Jim Huang, president of T.I.P. Wealth Manager
Focus: North American equities

_______________________________________________________________

MARKET OUTLOOK

Despite increasing volatility so far in 2018, major stock indexes still look to have further upsides. As the U.S. Federal Reserve continues on its path of gradual hiking of benchmark interest rates, global liquidity, while still plentiful, isn’t expanding any further. A few presidential tweets here and there, plus the ominous-sounding “trade war” overhanging, and it’s no wonder that investors are thinking twice about this long-running bull market. Regardless, the momentum of the current global economic recovery remains largely intact and corporate earnings continue to climb. Opportunities do exist in some corners of the market, though investors are well advised to mind which way the trade wind is blowing.

TOP PICKS

Jim Huang's Top Picks

Jim Huang of T.I.P. Wealth Management shares his top picks: DIRTT, Canadian Natural Resources and Enbridge.

DIRTT ENVIRONMENTAL SOLUTIONS (DRT.TO)
March 2018 at $4.46.

DIRTT means “Do It Right This Time.” It’s the second coming of Mogens Smed of SMED fame. It designs, manufactures and installs modular interiors in a way that poises to revolutionize the construction industry. A proprietary and highly configurable 3D design system, integrated manufacturing and global distribution partnerships are just some of the differentiating factors of DIRTT. Lately, it’s suffered from some management turnovers and business fluctuations and its stock has dropped. With an activist investors now on the scene and continual strong fundamentals, DIRTT is set for a strong recovery.

CANADIAN NATURAL RESOURCES (CNQ.TO)
February 2018 at $38.61.

Canadian Natural is one of the premier North American oil and gas producers. In recent years, it has focused on growing its oil sand production. With much of upfront capital investments already spent, it enjoys tremendous free cash flow in the current oil price environment. With a strong balance sheet and prudent cash flow management, Parex can weather potential storms in the oil market and take advantage of upside in oil prices in a strong global economy. As a bonus, Canadian Natural has been steadily increasing its dividend payout.

ENBRIDGE (ENB.TO)
March 2018 at $38.89.

Enbridge is one of the largest energy infrastructure companies in North America. It owns oil and gas pipelines, distributes natural gas and electricity as well as a variety of energy-related projects. Enbridge plays a leading role in expanding market access for Canadian oil production. Recently, Enbridge received the final regulatory approval for its Line 3 pipeline expansion, removing a longstanding overhang. It also continues to achieve success in its divesting of non-core assets. Enbridge is poised for re-rating while still boasting a 5.75 per cent dividend yield.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
DRT Y Y Y
ITP Y Y Y
ENB N Y Y

 

PAST PICKS: JULY 6, 2017

Jim Huang's Past Picks

Jim Huang of T.I.P. Wealth Management reviews his past picks: DIRTT, Intertape Polymer and Parex Resources.

DIRTT ENVIRONMENTAL SOLUTIONS (DRT.TO)

  • Then: $6.29
  • Now: $6.19
  • Return: -2%
  • Total return: -2%

INTERTAPE POLYMER (ITP.TO)

  • Then: $24.64
  • Now: $17.35
  • Return: -30%
  • Total return: -27%

PAREX RESOURCES (PXT.TO)

  • Then: $14.49
  • Now: $24.99
  • Return: 72%
  • Total return: 72%

Total return average: 14%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
DRT Y Y Y
ITP N N Y
PXY Y N Y

 

WEBSITE: www.tipvest.com