Jennifer Radman, head of investments and senior portfolio manager at Caldwell Investment Management

FOCUS: North American large cap stocks

MARKET OUTLOOK:

The market has seen a significant shift in investor sentiment with early recovery cyclicals leading markets higher. As it became apparent that second quarter earnings would mark an earnings bottom, giving the market a sense of what ‘worst-case’ earnings looked like, risk taking shifted from valuation risk (i.e. paying high multiples for earnings growth and stability) to earnings risk, where investors became comfortable buying more cyclical earnings streams. This shift accelerated in early November on vaccine news and has continued into 2021 as investors anticipate a surge in economic activity as pent-up demand is unlocked.

TOP PICKS:

Jennifer Radman's Top Picks

Jennifer Radman, head of investments and senior portfolio manager at Caldwell Investment Management, discusses her top picks: Magna International, Stelco Holdings and Converge Technology.

Magna International Inc. (MG TSX)

Magna provided a strong multi-year earnings outlook where revenue would out-pace vehicle growth and margins would exceed prior cycle peaks. The company is well positioned for secular trends within auto and the valuation remains un-demanding.

Stelco Holdings Inc. (STLC TSX)

Stelco is set to have a very strong 2021 on the back of strong steel prices and higher volume. It has an attractive low cost position, reinstated its dividend, and management is well-aligned to increase shareholder value through its 15 per cent equity ownership.

Converge Technology Solutions Corp. (CTS TSXV)

Converge is a consultant and value-added reseller of IT solutions with a focus on mid-market customers. There is still a long runway of growth opportunity as mid-market companies shift to the cloud and Converge complements this organic growth with an acquisition strategy.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
 MG TSX  N  N  Y
 STLC TSX  N  N  Y
 CTS TSXV  N  N  Y

 

PAST PICKS: January 9, 2020

Jennifer Radman's Past Picks

Jennifer Radman, head of investments and senior portfolio manager at Caldwell Investment Management, discusses his past picks: CGI Inc., Middleby Corp. and Motorola Solutions.

CGI Inc. (GIB/A TSX)

  • Then: $112.72
  • Now: $95.82
  • Return: -15%
  • Total Return: -15%

Motorola Solutions (MSI NYSE)

  • Then: $168.69
  • Now: $181.64
  • Return: +8%
  • Total Return: +10%

The Middleby Corporation (MIDD NASD)

  • Then: $109.58
  • Now: $133.49
  • Return: +22%
  • Total Return: +22%

Total Return Average: +6%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
 GIB/A TSX  Y N  Y 
 MSI NYSE  Y N Y 
 MIDD NASD  N N N

 

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