Gordon Reid is president and CEO of Goodreid Investment Counsel. His focus is U.S. equities.
Top Picks:
Walgreens Boots Alliance (WBA-Nasdaq)
Walgreens completed the acquisition of the remaining Boots Alliance shares in late 2014 and will be moving forward with a new CEO. Same-store sales growth has been impressive with the overhaul of the front end of the stores and the pharmacy side has impressive opportunities because of an aging population, a new health-care program and profitable partnerships.
Nasdaq OMX Group (NDAQ-Nasdaq)
Nasdaq will be the beneficiary of greater market volatility and volume that we expect in 2015. In addition, internal efficiencies and an aggressive buy-back program will lead to rapidly growing earnings over the next several years.
Apple (AAPL-Nasdaq)
By all accounts, Apple has had a blockbuster quarter. Goodreid expects the surprise to be gross margins, which we expect to top the 40-per-cent mark on product mix (high margin IPhone 6 models making up a large percentage of total sales), as well as updates on new product categories (Watch and Apple Pay). When the market starts to price in expectations for new product contributions we expect the stock to move to new highs.
Past Picks: January 29, 2014
Washington Federal (WAFD-Nasdaq)
Then: $22.00; Now: $19.90 -9.55%; Total return: -8.04%
United Technologies (UTX-NYSE)
Then: $113.27; Now: $113.52 +0.22%; Total return: +2.37%
Apple (AAPL-Nasdaq) *Stock Split * June 9, 2014 – 7 for 1
Then: $500.75; Now: $106.82 +49.32%; Total return: +52.46%
Total return average: +15.60%
Market outlook:
A more normal level of volatility has returned to the market, most recently driven by oil price fluctuations and the resulting disruptions. Prudent investors with well-balanced portfolios are weathering the storm as the beneficiaries of lower energy prices offset investments in the oil space.