Stockchase Recent Top Picks RSS Recent Top Picks by Experts en Veresen Inc <p>This has a lot more free cash flow of around 10.7 relative to their peers of 7.1. He sees strengthening in natural gas prices. They have 45% of their product in the US, so they get the big tailwinds of FX. They are building out their midstream operations from 14% to about 24% by 2019. Dividend yield of 7.51%. <em>(Analysts&rsquo; price target is $14.09.)</em></p> Wed, 18 Jan 2017 00:00:00 -0500 Aecon Group Inc <p>Stumbled a little, giving you an opportunity. Management believes that municipal and provincial spend are really going to kick in later in 2017. Any weakness in oil and gas is outweighed from an increase in oil and gas distribution and from their nuclear refurbishment. Their mining segment is really poised for recovery. He is modelling 24% EPS growth from 2016 to 2018 with a 57% payout ratio. Trading below its five-year average. Dividend yield of 2.94%. <em>(Analysts&rsquo; price target is $18.12.)</em></p> Wed, 18 Jan 2017 00:00:00 -0500 Manulife Financial <p>This is really growing well in Asia. He models a 12% EPS. Last quarter was a beat. 9% dividend growth. Still trading below its peers. Trading at 13.1X 2016, which isn&rsquo;t bad relative to the TSX. Very strong balance sheet. They benefit from really good FX tailwinds to the Cdn$. They&rsquo;ve taken some recent actuarial charges against their long-term care unit, which should make their quarters quieter going forward. This is an interest rate play, so as interest rates start to go higher, they should benefit. Dividend yield of 3.04%. <em>(Analysts&rsquo; price target is $25.83.)</em></p> Wed, 18 Jan 2017 00:00:00 -0500 Shopify Inc. <p>As Amazon (AMZN-Q) is destroying the rest of the retail world, this company is going along for the ride. They facilitate online retailers to use Amazon. They sort of transition a company into Amazon, to help with fulfilment, branding, marketing, searching, etc. Revenues have doubled over the past couple of years and will probably double over the next couple of years. Sitting on $400 million in cash. <em>(Analysts&rsquo; price target is $68.41.)</em></p> Wed, 18 Jan 2017 00:00:00 -0500 High Arctic Energy Services Inc <p>They have Papua New Guinea operations and Canadian operations. All through the energy downturn, this company kept a clean balance sheet, and most years they had an excess cash position. Last year, they took advantage of it and bought 68 new rigs in Canada. Now the cycle starts to turn. Trading at 8X earnings. Dividend yield of 3.65%. <em>(Analysts&rsquo; price target is $6.29.)</em></p> Wed, 18 Jan 2017 00:00:00 -0500 goeasy <p>This helps people finance purchases of furniture and appliances as well as giving short term loans. The short-term loan business is growing really, really quickly, and they get to charge a lot of money to the consumers that have to borrow money. Last year they attempted to make a big acquisition but failed, and they took a $5 million charge to earnings, a very significant hit. However, earnings still grew 41%, and this year will look much, much better, on a stock that is trading at 10X earnings and growing at a very, very rapid rate. Dividend yield of 1.92%. <em>(Analysts&rsquo; price target is $32.33.)</em></p> Wed, 18 Jan 2017 00:00:00 -0500 Tricon Capital Group <p>A Canadian company with a lot of exposure to the US.&nbsp; They have rental, development and individual homes.&nbsp; She had avoided this space, but there are a lot of avenues across they space for them to grow.&nbsp; It is a great price compared to their net asset value.&nbsp; She has owned it for a while and is flat on the position.&nbsp; They bring in a lot of experts to work with and she thinks that is key.&nbsp; <em>(Analysts Target: &nbsp;$12.56).</em></p> Tue, 17 Jan 2017 00:00:00 -0500 Cardinal Health Inc <p>The healthcare space has been really beaten up since the election started.&nbsp; They have exposure to drug inflation and the pricing side of things. They are really only one of three distributors of pharma in the US.&nbsp; They have 8-9% of free cash flow.<em>&nbsp; (Analysts target: $81.88).</em></p> Tue, 17 Jan 2017 00:00:00 -0500 Apogee Enterprises Inc. <p>Glass that goes onto multi-story buildings.&nbsp; They are involved with the design aspects with architects.&nbsp; They have a good line of sight of where the market is going and have a nice pipeline of activity ahead of them.&nbsp; They are running the business quite well.