Norman Levine is the managing director at Portfolio Management Corp. His focus is on North American large caps.Fred Lum/The Globe and Mail
TOP PICKS
Covidien
Owned for some time and bought at $39.55.
Covidien is an American-based operating room medical instruments company that is incorporated in Ireland for tax reasons. It is in the process of spinning out its pharma business and we believe the two parts are worth more than the whole. Its stated goal is to return 25% to 40% of free cash flow in the form of stock buybacks.
SNC-Lavalin
Purchased March 30 at $42.22
SNC is one of the world's premiere engineering companies. It is trading at a huge discount due to unethical past behaviour. We are looking forward and believe that when looking back in a year or two this will have proven to be a huge buying opportunity. The company has recently been awarded a number of new contracts, showing that the scandal has not affected its day-to-day business.
Badger Daylighting
Most recently purchased at $19.03
Badger is in the business of using high pressure water to move earth for utility and energy companies. It reported much better than expected earnings in the latest quarter. A recent equity issue (its first in ten years) gives it the capital to fund its US expansion. Its yield of 4.2%and forward P/E multiple of less than 9 times makes the stock very attractive.
-Compiled by BNN's Rob Moysey