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Compiling comments that experts make about stocks while on public TV.

Table View - Opinions in Detail

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Implied Signal Stock Symbol Company Comment Source Program Airdate Airdate Price Opinions $ Goal Expert Program Topic Expert's Bias Own or Relationship Actions
  
N/A A Commentary A Comment -- General Comments From an Expert Market Call Tonight (BNN TV) 2014-12-15 $0.020

Markets.  People wondered how low oil would go.  Now it is a case of how long oil will stay low (6 months?  A year?).  He thinks fundamentally it should be at $75.  It is a case of who is going to cut production and how soon.  He sees $80 by the end of 2015.  When he looks at the volatility of the cash flows in energy infrastructure he is surprised how low stocks have gone.  Thinks there are some good values here.  You are going to see decent growth coming out of the US.  But will they pull the rest of the world up or will the rest of the world pull them back into recession.  Follow cash flow streams to see where they come from and how well protected they are.  He can manage equity volatility, but tries not to speculate on currency risk.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC _N/A View
TOP PICK ALA-T Altagas Ltd Market Call Tonight (BNN TV) 2014-12-15 $36.960

It is a diversified business model of power, gas and regulated utilities.  This will be one of the highest dividend growers (10% over next 3 years).  Projects they commissioned will be coming on line.  Have one of the lowest payout ratios amongst their peers.  You will see a bump up in cash flows and payout ratio.  They have the quickest chance to get a LNG projects up and running. 

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC Yes View
HOLD AQN-T Algonquin Power & Utilities Corp Market Call Tonight (BNN TV) 2014-12-15 $9.420

Dividend is absolutely safe.  A nice stable business model.  CEO has a great track record and he thinks they will continue to grow out the business model.  The dividend could grow 8-10% over the next couple of years and cash flows will grow to support that.  They just did an equity raise to shore up the balance sheet.

$12-$13 two years. Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC Unknown View
BUY BIP.UN-T Brookfield Infrastucture Partners Market Call Tonight (BNN TV) 2014-12-15 $46.500

Likes it.  Very high quality business, run by an exceptional management team.  They buy cheap depressed businesses and turn them around to sell at a profit.  Recent acquisition of telecom towers in France will fit well.  The dividend could grow at 10% for a total 15% yield.  They do well when the markets are in turmoil because they buy distressed businesses. 

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC Unknown View
PAST TOP PICK CMCSA-Q Comcast Corp Market Call Tonight (BNN TV) 2014-12-15 $54.940

(Top Pick Jul 15/14, Up 0.51%) Still thinks the Time Warner Cable goes through.  There are revenue synergies.  Thinks there are going to be share buybacks.  It should get re-rated as the cash flow starts to grow.  This will be a 2016/17 story.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC Yes View
PAST TOP PICK DHR-N Danaher Corp. Market Call Tonight (BNN TV) 2014-12-15 $83.390

(Top Pick Jul 15/14, Up 6.72%) Thinks they will migrate away from the industrial side and toward the medical/dental side.  This is an M&A and rollup story.  The stock looks cheaper now.  The cash balance suggests they will do more M&A.  Thinks there is still more upside.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC Yes View
WEAK BUY FLR-N Fluor Corp. Market Call Tonight (BNN TV) 2014-12-15 $56.670

One of the largest engineering and construction firms in the world.  It has high exposure to oil.  If you want to play in this space you have to be cognizant of the risk.  It tends to be quite volatile.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC Unknown View
WAIT FLS-N Flowserve Corp. Market Call Tonight (BNN TV) 2014-12-15 $54.800

Oil and gas exposed, but much of the cash flow is recurring and very predictable.  Mid stream and downstream cap-x are not at risk these days.  The valuation is compelling, but he is waiting to see how oil shakes out.  It gets 25% return on invested capital.  He is going to take a hard look at it when oil stabilizes.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC No View
BUY GEI-T Gibson Energy Market Call Tonight (BNN TV) 2014-12-15 $23.840

Earnings expectations have been priced into the market.  They are the most exposed to oil in the energy infrastructure space.  He expects a 10% drop in earnings, but the stock has dropped 30%.  Thinks they will continue to raise their dividend.  Thinks it is a great value.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC Unknown View
WATCH INE-T Innergex Renewable Energy Market Call Tonight (BNN TV) 2014-12-15 $11.180

