Stockchase Recent Top Picks RSS Recent Top Picks by Experts http://www.stockchase.com/ en WSP Global 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">Their global operations are showing solid organic growth and very healthy margins. Canadian operations showed signs of safe stabilizing last quarter. Backlog is up nicely. Just made a recent acquisition of Parsons Brinkerhoff, which adds to their US exposure and gives them more of a global footprint. Feels this will be highly accretive and will generate cost savings. He models a 72% payout ratio. Have done a very good job in the past of integrating operations.</span></p> http://www.stockchase.com/opinions/view/141232 Wed, 26 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141232 Brookfield Asset Management (A) <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">Likes this one 1 year out and for the next 5 years. Sees about 21% rising AFFO growth over the next couple of years from rising institution allocations to real assets, US economic momentum where they have 62% of their business and its robust asset management business with significant fundraising momentum. This is a bit of a call on rates staying low for longer. Yield of 1.28%.</span></p> http://www.stockchase.com/opinions/view/141231 Wed, 26 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141231 Power Financial 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">The Q3 was a strong beat. Underlying businesses of wealth management and life insurance are very attractive. Has a 4% conservative dividend with a 42% payout ratio. Believes we are going to finally see dividend growth, and models it at 8%-10% for 2015. However, it is trading below its 5 year average at 11.6X versus its 5 year average of around 13. In an environment in the TSX where he expects to see an energy vacuum and a continued mining vacuum, and maybe even a telecom vacuum to come, he thinks money is going to look for other places.</span></p> http://www.stockchase.com/opinions/view/141230 Wed, 26 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141230 Ridley 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;">Animal nutrition. Very tightly held. Just came out with a quarter where their earnings were up over 50%. In the last 3 years, their compound annual growth rate in earnings was up about 45%. In 2014 they paid a $2 special dividend and in 2013 they paid a $1.50 special dividend and a $2 special dividend in 2012. Trading at a very low multiple. At some point in time, they are either going to make an accretive acquisition or will pay another special dividend.</span></p> http://www.stockchase.com/opinions/view/141203 Wed, 26 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141203 Rock 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;">The whole sector has been creamed, but this is one of the cheapest. Did about 3500 BOE&rsquo;s in 2013 and this year they are going to do about 4900 and expects them to do about 5500 next year. Even at today&rsquo;s prices of around $80, their netbacks are around $40. Very high netbacks, so they can withstand the downturn here. They still have the growth in production and higher netbacks compared to most other companies. Very cheap.</span></p> http://www.stockchase.com/opinions/view/141202 Wed, 26 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141202 Diversified Royalty 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;">A new type of royalty company. They are buying top line revenue from companies that have steady businesses. Management own a lot of stock themselves. The 1<sup>st</sup> deal they signed was with Franwork, the owners of Original Joe&rsquo;s and Elephant and Castle restaurants. Trading at a fairly low multiple, and has a 7% yield. They are just starting getting coverage. Expects they will sign another deal in the next couple of months or so. Street is starting to get behind this story. Fairly cheap. Considers this a long-term hold that he can own for the next few years and let it play out.</span></p> http://www.stockchase.com/opinions/view/141201 Wed, 26 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141201 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 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 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 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 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 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 Beacon Roofing Supply <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;">2<sup>nd</sup> largest roofing company in North America. Analysis shows that roofing growth is going to be about 6% per year, over the next number of years. 60% of US homes were built prior to 1980, and if your roof needs replacing, you can only put it off for so long. Trading at a reasonable multiple.</span></p> http://www.stockchase.com/opinions/view/141121 Mon, 24 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141121 American International 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;">A pretty simple property and casualty business with some wealth management on the side. Trading at a discount to Book Value at about 70% of Book and about 10X earnings. It is trading down here because its ROE is not as high as some of its competitors, but it is getting there. They are doing a lot of the right things. Earnings are being funnelled back to the shareholders. Making money on its underwriting in addition to its investment portfolio. Yield of 0.91%.</span></p> http://www.stockchase.com/opinions/view/141120 Mon, 24 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141120 Ensco PLC <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 Dec 3/13. Down 28.70%.)</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 has to be stabilization of oil prices. If that happens, money will start to flow back into the sector. They have very strong fundamentals. Their backlog is growing with over 2 years of revenue in backlog. Grew their backlog last quarter by 10%. In the deepwater area, virtually all of their fleet is contracted out a couple of years. When oil stabilizes, you will start to see companies like this return to normalized multiples. Right now they are trading at about 4X EBITDA which is 30%-40% discount to where it should be trading at.</span></p> http://www.stockchase.com/opinions/view/141109 Mon, 24 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141109 Inter Pipeline <p><span style="color: #ff0000;"><strong>(Top Pick Nov 25/13, Up 40.53%)</strong></span>&nbsp; As you see the increase in utilization of existing pipelines you will see further dividend growth.&nbsp; 14-15% return is pretty good.&nbsp; Keystone could provide even more potential for dividend growth.</p> http://www.stockchase.com/opinions/view/141100 Mon, 24 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141100 Bank of Montreal <p>He has been buying it for years.&nbsp; Likes their presence in Chicago with Harris bank.&nbsp; As the US does better, so should this bank.</p> http://www.stockchase.com/opinions/view/141099 Mon, 24 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141099 Precision Drilling <p>He doubled down at $9.22.&nbsp; He is predicting increasing profit in the next two years.&nbsp; It is very cheap.&nbsp; Don&rsquo;t do anything before the OPEC meeting.&nbsp; PD-T has priced in $65-$70 oil so he is not too worried.&nbsp; 66% of all drilling is just to maintain current production and this should shelter drillers.&nbsp; This is one of the premier drillers.&nbsp;</p> http://www.stockchase.com/opinions/view/141098 Mon, 24 Nov 2014 00:00:00 -0500 http://www.stockchase.com/opinions/view/141098