John Stephenson is senior vice-president and portfolio manager of First Asset Investment Management. His focus is on resource stocks.
Top Picks:
Talisman Energy
Talisman trades at a 45% discount to net asset value. Production strength in Columbia could be a catalyst for the name.
Suncor Energy
Trailed the group badly and in uncertain times, an integrated producer is the best alternative.
Canyon Energy Services
This company will grow its asset base by 50% by the second quarter of 2012 and has zero net debt.
Past Picks: March 4, 2011
BP plc
Then: $48.56
Now: $47.32
Total return: +0.30%
Halliburton Company
Then: $46.84
Now: $36.22
Total return: -22.17%
Calfrac Well Services
Then: $31.93
Now: $27.06
Total return: -14.74%
Total return average: -12.20%
OUTLOOK
Markets will likely trade higher over the course of the year, with the situation in Europe continuing to interrupt the market's upward trajectory. Accommodative monetary policy the world over will continue to favour risk assets. However, investors should focus on risk assets with a yield.
Compiled by Franklin Cameron, BNN Market Call Tonight
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