to see how this quarter goes. The Cdn$ actually benefits a company like this.</span></p> http://www.stockchase.com/opinions/view/140012 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140012 Firstservice 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;">Considers this as an anchor in financial services. Huge amount of recurring revenue from a lot of their brands. They manage residential buildings as well as owning a lot of interesting businesses. The crown jewel for them is their Colliers brand, which is selling businesses, but also managing portfolios of commercial buildings. This business has been growing in the low double-digits, and he expects it to continue. Margins have been growing. Dividend yield of 0.72%. A company that you can hold for many years and be rewarded.</span></p> http://www.stockchase.com/opinions/view/140013 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140013 New Flyer Industries 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;">Bus manufacturing. An interesting business that is quite stable. They sell a ton of buses into the US. The US has been making more and more money as the economy improves, and municipalities/states have been buying more buses. Likes the shift they are making into making acquisitions. Have bought a couple of companies over the last few years, including parts makers, and are getting to be a much more reasonable player in the after parts market business. EBITDA per unit, in this last quarter, blew analysts&rsquo; expectations away. Dividend yield of 4.55%.</span></p> http://www.stockchase.com/opinions/view/140014 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140014 Sandvine 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;">Believes in their revenue growth story. This deep packet inspection, in being able to charge for different areas of your mobility and data plans, will ultimately benefit them down the road. Companies like Netflix or HBO will want to offer some kind of services, where they can pay for your data usage on those plans. World class products. 10% of their sales in the last quarter were from IBM (IBM-N). At these levels, your downside risk is very limited.</span></p> http://www.stockchase.com/opinions/view/140015 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140015 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;">Since the 2nd world war, most of the economies and stock markets have followed a very similar pattern. We come out of a slow period, the economy picks up, we start getting inflationary pressures, the Central Bank starts raising interest rates to dampen it and everything slows down. That is the cycle. However, in the last 5-6 years, we really haven't seen really high levels of growth coming out of the last trough of 2008-2009. The likelihood of a Central Bank going to raise interest rates to slow down growth, is very, very low. Doesn't think we are going to get a big correction in the stock market. The price of oil and the price of copper tell you there is not a lot of growth out there. Thinks we are going to be in a muddle along economy. In this correction we are going through, we are pretty much there. Feels we are going to be in a stable and soon to be rising market. Lower oil prices is like a huge tax windfall and very positive for the economy. Feels the next 3-6 months for the stock market are going to be good. We tend to get our corrections in September and October, and then we get pretty good markets from the end of October through until probably May.</span></p> http://www.stockchase.com/opinions/view/140016 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140016 Equitable 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;">Good company. Screens very well right now. He has made his bets on Home Capital (HCG-T), which has a higher return on equity. In the context of everything he looks at, both of these would be a Buy.</span></p> http://www.stockchase.com/opinions/view/140017 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140017 Difference Capital 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;">This is going to be a tough company for the retail investor to own into. There are obviously some very good personalities behind this company, but there are not a lot of earnings right now. They have a lot of investments that are in non-public companies or almost like venture capitalist type of investments. There are probably better ways to play this area.</span></p> http://www.stockchase.com/opinions/view/140018 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140018 A Comment -- General Comments From an Expert <p><span style="color: #ff0000;"><strong>Energy.</strong></span> We have been in this channel of somewhere between $80 and $110 range in the last 5 to 7 years. With fracing technology will we actually start setting a new lower level to that range? Most of the feedback he has heard from oil/gas analysts is that the costs of getting oil out of the ground has not changed that much. As a consequence, we are probably going to steady somewhere around $80 as a lower limit. If we shoot through $80 and into the $70's for a few months, supply is going to<strong> </strong>pulled back quite quickly. Thinks oil does become quite interesting here in the low $80's. Don't be a seller of oil stocks. Look to pick up bargains as we bounce along that $80 mark. Expect that in 18 months we will be back over $95.</p> http://www.stockchase.com/opinions/view/140019 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140019 Wanted Technologies <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 and great technology, but they have a kind of lumpy cycle. The financial year they are coming into right now is going to be a bit muted and the following year should be quite strong. This has to do with the timing of contracts and the timing of investments and launches. It might stall out on you for about 6 months until people start anticipating the following financial year. The catalyst for better earnings is still 6-9 months away. If you are in for a 3-4 year view, you are going to do well, but if your timeframe is shorter than that it may not be as happy an experience.</span></p> http://www.stockchase.com/opinions/view/140020 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140020 High Liner Foods <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;">Checked back to about $20, but now seems to be finding its footing. If some people are nervous about where the economy is going, the food companies tend to be very, very defensive. Thinks it will back up into the $25 point in six months, if not sooner, and then you will be into profit territory.</span></p> http://www.stockchase.com/opinions/view/140021 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140021 Element Financial <p>This one makes him a little bit nervous in terms of valuation and the rate at which they acquire businesses and the kind they acquire. At this stage in the cycle, this is not one that he would be an owner of. Generally speaking, as the economic cycle goes longer and longer, investors&nbsp; should lighten up on financials. Some day, when things go bad, financials will lead us into it.</p> http://www.stockchase.com/opinions/view/140022 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140022 Constellation Software 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>(A Top Pick Oct 18/13. Up 61.96%.)</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;"> His target price for the end of 2015 is $400. They are the best allocators. Have a strong balance sheet. If you are only going to own one stock in Canada right now, this would be it. Trading at 16.5X 2015 earnings, and is growing at 30% a year.