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Paul Harris is partner and portfolio manager with Avenue Investment Management.
Paul Harris is partner and portfolio manager with Avenue Investment Management.

BNN Market Call

3 top stock picks from Avenue Investment's Paul Harris Add to ...

Paul Harris is partner and portfolio manager with Avenue Investment Management. His focus is on North American and global equities.

Top picks:

Davis + Henderson

The company provides technology for the financial services industry. The company is expanding out of the traditional cheque producing business through bolt on acquisitions. The stock trades at 10 times earnings and has a 6 per cent dividend yield.

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Bank of America

Bank of America is one of the largest banks in the United States holding 10 per cent of all deposit in the country. The bank continues to restructure by selling of non-core assets and reducing cost through reduction in headcount. The company continues to improve its capital base. The stocks trades at 0.7 times tangible book value and 10 times earnings.

Leon's Furniture

Leons sell furniture and appliances. It is a great Canadian brand that has a 3.5 per cent yield and trades a 15 times earnings. The company has no debt, a $1 a share in cash and a conservative estimate of the property they own is $5 a share.

Past picks: Oct. 6, 2011

Microsoft

Then: $26.34
Now: $28.21
Total return: +10.06 per cent

TD Bank

Then: $73.57
Now: $80.85
Total return: +13.89 per cent

Telefonica

Then: $20.11
Now: $13.01
Total return: -26.39 per cent

Total return average: -0.81 per cent

Market outlook

We believe the tremendous amount of sovereign debt outstanding globally will lead to slower growth around the world over next several years. This will keep rates low for an extended period of time and inflation will be benign. In this environment we look for companies with strong balance sheet and growing dividends.

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