Great management team.  Great assets.  Long duration.  2017/18 projects will come on line and generate more cash flow.  It is probably fairly valued here.  He would buy at a lower level.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC No View
WEAK BUY KEY-T Keyera Corp Market Call Tonight (BNN TV) 2014-12-15 $69.700

Has been beaten up similar to other pipelines.  They have no exposure to crude oil.  He thinks it has been a victim of a sector wide sell-off.  Favourable management team and some of the best assets in the space.  6-8% dividend growth and in 2017/8 he thinks the space may consolidate and they would be a good takeout candidate.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC Unknown View
TOP PICK MIC-N MacQuarie Infrastructure LLC Market Call Tonight (BNN TV) 2014-12-15 $63.780

A favourite name.  There is significant value here.  They bought out their bulk liquids business from a partner.  6% dividend yield that will grow.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC Yes View
BUY NPI-T Northland Power Inc Market Call Tonight (BNN TV) 2014-12-15 $14.690

He is surprised at the price reaction.  It is an independent renewable power company with renewable contract terms.  Dividend is covered.  They have a pretty good drip program so the payout is only 80% today.  There is a bit of an equity raise coming up.  He has a lot of respect for the management team.  You should be very happy with the yield.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC Unknown View
BUY OKE-N Oneok Inc New Market Call Tonight (BNN TV) 2014-12-15 $44.320

They raised their 2015 dividend guidance and the market is not giving them credit for it.  They are a US based pipeline company.  They are exposed to more commodity volatility than peers, but they do a great job of managing it.  Thinks they are being excessively punished.  They raised their guidance for 2015.  In Canada there are complications in owning this.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC Unknown View
TOP PICK PEGI-Q Pattern Energy Group Inc Market Call Tonight (BNN TV) 2014-12-15 $23.470

One of the more resilient business models.  Thinks the dividend can grow at 12% for the next 2 to 3 years.  Share price is volatile because of hedge fund ownership.  Thinks the stock market will eventually get the right investor base for the right valuation.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC Yes View
HOLD PPL-T Pembina Pipeline Corp Market Call Tonight (BNN TV) 2014-12-15 $36.830

Has some commodity exposure: frack spread.  But he thinks it is a very high quality business.  There is still a significant cap x program for them to drive organic growth.  When it slows down you will see more acquisitions for growth.  There is great value here.  It is just a matter of what you want to get exposure to.  It is great value.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC Yes View
PAST TOP PICK PWR-N Quanta Services Market Call Tonight (BNN TV) 2014-12-15 $25.850

(Top Pick Jul 15/14, Down 25.89%)  Not a lot of energy exposure.  Two thirds of their business is electricity transmission in North America.  Confident in the management team.  Half of their oil and gas is long haul pipeline.  He is a buyer here.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC Yes View
DON'T BUY RNW-T Transalta Renewables Market Call Tonight (BNN TV) 2014-12-15 $11.350

TA-T is a major shareholder and consolidates them on their balance sheet.  They will have to dilute their equity to fund the acquisition of an asset.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC No View
DON'T BUY SE-N Spectra Energy Market Call Tonight (BNN TV) 2014-12-15 $33.090

Have assets in Canada and the US.  Pipelines and gas processing.  Prefers some of the peers.  All the mid streams are on sale this week.  Good management team and great assets.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC No View
BUY STN-T Stantec Inc Market Call Tonight (BNN TV) 2014-12-15 $29.490

One of the two engineering and construction firms he likes.  You get US housing market exposure and US transportation exposure.  The stock is very attractive here.  Not much oil and gas exposure, but it sold off.  He thinks the premium of the stock is justified.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC Unknown View
BUY VSN-T Veresen Inc Market Call Tonight (BNN TV) 2014-12-15 $14.930

Likes it.  He was negative on alliance pipeline coming up for renewal, but now he thinks it is going to pull more volume through it.  He thinks the LNG will get done.  They have the permit.  They may sell a portion of their pipeline.  The CEO is doing a good job of turning the business around and selling off non-core assets.  The dividend is safe.

