Janne Ahvo
For almost two years, National Bank Financial has published an "Action List" of stocks that encompass its analysts' favourite ideas.
It's an exclusive list that allows a maximum of only 10 per cent of an analyst's coverage at any time and does not require that an analyst have a company on the list.
National Bank says the average performance of the stocks on the list in the second quarter was 22 per cent, compared with 3 per cent return for the TSX. Five of the seven names on the list during that time delivered positive returns.
Since inception in November 2009, the action list has at one time or another included 41 companies and has averaged a total return of 15.5 per cent, compared with the TSX's 6.7 per cent over the same period.
There are six names on the list at the moment, all with "outperform" ratings.
D-Box Technologies makes motion generation systems used by theatres in some of their seating. The company has been losing money, but National Bank thinks the firm has big potential and gives the shares a $1.25 price target.
Enbridge gets a target of $33.50, with expectations of higher pipeline volumes from Western Canadian crude oil production.
Junior natural gas producer Open Range Energy is cited for strong operating margins, among other things. The shares receive a price target of $8.50.
Provident Energy is a midstream natural gas services firm with a 6.5 per cent dividend yield. In addition to the hefty payout, National Bank likes its growth prospects and has a $9.50 target on the shares.
SEMAFO Inc. , a Canadian gold producer and exploration company with three gold mines in West Africa, is acknowledged for its attractive returns and growth trajectory. It gets a price target of $13.50.
Valeura Energy , which is engaged in exploration and development of oil and gas in Western Canada and Turkey, is listed with a price target of 80 cents. National Bank notes that Turkey has "established favourable oil and gas fiscal terms with flat royalties and tax."