Paul Harris.
Paul Harris is a partner and portfolio manager at Avenue Investment Management. His focus is North American and global equities.
Top Picks:
Mainstreet Equity Corp.
Mainstreet is a real estate company that has properties in western Canada in the apartment space. The stock trades at 1-per-cent% discount to its NAV.
Regions Financial Corp.
Regions is a commercial and retail bank in the southeast United States. The stock trades at .7 times book value and a 10.6 times earnings. The company will benefit from a continuing improvement of the U.S. housing market and a continued reduction in cost.
Microsoft
Microsoft has limited downside and good upside, we believe the risk/reward trade-off is compelling. We continue to see operational momentum improving with a raft of new products. The stock trades at 13 times earnings, has a 3.0-per-cent yield and has free cash flow of 25 billion a year
Past Picks: November 22, 2012
Davis & Henderson
Then: $21.03
Now: $27.32
Total return: +37.38 per cent
Bank of America
Then: $9.77
Now: $13.85
Total return: +42.18 per cent
Brookfield Asset Management
**Spin out** Brookfield Property Partners April 15, 2013
Then: $34.27
Now: $41.32
Total return: +26.32 per cent
Total return average: +35.29 per cent
Market outlook:
We think the opportunity is increasing in companies that can achieve good total return – a good dividend yield accompanied by strong balance sheets and high cash flow cover. In a low inflation environment these stock are likely to remain attractive.