Gajan Kulasingam INDUSTRIALS, UTILITIES and ENERGY INFRASTRUCTURE OPTIMISTIC Unknown View
TOP PICK 6930-JP Nippon Antenna Market Call Tonight (BNN TV) 2014-11-04 $0.000

This profitable specialty company that makes antennas, is not just trading at around 10X earnings with a 3.2% dividend yield, but is truly trading for less than its net cash. If they shut it down today and just distributed the cash and gave the company a way, you would still have a profit.

Lorne Steinberg Deep Value Global Equities CAUTIOUS Yes View
PAST TOP PICK 6986-JP Futaba Corp Market Call Tonight (BNN TV) 2014-11-04 $0.010

(A Top Pick Oct 7/13. Up 38.45%.) Component manufacturer. This is one of those great Japanese value investments, and is still cheap. Trading for less than its full working capital. He can see 20% earnings growth a year for the next couple of years.

Lorne Steinberg Deep Value Global Equities CAUTIOUS Yes View
COMMENT A Commentary A Comment -- General Comments From an Expert Market Call Tonight (BNN TV) 2014-11-04 $0.020

Update on your Value Japanese investments? Japan remains the cheapest market in the developed world, even in emerging markets. He has always liked that Japanese companies have very low debt levels, often zero debt. Fantastic corporate governance. CEOs are not motivated by stock options, but are motivated to build a better company to hand off to the next CEO. They have so many great engineering companies that are best in the world of what they do that no one has ever heard of before, because they are not consumer product companies.

Lorne Steinberg Deep Value Global Equities CAUTIOUS _N/A View
COMMENT AEG-N Aegon N.V. Market Call Tonight (BNN TV) 2014-11-04 $8.080

Considers this as a deep value investment, and it has done well. An insurance company with significant assets in the US as well. They suffered a little because of the Dutch housing market which has not recovered yet. However, the worst is over for them and is selling at a discount to BV. Very good upside to this. 3.6% dividend yield.

Lorne Steinberg Deep Value Global Equities CAUTIOUS Yes View
HOLD AFL-N Aflac Inc Market Call Tonight (BNN TV) 2014-11-04 $59.480

An American insurance company, whose major business has been in Japan for decades. Incredibly well-run. It amazes him that a US company has been able to succeed in a different culture for so long. A weaker yen hurts this company, but doesn't think this will have a huge impact on the stock price. Not a cheap stock and they could be running into some short-term earnings issues, which could cause earnings to decline, probably due to currency.

Lorne Steinberg Deep Value Global Equities CAUTIOUS No View
BUY on WEAKNESS BNS-T Bank of Nova Scotia Market Call Tonight (BNN TV) 2014-11-04 $67.190

Cutting 1500 jobs. That always disturbs him when he sees a very profitable company chopping jobs, possibly for shorter-term reasons. This is a great franchise like all Canadian banks, plus they have their operations in Latin America and the Caribbean. They seem to have run into some issues in some of those places. Canadian banking sector is the most expensive globally on a price to book valuation. Dividend is rock solid. In a strong financial condition. He wouldn't look at this unless there was a pullback.

Lorne Steinberg Deep Value Global Equities CAUTIOUS No View
COMMENT BTU-N Peabody Energy Corp Market Call Tonight (BNN TV) 2014-11-04 $10.290

A coal company that stands out for quality of the balance sheet. They also have operations in Australia. Somewhat diversified by having some oil/gas assets. Very strong balance sheet and will be a survivor. Hasn't bought this yet as he doesn't have the confidence that things are poised to turn in the next year or so. If you were going to buy coal it would be this one.

Lorne Steinberg Deep Value Global Equities CAUTIOUS No View
PAST TOP PICK CAM-LN Camellia PLC Market Call Tonight (BNN TV) 2014-11-04 $0.000

(A Top Pick Oct 7/13. Up 3.09%.) Second largest producer of tea in India, major producer of tea in Malawi and Bangladesh, citrus in California, farmland in Brazil, winery in South Africa and a private bank in the UK with some engineering companies. Very diversified. An amazing operation. Zero debt. One of those longest track records of rising dividends in the London market. Thinks it is trading at 50% of its actual intrinsic value, with properties that are just phenomenal assets. Hard to buy, but a really cheap stock. A Buying opportunity.

