Jason Donville.
Jason Donville is president and CEO, Donville Kent Asset Management. His focus is growth and financial stocks.
Top Picks:
Valeant Pharmaceuticals International Inc. (VRX-TSX)
Montreal-based Valeant has a strong portfolio of competitive and high margin products in its portfolio. Organic growth at Valeant continues to exceed expectations and we expect the company to be an active acquirer in 2015.
CGI Group Inc. (GIB.A-TSX)
Montreal-based CGI Group is a world-class IT services company with a consistent track-record of earning ROE's in excess of 20 per cent per annum. The company has a strong balance sheet and one should expect the company to make a significant acquisition some time in 2015 or 2016 which will further support its strong growth profile. We hold an 11.5-per-cent weighting in the Capital Ideas Fund.
Constellation Software (CSU-TSX)
The company continues to be the top value creating company on the TSX. Constellation Software focuses on acquiring and managing a diversified basket of high margin software companies. We expect the company to grow by 25 per cent+ in 2015 and to once again generate superior, risk adjusted returns for its shareholders. We hold an 11.8-per-cent weighting in the Capital Ideas Fund.
Past Picks: March 18, 2014
Constellation Software (CSU-TSX)
*still own it in the fund and have added to it recently
Then: $264.11; Now: $376.15 +42.42%; Total return: +44.13%
Delphi Energy (DEE-TSX)
*still own it and have added to it recently
Then: $2.70; Now: $1.33 -50.74%; Total return: -50.74%
Pulse Seismic (PSD-TSX)
*still own it and have added to it recently
Then: $3.28; Now: $3.29 +0.30%; Total return: +2.87%
Total return average: -1.25%
Disclosure: | Personal | Family | Portfolio/Fund |
CSU | Y | N | Y |
DEE | N | N | Y |
PSD | Y | N | Y |
Market outlook:
Now is not the time to swing for the fences. Much of the world has hitched its wagon to the U.S. economy but with the sharp appreciation of the U.S. dollar, we expect that the U.S. economy will slow sharply in the second half of 2015. As such, we believe that investors should focus on non-cyclical companies with earnings that are relatively insensitive to changes in economic growth. They should focus the bulk of their money on pharmaceutical companies, software companies with a high degree of recurring revenue and consumer products companies. Investors who are over-invested should be lightening up.