Skip to main content
The Globe and Mail
Get full access to globeandmail.com
Support quality journalism
Just $1.99 per week for the first 24weeks
Just $1.99 per week for the first 24weeks
The Globe and Mail
Support quality journalism
Get full access to globeandmail.com
Globe and Mail website displayed on various devices
Just$1.99
per week
for the first 24weeks

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(){console.log("scroll");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);

Jason Donville is president & CEO, Donville Kent Asset Management. His focus is on growth and financial stocks.

Top picks:

Home Capital

Story continues below advertisement

Canada's leading non-bank mortgage lender has delivered consistently high ROE's for more than a decade and the current low interest rate environment suggests that this track record will continue. The stock trades at 8.8x 2014 earnings and should deliver strong results in the coming quarters.

Constellation Software

Constellation remains one of the top value creators in Canada and yet trades at a modest valuation multiple in relation to its growth rate. The Toronto-based software company enjoys exceptional cash flows and an dividend hike might be around the corner.

Parkland Fuel

The Red Deer-based gas station operator boasts a 5.6-per-cent yield and a nice growth trajectory. The stock trades on 9.5x 2014 earnings and its payout ratio is only 53 per cent so a dividend hike in 2014 is plausible.

Past Picks: October 3, 2012

Softchoice Corp. Acquired by Birch Hill Equity Partners 06/21/2013
Then: $11.75
Now: $20.00
Total return: +72.22 per cent

Story continues below advertisement

Badger Daylighting
Then: $28.33
Now: $76.00
Total return: +175.58 per cent

DirectCash Payments
Then: $23.87
Now: $18.40
Total return: -18.17 per cent

Total return average: +76.54 per cent

Market outlook:

The current bull market is roughly 55 months old but deflationary concerns suggest that interest rates will stay low for the foreseeable future. We believe that the Canadian market, which has risen modestly over the past three years is poised for a strong year-end rally. We think technology and financial services stocks will lead this rally.

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