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BNN MARKET CALL

Three top stock picks from T.I.P. Wealth Manager’s Jim Huang Add to ...

Jim Huang is president of T.I.P. Wealth Manager. His focus is North American equities.

Top Picks:

Starbucks Corp. (SBUX-NASDAQ)

Starbucks is a dominant coffee chain in North America and has extensive international operations. It has grown quickly since inception but still has lots of room to expand. Notably, most of its profits still come from the U.S., its home market, while the fastest growing division is China. Today, Starbucks actually makes little money in markets like Europe which offers upside if it can turn things around. It’s also rolling out new bakery and juice offering, expanding into the supermarket channel and opening up tea outfits. In other words, Starbucks is an innovator. It trades at high earnings multiple and is deservedly so. Recent slowdown in sales growth is largely caused by unseasonal weather and should soon pass.

BNN Video May. 13 2014, 6:13 AM EDT

Video: Wealth manager Jim Huang names Starbucks, Sherrit and Tricon as top picks

More Related to this Story

Sherritt International (S-TSX)

Sometimes it pays to be at the right place at the right time. Sherritt has long been a value trap for investors, trading at a substantial discount to its book value. Part of this is due to its continued presence in Cuba which precludes U.S. investments, but it’s viewed as having a lack of focus and being over-leveraged. Recently, it divested its coal business and significantly improved the balance sheet. Fortuitously, Indonesia has enforced an export ban on raw nickel ores, cutting off 25 per cent of the global supply, just as Sherritt’s new mine came on stream. There should be a lot of upside left in the stock.

Tricon Capital Group (TCN-TSX)

Tricon is traditionally a North American real estate manager that offer its service to outside investors, as well as investing as a principal. Its timely entry into the U.S. residential housing leasing and development market brings the prospect of above-average return as the U.S. housing market continues to recover from the depth of the great real estate bust. Investors can look forward to future capital gains for this business as well as current leasing income as protection. Potential securitization of the lease income stream may lower funding costs and free up capital for further investments. Initiatives in manufactured housing leases may also add to the upside.

Disclosure:

Personal

Family

Portfolio/Fund

SBUX

N

Y

Y

S

N

N

Y

TCN

N

N

Y

Past Picks: March 7, 2013

Granite REIT (GRT.UN-TSX)

Then: $38.98; Now: $40.57 +4.08%; Total return: +11.19%

Tricon Capital Group (TCN-TSX)

Then: $6.78 Now: $7.84 +15.63% Total return: +20.65%

*Short* Just Energy (JE-TSX)

Then: $7.83; Now: $8.79 -12.26%; Total return: -29.22%

Total return average: +0.87%

Disclosure:

Personal

Family

Portfolio/Fund

GRT.UN

N

Y

Y

TCN

N

N

Y

JE

N

N

N

Market outlook:

It has been eventful recently in the stock market, with harsh winter weather, emerging market instabilities and correction in technology stocks . These have caused severe corrections in parts of the stock market. However, global economies continue their slow but steady recovery, with the U.S. leading the way. China is in the process of stabilizing. Japan and Europe are showing early signs of revival. Central banks around the world continue to focus on keeping interests lower for longer in an attempt to stimulate growth, though reduction of treasury purchase in the U.S. may create near-term headwinds. W have seen money moving around to areas that have underperformed in the past year, which helps to create a more balanced market.

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