David Baskin, President, Baskin Wealth Management
Focus: North American Large Caps
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MARKET OUTLOOK:
Economies throughout the developing world continue to show no or slow growth. The efforts of central banks to stimulate activity through monetary measures has succeeded in keeping interest rates very low, but have not resulted in any significant uptick in real economic activity. Business investment remains anemic and corporate revenues are stagnant. In this environment, we think investors should concentrate on sectors which can grow faster than the economy, and on solid companies with a track record of earnings and increasing dividends. In a slow growth economy, dividends will be increasingly in focus as providing the lion's share of yield to investors. Sectors which we favour include healthcare, large technology firms and companies catering to tourism, entertainment and other consumer experiences.
Top Picks:
Cineplex (CGX.TO)
Cineplex is a well-managed company in a sector we believe can grow faster than the economy. Through such innovations as VIP and Premium seating, sale of upscale concessions and creation of entertainment venues, Cineplex continues to broaden its revenue sources. The company has a good dividend and a strong record of dividend increases. We own for clients, I own and my family own.
H&R REIT (HR_U.TO)
As a senior owner/manager of commercial and industrial properties, H&R is largely removed from the chaos and uncertainty of the residential real estate market. The company has a history of very low vacancies, prudent distributions and sensible acquisitions. A good buy for income, particularly in registered accounts. We own for clients, I own, my family owns.
Home Capital Group (HCG.TO)
This company was battered by short sellers when it revealed documentation problems with mortgages originated through some brokers. These problems are now in the past, and did not result in any loan losses. Nonetheless, the company now trades at a bargain basement price equal to about 7 times trailing earnings. A solid dividend, strong balance sheet and excellent entry price make this a good buy. We own for clients, I own, family owns.
| Disclosure | Personal | Family | Portfolip/Fund |
|---|---|---|---|
| CGX | Y | Y | Y |
| HR_u | Y | Y | Y |
| HCG | Y | Y | Y |
Past Picks: August 6, 2015
CVS Health (CVS.N)
- Then: $108.12
- Now: $97.15
- Return: -10.15%
- TR: -8.66%
Google (GOOG.O)
- Then: $642.08
- Now: $779.00
- Return: +21.21%
- TR: +21.21%
Zimmer Biomet (ZBH.N)
- Then: $101.69
- Now: $131.26
- Return: +29.08%
- TR: +30.22%
Total Return Average: +14.26%
| Disclosure | Personal | Family | Portfolip/Fund |
|---|---|---|---|
| CVS | Y | N | Y |
| GOOG | Y | Y | Y |
| ZBH | N | N | Y |
Twitter: @DavidBaskinBWM
Website: www.baskinwealth.com
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