Jason Donville is president and CEO of Donville Kent Asset Management. His focus is on Canadian small caps and financial stocks.
Toronto-based software company that is evolving from a software seller to a recurring revenue services company. Softchoice trades on less than 7.0x 2013 cash earnings and enjoys a consistently high return on equity. I own it in my fund.
High-growth company that is a play on North American infrastructure renewal. Stock boasts an adjusted return on equity of close to 30 per cent and trades at less than 8.5x 2013 earnings. I own it in the fund.
Company is levered up for growth, with recent acquisitions in Australia and England that are not yet factored into the price. I own it in the fund and personally.
Past Picks: Oct. 17, 2011
Total return: +57.57 per cent
Total return: +54.69 per cent
Total return: +34.89 per cent
We are entering a period of market strength for the TSX and I expect equity markets to remain strong until the spring of 2013. We are adding to our positions in technology stocks, which we believe will lead the next economic cycle. Outside of energy, we have lightened up on natural resources and commodity stocks.
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