Barry Schwartz is chief investment officer and portfolio manager at Baskin Financial Services. His focus is on North American large caps.
American International Group Inc.
AIG trades at a deep discount to its book value. It recently raised its dividend 25 per cent and continues to buyback stock aggressively. It stands to benefit from rising interest rates.
Tim Hortons Inc.
Tim’s offers an enticing combo of rising dividends, share buybacks and above average earnings growth. With the distraction of the activist investors behind it, Tim’s is on the right path to further growth.
Morguard trades at a 40-per-cent discount to its book value. Management knows it and has been buying back stock. A number of high-profile projects should add to its cash flow over the next couple of years.
Past Picks: April 18, 2013 (currency figures in US$)
Then: $93.34; Now: $99.40 +6.49%; Total return: +8.52%
Bed Bath & Beyond Inc.
Then: $66.44; Now: $67.41 +1.46%; Total return: +1.46%
Goldman Sachs Group Inc.
Then: $138.60; Now: $162.29 +17.09%; Total return: +18.63%
Total return average: +9.54%
"Now" figures are intraday from the date of the analyst’s appearance on BNN Market Call.
We are finding a number of attractive investment opportunities on both sides of the border. In fact, we have more good ideas than cash. We are fully invested in companies with low valuations that regularly raise their dividends or shrink their shares outstanding. There has been lots of talk lately about U.S. indexes trading at record levels but with record corporate profits, low inflation, and low interest rates, no one should be surprised. We believe that there is room for markets to move higher due to rising corporate profits, expanding multiples, accommodative monetary policy, and a reduced supply of quality investments.
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