Jim Huang is president, T.I.P. Wealth Manager. His focus is North American equities.
Top Picks:
DIRTT Environmental Solutions (DRT-T)
Last purchase: May 2016 at $4.67
DIRTT (stands for "do it right this time") is not your average prefabricated office furniture company. Founded by industry veterans including Mogens Smed, DIRTT uses its proprietary 3D software to seamlessly integrate the design, manufacturing and installation process, ensuring an on-time, on-budget experience. It is leveraging its network of partners to expand its reach globally, and create solutions in new segments like health care, lodging and residential. Despite the drag from weaker energy industry orders, DIRTT remains one of the best companies that grows organically in a big market. Recent corrections only makes DIRTT more attractive.
NexGen Energy (NXE-X)
Last purchase: May 2016 at $2.15
Nexgen Energy is one of the most successful uranium explorers in Canada. It's Arrow discovery and Rook I property, even in this early stage, is already ranked one of the richest and largest uranium deposits in the world. Exploration is ongoing and the resource is likely to get bigger. Recent non-dilutive financing with notable strategic investors further strengthens the company's financial position.
Sleep Country Canada (ZZZ-T)
Last purchase: Jan 2016 at $15.44
Well known for its cheeky jingle, Sleep Country Canada is the No. 1 mattress retailer in Canada. With consumers' increasing focus on health and wellness, good quality mattresses are enjoying a broadened market. In Canada, the decline of mid-tier department store retailers opens the door for incremental market shares for strong operator. Sleep Country Canada has stepped up its powerful advertising campaign and expanded its offering to higher margin accessories. Rejoining the public market less than a year ago, Sleep Country Canada is yet to be discovered by many investors as a dominant Canadian retailer.
Past Picks: May 14, 2015
DIRTT Environmental Solutions (DRT-T)
Then: $8.26 Now: $5.20 -37.05% TR: -37.05%
Transcontinental (TCL.A-T)
Then: $18.41 Now: $19.81 +7.60% TR: +11.85%
Whistler Blackcomb (WB-T)
Then: $19.61 Now: $25.49 +29.98% TR: +37.03%
Total Return Average: +3.94%
Market outlook:
After the initial sharp declines and subsequent recoveries early in 2016, the global stock market has been settled in a slow march upward. Underneath the calm surface, the market leadership is quietly shifting to some of the more cyclical sectors, notably, the down-and-out resource stocks. The advent of benchmark interest rate increase in the U.S. continues to create uncertainties for investors who have gotten used to a long period of lowering interest rates. Coupled with the stagnant global economic growth and talk/adoption of negative interest rates outside the U.S., the outlook has been muddled and investor confidence shaken. However, there is no imminent signs of economic recession worldwide, and global liquidity remains abundant. Whether or not the positive bias in the market can be maintained depends on the strength of global economy. Although volatilities are likely to resurface, the risk and reward for the rest of 2016 remains favourable.