May 3, 2016
Gordon Reid's top picks: May 3, 2016
, BNN Bloomberg
Gordon Reid, president & CEO, Goodreid Investment Counsel
FOCUS: U.S. Equities
MARKET OUTLOOK:
Market participants are in an uncomfortable position, with tepid earnings and an advancing market leading to higher valuations. Goodreid expects this to translate into a see-saw market performance while we work through this earnings recession. Energy, materials and foreign exchange influences will likely abate in the next few quarters, allowing total S&P earnings to begin advancing once again.
Top Picks:
Charles River Laboratories (CRL.N)
Latest Purchase Mar, 2016 @ $74
Charles River Labs is a contract research organization, which works with large pharmaceutical firms to complete clinical drug testing, as well as discovery and safety testing. Earnings are advancing at a mid-teens clip.
Verizon Communications (VZ.N)
Latest Purchase April 2016 @ $50
Verizon’s new business model may slow earnings growth temporarily, but net profit margins are likely to settle firmly in double digit territory. Wireless customers now account for more than 70% of its business. Watch for a possible acquisition of Yahoo, which would bolt on to last year’s AOL pick up nicely.
Walgreens Boots Alliance (WBA.O)
Latest Purchase April 2016 @ $79
Walgreen’s latest endeavour is the purchase of Rite Aid, a franchise that will immediately put Walgreens on the map in the Northeast and Mid-Atlantic. Cost savings through synergies will be in excess of $1 billion, to say nothing of the planned operational improvements that Walgreen’s management will implement.
| Disclosure | Personal | Family | Portfolio/Fund |
|---|---|---|---|
| CRL.N | N | N | Y |
| VZ.N | N | N | Y |
| WBA.O | N | N | Y |
Past Picks: May 5, 2015
Air Methods (AIRM.O)
- Then: $44.37
- Now: $36.15
- Return: -18.53%
- TR: -18.53%
Home Depot (HD.N)
- Then: $108.06
- Now: $134.39
- Return: +24.37%
- TR: +26.91%
Time Warner (TWX.N)
- Then: $84.45
- Now: $74.29
- Return: -12.04%
- TR: -10.27%
Total Return Average: -0.63%
| Disclosure | Personal | Family | Portfolio/Fund |
|---|---|---|---|
| AIRM.O | N | N | Y |
| HD.N | N | N | Y |
| TWX.N | N | N | Y |
Name: Goodreid North American Balanced Composite
Performance as of: March 31, 2016
- 1 year: Fund -0.5%, Index* -3.6%
- 3 year: Fund 9.8%, Index* 5.4%
- 5 year: Fund 7.4%, Index* 3.8%
* Index: Globe Canadian Equity Balanced Peer Index. Returns are based on reinvested dividends and are net of fees.
Website: www.goodreid.com
