Jim Huang, president of T.I.P. Wealth Manager

Focus: North American equities
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MARKET OUTLOOK
Even though major markets remain at or near all-time highs, and realized volatilities continue to be near historical lows, investor fatigues are increasingly evident. Arguably, there are still a lot of positives in terms of economic performance and cresting of the populist tides around the world, but many of the anticipated pro-growth policies from the Trump administration seem further in the distance now. Meanwhile, central banks are starting to raise interest rates and take away some of the support for financial assets. Given the elevated valuation levels and rather narrow leadership in the market, a short-term correction may be in the offering.

TOP PICKS

DIRTT ENVIRONMENTAL SOLUTIONS (DRT.TO) – July 2017 at $6.20
Dirtt (stands for “do it right this time”) is not your average prefabricated office furniture company. Founded by industry veterans including Mogens Smed, DIRTT uses its proprietary 3D software to seamlessly integrate the design, manufacturing and installation process, ensuring an on-time, on-budget experience. It is leveraging its network of partners to expand its reach globally, and to create solutions for new segments like health care, lodging and residential. With the drag from weaker energy industry orders lessening, DIRTT remains one of the best companies that grow organically in a big market. 

INTERTAPE POLYMER GROUP (ITP.TO) – February 2017 at $21.99
Intertape Polymer is a manufacturer of a variety of tapes and films for industrial and retail uses. It has spent the last few years lowering its costs in part by opening new, large-scale plants to replace older plants. It also enjoys the lower input costs from the shale natural gas production. Negative impact from South Carolina flooding should dissipate overtime. With a strong balance sheet, Intertape has the opportunity to enhance shareholder value and selectively expand its footprint by acquiring smaller rivals.

PAREX RESOURCES (PXT.TO) – May 2017 at $15.94
Parex is an oil and gas exploration and production company engaged in Colombia. It is led by management with good track records. Parex has been growing its production and reserves rapidly over the last few years due to its very successful exploration program. With its net cash position and low production costs, Parex is a safe harbour in a volatile oil price environment, yet still provides great leverage to the upside due to its 100 per cent oil weighting.
 

PAST PICKS: JUNE 6, 2016

NEXGEN ENERGY (NXE.V)

• Then: $2.59
• Now: $2.97
• Return: +14.67%
• TR: +14.67%

SLEEP COUNTRY CANADA (ZZZ.TO)

• Then: $24.01
• Now: $41.85
• Return: +74.30%
• TR: +77.73%

DIRTT ENVIRONMENTAL SOLUTIONS (DRT.TO)

• Then: $5.20
• Now: $6.29
• Return: +20.96%
• TR: +20.96%

TOTAL RETURN AVERAGE: +37.78%