Benj Gallander is president of Contra The Heard Investment Letter. His focus is on contrarian investing.
Top Picks:
France Telecom ADS
The biggest reason to hold this stock is that its current payout is about 15 per cent, a tidy sum to be sure. Management has stated that it believes it can maintain the payout through 2014. This is not a certainty for this leader in the French marketplace. Initial Sell Target: $27.74.
AgJunction Inc.
In his first year in the CEO's seat, Rick Heninger has cut over one-third of the workforce, moved the corporate head office from Calgary to Kansas and sold one division for a tidy sum. It would not surprise to see him sell the entire outfit in the next few years. Initial Sell Target: $3.49
CASH (third pick)
Past Picks: June 25, 2012
Star Gas Partners
Then: $4.05
Now: $4.99
Total return: +32.22 per cent
DLH Holdings (previously: TeamStaff )
Then: $1.38
Now: $0.80
Total return: -42.03 per cent
CASH (third pick)
Total return average: -3.27 per cent
Market outlook:
Volatility will likely continue during the dog days of summer. There are too many governments, countries and corporations having major problems to predict a calm. Meanwhile, the United States can act as a potential counterbalance as it recovers from its dreadful difficulties.