John Stephenson is president and CEO of Stephenson & Company. His focus is North American equities.
Top Picks:
Slate Retail REIT (SRT_u.TO)
Last bought on January 26, 2016 at $14.30
This company is a Canadian retail REIT, focused exclusively on U.S. grocery-anchored retail centres in large-but-secondary markets. In essence, this is a growth-through-acquisitions strategy.
*Short* Yahoo! (YHOO.O)
Last shorted on December 29, 2015 at $33.82
While management is implementing changes with a new strategic plan, the turnaround will likely be a multi-year effort. The key Search and Display segments of the business continue to underperform relative to the market, with no identifiable catalyst.
Cash
Cash gives investors optionality whereby they can pick up high-quality names when the market puts them on sale.
Past Picks: February 11, 2015
*Short* Lightstream Resources (LTS.TO)
Then: $1.45 Now: $0.36 +75.52% Total return: +75.52%
Salesforce.com (CRM.N)
Then: $58.80 Now: $61.70 +4.93% Total return: +4.93%
General Motors (GM.N)
Then: $37.65 Now: $29.03 -22.94% Total return: -19.77%
Total Return Average: +20.23%
Market outlook:
While the last few days have been encouraging to investors, the underpinnings of the rally are dubious at best. The likelihood that Russia and Saudi Arabia would honour — let alone stick by — a production cut is hard to believe. Investors should consider holding only quality names in their portfolios and raising cash where appropriate for future bargain hunting.