</span></p> http://www.stockchase.com/opinions/view/140023 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140023 Home Capital Group <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 Oct 18/13. Up 39.04%.)</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;"> There is a tremendous amount of intellectual capital tied up in the building. You get a steady 20% ROE. Very, very low loan losses, because their loan to value is very, very low.</span></p> http://www.stockchase.com/opinions/view/140024 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140024 Parkland Fuel 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 Oct 18/13. Up 17.7%.)</strong></span><span> Sold his holdings at around $19.50, because the ROE was a little bit lower than what he was looking for. Just did an acquisition in Ontario and he may end up going back into the name.</span></p> http://www.stockchase.com/opinions/view/140025 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140025 Chesswood 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;">Great company. Doesn't quite have the ROE that he looks for, but even so it is a Buy. Thinks the dividend is going to be fine. Got a little bit ahead of itself when it went up to $18-$19. At this price it is quite attractive.</span></p> http://www.stockchase.com/opinions/view/140026 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140026 Rifco 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;">Later in an economic cycle and you get your first downturn, consumer finance companies are going to get a little beaten up. If you hold these for 10-15 years, it's fine as they always bounce back higher than before. If you are someone who is occasionally adding or subtracting to your portfolio, then these are the kinds of companies you want to lighten up on. The only offsetting factor is that one of its main competitors got bought out. Given where interest rates are, a lot of big financial institutions want to be in this space. Later in the cycle, he might be turning his holdings but currently he is holding on as he has a feeling that this one is going to get taken out by someone.</span></p> http://www.stockchase.com/opinions/view/140027 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140027 Avigilon 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;">Its strengths and weaknesses are roughly in balance, so this would be a Hold, and we need to see a resolution on something. There seems to be something going on underneath the surface of the company, which he feels has to do with the personalities of the people at the top. At this price it looks cheap, but he wouldn't be a seller or adding until there was some conclusion.</span></p> http://www.stockchase.com/opinions/view/140028 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140028 Patient Home Monitoring <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 great little junior concept stock. Actually based in LA and have operations all over the US. This is an American company listed on the TSE. Management is saying all the right things, but it is still early days right now. Growth looks good. Company is going to be profitable right from the get-go. Management is committed to not raising a lot of money through equities, so you are not going to get diluted. He has a very small position in this, and he is going to watch it quarter by quarter and just grow up with the company. Too early to back up the truck.</span></p> http://www.stockchase.com/opinions/view/140029 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140029 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>Lifecos or Canadian Banks?</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 still likes the banks better. They seem to have a lot more latitude in terms of growth. Likes their quality of management, although Manulife (MFC-T) would be on a par. If he had to choose one bank, it would be Toronto Dominion (TD-T), but all the Canadian banks are good right now.</span></p> http://www.stockchase.com/opinions/view/140030 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140030 Crew 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;">One of the premier up and coming natural gas names. If you are bullish on natural gas, this is a good name. Stock is still weak here. Don't sell your energy stocks now, wait until the coldest time of the year, such as January.</span></p> http://www.stockchase.com/opinions/view/140031 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140031 Questor Technology <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;">Anything related to natural gas has been beaten up here. He has a small position in this and is waiting for the quarter. If it comes out good, he will be adding to his position. They are soon going to be looking at waste heat as well. Great little technology company.</span></p> http://www.stockchase.com/opinions/view/140032 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140032 Onex 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 the way to play this over the cycle is to try and anticipate when a lot of its private equity investments are going to crystallize. That is what generates the profitability and the asset value of the company. If you have a sense of when there is a big IPO cycle, then away you go. His sense is that cycle did probably peak 3-4 months ago, so if you own you probably have had your short-term little pop. Longer-term, this is evolving into a broad based company where they are always launching new funds. This is one that you just salt away and just let it go.</span></p> http://www.stockchase.com/opinions/view/140033 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140033 Sierra Wireless <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;">Good company but evaluation is pretty rich in his numbers. Estimated PE is 65, so as some point in time there is going to be a correction of valuation, or they have to have a massive surge in earnings to justify that valuation.</span></p> http://www.stockchase.com/opinions/view/140034 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140034 Cipher Pharmaceuticals 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;">We are in an environment right now where pharmaceutical companies are very hot commodities. You either have to acquire things or you have to be acquired. This company is attractive in both respects. Have a great lead drug for teenage acne which is doing very well. Also, have a lot of cash. This could simultaneously be a very attractive acquisition or they could turn around and use that cash to buy other things in their product offering. They have a lot of options right now. His guess is that we are going to get reconciliation one way or another in the next six months. They are either going to buy a bunch of stuff or going to get a big pop in their rating or get taken out by somebody at a higher price. Trading at 13X earnings with about a 35% ROE.</span></p> http://www.stockchase.com/opinions/view/140035 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140035 CGI Group (A) <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 long-term on this company is that every year it has 20% ROE. Trades at 9.9X 2015 earnings. Well-managed and throws off a lot of cash flow. They buy back their stock. He is pretty comfortable that it will be 20% higher. It should be $8 higher in year&rsquo;s time.</span></p> http://www.stockchase.com/opinions/view/140036 Fri, 24 Oct 2014 00:00:00 -0400 http://www.stockchase.com/opinions/view/140036