John Stephenson.Della Rollins/The Globe and Mail
John Stephenson is senior vice-president and portfolio manager at First Asset Investment Management. His focus is on resource stocks.
Top picks:
Innergex Renewable Energy Inc.
This stock recently sold off after a report from DBRS downgrading the firm's credit. The recent selloff represents a very good buying opportunity in a name with a strong dividend of 5.9 per cent.
Pembina Pipeline Corp.
Pembina is in a great position to capitalize on the trend in liquid-rich natural gas and the need for processing infrastructure.
Enbridge Inc.
Management is confident of maintaining 10-12 per cent EPS growth post-2016.
Past picks: April 10, 2012
First Quantum Minerals Ltd.
Then: $21.11
Now: $16.41
Total return: –22.26 per cent
Potash Corp. of Saskatchewan Inc.
Then: $43.06
Now: $39.94
Total return: –5.37 per cent
Cenovus Energy Inc.
Then: $33.38
Now: $28.95
Total return: –10.87 per cent
Total return average: –12.43 per cent
Market outlook:
The stock market will be entering a consolidation phase for the next several months. Investors are encouraged to increase their defensive positioning by overweighting utilities, pipelines, consumer staples and health care and shedding risky assets. "Sell in May" has arrived in April this year, but better times await investors toward the end of summer.