Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

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

Top Picks:

Aegion Corp. (AEGN NASDAQ)

Story continues below advertisement

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)

Story continues below advertisement

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%

Story continues below advertisement

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.

Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies