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Benj Gallander.

Tibor Kolley/The Globe & Mail

Benj Gallander is president of Contra the Heard Investment Letter. His focus is contrarian investing.

Top Picks:

Flextronics

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Flextronics has been a major disappointment. However if the economy strengthens, this designer and manufacturer for OEMs, should do better. Revenues could top $25-billion this year. Initial sell target: $18.74

Deswell Industries

DSWL needs an uptick in sagging revenues to recover. The company has lost money for the last number of years, but the balance sheet remains pristine with almost $25 million in the bank and zero debt. Initial sell target: $11.24

Agjunction

This small company competes with the giants in the agricultural GPS space. New management has taken significant steps to right the ship. The enterprise has over $10-million cash and cash equivalents and no debt and the writedowns are finished. It appears that the future offers black ink. Initial sell target: $3.49

Past Picks: January 18, 2013

DLH Holdings

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Then: $0.71; Now: $1.52; Total return: +114.05%

1-800-Flowers

Then: $3.69; Now: $5.22; Total return: +41.46%

First Busey

Then: $4.48; Now: $5.73; Total return: +31.16%

Total return average: +62.22%

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Market outlook:

While anything but assured, probability suggests that after a year like 2013, the U.S. market will have double-digit gains once again. A positive outlook for the Canadian market is far less certain given high real estate prices, frothy bank valuations and the possibility of an interest rate increase.

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