Bill Harris, partner and portfolio manager at Avenue Investment Management 
Focus: Canadian large and midcaps

MARKET OUTLOOK

There are some fantastic resource companies in Canada. I have always thought to myself, “wouldn’t it be a lot easier to make money if the stocks were cheaper?”

Well here we are. Some resource and resource related stocks have gotten really cheap.

TOP PICKS

ALTAGAS (ALA.TO)
Book cost: $21.50.

AltaGas is in the final stages of restructuring, given the transformative acquisition of WGL last year. While the market has really punished the stock, we believe it’s finally at a great level for long-term investors. These are long-term cash flowing assets that we would like to own as a core of our portfolio.

KEYERA (KEY.TO)
Book cost: $39.

Keyera is a very well run natural gas infrastructure company in Western Canada. You get a 5 per cent dividend and organic growth. Visibility to West Coast LNG exports should positively alter the sentiment of investing in Western Canadian natural gas over the next few years.

ARC RESOURCES (ARX.TO)
Book cost: $13.70.

ARC is a high-quality Western Canadian natural gas, natural liquids and oil producer that’s finally trading at a fair price.  At these low commodity prices, the company is making money and trading at a reasonable valuation. Again, visibility to West Coast LNG exports should positively alter the sentiment of investing in Western Canadian natural gas over the next few years.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
ALA Y Y Y
KEY Y Y Y
ARX Y Y Y

 

PAST PICKS: JUNE 14, 2017

ALTAGAS (ALA.TO)
Sold and bought back.

  • Then: $30.05
  • Now: $20.84
  • Return: -31%
  • Total return: -23%

CANADIAN NATURAL RESOURCES (CNQ.TO)
Still own.

  • Then: $37.36
  • Now: $42.12
  • Return: 13%
  • Total return: 17%

ROXGOLD (ROXG.TO)
Still own.

  • Then: $1.12
  • Now: $0.80
  • Return: -29%
  • Total return: -29%

Total return average: -12%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
ALA Y Y Y
CNQ Y Y Y
ROXG Y Y Y

 

WEBSITE: avenueinvestment.com