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Norman Levine.Fred Lum/The Globe and Mail

Norman Levine is managing director of Portfolio Management Corp. His focus is North American large caps.

Top Picks:

Carlsberg (CARLB OMX)

Owned for some time and currently buying for new clients.

Carlsberg is the fifth-largest brewing company in the world. Barring Russia going to war with the west (Carlsberg owns Baltika, the largest brewer in Russia with about a 40-per-cent market share), the impact on Carlsberg will not be as significant as expected by the markets. The balance sheet has improved substantially since we bought it and they are looking to grow their Asian business moving forward. Additionally, upside in the Americas should occur due to the continuing economic recovery in the U.S. Europe has bottomed so it is onward and upward from here. Asia is doing well. Should no more acquisitions (there will likely be one in Asia) occur near term, then expect buybacks and dividend increases once the Ukraine situation is ended or a compromise developed.

Corning (GLW NYSE)

Owned for some time and currently buying for new clients.

The market believes the only earnings driver now for Corning is Gorilla Glass. This opinion is not exactly accurate as the company has a portfolio of businesses, some of which are doing well. The telecom business in particular had a strong quarter on the back of global fibre-to-the-home build-outs that will continue occurring. The life sciences business did okay and the Dow Corning business (primarily silicon products for use in the building industry) is an increasingly better business quarter-over-quarter. Automotive (primarily exhaust filters for trucks) also had a strong quarter. LCD and TVs continue to grow and pricing is slowly improving. Overall, the company is leveraged to the global recovery and to a refresh cycle on TVs. The balance sheet remains very strong. Expect continuing dividend increases and share buybacks moving forward.

Power Financial (PWF TSX)

We have owned this for many years and are currently buying it for new clients.

Power Financial is an excellent play on higher interest rates through its controlling position in Great West Lifeco, an excellent play on higher equity markets through its controlling position in IGM Financial, and an excellent play on an improving economic situation in Europe through its interest in Pargesa. It currently yields 3.8 per cent and we would not be surprised to see a dividend increase in 2014.

Disclosure:

Personal

Family

Portfolio/Fund

CARLB

Y

Y

Y

GLW

Y

Y

Y

PWF

Y

Y

Y

Past Picks: July 31, 2013

Wright Medical Group (WMGI NASDAQ)

Then: $27.42; Now: $30.71 +12.00%; Total return: +12.00%

Callaway Golf (ELY NYSE)

Then: $7.18; Now: $7.57 +5.50%; Total return: +6.05%

Sun Life Financial (SLF TSX)

Then: $32.26; Now: $41.04 +23.39%; Total return: +28.35%

Total return average: +15.47%

"Now" figures are intraday from the date of the analyst's appearance on BNN Market Call.

Disclosure:

Personal

Family

Portfolio/Fund

WMGI

Y

Y

Y

ELY

Y

Y

Y

SLF

Y

Y

Y

Market outlook:

We like the long-term outlook for equities as economies in North America are improving and most of Europe has bottomed and is also now starting to do better. Valuations are much better in currently shunned emerging markets. Short-term, however, we think markets in developed countries are fully valued and would not be surprised by a much needed and welcomed correction.

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