Market Outlook & Top Stock Picks
The uncertainty of developments in Europe will continue to impact the world financial markets and likely precipitate some setbacks over the coming months. Fears of the contagious effect these events may have in stemming economic growth and slowing global demand for goods and services are currently overshadowing some of the more positive developments in the North American economies. As housing prices stabilize and employment slowly improves, greater confidence should be evident later in the year. Investors should be buying the shares of well run, well financed companies as opportunities are present.
Bank of Nova Scotia (BNS-T) Owned by Clients, Last Purchase Sept. 22, 2011 $49.17
The Bank of Nova Scotia is Canada’s most internationally diversified bank with branches in the Carribean, Central and South America and investments in Asia. Historically, the Bank has held a reputation for relatively strong credit discipline that has served it well over the years. BNS shares are attractive at current levels with a dividend yield around 4.3%.
Suncor (SU-T) Owned by Clients, Last Purchase Sept. 22, 2011 $26.48
Suncor is Canada’s largest integrated oil and gas company. Upstream activities include extensive oil sands operations and core conventional business in eastern Canada, the North Sea, Africa, the Middle East and South America. Downstream operations include four refineries as well as some 1600 retail locations. Suncor is in a position to generate significant amounts of free cash flow over the coming years.
HudBay Minerals (HBM-T) Owned by clients and personally, Last Purchase Sept. 22, 2011 $10.60
HudBay Minerals is one of Canada’s leading porducers of zinc, copper and precious metals. The company has a very strong balance sheet with a large cash position and no debt. The recent retreat in the underlying commodity prices have caused the stock price to retreat to the point where current valuations provide an excellent purchasing level.
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