Bruce Campbell, President & Portfolio Manager, StoneCastle Investment Management
Focus: Canadian stocks
Top picks: Anaergia, KITS Eyecare, Tenaz Energy
MARKET OUTLOOK:
Right now, our top-down indicators remain firmly positive. Our dashboard is showing green signals across the board on a short, intermediate, and long-term basis. Importantly, our early-warning indicators, which look several months ahead, are also positive across most markets. There are a few areas where those signals are moving closer to caution levels, so we are monitoring them closely to ensure portfolio positioning stays aligned with the data. We review these indicators each month during our signals and stock presentation.
One of the most important developments we’re seeing is a broadening of market leadership. Twelve to 24 months ago, returns were heavily concentrated in a narrow group of large U.S. stocks. More recently, leadership has expanded meaningfully. We’ve seen strong relative performance from U.S. small-caps, particularly the Russell 2000, as well as Canadian small and mid-cap stocks, led by materials and resource sectors. International markets have also begun to contribute more meaningfully to returns.
From a macro perspective, inflation continues to show signs of moderating, which supports risk assets. As long as our indicators remain positive, we believe the data supports maintaining an offensive portfolio stance, while staying disciplined and prepared to adjust should those signals begin to change.
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TOP PICKS:
Anaergia (ANRG TSX)
Anaergia is an industrial technology company focused on converting organic waste to renewable natural gas. The company has strong regulatory tailwinds which are producing an increased backlog that the company has successfully translated into revenue growth and positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
KITS Eyecare (KIT TSX)
Kits operates a digital eyewear brand in Canada and the USA, offering eyeglasses, sunglasses and contact lenses. They manufacture their own product as well as distribute various brands. The company has been growing revenue at a 31 per cent compound annual growth rate (CAGR) over the last three years.
Tenaz Energy (TNZ TSX)
TNZ is a Calgary‑based energy company focused on sustainably acquiring and developing oil and gas assets in Canada and the Netherlands, including semi‑conventional reservoirs in Alberta and offshore North Sea gas operations. The company recently completed an acquisition of Dutch and German North Sea assets that have been neglected by the former owners and offer significant upside potential. In addition, the company has an mergers and acquisitions (M&A) focus and a balance sheet to support their M&A strategy.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| ANRG TSX | N | N | Y |
| KITS TSX | N | N | Y |
| TNZ TSX | N | N | Y |
PAST PICKS: JULY 9, 2025
Kraken Robotics (PNG TSX)
Then: $3.41
Now: $8.13
Return: 138%
Total Return: 138%
Zedcor (ZDC TSX)
Then: $4.29
Now: $5.53
Return: 29%
Total Return: 29%
MDA Space (MDA TSX)
Then: $39.12
Now: $29.80
Return: -24%
Total Return: -24%
Total Return Average: 48%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| PNG TSX | N | N | Y |
| ZDC TSX | N | N | Y |
| MDA TSX | N | N | N |
