Gordon Reid, President & CEO, Goodreid Investment Counsel

FOCUS: U.S. equities

_______________________________________________________________

MARKET OUTLOOK

The market’s message is confusing some participants but Goodreid believes it should be taken at face value. A rate hike by the Federal Reserve is unlikely in September but when it happens it is likely to be another one and done — until well into 2017. The earnings recession is showing signs of ending. Revenue growth has improved and valuations, given the monetary backdrop, are reasonable.

Top Picks

Boeing (BA.N)

Latest purchase: Aug. 2016 ($134)

Boeing is in full production and has a commercial aircraft backlog of 5,700 planes, representing over $400 billion. Visibility is good, valuations are reasonable and cash-flow is robust, supporting a 3 per cent plus dividend yield.

Dycom Industries (DY.N)

Latest purchase: Apr. 2016 ($84)

Dycom is a telecom services company, capturing a large share of the massive amount of work to upgrade wireline networks to accommodate greater bandwidth. Organic revenue growth in the most recent financial report was an impressive 20 per cent. Earnings are soaring, yet valuations are modest, at less than 16 times current year’s expected results.

Home Depot (HD.N)

Latest purchase: Aug. 2016 ($137)

Home Depot is growing well, attractively priced, well managed and has multiple favourable trends supporting it. Household formation numbers are rising but are still lagging population growth. Interest rates remain low and lending standards are more relaxed than in past years. Unemployment is falling and GDP growth is steady. At 21 times earnings, Goodreid believes this issue is a buy.

Disclosure Personal Family Portfolio/Fund
BA N N Y
DY N N Y
HD N N Y

 

Past Picks: September 30, 2015

Facebook (FB.O)

  • Then: $89.90
  • Now: $131.05
  • Return: +45.77%
  • TR: +45.77%

Citigroup (C.N)

  • Then: $49.61
  • Now: $47.48
  • Return: -4.29%
  • TR: -3.63%

Nasdaq Inc (NDAQ.O)

  • Then: $53.33
  • Now: $70.90
  • Return: +32.95%
  • TR: +34.71%

Total Return Average: +25.62%

Dislcosure Personal Family Portfolio/Fund
 FB N N Y
 C N N Y
 NDAQ N N Y

 

Fund Profile: Goodreid’s North American Balanced

Performance as of: June 30, 2016

  • 1 month: Fund -0.2%, Index* 0.3%
  • 3 year: Fund 8.9%, Index* 6.6%
  • 5 year: Fund 7.7%, Index* 4.7%

* Index: Globe Canadian Equity Balanced Peer Index Average

* Returns net fees & dividends

 

TOP HOLDINGS

  1. Cdn Equities - 34%
  2. U.S. Equities - 37%
  3. Cdn. Fixed Income - 24%
  4. Cash - 5%

 

Website: www.goodreid.com