Bill Harris, partner and portfolio manager at Avenue Investment Management
Focus: Canadian large and mid-caps

MARKET OUTLOOK

A major deterrent to making new investments is the view that the market is too expensive. What this sentiment does reflect is that index dominating stocks like Shopify in Canada and the FANGs in the U.S. are trading at historically high levels and caution is warranted. However, we find there are many businesses that are doing well and where the valuations are in our favour.

Being in lockdown now for the holidays in 2020, it is hard to imagine what the stock market looks like this time next year. While a setback is likely at some point, 2021 will be a year of constant economic and earnings improvement.

TOP PICKS

Leon's Furniture (LNF TSX)

Leon’s has done well shifting to e-commerce during the pandemic. The stock still trades at a relatively low valuation.

Cameco Corp (CCO TSX)

Cameco looks to have broken out from a long five-year base. Fundamentals and sentiment are improving.

Roxgold (ROXG TSX)

Roxgold released its Ivory Coast project update. We believe Roxgold will be a very profitable two mine company in two years’ time.

PAST PICKS: DEC. 13, 2019

Superior Plus Corp (SPB TSX) 

• Then: $12.02
• Now: $12.52
• Return: 4%
• Total Return: 10%

Russel Metals (RUS TSX)

• Then: $22.13
• Now: $21.97
• Return: -1%
• Total Return: +6%

Leon’s Furniture (LNF TSX)

• Then: $16.29
• Now: $19.83
• Return: 22%
• Total Return: 27%

Total Return Average: 14%

WEBSITE: https://avenueinvestment.com/