Bruce Campbell is president of Campbell & Lee Investment Management. His focus is on Canadian large caps.
Top Picks:
Iamgold
Iamgold has $5 share in cash, trades at the second lowest value of the senior golds and you get niobium for free, which is worth at least $2-3.
TransCanada
TransCanada has a solid dividend combined with future growth. The Keystone pipeline delay has now been priced in and the stock trades at a discount for that reason.
Paramount Resources
The best growth out of any energy stock in Canada. Liquids-rich deposits and its Hoole oil sands project will transform the company over the next two to three years. The Liard basin play will have great netbacks even at current gas and oil prices.
Past Picks: Feb. 16, 2011
BHP Billiton
Then: $95.30
Now: $81.60
Total return: -10.49%
Rogers Communications
Then: $35.39
Now: $37.90
Total return: +11.39%
Argonaut Gold
Then: $4.55
Now: $8.33
Total return: +83.08%
Total Return Average: +27.99%
OUTLOOK
The improving U.S. economic numbers have been a big help in supporting the latest market rally. However, the potential for an "accident" is still higher than in normal times. This scenario is why we still hold slightly higher-than-normal cash levels, but would describe ourselves as cautiously optimistic. Our base case is that Europe does not fall apart. This still means that we would be looking for slow growth for a few years to come. The stock market has discounted such a poor outcome in Europe that our base case would result in positive stock market returns over time, albeit with continued high volatility and uncertainty.
Compiled by Franklin Cameron, BNN Market Call Tonight
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