John Stephenson, president and CEO of Stephenson & Company

Focus: North American large caps and resource stocks
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MARKET OUTLOOK
Despite the muted VIX Index, investors should be aware of the risks or rising volatility in the market. Given the rising geopolitical risks from unrest in the Korean peninsula, the upcoming French election and the recently-announced U.K. election, a barbell approach offers the best approach to the market. One end of the barbell should be comprised of dividend growth stocks and the other levered to growth stocks, which will insulate investors somewhat from both good and bad market-moving news.

TOP PICKS

LONG: FACEBOOK (FB.O) – Last bought on February 24, 2017 at $133.53

• A very large and growing user base
• Mobile overhang addressed
• Engagement still very high

LONG: SHIRE PLC (SHPG.O) – Last bought on April 11, 2017 at 4550 GBP

• Attractive valuation of 11.2x P/E
• Has an attractive rare-disease portfolio with little or no competition
• Strong late-stage pipeline

SHORT: MICHAEL KORS (KORS.N) – Last shorted on March 14, 2017 at $37.48

• Recently reduced its longer-term margin and EPS outlook
• Sales growth likely to remain challenged while margins are being pressured with elevated growth investments
• Wholesale revenues continue to decline at a rapid clip
• Retail in systemic decline
   

PAST PICKS: MARCH 29, 2016

WHIRLPOOL CORPORATION (WHR.N)
We sold our position in Whirlpool Corporation on August 16, 2016 at $183.21 for a gain of 3.23 per cent.

• Then: $177.29
• Now: $168.14
• Return: -5.16%
• TR: -2.93%

REYNOLDS AMERICAN (RAI.N)
We also sold our position in Reynolds America on August 15, 2016 at $50.48 for a gain of 0.06 per cent.

• Then: $50.45
• Now: $64.04
• Return: +26.93%
• TR: +31.93%

NEWELL BRANDS (NWL.N)

• Then: $44.95
• Now: $46.27
• Return: +2.93%
• TR: +4.53%

TOTAL RETURN AVERAGE: +11.17%