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Gordon Reid is president and CEO of Goodreid Investment Counsel. His focus is on U.S. equities.

Top Picks:

Aegion Corp. (AEGN NASDAQ)

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Aegion sells a technology for the improvement of pipelines through various rehabilitation techniques. At less than 15 times what the company is guiding toward for 2014 earnings and a very strong anticipated growth rate through the next few years, Aegion represents an excellent opportunity.

Dana Holding (DAN NYSE)

Dana sells a wide range of auto parts around the world. It is one of a number of companies owned by Goodreid that are a derivative play on an improving auto sector. Many of their technologies are designed to lighten cars, the implications of which are wide ranging and dramatic. Expect $1.50/share in earnings in 2014 and a trend towards increasing estimates.

Time Warner (TWX NYSE)

Time Warner's stock price has retreated on the news that Fox has withdrawn their bid. Stay tuned for further developments but in any case Goodreid is comfortable owning Time Warner whose growth engine is their digital platforms, which will capture the growing mobile market for film (Warner Bros.), television (HBO, CNN) and publishing (People). With a valuation of 18x this year's earnings, exciting growth opportunities and heightened shareholder expectations because of their staunch opposition to the Fox bid, Time Warner is a compelling opportunity.

Past Picks: August 20, 2013

General Electric (GE NYSE)

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Then: $23.72; Now: $26.36 +11.13%; Total return: +14.81%

Walgreen Co. (WAG NYSE)

Then: $48.76; Now: $62.00 +27.15%; Total return: +29.71%

Tenneco (TEN NYSE)

Then: $47.50; Now: $65.23 +37.33%; Total return: +37.33%

Total return average: +27.28%

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Market outlook:

A massive amount of liquidity, ready to deploy into equities on any hint of weakness, is keeping markets on a steady upward trajectory. We had another example of a muted correction over the past few weeks. On the flip side, fortunately there is sufficient fear amongst investors to suppress a runaway market, so we continue to trade in fair value territory.

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