FOCUS: Contrarian Investing

Market Outlook:

Oil and gas prices are low as are commodity prices. The USD is high. Ultimately this bodes well for the Canadian stock market in a few years’ time ceteris paribus. One major economic danger is negative interest rates, which amplify the possibility of a recession as it is akin to increasing risk and decreasing insurance.

TOP PICKS:

Female Health Care (FHCO.O) 
Most recent purchase & price: 2015 @ $1.36. 
This company that makes female condoms is the global leader. Its revenues should be helped by the Zika virus. The company has zero debt and insiders own almost 24 per cent. Initial Sell Target: $6.84 

Extendicare (EXE.TO) 
Most recent purchase & price: 2014 @ $7.01. 
Now that EXE has retreated from the United States, it is continuing its expansion in Canada. This is a leader in the senior care industry, which makes it an excellent demographic play. It has a lovely dividend. Initial Sell Target: $13.34 

Jinpan (JST.O) 
Most recent purchase & price: 2014 @ $3.86. 
This is effectively an arbitrage play. There is a takeover offer by top management at $6.00. Last year they offered $8.80 a share but the deal fell through. This one has a better chance of success.Worth noting is that the company has a good balance sheet and insiders own almost 16 per cent.

Past Picks: March 26, 2015

Cathedral Energy Services (CET.TO)

Alacer Gold (ASR.TO)

First United (FUNC.O)

Total Return Average : -20.27%