Gordon Reid is president and CEO of Goodreid Investment Counsel. His focus is on U.S. equities.
Strong international operations are driving profitability at this services and equipment oil concern. North American rig counts have been depressed but should rebound as the drive toward domestic energy self-sufficiency strengthens.
Hornbeck Offshore Services
Hornbeck is an offshore oil service transportation company, providing vessels to move equipment and supplies and to reposition drilling rigs. The industry is showing clear signs of having troughed as day rates and utilization rates are on the rise.
Walt Disney Co.
In addition to its parks and resorts business (30 per cent of revenue) Disney is perfectly positioned to capitalize on the growing value of content (via its film studios and television networks) in a world that covets flexibility in the form of streaming and mobility.
Past picks: March 14, 2012
Then: $116.75 Now: $159.57 TR: +37.78 per cent
Then: $112.27 Now: $89.30 TR: –18.66 per cent
Air Methods Corp. (3-for-1 split, Dec. 14, 2012)
Then: 89.16 Now: 49.11 TR: +76.09 per cent
Total return average: +31.74 per cent
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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