Gordon Reid is president and CEO of Goodreid Investment Counsel. His focus is on U.S. equities.
The key driver for Google is the creation of a more profitable mobile platform. While ad revenue in total has been skyrocketing, the fear has been that it is skewed toward lower margin mobile searches. These margins are levelling off, leading to more optimism.
The 787 Dreamliner battery problems will prove to be nothing more than a bump in the road. While serious action has been taken, and is warranted, the simple fact is that airlines need this new airplane as much as Boeing wants to sell it.
Briggs & Stratton Corp.
The housing recovery and a boost in sales as the northeast recovers from Hurricane Sandy are driving revenues, earnings and cash flow. With free cash flow yields of 12 per cent-plus, we expect significant share buybacks to provide even greater support.
Past picks: Feb. 15, 2012
DuPont Canada Inc.
Total return: –0.82 per cent
Total return: –19.58 per cent
Home Depot Inc.
Total return: +48.65 per cent
Total return average: +9.42 per cent
Market outlook: While U.S. equity markets have recently eclipsed their 2007 levels, investors should note that corporate earnings are 20 per cent greater than they were in 2007, resulting in a more reasonably valued market with room to grow.
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