David Cockfield.
David Cockfield is managing director and portfolio manager at Northland Wealth Management. His focus is Canadian equities.
Top Picks:
Bank of Nova Scotia (BNS-TSX)
This conservatively managed Canadian chartered bank gives Canadian investors the opportunity to invest through the BNS in the economies of the Caribbean, Mexico, Central and South America. These economies, particularly Mexico, are showing growth rates better than Canada. The BNS stock has recently sold off offering the opportunity to buy at an attractive yield.
BMO Low Volatility US Equity ETF (ZLU-TSX)
This low volatility ETF offered by BMO provides exposure to a portfolio of low beta U.S. stocks. This portfolio attempts to select the 100 least market sensitive stocks from universe of U.S. large cap stocks. The portfolio is rebalanced in June and reconstituted in December. The expense ratio is .35 per cent and the beta is 0.74. The break down by industry is 25.5 per cent utilities, 24.8 per cent consumer staples, 20.5 per cent health care and 12.0 per cent consumer discretionary.
SNC-Lavalin (SNC-TSX)
With offices across Canada and in 35 countries worldwide, SNC is a world-class construction company. The company has significant investments in infrastructure projects such as the 407 highway that can be sold or held for investment income. The company continues to suffer from a scandal that surfaced in 2011 concerning executives taking kickbacks. SNC also recently purchased Kentz, an engineering firm in the oil and gas sector that has been viewed negatively by investors despite the new company being well-booked with projects. Future growth prospects are excellent and order books remain full.
Past Picks: February 21, 2014
BCE Inc. (BCE-TSX)
Then: $47.82; Now: $55.63 +16.33%; Total return: +22.27%
Agrium (AGU-TSX)
Then: $100.80; Now: $132.86 +31.81%; Total return: +36.13%
SNC-Lavalin (SNC-TSX)
Then: $47.32; Now: $43.71 -7.63%; Total return: -5.80%
Total return average: +17.53%
Disclosure: | Personal | Family | Portfolio/Fund |
BCE | Y | Y | Y |
AGU | N | N | Y |
SNC | N | N | Y |
Market outlook:
North American equity markets will continue to struggle upwards with sharp setbacks. The U.S. economy is gathering positive momentum and despite the drag of low energy prices on Alberta, the Canadian economy will be pulled along. Lower overall energy costs will be a major economic stimulus in the upcoming years.