Bill Harris is a partner and portfolio manager at Avenue Investment Management. His focus is on resource stocks.
Top Picks:
Yamana Gold
The shares trade at close to net asset value and production will grow 50 per cent over the next 3 years. The company is doing a good job of controlling costs.
Canadian Natural Resources
The stock is now trading at a compelling valuation based on 4.5 times next year’s cash flow. Western Canadian pipeline constrains should be fixable over the next two years.
Keyera Corp
The stock yields 5 per cent and we expect the company can grow organically at 5 per cent per year. This is a very stable business if you look at it over several quarters.
Past Picks:
June 9, 2011
Longview Oil
Then: $11.50
Now: $8.67
Total return: -20.38%
HudBay Minerals
Then: $14.05
Now: $9.46
Total return: -31.52%
Yamana Gold
Then: $11.60
Now: $13.84
Total return: +20.88%
Total Return Average: -10.34%
MARKET OUTLOOK
Low interest rates continue to distort investor behavior. Avenue’s strategy continues to be finding and investing in companies with stable earnings and predictable growth.
Compiled by Franklin Cameron/BNN Market Call Tonight
See the full BNN interview here
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Also see:
3 top stock picks from Horizons' Brooke Thackray
3 top preferred share picks from Manulife's Randy LeClair
3 top stock picks from money manager Greg Newman
3 top stock picks from money manager Ron Meisels
3 top stock picks from Toron Capital's David Driscoll
