Skip to main content

The Globe and Mail

Three top stock picks from Baskin’s Barry Schwartz

Barry Schwartz, vice president and portfolio manager with Baskin Financial Services

TGAM

Barry Schwartz is chief investment officer and portfolio manager at Baskin Financial Services. His focus is on North American large caps.

Top Picks:

American International Group Inc.

Story continues below advertisement

AIG trades at a deep discount to its book value. It recently raised its dividend 25 per cent and continues to buyback stock aggressively. It stands to benefit from rising interest rates.

Tim Hortons Inc.

Tim's offers an enticing combo of rising dividends, share buybacks and above average earnings growth. With the distraction of the activist investors behind it, Tim's is on the right path to further growth.

Morguard Corp.

Morguard trades at a 40-per-cent discount to its book value. Management knows it and has been buying back stock. A number of high-profile projects should add to its cash flow over the next couple of years.

Past Picks: April 18, 2013 (currency figures in US$)

Energizer Holdings

Story continues below advertisement

Then: $93.34; Now: $99.40 +6.49%; Total return: +8.52%

Bed Bath & Beyond Inc.

Then: $66.44; Now: $67.41 +1.46%; Total return: +1.46%

Goldman Sachs Group Inc.

Then: $138.60; Now: $162.29 +17.09%; Total return: +18.63%

Total return average: +9.54%

Story continues below advertisement

"Now" figures are intraday from the date of the analyst's appearance on BNN Market Call.

Market outlook:

We are finding a number of attractive investment opportunities on both sides of the border. In fact, we have more good ideas than cash. We are fully invested in companies with low valuations that regularly raise their dividends or shrink their shares outstanding. There has been lots of talk lately about U.S. indexes trading at record levels but with record corporate profits, low inflation, and low interest rates, no one should be surprised. We believe that there is room for markets to move higher due to rising corporate profits, expanding multiples, accommodative monetary policy, and a reduced supply of quality investments.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Please note that our commenting partner Civil Comments is closing down. As such we will be implementing a new commenting partner in the coming weeks. As of December 20th, 2017 we will be shutting down commenting on all article pages across our site while we do the maintenance and updates. We understand that commenting is important to our audience and hope to have a technical solution in place January 2018.

Discussion loading… ✨