Gordon Reid, president and CEO at Goodreid Investment Counsel
Focus: U.S. stocks

MARKET OUTLOOK

Equity market appreciation has paused somewhat in September as air has been let out of the big cap tech names. A long-awaited rotation to more value-oriented names will occur sooner or later, but at Goodreid we prefer to hedge our bets through the use of a barbell approach. The next six months will provide some clarity within the contentious political environment the health and economic front.

TOP PICKS

Gordon Reid's Top Picks

Gordon Reid, president and CEO of Goodreid Investment Counsel discusses his top picks: Mondelez, AbbVie and Hexcel.

AbbVie (ABBV NYSE)
Latest purchase September 2020 at $90

Earlier this year AbbVie made a bold acquisition, purchasing Allergan in a $63 billion deal. The benefits are numerous, from a reduction in product concentration to huge financial growth projections. Layer on the cost synergies and immediately accretive earnings expectations, and at less than 10 times earnings with a dividend yield of over 5 per cent, this is a very attractive opportunity.

Hexcel (HXL NYSE)
Latest purchase September 2019 at $81.

Hexcel is a structural materials company with about two-thirds of its business coming from commercial aerospace. With the decline in the order books of its major customers, Boeing and Airbus, earnings are currently challenged, but Hexcel  represents a huge opportunity as the commercial aerospace business improves.

Mondelez (MDLZ NASD)
Latest purchase September 2020 at $57.

Mondelez International came out of the Kraft Foods reorganization and represents the snack food side. Well-known brands such as Cadbury, Nabisco and Oreos are included in their portfolio. Well managed and risk averse, this stable holding pays a 2.3 per cent dividend, trades at a market multiple and has both top and bottom line growth potential.

PAST PICKS: SEPT. 18, 2019

Gordon Reid's Past Picks

Gordon Reid, president and CEO of Goodreid Investment Counsel discusses his past picks: CVS Health, United Continental and United Rentals.

CVS Health (CVS NYSE)

  • Then: $63.26
  • Now: $58.42
  • Return: -8%
  • Total Return: -5%

United Continental (UAL NASD)

  • Then: $90.23
  • Now: $35.67
  • Return: -60%
  • Total Return: -60%

United Rentals (URI NYSE)

Then: $124.71

Now: $178.21

Return: 43%

Total Return: 43%

Total Return Average: -7%