Oct 23, 2018
Kash Pashootan's Top Picks: Oct. 23, 2018
Kash Pashootan, CEO and chief investment officer, First Avenue Investment Counsel
Focus: North American dividend stocks and portfolio construction
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MARKET OUTLOOK
- The Canadian economy is soft and expectations for interest rate hikes are aggressive
- U.S. economic growth will slow in 2019
TOP PICKS
CAPITAL POWER (CPX.TO) | 6.2% yield | 15x FP/E | October 2018
- Top-performing Canadian utility
- Expect outperformance to continue as the introduction of carbon taxes in Alberta support higher electricity prices
TRANSCONTINENTAL (TCLa.TO) | 3.9% yield | 8x FP/E | October 2018
- Recent selloff on margin miss from Coveris acquisition
- Selloff likely overdone; any progress in December earnings report should see a positive reaction
TELUS (T.TO) | 4.6% yield | 16x FP/E | October 2018
- Most pure-play Canadian wireless company.
- Investments in 4G/5G networks should increase data speeds and help boost ARPU
- CAPEX to slow, which supports higher free-cash-flow and +7-10 per cent dividend growth target
DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
---|---|---|---|
CPX | Y | Y | Y |
TCLa | Y | Y | Y |
T | Y | Y | Y |
PAST PICKS: NOV. 1, 2017
RUTH’S HOSPITALITY GROUP (RUTH.O)
- Then: $20.50
- Now: $28.43
- Return: +39%
- Total return: +41%
NFI GROUP (NFI.TO)
- Then: $54.83
- Now: $43.51
- Return: -21%
- Total return: -19%
EMERA (EMA.TO)
- Then: $48.14
- Now: $39.58
- Return: -18%
- Total return: -14%
TOTAL RETURN AVERAGE: +3%
DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
---|---|---|---|
RUTH | Y | Y | Y |
NFI | Y | Y | Y |
EMA | Y | Y | Y |
TWITTER: @KashPashootan
WEBSITE: www.firstavenuecounsel.com