Skip to main content

The Globe and Mail

3 top stock picks from Davis Rea's John O'Connell

John O'Connell is chairman and CEO of Davis Rea. His focus is on North American large caps.

Top Picks:

Oracle Corp.

Story continues below advertisement

Good earnings and dividend growth potential with a strong balance sheet, with a management team that has demonstrated a strong ability to grow in adverse and competitive situations, both organically and through acquisitions.

Morguard North American Residential REIT

Yield is 5.5 per cent. This real estate investment trust is expanding in the United States, where cap rates are attractive and rents are firming. Management has a strong track record of creating value and owns over 50 per cent of the REIT.

Keyera Corp.

Great management team delivering consistent growth in a disciplined manner with major growth projects that it may pursue if the economics make sense. A strong infrastructure player that the oil and gas industry has come to rely upon.

Past Picks: Sept. 7, 2011

BCE Inc.

Story continues below advertisement

Then: $38.65

Now: $44.36

Total return: +20.92%

Intel Corp.

Then: $20.08

Now: $23.43

Story continues below advertisement

Total return: +20.52%

Oracle Corp.

Then: $27.63

Now: $32.57

Total return: +18.85%

Total Return Average: +20.10%


Presently, market participants are basking in the glow of recent central bank actions in Europe and reassuring words from the Fed. While we expect the rally may have some room to run, we expect markets to begin to focus on the challenging fiscal situation next year in America, the continued rolling restructuring of Europe and cyclical softness in the developing world. Equities are fairly priced but further rapid increases in valuation will present investors with increasingly questionable valuations given the Macro head winds that are anticipated next year. Increasing caution is warranted at this time and cash balances should be pursued.

Report an error

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Please note that our commenting partner Civil Comments is closing down. As such we will be implementing a new commenting partner in the coming weeks. As of December 20th, 2017 we will be shutting down commenting on all article pages across our site while we do the maintenance and updates. We understand that commenting is important to our audience and hope to have a technical solution in place January 2018.

Discussion loading… ✨