Stockchase Recent Top Picks RSS Recent Top Picks by Experts http://www.stockchase.com/ en ProAssurance Corp <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">This is in the medical liability space. With Obama care, we are seeing more and more Americans being able to access healthcare. As a result, there is a need to hire more doctors, nurses and healthcare workers, which need to be insured. This company stands to benefit from that as we continue to unfold the early days of Obama care. Have done a few acquisitions over the last few years, which is part of why their stock price has been flat. Those acquisitions now are starting to play out which significantly expanded their geographic footprints. Also gross premiums written have started to increase significantly. Dividend yield of 2.75%.</span></p> http://www.stockchase.com/opinions/view/144348 Fri, 27 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144348 CAE Inc <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">A leader in the simulation, training product space. Their business is 60% civil, 30% defence with 10% in health care. With the growth in the number of active new fleets, he is seeing new pilots required along with new pilot certification, not to mention re-occurring pilot certification. Right now there are about 28 commercial plane assemblies per week, and for every one of those planes, you need 10 to 12 pilots. There is a lot of growth in the space which is translating into contracts. Dividend yield of 1.86%.</span></p> http://www.stockchase.com/opinions/view/144347 Fri, 27 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144347 Cisco <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">He likes the dividend and he likes the name. Have positioned themselves to be very relevant for what is coming up for the next 5-10 years. Have been active in the wireless space, so with everybody doing so much on their smart phones, mobile data traffic has really picked up. Also cyber security threats will increase demand for this company&rsquo;s networking products. Just reported and they had a great quarter. Yield of 2.83%.</span></p> http://www.stockchase.com/opinions/view/144346 Fri, 27 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144346 Royal Bank <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">Just reported and their strength was on the domestic retail side, a little stronger than what people thought it would be. Margins are actually up a snick, where it was thought they would be down. Capital market was a lot stronger than people were expecting. Good yield of 3.95% which is likely to be increased 3%-4% later in the year.</span></p> http://www.stockchase.com/opinions/view/144325 Thu, 26 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144325 Pembina Pipeline Corp <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">Believes this is on sale at these levels. There was some concern about the company because of cost of service. Good CapX program with $1.5 billion this year coming on stream. Another $6 billion in the next 3 years. Their cost of service business is about 70% of their cash flow, and with these projects and re-contracting this gets up to about 80% 3 years out. Yield of 4.47%.</span></p> http://www.stockchase.com/opinions/view/144324 Thu, 26 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144324 Cenovus Energy <p><span style="color: red; font-family: 'Times New Roman',serif; 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;" lang="EN-CA"><strong>(A Top Pick May 7/14. Down 29.42%.)</strong></span><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA"> Long-term assets and low cost producer of SAGD in Christina Lake and Foster Creek. Have other assets they have delayed putting money into, but will do so longer-term. Balance sheet is in pretty good shape. Just did a $1.5 billion issue. Instituted a DRIP program at a 3% discount. Also, have royalty properties that they could sell. Management has stated that protecting the dividend is very important to them. Yield of 4.89%.</span></p> http://www.stockchase.com/opinions/view/144308 Thu, 26 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144308 W. W. Grainger Inc <p>Digitized their large catalogues of manufacturing parts.&nbsp; They focus on working capital.&nbsp; It is a very large scale business.&nbsp; There is some energy overhang so the share price has not done anything in two years.&nbsp;</p> http://www.stockchase.com/opinions/view/144298 Thu, 26 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144298 Cisco <p>It is just starting to get going.&nbsp; When you consider the net cash flow there is a lot of value in the stock.&nbsp; The company has been very up front about how they are dealing with competitive threats.&nbsp;</p> http://www.stockchase.com/opinions/view/144297 Thu, 26 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144297 Cognizant Technology Solutions Corp. <p>They help companies be better through technology.&nbsp; It used to be cost cutting and outsourcing and now it is moving more to how to use technology to differentiate the product.&nbsp; They are focused on healthcare and financial services.&nbsp; There is quite a bit of run room in this one.&nbsp; There was a temporary profit warning and she bought into that.</p> http://www.stockchase.com/opinions/view/144296 Thu, 26 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144296 Aecon Group Inc <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">One of the largest Canadian construction companies. Has been hit as a large proportion of their earnings come from energy related areas. However, they are also very big in infrastructure. Trading close to BV. Management over the last couple of years has achieved a significant turnaround in the operating efficiency of the company. A sale of their exposure to the Quito Peru airport, is also a positive to their balance sheet. Yield of 3.05%.</span></p> http://www.stockchase.com/opinions/view/144277 Wed, 25 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144277 Hudbay Minerals Inc. <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">Over the last few years, they have been putting a lot of money into developing Constancia in Peru, a major copper, molybdenum, gold project, which started to come on stream in the last quarter and will ramp up this year into production. As they do, their production profile goes up quite sharply. Cash flow should increase with this. Last quarter was a little bit affected with some unscheduled shutdowns in one of their mines. Yield of 0.19%.