Lorne Steinberg Deep Value Global Equities CAUTIOUS Yes View
BUY CSCO-Q Cisco Market Call Tonight (BNN TV) 2014-11-04 $24.880

This is not the 15% earnings grower that it was. It is more of a 6%-8% earnings grower. However, they have $30 billion net of all debt which they are aggressively using to buy back shares and raise their healthy dividend of around 3%. They remain #1 in the world in their major industry sectors, which are growth sectors. He is looking for earnings to grow in a 6%-8% range in the next couple of years. If you want a conservative name, trading at a pretty low multiple, with a pristine balance sheet and growth, this is a good bet.

Lorne Steinberg Deep Value Global Equities CAUTIOUS Yes View
COMMENT DB-N Deutsche Bank AG Market Call Tonight (BNN TV) 2014-11-04 $30.830

Like a lot of European banks, with the new capital requirements they had to do a very significant rights issue and had to raise a lot of capital. That is dilutive to shareholders. However it doesn't look expensive and he continues to look at this. They're going to suffer a little bit with the slowing European economies, but he could be talking about this on one of these shows someday.

Lorne Steinberg Deep Value Global Equities CAUTIOUS No View
COMMENT DEO-N Diageo PLC Market Call Tonight (BNN TV) 2014-11-04 $115.690

An expensive stock for a company with almost zero earnings growth and flat lining revenues at best. Have phenomenal brands in a very mature industry. They have been a great and smart acquirer of brands, but at 19X earnings with almost no growth, it is hard to find value here. The dividend is secure and there is room for dividend increases.

Lorne Steinberg Deep Value Global Equities CAUTIOUS No View
BUY GE-N General Electric Market Call Tonight (BNN TV) 2014-11-04 $25.700

A better company today than it was in 2000, with less risk attached to it. Management has done a fantastic job. Dividend is secure. This is one that he looks at, but it never seems to be cheap enough. Not expensive.

Lorne Steinberg Deep Value Global Equities CAUTIOUS No View
COMMENT GOOG-Q Google Market Call Tonight (BNN TV) 2014-11-04 $554.110

They are doing an amazing job and growing revenues and earnings. They are brilliant individuals. He can’t buy it today because it is too expensive.

Lorne Steinberg Deep Value Global Equities CAUTIOUS No View
TOP PICK HPQ-N Hewlett-Packard Co Market Call Tonight (BNN TV) 2014-11-04 $35.900

Trading at less than 10X earnings. No net debt if you don't count the financing debt they use to finance equipment. Huge free cash flow generation. Company has returned to earnings growth. Thinks revenue growth will start next year. It will become a growth story again, to some degree, trading at an incredibly cheap valuation, probably $4 a share in the next couple of years. Recently announced they are going to split into 2 pieces, probably in 2015. Thinks this is a $50 stock. Yield of 1.78%.

Lorne Steinberg Deep Value Global Equities CAUTIOUS Yes View
BUY on WEAKNESS INTC-Q Intel Market Call Tonight (BNN TV) 2014-11-04 $34.540

Largest chip manufacturer globally. Has always tended to have cyclical earnings. Earnings have had a very nice run. Wouldn't want to be buying it here because if you look at the last 20 years, earnings can move up and down very significantly. You need to buy this when the gross margins are dropping a bit and earnings are down sharply. This will happen as it does in every cycle.

Lorne Steinberg Deep Value Global Equities CAUTIOUS No View
PAST TOP PICK KB-N KB Financial Group Market Call Tonight (BNN TV) 2014-11-04 $38.120

(A Top Pick Oct 7/13. Up 7.87%.) A South Korean bank that is dependent on the South Korean economy. Unlike most emerging market economies, the South Korean is showing some very positive signs. Stock is trading at a very cheap multiple with forecasted double-digit earnings growth over the next 2-3 years.

Lorne Steinberg Deep Value Global Equities CAUTIOUS Unknown View
COMMENT LIF-T Labrador Iron Ore Royalty Market Call Tonight (BNN TV) 2014-11-04 $18.970

Iron ore has been wallowing in 5 year lows. Iron is used for steel and, like almost every other commodity; China is the largest buyer of steel. When the Chinese economy is not doing as well as it was, steel prices dropped but iron ore prices dropped even more. Coal sector is suffering badly. There is a good chance that China's economy slows down even more.

