FOCUS: Contrarian Investing

Market Outlook

The world’s governments are acting as if we are in a major global recession, when in fact, that is not the case. The additional debt that nations are taking on will likely boost growth in the short-term, but longer term the negatives will almost certainly outweigh the benefits. Course, by then many new governments will likely be in place forced to deal with the repercussions.

TOP PICKS:

Reitmans (RETa.TO)  

Reitmans bottom line was hammered by the decrease in the C$ last year. However in the last quarter revenues were flat despite closing 56 stores. In-store sales were up 2.5 per cent with on-line sales jumping 69 per cent. Initial Sell Target $16.24

United Security Bancshares (USBI.O)

The bank’s loan portfolio is growing quickly while non-performing assets have been decreasing. This is a small, well-capitalized bank that pays a dividend of $0.08 per year. The payout is expected to grow as prior to the recession it peaked at  $1.08. Initial Sell Target $23.44

Aegon N.V. (AEG.N)

This huge Dutch insurance and asset management company has operations in numerous countries including major operations in the U.S. The enterprise has rebounded beautifully from the recession and is reporting record revenues. It is also a good play on the Euro. Initial Sell Target- $20.34

 

Disclosure Personal Family Portfolio/Fund
RETa Y N N
USBI Y N N
AEG Y N N

Past Picks: May 7, 2015

GSE Systems (GVP.N)

Recommended at: Now at: Change Total Return
$1.48 $2.57 +73.68% +73.68%

Cathedral Energy (CET.TO)

Recommended at: Now at: Change Total Return
$2.20 $0.32 -85.45% -85.45%

First United (FUNC.O)

Recommended at: Now at: Change Total Return
$9.05 $11.23 +24.09% +24.09%

 

Total Return Average : +4.11%

Disclosure Personal Family Portfolio/Fund
GVP Y N N
CET Y N N
FUNC Y N N