Michael Smedley is executive vice-president and chief investment officer at Morgan Meighen & Associates. His focus is on Canadian equities.
I like all of the current action in the merchandisers and food chains. George Weston looks like it is gaining bigger prominence in the achievement category with Choice, the real estate vehicle through which it can harvest more capital, enjoy the REIT’s likely upswing in value, now expanding greatly in its core businesses in Canada by taking Shoppers and in the U.S. indicating pleasure with progress in its baked goods segment. Lots of action and initiatives.
A promising drug marketing and distributing company with growing cash flows, liaisons with big international suppliers, strong historical relationships, a small Paladin-like company and covered by only one analyst so far.
First Majestic Silver
A very strong silver producing group, the leading pure silver company and a big contender for No. 2 position behind world leader Fresnio of Mexico. The stock has been hit 50 per cent in the precious metals downturn but the company should move safely along while the sector tries to rally.
Past Picks: July 30, 2012
Total return: +35.68 per cent
Total return: +62.11 per cent
Total return: +121.21 per cent
Total return average: +73 per cent
The market should continue to show great gains, particularly but not exclusively in the small-to-mid-cap non-resources sectors among brilliant Canadian growth enterprises. Acquisitions will continue, resources are trying to base out, rising again on the down days in the general market. Selecting the best is going to be a sensible decision from this point on. It has been good to have a correction that should be leading mining into toned-down costs after years of escalation. The central bank spokesmen in North America should continue to work on keeping spending and debt conditions lukewarm with “rates up, rates not up yet” talk.