Lorne Steinberg Deep Value Global Equities CAUTIOUS No View
HOLD MFC-T Manulife Financial Market Call Tonight (BNN TV) 2014-11-04 $21.220

This is now in a very good space. Trading for 13 or 14 times earnings, but earnings are really poised to jump here. He is looking at earnings going from about $1.55 a share this year to the $2 level in 2 years from now. Also, looking for more dividend increases.

Lorne Steinberg Deep Value Global Equities CAUTIOUS Yes View
DON'T BUY MFI-T Maple Leaf Foods Market Call Tonight (BNN TV) 2014-11-04 $19.350

Sold its most profitable division, Canada Bread, earlier this year. They have their meat division which has always been marginally profitable at best. Sitting with a pristine balance sheet and $500 billion in cash. The issue with him is what are they going to do with that cash. The company has not been a great acquirer of businesses in the past. To him there doesn't seem to be tremendous value here.

Lorne Steinberg Deep Value Global Equities CAUTIOUS No View
COMMENT NA-T National Bank of Canada Market Call Tonight (BNN TV) 2014-11-04 $52.800

Hosted their annual meeting in Calgary which is significant. Trying to get away from their Québec roots and grow out into the rest of Canada. They have chosen a couple of specialty areas to do that in, including handling back-office transactions for investment firms and the like, and are also the largest custodian for certain types of investment firms in Canada. Thinks they are pretty well positioned. However, they don't have the scope and scale of the rest of the banking sector, which would be somewhat of a risk because they are Québec-based and are dependent on the Québec economy. A well-run institution. Meets all of his criteria if the stock gets cheap enough.

Lorne Steinberg Deep Value Global Equities CAUTIOUS No View
TOP PICK RDS.A-N Royal Dutch Shell PLC (A) Market Call Tonight (BNN TV) 2014-11-04 $68.790

A big, global, energy company with good natural gas exposure. Natural gas prices are terrible in Canada but are much better in Europe, and it is a much more profitable business. A vertically integrated company so they are in the refining business as well, which has been a good place to be. Huge cash flow generation. A company this strong can take advantage of a very weak sector, because they will be a net acquirer of very cheap assets that other companies not financially sound will be forced to sell. 5.3% dividend yield.

Lorne Steinberg Deep Value Global Equities CAUTIOUS Yes View
DON'T BUY SNC-T SNC-Lavalin Group Inc. Market Call Tonight (BNN TV) 2014-11-04 $45.460

This has had unique problems, including corruption and related lawsuits. There has been a lot of management turmoil that is possibly not over yet. Have huge contracts in a lot of places where some strange types of business dealings go on and are being more closely monitored. Corporate governance has not been great. There are better places to put your money.

Lorne Steinberg Deep Value Global Equities CAUTIOUS No View
DON'T BUY SYN-T Synenco Energy Inc. Market Call Tonight (BNN TV) 2014-11-04 $10.230

The whole Pharma sector, which was such a hot sector in the 90s, has been suffering for the last 15 years, and this one is no different. Having trouble coming up with new drugs. A very well-run company. He can see a lot of earnings growth in the next couple of years. Not cheap.

Lorne Steinberg Deep Value Global Equities CAUTIOUS No View
COMMENT TCK.B-T Teck Resources Ltd. (B) Market Call Tonight (BNN TV) 2014-11-04 $17.090

This is a dual class share company and he doesn't like that kind of situation to invest in. The commodity boom which ran from the late 90s to the financial crisis is suffering today. Doesn't know if this is just a temporary downturn or could it continue for a while.

Lorne Steinberg Deep Value Global Equities CAUTIOUS No View
N/A A Commentary A Comment -- General Comments From an Expert Market Call (BNN TV) 2014-07-15 $0.020

Investing. He tends to do his investing bottom-up. Rates continue to drive a lot of the valuations in utilities and energy infrastructure, so he continues to pay attention to the high-level macro. ECB continues to be monetary easing, and the Fed policy continues to be accommodating. This is all positive from an equity valuation perspective.

