Benj Gallander is president of Contra the Heard Investment Letter. His focus is contrarian investing.
Gold stocks have been severely beaten and Harmony is no exception. This is a major company with experienced management. It was purchased for less than one-third of book value. Initial sell target: $16.14 (U.S.)
Infrastructure is critical. This company has invested in hydro, wind, biomass, solar and water. The payout was cut to $0.30, still fat for investors but a much more reasonable level. An excellent takeover candidate. Initial sell target: $8.74.
Rona Pref. A
Rona appears to be undergoing a major turnaround. The preferred at this level offer an excellent dividend and the likelihood of capital appreciation.
Past Picks: February 20, 2013
AgJunction Inc. (formerly: Hemisphere GPS)
Then: $0.82; Now: $1.07; Total return: +30.49%
Orange S.A (formerly: France Telecom)
Then: $10.08; Now: $12.70; Total return: +33.72%
Then: $6.60; Now: $9.10; Total return: +37.88%
Total return average: +34.03%
Many badly beaten-down stocks have had a dramatic rise since the recession. Certainly there are far less bargains than a few years ago. Still, many investors who were afraid of investing in stocks are now afraid of only obtaining desultory returns in GICs and are herding back into the market.Report Typo/Error
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