Michael Smedley.Fred Lum/The Globe and Mail
Michael Smedley is executive vice-president and chief investment officer at Morgan Meighen & Associates. His focus is on Canadian equities.
Top picks:
Vodaphone
Record-breaking massive payment on block sale of Verizon control block back to Verizon, resulting in cash for shareholders and cash for Vodaphone's own development. Speculation will arise that Vodaphone could itself be a target.
Tesla Motors
Bought again last month for $139 (U.S.), in Smedley Special Opportunities Fund. Bought personally two months early, partly sold for profit. This is not really an earnings story – yet. It is a historic moment – the creation of the first pioneering motor car company of significance in the U.S for about 100 years.
Davis & Henderson
The old bank cheques and associated services company is in a major transformation into a banking technology solutions company across North America after a big U.S acquisition, and is still maintaining its high dividend profile.
Past Picks: October 17, 2012
Alimentation Couche-Tard
Then: $49.67
Now: $61.06
Total return: +23.44 per cent
Brookfield Residential Properties
Then: $17.06
Now: $20.78
Total return: +21.81 per cent
Sandstorm Gold
Then: $13.58
Now: $6.71
Total return: -50.59 per cent
Total return average: -1.78 per cent
Market outlook:
Nothing disturbs me except the misery of the Middle East. Interest rate mumbling bores me but has produced some good corrections in solid dividend-associated sectors. I am encouraged by the positive waves of attention to the importance of the precious metals sector as an important mining sector after its major correction but I have no interest in the theory about storing gold at the bottom of the garden. It is just part of the market which is of appeal and will participate in future strength along with base metals, oil and gas, technology and many terrific middle market companies in Canada.