Benj Gallander, president of Contra The Heard Investment Letter
Focus: Contrarian investing

MARKET OUTLOOK

About a year ago at this time, the stock market had taken a beating before beginning a pretty stunning reversal in form that is continuing. However, students of history have likely noted that given that this is the longest bull market in history, we’re very likely far closer to the end than the beginning. Thus, our strategy at times like this is to be defensive by buying less and selling more. Very unexciting, to be sure.

TOP PICKS

Benj Gallander's Top Picks

Benj Gallander of the Contra the Heard Investment Letter shares his top picks: Stuart Olson, First US Bancshares and North European Oil Royalty Trust.

STUART OLSON (SOX:CT)
Last purchased in 2019 at $4.66.

This is a high-risk, high-reward situation. Previously, Stuart Olson paid a fat dividend (evidently too fat). Once cut, the stock dropped like a stone. For the longevity of the organization, that was likely a smart move. The backlog is $1.6 billion, which if priced correctly, should help to support the corporation going forward.

FIRST US BANCSHARES (FUSB:UW)
Last purchased in 2015 at $8.32.

First US Bancshares used to trade north of $33 and pay a dividend of $0.27 a quarter. Currently it is under $11 and the payout is $0.02 quarterly. There is an excellent chance that both of these will push upwards for this profitable, well-managed bank. The digestion of Peoples Bank appears to have gone well, which should boost the bottom line.

NORTH EUROPEAN OIL ROYALTY TRUST (NRT:UN)
Last purchased in 2017 at $6.52.

Based in the United States, this trust's fat payout is based on ExxonMobil and Royal Dutch Shell pumping oil and gas in Germany. Of course, it’s also highly dependent on the price of the two resources.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
SOX Y N Y
FUSB Y N Y
NRT Y N Y

 

PAST PICKS: DEC. 24, 2018

Benj Gallander's Past Picks

Benj Gallander of the Contra the Heard Investment Letter reviews his past picks: Quarterhill, Innodata and GM Capital.

QUARTERHILL (QTRH:CT)

  • Then: $1.19
  • Now: $1.60
  • Return: 34%
  • Total return: 39%

INNODATA (INOD:UW)

  • Then: $1.50
  • Now: $1.18
  • Return: -21%
  • Total return: -21%

GMP CAPITAL (GMP:CT)

  • Then: $1.83
  • Now: $1.88
  • Return: 3%
  • Total return: 23%

Total return average: 14%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
QTRH Y N Y
INOD Y N Y
GMP Y N Y

 

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