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Benj Gallander.Tibor Kolley/The Globe and Mail

Benj Gallander is president of Contra The Heard Investment Letter. His focus is on contrarian investing.

Top Picks:

France Telecom ADS

The biggest reason to hold this stock is that its current payout is about 15 per cent, a tidy sum to be sure. Management has stated that it believes it can maintain the payout through 2014. This is not a certainty for this leader in the French marketplace. Initial Sell Target: $27.74.

AgJunction Inc.

In his first year in the CEO's seat, Rick Heninger has cut over one-third of the workforce, moved the corporate head office from Calgary to Kansas and sold one division for a tidy sum. It would not surprise to see him sell the entire outfit in the next few years. Initial Sell Target: $3.49

CASH (third pick)

Past Picks: June 25, 2012

Star Gas Partners
Then: $4.05
Now: $4.99
Total return: +32.22 per cent

DLH Holdings (previously: TeamStaff )
Then: $1.38
Now: $0.80
Total return: -42.03 per cent

CASH (third pick)

Total return average: -3.27 per cent

Market outlook:

Volatility will likely continue during the dog days of summer. There are too many governments, countries and corporations having major problems to predict a calm. Meanwhile, the United States can act as a potential counterbalance as it recovers from its dreadful difficulties.

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