Benj Gallander, president of Contra the Heard Investment Letter

Focus: Contrarian investing
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MARKET OUTLOOK
The strength of the global economy suggests that markets “want” to continue moving upwards. However, given how many are at or near record levels and the unpredictability of Donald Trump, at some point there will be a shakeout. Investors would likely be wise to make sure that not all of their chips remain on the table.

TOP PICKS

AEGON (AEG.N) – 2014 $7.64
Aegon has been selling some operations in the U.S. to cope with the new solvency rules. This huge Dutch company traces its roots back to 1844 and is in over 20 countries. It would not surprise to see the stock quadruple from this downtrodden level, but not tomorrow. Initial sell target: $20.34

FIRST US BANCSHARES (FUSB.O) – 2015 $8.32
The former United Security Bancshares is a small bank in Alabama. The stock price once touched $30. A double from the current level of $11.50 seems reasonable. It offers a small dividend, which will likely increase. Initial sell target: $23.44

PENN WEST PETROLEUM (PWT.TO) – 2014 $4.01
Penn West has returned from the nearly dead. Debt has been slashed. The company foresees double-digit operational growth ahead. And the corporation is now profitable. Initial sell target: $15.24
 

PAST PICKS: JANUARY 20, 2016

AEGON (AEG.N)

• Then: $5.46
• Now: $4.93
• Return: -9.70%
• TR: -0.85%

ALACER GOLD (ASR.TO)

• Then: $2.09
• Now: $2.14
• Return: 2.39%
• TR: 2.39%

GSE SYSTEMS (GVP.US) 

• Then: $2.05
• Now: $3.25
• Return: 58.15%
• TR: 58.15%

TOTAL RETURN AVERAGE: 19.89%
 

TOP HOLDINGS AND WEIGHTINGS

1. GSE Systems: 10.0%
2. First United Corp: 9.7%
3. Bank of America: 9.0%
4. Bank of Commerce Holdings: 8.7%
5. ATS Automation: 7.3%

WEBSITE: www.contratheheard.com