"Now the Time to Buy"Franklin Bissett’s Aitken Says Now the Time to Buy on Energy
Short-term Turbulence
The short-term turbulence isn’t a concern for Aitken, whose fund holds positions an average of five years.
“We’re playing for the long-term,” Aitken said. “If we’re buying a stock today, I don’t know if I care if it goes up or down in the immediate term.”
Aitken say he has already profited from trades in Bonavista Energy Corp. and Canadian Energy Services & Technology Corp. He increased his positions in both names as their prices plummeted at the end of 2014, and subsequently sold some positions in both earlier this year.
Bonavista, which slumped to a record low in January, rallied 57 percent to a 2015 high in May. Canadian Energy Services, which traded at a 2013 low in January, has since rallied 39 percent.
Bonavista’s valuation in the past year peaked at more than 48 times earnings in September before plunging to 25.6 by December. Canadian Energy Services saw its price-to-earnings ratio crumble from a September high of 45.2 to 15.5 in January. Both Bonavista and Canadian Energy Services remain holdings in the portfolio, he said.
“We’re not in the business of trying to predict where stock prices are going to go in the short term,” he said. “We have an approach based on certain business attributes we want to see and valuations, and ultimately it’s about seeking the best risk-adjusted returns we can. Where some people see risk we see opportunity.”
https://www.bloomberg.com/news/articles/2015-07-14/franklin-bissett-s-aitken-says-now-the-time-to-buy-on-energy