Norman Levine is managing director at Portfolio Management Corp. His focus is North American large caps.
Sold 49-per-cent stake in U.K. division (Sinopec). Its North Sea operations have been the culprit in TLM disappointing investors on numerous occasions. Capital costs will also decline. Sentiment is picking up as the stock is very cheap and ripe for either a shareholder revolt or a sale of the company. Potentially rising natural gas prices creeping up from 10-year lows.
Sun Life Financial
We like Sun Life for its 6.3-per-cent dividend, its inverse relationship to the bond market and its low valuation versus the Canadian banks.
International Forest Products
The housing market in the U.S. is finally showing signs of life and the price of lumber and boxcar loadings of lumber are both on the rise. Chinese demand is a bonus. International Forest has a strong balance sheet and operations on both sides of the border, which minimizes currency risk.
Past Picks: Aug. 26, 2011
Total return: +15.15 per cent
Total return: +30.39 per cent
Total return: +5.96 per cent
Total Return Average: +17.16 per cent
We remain near-term cautious as September and October are usually seasonally weak. We have cash to invest and expect to take advantage of the weakness to buy shares of high quality companies at very reasonable prices.
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