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Jason Donville is CEO of Donville Kent Asset Management. His focus is on growth and financial stocks.

Top Picks:

Constellation Software (CSU TSX)

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Constellation is a Toronto software company that is growing at close to 30-per-cent per annum. The recently announced debenture removes an overhang on the stock and suggests that more acquisitions are on the way. Stock trades on 14x 2015 earnings.

(Own it in the fund and personally. Have not bought it recently as we already have a 11.8-per-cent weighting in the fund.)

CGI Group (GIB.A TSX)

Europe is rebounding and with CGI trading on less than 10x 2015 earnings, this is one of the cheapest growth stocks in Canada. While the stock trades in a lumpy manner, its trend is up.

(Own it in the fund and personally. Bought recently at $33.)

Rifco (RFC TSX-V)

One of the fastest growing financial services stocks in Canada, the stock should grow its earnings in 2014 and 2015 by 30 per cent+ per annum and trades on 13x 2015 earnings.

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(Own it in the fund and personally. Recently bought at $5.50.)

Past Picks: June 24, 2013

Valeant Pharmaceuticals (VRX TSX)

Then: $88.07; Now: $127.10 +44.32%; Total return: +44.32%

Rifco Inc. (RFC TSX-V)

Then: $4.40; Now: $5.85 +32.95%; Total return: +32.95%

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Parkland Fuel Corp. (PKI TSX)

Then: $16.23; Now: $21.31 +31.30%; Total return: +38.73%

Total return average: +38.67%

Market outlook:

The short-term outlook for the TSX is negative. Stocks are extremely overbought and we expect a correction some time in the next three-to-four months. This is no time to be a hero. Build cash.

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