Bruce Campbell is president of Campbell, Lee & Ross Investment Management. His focus is on Canadian large caps.
Bank of Nova ScotiaScotiabank provides a good mixture of Canadian banking with an international presence in Mexico, Peru, and so on, that should provide growth over the next few years.
Morguard North American Residential REITIts recent acquisition of a larger rental housing portfolio in the U.S. provides exposure to the recovering American housing market. Weakness caused by using units for the financing provides a short-term opportunity.
CSX Corp.This U.S. East Coast railroad has lagged the group because of its coal exposure. As the decline in coal runs through quarterly numbers, growth will start to improve and at 12 times earnings, versus the U.S. group at 15 times and the Canadian group at 18 times, the valuation stands out. The stock has just begun to play catch-up.
Past Picks: March 30, 2012
Crescent Point Energy Corp.Then: $42.94Now: $38.79Total return: –3.22 per cent
Great-West Lifeco Inc.Then: $24.54Now: $27.30Total return: +17.30 per cent
Morguard North American Residential REITThen: $10Now: $11.23Total return: +18.01 per cent
Total return average: +10.7 per cent
The U.S. economy appears to have bottomed and is grinding slowly higher. We continue to hold a core portfolio of high-yielding stocks and modest cash levels as well as a balance between defensive industries and growth companies, preferably with yield protection. We expect a pause, if not a minor decline, in markets as the non-resource side of markets has run nicely. We will spend our remaining cash on any dips that do arise.