Skip to main content
Welcome to
super saver spring
offer ends april 20
save over $140
save over 85%
$0.99
per week for 24 weeks
Welcome to
super saver spring
$0.99
per week
for 24 weeks
// //

Lorne Steinberg is president of Lorne Steinberg Wealth Management. His focus is deep value global equities.

Top Picks:

Alcoa (AA.N)

Story continues below advertisement

Alcoa has transformed itself from a commodity-based aluminum producer, into a company focused on delivering value-added engineered aluminum products. Alcoa's earnings over the next few years will benefit from increased demand from the auto sector, as well as from recent acquisitions. The aluminum sector is in the early stages of recovery, and Alcoa's share price offers an excellent entry point.

Xerox (XRX.N)

Xerox has emerged as a major player in the business process outsourcing industry, while maintaining its presence in document management. This company generates significant free cash flow, which has been used for acquisitions, share buybacks and dividends. At the current share price, Xerox trades at only nine times free cash flow, a cheap valuation in the present environment. We expect that earnings will rebound in the second half of this year, and accelerate into 2016.

Takasago (4914 – Tokyo Stock Exchange)

Takasago manufactures flavours and fragrances for the food, beverage and cosmetics industries. The company has grown its revenues over the past several years through international expansion, which should continue for the next several years. This is another compellingly cheap Japanese company trading at a steep discount to tangible book value, with significant upside from the current share price.

Past Picks: April 23, 2014

Manulife Financial (MFC.TO)

Story continues below advertisement

Manulife is delivering double-digit earnings growth, and still looks attractive at the current valuation.

Then: $20.60; Now: $23.00; +11.65%; Total return: +15.65%

Cisco Systems (CSCO.O)

Although not the growth stock of past days, Cisco offers investors steady dividend and earnings growth, while maintaining its huge cash hoard. A premiere technology company trading at a cheap valuation.

Then: $23.50; Now: $29.08; +23.74%; Total return: +27.45%

Topre (5975 – Tokyo Stock Exchange)

Story continues below advertisement

This boring manufacturer of electrical components has become a growth story. An example of the changing nature of many Japanese companies. Shares still trade at only 11 times earnings.

Then: JPY 1048.00; Now: JPY 2157.00; +105.82%; Total return: +108.71%

Total Return Average: +50.60%

Market outlook:

I would like a moment to add a few words about "The importance of asset allocation in the present environment", as we have just written a report which is available to subscribers to our website. Asset allocation is often a misunderstood concept and investors often base asset allocation on the recent past which is usually a big mistake.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
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

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: 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