Jul 17, 2018
Gordon Reid's Top Picks: July 17, 2018
Gordon Reid, president and CEO of Goodreid Investment Counsel
Focus: U.S. equities
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MARKET OUTLOOK
The titanic struggle within the market is between macro issues — which include areas such as trade wars and geopolitical tensions — and earnings, which are the fundamental support for stock prices. Both are creating turbulence, but in the final analysis macro issues are transitory in nature, whereas earnings are the building blocks of strong corporations and are the ultimate basis for pricing securities.
TOP PICKS
BIOGEN (BIIB.O)
Latest purchase on June at $288.
Biogen is a biopharmaceutical company involved in the development of treatments for a variety of diseases, notably MS and Alzheimer’s. They have a strong free cash flow generation at nearly 7 per cent of their market cap. With gaps in their portfolio and looking for a growth catalyst, a meaningful purchase may be on the horizon.
TENNECO (TEN.N)
Latest purchase on February at $56.
Tenneco, a manufacturer of exhaust and ride control systems, has made a transformational acquisition with the purchase of Federal Mogul. Not only does the combination make strategic sense, but on a financial level, we believe the result will be very favourable for shareholders.
VISA (V.N)
Latest purchase on July at $133.
Revenues and earnings are growing very rapidly for Visa as the world moves to electronic processing in place of cash to settle transactions. International operations now account for 60 per cent of the company’s transactions. Visa is the electronics leader by far, processing more transactions than all of its competitors combined.
DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
---|---|---|---|
BIIB | N | Y | Y |
TEN | Y | N | Y |
V | N | Y | Y |
PAST PICKS: AUG. 17, 2017
DYCOM INDUSTRIES (DY.N)
- Then: $80.54
- Now: $98.09
- Return: 22%
- Total return: 22%
HONEYWELL (HON.N)
- Then: $135.85
- Now: $148.49
- Return: 9%
- Total return: 11%
MORGAN STANLEY (MS.N)
- Then: $45.09
- Now: $49.18
- Return: 9%
- Total return: 11%
Total return average: 15%
DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
---|---|---|---|
DY | Y | N | Y |
HON | N | Y | Y |
MS | N | Y | Y |
FUND PROFILE
Goodreid’s balanced approach allows investors to participate in the potential growth of equity holdings while mitigating risk through ownership of quality fixed income instruments.
Goodreid’s North American Balanced
Net after fees performance as of June 30, 2018 (including reinvested income)
- 1 year: 8.9% vs. 4.2% for Globe Canadian Equity Balanced Peer Index Average
- 3 years: 7.3% annually vs. 4.3%
- 5 years: 9.9% annually vs. 6.5%
TOP HOLDINGS
- Canadian equities: 33%
- U.S. equities: 40%
- Canadian fixed income: 17%
- Cash: 10%
WEBSITE: www.goodreid.com