FOCUS: North American Equities

Market Outlook

With the stock market stabilizing over the last month and earnings expectations exceedingly low, now is a good time for investors to start slowly wading back into equities.  Stocks in North America have been driven lately by resource stocks and financials, however, there is a lot of opportunity for investors in consumer staples, healthcare and technology sectors.

TOP PICKS:

Constellation Brands (STZ.N)  

Last Bought on March 7, 2016 @$140.61

Improving wine business a huge positive. Wine business is benefiting from premiumization, increasing penetration by millennials and improving per capita consumption. Strong inroads in beer particularly targeting the growing U.S. Hispanic population.

Discover Financial Services (DFS.N)

Last bought on April 1, 2016 @$51.38

Very strong financial performance with approximately 20% ROE and very healthy earnings per share growth. Poised to take share in the credit card business. Has a strong excess capital position which should support earnings growth via share repurchases.

*Short* – Guess? Inc.  (GES.N)

Last shorted on February 29, 2016 @$21.07

Declining brand in a crowded space. Disappointing financial results over the last several quarters.

 

Disclosure Personal Family Portfolio/Fund
STZ N N Y
DFS N N Y
GES N N Y

Past Picks: May 6, 2015

Actavis PLC (ACT.N) – Combined with Allergan April 26, 2016

Recommended at: April 26: Change Total Return
$283.31 $219.94 -22.37% -22.37%

Brookdale Senior Living (BKD.N)

Recommended at: Now at: Change Total Return
$35.57 $18.94 -46.75% -46.75%

The Blackstone Group (BX.N)

Recommended at: Now at: Change Total Return
$41.75 $28.67 -30.00% -25.98%

 

Total Return Average : -31.70%

Disclosure Personal Family Portfolio/Fund
ACT N N N
BKD N N N
BX N N N