Gordon Reid is president and CEO, Goodreid Investment Counsel. His focus is on U.S. equities.
Top Picks
Halliburton
"The United States is experiencing a land drilling boom, largely due to new shale drilling technology in search of natural gas. The overhang of worries about a global economic slowdown and their legal issues with BP over the responsibility for the Gulf disaster have led to compelling valuations of less than 10 times expected 2012 earnings."
United Technologies
"United Technologies is a global supplier of industrial products (Carrier, Otis Elevator, Pratt and Whitney, Sikorsky Helicopter). In an effort to bolster their presence in the aerospace market they recently bought Goodrich Corp. Carrying a 2.6 per cent dividend yield and trading at 13 times expected 2012 earning, UTX represents good value."
Wright Express
"Wright Express is a payment processing company that services companies with large vehicle fleets. Servicing the fuel and maintenance tracking for more than six million vehicles worldwide, WXS is gaining market share and growing revenue at a 10 per cent annual rate."
Past Picks: Dec. 15, 2010
Hanger Orthopedic
Then: $21.10 Now: $18.53
Total return: -12.1 per cent
PepsiCo
Then: $65.24 Now: $64.75
Total return: +2.4 per cent
Tempur-Pedic
Then: $35.78 Now: $59.27
Total return: +65.7 per cent
OUTLOOK
"The calendar has changed but the angst investors have been feeling since the beginning of the financial crisis remains. Ironically, earnings are at record levels, and for the third year in a row the equity markets failed to keep up with corporate earnings growth, leading to very attractive valuations. Maintain a full weighting in equities."
Compiled by Franklin Cameron/BNN Market Call Tonight
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