Gajan Kulasingam Energy Infrastructure, Industrials & Utilities OPTIMISTIC _N/A View
N/A A Commentary A Comment -- General Comments From an Expert Market Call (BNN TV) 2014-07-15 $0.020

Industrials. These tend to correlate very well with economic and GDP growth. There are early-cycle, mid-cycle and late-cycle industrials, and he feels the early cycle trades have been and gone. Focusing on mid and late cycle non-residential and CapX cycles where there is still tailwind and a positive growth outlook.

Gajan Kulasingam Energy Infrastructure, Industrials & Utilities OPTIMISTIC _N/A View
N/A A Commentary A Comment -- General Comments From an Expert Market Call (BNN TV) 2014-07-15 $0.020

Utilities. Have had a pretty good start into the 1st half which has really been a function of declining bond yields. Feels this caught investors by surprise. Rates will likely back up into the 2nd half, but at a slow and moderate pace. From that perspective, he feels there is going to be a bit of headwind for utilities, so he is fairly cautious in this area.

Gajan Kulasingam Energy Infrastructure, Industrials & Utilities OPTIMISTIC _N/A View
N/A A Commentary A Comment -- General Comments From an Expert Market Call (BNN TV) 2014-07-15 $0.020

Energy Infrastructure. Stretched valuations, but in the midst of a multiyear expansion. Fairly valued, but you know that there is more CapX coming down the line. There’s so much opportunity to deploy capital in this space, that ultimately these businesses are going to be worth more 2 to 5 years out.

Gajan Kulasingam Energy Infrastructure, Industrials & Utilities OPTIMISTIC _N/A View
BUY ALA-T Altagas Ltd Market Call (BNN TV) 2014-07-15 $48.010

Great company. 3 different segments of power, gas and utilities. The utility segment is pretty stable, and generates a nice cash flow. The power segment is where he thinks they’ll have a good project in their Forrest Kerr Hydro that just came online, which would generate a lot of free cash flow. This is also the best way to play the LNG export market.

Gajan Kulasingam Energy Infrastructure, Industrials & Utilities OPTIMISTIC Yes View
BUY AQN-T Algonquin Power & Utilities Corp Market Call (BNN TV) 2014-07-15 $8.030

Rising interest rates would be a negative headwind, but it will be for any utility and any equity stock from a valuation perspective. In a rising interest rate environment you want to look for businesses where they can grow their free cash flow and dividend in a measured pace that offsets the rising interest rate impact on valuation. He thinks this is one of those names. Have a unique 2 prong strategy where half the business is a fully regulated utility, and the other half is a contracted independent power generation business. Management has done a good job. They have indicated there is potential of up to $2 billion of incremental projects they can take on. If so, you are looking at a stock that is probably worth $12-$13 out in 2017. If you can get this between $8-$9, you will get a 12%-15% total return over 2 years. Yield of 4.2%, which he expects will be increased every year.

Gajan Kulasingam Energy Infrastructure, Industrials & Utilities OPTIMISTIC Yes View
BUY on WEAKNESS BEP.UN-T Brookfield Renewable Energy Market Call (BNN TV) 2014-07-15 $31.110

Unique in the sense that they are a true global renewal business within Canada. One of the best run management teams with some of the best assets in the renewal space, mostly hydro. A slower yield growth name, but is stable. If you think rates are going to rise, which he thinks they will, there could be a moderate pullback.

Gajan Kulasingam Energy Infrastructure, Industrials & Utilities OPTIMISTIC Yes View
TOP PICK CMCSA-Q Comcast Corp Market Call (BNN TV) 2014-07-15 $54.890

The issue people have worried about is over the top and core cutting, and what that means for the traditional cable business. They have shown that to have the pipeline infrastructure, the last mile connection to the house, is still very critical. Signed a deal with Netflix to substantiate that. Largest US cable/broadcast operator. Thinks the Time Warner acquisition is done. Yield of 1.65%. A $70 stock in 2017.

