Fabrice Taylor, CFA, publishes the President’s Club investment letter. His letter and The Globe and Mail have a distribution agreement. You can get a free copy here.
North American oil and natural gas production is surging, which means more pipelines are needed. This stock has done well but should enjoy tail winds for a decade.
New Flyer Industries Inc.
This bus maker was hurt by the financial crisis. Unemployed people need mass transit but governments are hurting. I think a slow recovery is under way and the dividend is nice. Our latest purchase was at $7.35.
Easyhome operates two businesses, one of which leases furniture to people who can’t afford to buy. That’s a good business. That other half is a lending unit that gives loans to these same customers. That part is growing rapidly. It pays a nice dividend and is growing briskly.
Past picks: April 13, 2012
Symbility Solutions Inc. (formerly Automated Benefits)
Total return: –14 per cent
Total return: +26.98 per cent
Total return: +7.73 per cent
Total Return Average: +6.90 per cent
The U.S. is likely in better shape than we think thanks to its new energy boom. This creates jobs and wealth and also lowers gasoline costs, which helps consumers tremendously. The “fiscal cliff” is overblown. In Canada, consumers are hibernating, housing is coming off and oil sands are hurting temporarily. Resource prices are likely to be weaker. The TSX is likely going sideways and the S&P should improve. It is definitely a stock pickers’ market.