Skip to main content

Paul Harris is partner and portfolio manager at Avenue Investment Management. His focus is North American and global equities.

Top Picks:

DH Corp. (DH.TO)

Story continues below advertisement

DH Corp. provides technology for the financial services industry. The company is expanding out of the traditional cheque producing business through bolt on acquisitions in the US. The stock trades at 17 times earnings and has a 3.9 percent dividend yield.

Element Financial (EFN.TO)

Element is one of North America's leading equipment finance companies within the four verticals of commercial & vendor finance, aviation finance, rail finance, and fleet management. The company has strong exposure to the U.S. after their PHH Corp. acquisition last year (acquired their U.S. fleet leasing business) and are well positioned to benefit from the resurgence of the US economy and growth in lease financing. Trading 12.9x 2016 earnings

Mainstreet Equity (MEQ.TO)

Mainstreet Equity is one of the cheapest stocks on the TSX. It trades at a 25 percent discount to its net asset value. Although there will be weakening in the Alberta economy, there should be very little impact to the mid-level rental markets due to a "tight" rental market. The balance sheet is liquid and future acquisitions should occur. Net Operating Income is growing around 15 percent , and the company is well positioned owning properties near the new Rexall Centre in Edmonton

Past Picks:

Deere & Company (DE.N)

Story continues below advertisement

Then: $91.10; Now: $93.50; +2.63%; Total Return: +5.48%

Qualcomm (QCOM.O)

Then: $80.19; Now: $70.60 -11.96%; Total Return: -9.98%

Bank of America (BAC.N)

Then: $15.15; Now: $16.67 +10.03%; Total Return: +11.12%

Total Return Average: +2.21%

Story continues below advertisement

Disclosure:

Personal

Family

Portfolio/Fund

DE

Y

Y

Y

QCOM

Y

Y

Y

BAC

Y

Y

y

Market outlook:

The Canadian markets will have to embrace volatility in bond yields and oil prices in the interim. Besides these ancillary issues, the stock market should perform well due to sustainable corporate profitability, relatively low interest rates and low labour wage pressures. The North American economy should grow more than 3 percent, catching up from a very harsh winter for the continent. The lower Canadian dollar should help profitability for Canadian companies in the upcoming quarters. Valuations for both TSX and S&P are in the middle range. The near-term risk is a "melt up" surprise, and not a "melt down".

Report an error Editorial code of conduct
Tickers mentioned in this story
Unchecking box will stop auto data updates
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 ...

Cannabis pro newsletter