Michael Smedley, executive vice-president of Morgan Meighen & AssociatesFred Lum/The Globe and Mail
Michael Smedley is executive vice-president of Morgan Meighen & Associates. His focus is on Canadian equities.
Top picks:
Alimentation Couche-Tard
Expert important operator of convenience stores mostly attached to gas stations in North America. This year accomplished major acquisition in Europe of the stores owned by Statoil of Norway, 10 largest energy resources company in the world. This forms a great base for expansion in Germany and across the continent.
Brookfield Residential Properties
The only way in Canada to play housing seems to be through Brookfield's highly regarded Carma division in western Canada, once a significant public company and the Brookfield luxury homes division which is mostly west coast U.S. and appears to be reviving along with much of the U.S. housing sector. As far as I can see there is no investment coverage. It can be good to be early.
Sandstorm Gold
This is getting well known as the most junior of the gold royalties and gold streaming companies, the others being Franco-Nevada and Royal Gold in the U.S. Its smaller size should mean that as growth continues it should show more upward thrust in the hands of its expert managers, partly of experience in Silver Wheaton, the silver streaming company. The success of these companies given firm precious metals prices seems more assured than it is for those who actually seek, develop and mine the gold.
Past picks: Oct. 31, 2011
The Brick
Then: $2.89
Now: $3.45
Total return: +20.01 per cent
Telus
Then: $53.64
Now: $62.89
Total return: +22.10 per cent
PMI Gold
Then: $1.16
Now: $0.84
Total return: -27.58 per cent
Total return average: +4.84 per cent
Market outlook
Stocks are selectively offering investors a firmer tone and as the global troubles and fears are extended in time those who want to get on with the job of investing seem to be bent on doing so and will be aided by the more active fall and winter seasons, the impending conclusion to the U.S. federal election process helping to divert attention back to business. At the same time there is plenty of potential for explosive and usually quick ups and downs.
Watch Mr. Smedley on BNN.