Kash Pashootan, CEO and chief investment officer at First Avenue Investment Counsel
Focus: North American dividend stocks and portfolio construction

MARKET OUTLOOK

  1. Emerging markets look cheap, but can become cheaper.
  2. Recent FAANG underperformance could have broader implications.
  3. Investors often mistake size for safety.

TOP PICKS

RUTH’S HOSPITALITY GROUP (RUTH.O)
22x P/E | 1.4% yield | Sep. 2018

Equal franchise and company-owned store mix provides stable cash flows from franchise fees and high return on investment from company-owned stores.

OPEN TEXT CORP (OTEX.TO)
15x P/E | 1.6% yield | Sep. 2018

High growth M&A strategy is now being complimented with accelerating organic growth and should result in a higher valuation.

GILEAD SCIENCES (GILD.O)
8x P/E | 3% yield | Sept 2018

The HCV business slowdown is decelerating: the worst days are likely behind for Gilead. It has a strong balance sheet, with $32 billion cash on hand to use from acquisitions.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
RUTH Y Y Y
OTEX Y Y Y
GILD Y Y Y

 

PAST PICKS: AUG. 15, 2017

TELUS (T.TO)

  • Then: $45.27
  • Now: $48.33
  • Return: 7%
  • Total return: 13%

TRANSCONTINENTAL (TCLa.TO)

  • Then: $24.92
  • Now: $22.82
  • Return: -8%
  • Total return: -5%

CASH

Total return average: 3%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
T Y Y Y
TCLa Y Y Y

 

TWITTER: @kashpashootan
WEBSITE: www.firstavenuecounsel.com