Alex RuusTibor Kolley/The Globe and Mail
Alex Ruus is portfolio manager for Arrow Capital Management. His focus is North American equities.
Top Picks:
Magna International Inc.
A global leading auto parts supplier that continues to grow and create shareholder value. Magna has an excellent history and culture of creating value for its customers, employees, and shareholders. The company continues to grow its revenues and earnings as customers reward its excellent performance with increasing business. The company is positioned to benefit from continued recovery in the auto markets in North America and Europe, while growing its emerging markets business, yet trades at less than 10 times earnings estimates, which continue to rise.
Alaris Royalty
A leading provider of alternative financing to private companies with an outstanding track record of making astute investments in non-resource companies. The company is well managed and has secured the go-to provider in their market. Stock has recently provided a buying opportunity with a correction due to an attack from short sellers who have not properly researched their idea. Company produces prodigious amounts of free cash flow from its royalty-like financing structure. Alaris trades at less than 16 times earnings for a company that grows in excess of 20 per cent per year and has an attractive dividend of 5 per cent that has grown each and every year since it went public.
LyondellBasell Industries
A global leader in the production of petrochemicals. Lyondell is well positioned to continue to build its business and is particularly well positioned to take advantage of the low feedstock prices present in the North American gas market. Stock trades at only 10 times earnings and pays a growing dividend of 3 per cent.
Past Picks: March 26, 2013
Wellpoint Inc.
Then: $64.76
Now: $100.97 +55.91%
Total return: +58.76%
Western Union
Then: $14.82
Now: $16.45 +11.00%
Total return: +14.34%
Horizon North Logistics
Then: $5.51
Now: $7.97 +44.65%
Total return: +48.20%
Total Return Average: +40.43%
"Now" figures are intraday from the date of the analyst's appearance on BNN Market Call.
Market outlook:
Look for a growing U.S. economy to contribute to a growing global economy, and to lead the equity markets to another positive year, although the general market will not perform as well as 2013. The coming year will be much stronger for those investors that are willing to dig deeper for the really good businesses that are being undervalued by the market.