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3 top stock picks from Morgan Meighen’s Michael Smedley

Michael Smedley, the executive vice-president of Morgan Meighen & Associates, is shown in this 2007 file photo.

Fred Lum/The Globe and Mail

Michael Smedley is executive vice-president and chief investment officer, Morgan Meighen & Associates. His focus is on Canadian equities.

Top Picks:

High Liner Foods Inc.
The company, which processes fish products, recently bought a major Icelandic processor in the United States, giving it dominance in this high-protein business. Its skills have been won during decades of struggle in the Maritimes fish sector. The stock has run hard but it is not really expensive, based on a proven methodology that includes perhaps more acquisitions, synergies, escalating cash flows and no fear of a high debt component.

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Corby Distilleries Ltd.
A rarity, as one of the last of the great foreign-controlled, consumer-brand-rich companies in Canada. Relentlessly bought by dividend, deep value and take-out players and operating quite well, serving the cocktail-drinking generation.

DHX Media Ltd.
DHX is a growth company that creates television programming for youngsters, with characters like Caillou, Yo Gabba Gabba and Inspector Gadget. A world leader.

Past Picks:

Intact Financial Corp.
Then: $58.70
Now: $63.91
Total return: +11.08 per cent

Imperial Metals Corp.
Then: $12.78
Now: $12.48
Total return: –2.35 per cent

Granite Real Estate Inc. (formerly MI Developments Inc.)
Then: $32.42
Now: $36.00
Total return: +17.52 per cent

Total Return Average: +8.75 per cent

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MARKET OUTLOOK
Expect the markets to continue a choppy performance, supreme attraction of dividends, astoundingly upward performance by mainly small to medium-cap stocks with reliable growth. There should be stability in commodity prices, endless take-out activity in resources stocks in an otherwise not particularly mobile Canadian market. Bank and equity funding should stay cautious but Canada should continue to be one of the more reliable destinations for international money.

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