</span></p> http://www.stockchase.com/opinions/view/144276 Wed, 25 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144276 Royal Bank <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">Just reported earnings and he hadn&rsquo;t expected them to be as good as they were. Feels they have the dominant franchise of the Canadian banks, whether in capital markets or retail. Has been expanding recently in the US with its acquisition in California. If you are going to hold this for a few years, you are still going to do well even though it is up rather sharply today. Yield of 3.96%.</span></p> http://www.stockchase.com/opinions/view/144275 Wed, 25 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144275 Regal Beloit <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">Motors, generators, transmissions, drives etc. They recently bought a powered transmission unit from Emerson Electric. This will add $.50 a share in earnings in 2015, and he expects a dollar a share in earnings in 2016. The market really hasn&rsquo;t caught up with this one and it is a very good buy here. Dividend yield of 1.13%.</span></p> http://www.stockchase.com/opinions/view/144255 Wed, 25 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144255 CitiGroup <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">CEO is doing a good job and concentrating the bank on core efficiencies. They are getting out of a lot of countries and out of risk areas. They go through another stress test in March, and he is quite hopeful they will be allowed to increase their dividend and their buyback. Relatively cheap on a variety of metrics. Trading at about 10X earnings compared to the average bank that is trading at about 13X. Also, trading at about 90% of tangible book value compared to the average bank of 163%. Yield of 0.08%.</span></p> http://www.stockchase.com/opinions/view/144254 Wed, 25 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144254 Facebook <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">Has been looking at this for a long time and what put him over the top was the sheer size of having 1.39 billion in monthly average users. Some of their purchases such as Instagram and Messenger are doing incredibly well. Also, the advertising trends are very exciting. Mobile for example, which grew 100% year-over-year, is leading the way from an advertising standpoint with Facebook. However, when you look at the statistics, 25% of the US adult media time is done on Mobile, yet only 11% of advertising dollars are aimed at Mobile. There is a lot of room to catch up, so that will be in favour for Facebook. He sees another Google coming along.<br /></span></p> http://www.stockchase.com/opinions/view/144253 Wed, 25 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144253 Nestles <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">Chosen on the basis of a peer group comparison. Showed up very well in terms of loading its working capital needs, cost-cutting and a pullback because of the Swiss franc trade on the foreign exchange side. Yield of 3%.</span></p> http://www.stockchase.com/opinions/view/144231 Tue, 24 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144231 Aecon Group Inc <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">Got hit badly on account of its whole Western Canada theme where everything was thrown into the dustbin that had the name energy written on it. This is one of the babies that fell into the bath water. A lot of analysts have been revising their target downwards, but there are a bunch of catalysts in this company. One is a 45% ownership of an airport concession as well as its construction business and its backlog. Yield of 3.14%.</span></p> http://www.stockchase.com/opinions/view/144230 Tue, 24 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144230 American International Group <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">There are some interesting tailwinds that he sees in their balance sheet. He thinks you could see this continuing to grow. Book Value had a recalibration in the last 2 quarters. Growth in Book Value is what you are looking for in companies like this. Yield of 0.91%.</span></p> http://www.stockchase.com/opinions/view/144229 Tue, 24 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144229 Google <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">One of the best business plans in the world. Advertising is all about a push business. If you want to advertise, you have to spend lots of money, and hopefully people will see it. On the other hand, if people want to look you up, all they have to do is Google you. This is the greatest advertising business model in the world. They make about 95% margin selling keywords. They are using the cash flow to make bets in other areas, which have huge markets such as networking, cable, Google glass, YouTube, etc. They are really under-reporting their earnings because they are investing so much in CapX and R&amp;D. Their earnings would be a lot higher if they weren&rsquo;t doing that. There is potential for them to start a dividend as well as share buyback.</span></p> http://www.stockchase.com/opinions/view/144206 Tue, 24 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144206 Morguard Corporation <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">Has fallen a little recently, and he doesn&rsquo;t know why because there is enormous value. If you look at all the parts that it has and add it up, it is worth over $200 a share. Thinks the market is missing what is going on with the company. It has recently diversified into investment management, and he thinks there is potential for this to follow the Brookfield Asset Management model, which is to drop-down more assets into the publicly listed REITs and maybe at some point start an investment management publicly traded company and collect the fees as it goes up higher.. Yield of 0.41%.</span></p> http://www.stockchase.com/opinions/view/144205 Tue, 24 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144205 Precision Castparts Corp. <p><span style="font-family: 'Times New Roman',serif; 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;" lang="EN-CA">This company makes all the nuts and bolts and complex metal parts that go into aerospace engines and airplanes. They sell to Boeing, Airbus, Rolls-Royce and GE. Backlog is massive. Like a lot of companies, this has some exposure to oil/gas, which hurt their earnings a little bit and the stock has fallen about 30%. He sees, over the next 10-15 years, aircraft demand doubling, mainly due to Asian aircraft travel including cargo and business travel. Great free cash flow. Dividend yield of 0.06% and it is growing.</span></p> http://www.stockchase.com/opinions/view/144204 Tue, 24 Feb 2015 00:00:00 -0500 http://www.stockchase.com/opinions/view/144204