Gordon Reid is president and CEO, Goodreid Investment Counsel. His focus is U.S. equities.
Top Picks:
Anthem (ANTM.N)
Latest purchase in Oct 2015 at $140
Anthem (formerly Wellpoint) is a managed care operator with over 37 million members. The regulatory turmoil of U.S. health care reform has provided an excellent opportunity to invest in an organization that has the scale and diversity to overcome the hurdles of a changing health care landscape. Goodreid expects earnings of $10 per share in 2015.
Time Warner (TWX.N)
Latest purchase in Oct 2015 at $75
Time Warner's growth engine is their digital platforms, which will capture the growing mobile market for film (Warner Bros.), television (HBO, CNN) and publishing (People). Their "over the top" option to allow HBO to be streamed via the internet is just the tip of the iceberg. With a valuation of 16x this year's earnings and exciting growth opportunities, TWX is a compelling opportunity. Don't be thrown off by short term weakness.
Cinemark Holdings (CNK.N)
Latest purchase in Sept 2015 at $35
The exciting array of film releases in late 2015, including Star Wars, could lead to record attendance numbers for theatre operators. Foreign revenues in countries with more favourable demographics for movie theatres, make up 25 per cent of revenue and are the engine of this company's growth.
Past Picks: November 3, 2014
Citigroup (C.N)
Then: $53.47 Now: $53.83 +0.67% Total return: +0.98%
Priceline Group (PCLN.O)
Then: $1198.52 Now: $1469.56 +22.61% Total return: +22.61%
Tenneco (TEN.N)
Then: $52.52 Now: $55.10 +4.91% Total return: +4.91%
Total Return Average: +9.50%
Market outlook:
The sharp upward reversal in the U.S. equity markets in October mask an underlying segmentation that offers opportunity. Health care issues, for example, have been punished over the past several months even though earnings and revenue growth advanced nicely in the quarter and expectations for fourth quarter and 2016 growth is robust.