Gajan Kulasingam Energy Infrastructure, Industrials & Utilities OPTIMISTIC Yes View
TOP PICK DHR-N Danaher Corp. Market Call (BNN TV) 2014-07-15 $78.240

A multi-industrial. Unique in that they have the industrial exposure as well as a healthcare technology segment. Both segments have very good growth prospects. One of the best management teams he has ever met. CEO is retiring, but COO is stepping in, so it will be a smooth transition. Historically, the company has given 11%-12% EPS growth, 15% free cash flow growth and 15% dividend growth. Not expensive. They can do an M&A up to about $12 billion. Accruing so much cash on the balance sheet that you are either going to get a special dividend or they will go out and do a large-scale M&A. Yield of 0.51%. Feels the stock could be worth north of $85.

Gajan Kulasingam Energy Infrastructure, Industrials & Utilities OPTIMISTIC Yes View
COMMENT EMA-T Emera Inc Market Call (BNN TV) 2014-07-15 $34.350

Sold his holdings late last year. Operationally this is a great business. Good management team. Going through a $4.5 billion CapX program in the Maritimes. There is value here for a business that is trading 17X, and where he thinks earnings will grow in the mid to high single-digit. It seems a little rich to him. He would be looking to buy this in the low $30s if you could get it.

Gajan Kulasingam Energy Infrastructure, Industrials & Utilities OPTIMISTIC No View
COMMENT FTS-T Fortis Inc. Market Call (BNN TV) 2014-07-15 $32.760

A Western based regulated utility, and the largest in Canada. Thinks the valuation of 16X is a little high. If we are going into a rising interest rate environment, a fully regulated utility will likely have more capital pressure on its stock price than more of a merchant power business.

Gajan Kulasingam Energy Infrastructure, Industrials & Utilities OPTIMISTIC No View
COMMENT GE-N General Electric Market Call (BNN TV) 2014-07-15 $26.610

The ultimate diversified conglomerate. A nice stable business that is going to give you low, single-digit total returns from an earnings growth perspective. The multiple of 15X is not rich. Always trades at a discount just because it is a large conglomerate. Recently got permission from the French government to bid for their power and grid business. This will be done in 3 joint ventures, so it will be less of a capital outlay and de-risks the initial investment. Dividend is going to continue to grow at mid-single digit levels.

Gajan Kulasingam Energy Infrastructure, Industrials & Utilities OPTIMISTIC Yes View
BUY GEI-T Gibson Energy Market Call (BNN TV) 2014-07-15 $33.080

Has done phenomenally well since the IPO in 2011. A little more diversified than some of their peers in that they have terminal businesses, trucking, storage and the Omni Services in the US. Have probably 2 of the most strategic hubs in Edmonton, and a lot of the volumes of crude oil, commodities and NGL’s will go through these 2 hubs. Trades at a pretty good discount to its peers.

Gajan Kulasingam Energy Infrastructure, Industrials & Utilities OPTIMISTIC Yes View
PARTIAL BUY IPL-T Inter Pipeline Market Call (BNN TV) 2014-07-15 $32.810

An Alberta energy infrastructure operator and a great business. Really a play in the northern Athabascan and Cold Lake regions. Have 3 pipelines. Funded 2 of the pipelines with 2 anchor tenants. The thesis is that they are going to add on incremental shippers with very high, accretive returns. Dividend is sustainable, and will probably grow north of 5%-7% over the next 2-3 years. There continues to be significant CapX put into the space. The only risk would be that they are predominantly in the Alberta pipeline system, and will need to have market access. They can get their pipelines to key Edmonton terminals, and will need to have long haul pipelines out of Edmonton. With a two-year time horizon, you can chip away here. South of $29 would be a good access price, and would give you a 10%-15% margin of error of safety.

Gajan Kulasingam Energy Infrastructure, Industrials & Utilities OPTIMISTIC Yes View
BUY on WEAKNESS KEY-T Keyera Corp Market Call (BNN TV) 2014-07-15 $78.610

This is been a great name. It always looks expensive until they come out and announce the next CapX project, and then it looks cheap. He would buy this at under $75, and if you own continue to Hold. They are going through $1.5 billion CapX, but they could do $2.5 billion. If so, they are worth around $80-$85.

Gajan Kulasingam Energy Infrastructure, Industrials & Utilities OPTIMISTIC Yes View
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