&nbsp; They grew their margins without really getting any benefit from their end market.&nbsp;<em> (Analysts&rsquo; target: 54.50).</em></p> Tue, 17 Jan 2017 00:00:00 -0500 Unilever PLC <p>He likes this because it is the 3<sup>rd</sup> largest globally with 57% personal products and 43% consumer food items. If there is any weakening in the dollar, you are going to see this company improve their performance. 50% of revenue is coming from emerging markets, so this is a growth area. Dividend yield of 3.42%. <em>(Analysts&rsquo; price target is $36.72.)</em></p> Tue, 17 Jan 2017 00:00:00 -0500 Exxon Mobil <p>The ultimate Trump stock. When the president of the company is nominated to become Secretary of State, that can only benefit the company. If energy goes up, the company wins. If energy goes down, this company is going to perform because they are so diversified across the industry and geographically. Dividend yield of 3.45%. <em>(Analysts&rsquo; price target is $89.92.)</em></p> Tue, 17 Jan 2017 00:00:00 -0500 Teva Pharmaceutical <p>This was close to $70 a share, and currently is at about $34 a share. It could earn $4-$5 in the next 12 months, a very attractive valuation. 60% of their business is generics, and they are the market leader. About half their revenue is coming from emerging markets, and that has to be a growth area. Just acquired about a $30 billion portfolio of generics from Allergan. Dividend yield of 4.02%. <em>(Analysts&rsquo; price target is $45.50.)</em></p> Tue, 17 Jan 2017 00:00:00 -0500 AutoCanada Inc. <p>This fell apart over several years, simply because they were in BC and Alberta during the hard time. Secondly it is supposed to be a growth by acquisition story and they were buying 2-3 dealerships a year, but 1 year they did 15 dealerships, way too many. Also, they didn&rsquo;t really integrate their back-office effectively. New management came in and are committed to making only 2-3 acquisitions a year. A good story at these levels, and it should continue to do well. Dividend yield of 1.55%. <em>(Analysts&rsquo; price target is $24.25.)</em></p> Mon, 16 Jan 2017 00:00:00 -0500 Blackstone Group LP <p>The largest private equity firm globally. Trading at 10X earnings. The stock really didn&rsquo;t move when all the other financials did. They have about $100 billion that they can spend to buy things if things go bad. They were really good buyers of assets all the way from 2008-2009. Have some great assets which have matured and is now time to sell, but they need a strong equity market. When they get this in the next couple of years, they will harvest a lot from the purchases they made. Not expensive. Dividend yield of 5.45%. <em>(Analysts&rsquo; price target is $33.83.)</em></p> Mon, 16 Jan 2017 00:00:00 -0500 Gilead Sciences Inc. <p>This has 2 big drugs; Hepatitis C and HIV. The HIV drug is doing very well and continues to grow. The problem with the Hep C drug is that it cures, so revenue is coming down and the market is implying that the decline in revenue is going to be a lot faster. Secondly, the market is giving them no value for their existing HIV drug which continues to do well. They are also not getting any value from the fact that there are still a lot of people with hepatitis C, and they&rsquo;ll need to use the drug. Zero value is being given to the pipeline even though they have some good products. A fantastic balance sheet with no debt. They have a lot of cash overseas, and if they are allowed to bring this back, there will be benefits. Trading at 7X earnings. Yield of 2.57%. <em>(Analysts&rsquo; price target is $94.89.)</em></p> Mon, 16 Jan 2017 00:00:00 -0500 Industrial-Alliance Life Ins <p>He believes we are in a rising interest rate environment and you want to own financials in this environment.&nbsp; It qualifies in valuation, price momentum and volatility.&nbsp; He likes MFC-T and it did well as a Top Pick.&nbsp; He likes all three.</p> Mon, 16 Jan 2017 00:00:00 -0500 General Motors Corporation <p>It is a play on job growth.&nbsp; It is extremely cheap and poised to benefit in the cyclical growth environment.&nbsp; Longer term the valuation is compelling.</p> Mon, 16 Jan 2017 00:00:00 -0500 Air Canada (B) <p>It is time to recommend this one.&nbsp; It has great price momentum and the valuation is cheap &ndash; 4 times PE.&nbsp; It beat on a decent quarter.&nbsp; The challenge has been their debt load, but it seems they can now leverage their balance sheet.&nbsp; Discipline has come back into the trade.</p> Mon, 16 Jan 2017 00:00:00 -0500