BNN Market Call Interview: Market Outlook and Top Picks

Market Call Outlook

Investors’ concerns have been evident as the volatility of the global markets has increased over the recent past. Those concerns have been exacerbated by intense coverage by the media of the many global calamities that are ongoing. New shocks to the market have appeared as investors’ attention is shifted between the ongoing debt problems in the European Union, mass emigration from unstable regimes in the Middle East across the Mediterranean, the sudden decline in the Chinese market with implications of a slowing domestic economy, ongoing fears of Russian hegemony in the Ukraine, territorial conflicts in the South China Sea, etc. Nearer to home, the Canadian economy continues to adjust to the impact of fallen commodity prices, particularly energy, and the subsequent ripple effects throughout the economy. Investors have also been captivated by trepidation and uncertainty as to the effect that a raise in interest rates may have on the currently more robust US economy, when and if such a rate hike occurs.

Given that until recently, the markets have exhibited little sign a correction since the financial crisis of 2008, we believe that the current volatility is a natural outcome of wavering economic conditions in conjunction with the unsettling geopolitical issues. Arguably, valuations had become a little rich and we are now going through an adjustment that is a natural phenominom of market cycles. These adjustments are rarely smooth or quick.

It is during these periods that investors should be seeking opportunities in companies that ultimately benefit from the calamity caused by current conditions and in fact prosper from their ability to take advantage of their weakened competitors.

Michael Sprung Interviewed by Mark Bunting on BNN

Market Call Top Picks

Bank of Nova Scotia

The Bank of Nova Scotia (TSE:BNS, Mkt cap 71.13B, P/E 11.07, Div/yield 0.70/4.75, EPS 5.32, Shares1.21B) is the most international of the Canadian banks with branches in the Caribbean, Central and South America. The Canadian banks have been impacted by the recent volatility in the markets. BNS is now selling at levels that long term investors should find attractive as the premium valuation has fallen. The dividend yield is now 4.7%.

Canadian Natural Resources

Canadian Natural Resources Limited (TSE:CNQ, Mkt cap 31.26B, P/E 19.85, Div/yield 0.23/3.22, EPS 1.44, Shares 1.09B) is one of Canada’s leading senior producers of oil and gas. In the current environment, investors should be positioning their exposure in the energy sector to the stronger, better managed firms that have the wherewithal to survive through the downturn and take advantage as weaker companies are forced to dispose of assets or sell at bargain prices. CNQ has an enviable balance sheet and extremely well regarded management. The recent falloff of the stock price presents a good place to establish an initial position in this company.

HudBay Minerals Inc.

HudBay Minerals Inc.(TSE:HBM, Mkt cap 1.49B, P/E 52.67, Div/yield 0.01/0.32, EPS 0.12, Shares 235.23M) is one of Canada’s leading producers of zinc, copper and precious metals with operations in Canada, Peru and the US. Constancia, a major copper-molybdenum-silver mine in Peru, will be is currently ramping up production. HudBay has a number of projects coming on stream over the next few years, we anticipate that valuation levels will increase.

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The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.

 

Michael Sprung Says These Canadian Smallcaps are Poised to Outperform

The Small Cap Power Expert Interview featuring Michael Sprung.

SmallCapPower: Welcome, Michael. For the benefit of new viewers, can you give us a brief description of your company, as well as your role there?

Michael: I founded the company 10 years ago. Our clients are primarily high net worth or private clients, some corporate, but mainly family trusts, foundations, endowments, and personal accounts.

SmallCapPower: North American markets have been in positive territory for some time now. Do you have any concerns going forward?

Michael: Well, yes. Generally speaking, North American markets have been pretty positive since the financial crisis in ’08, ’09. In that period, we’ve seen a lot of dynamics around the world changing to some extent. We’ve seen China become more of an economic powerhouse where their growth, although it is slowing, is still a very enviable rate of growth relative to the developed economies. We’ve seen Europe continue to struggle with their problems, primarily dealing with the debts of countries like Greece and Spain and Portugal and so on. In that time, the U.S. economy has been relatively strong and actually it has performed relatively well compared with the rest.

Michael Sprung North American markets positive since financial crisis 2008 2009

Michael Sprung – generally speaking, North American markets have been pretty positive since the financial crisis in ’08, ’09.

It’s been helped by their so-called Quantitative Easing, which has now been pulled back a little bit as the economy has gotten stronger. But at the same time, we see Europe now going into that program in a heavier way. Then all of a sudden we’ve seen the oil price suddenly collapse. That has really caused some concern amongst oil exporters, not only in Canada, but countries like Russia and Venezuela as well. So recently, what are we beginning to see? The world has built up a mountain of debt, some $57 trillion over that period of time to the middle of last year, even greater today.

The bond market is beginning to retaliate. They’re beginning to ask for higher rates of return ahead of what the central banks appear ready to give them given that the economies still appear quite fragile in many areas. So this conflict, I think, is going to continue to have higher volatility in the markets. I think this could be a real blow to Canada with the debt situation that our consumers are in. So I think one has to be very careful and very choosy about the investments they look at in today’s market.

SmallCapPower: We’ve seen some recent positive direction in oil prices. What are your thoughts on investing in this sector?

Michael: I feel that it’s still a very uncertain period for oil. We just saw Goldman Sachs come out recently with a report saying that oil, over the next five years, is going to go to $55 and stay in that area for quite some time. That would be quite disadvantageous to a number of the new technologies which have been used to get oil out of the ground in North America, not only in our oil sands but also to some extent the fracking mechanisms that have made the U.S. more oil independent over the last number of years, but still their marginal cost of production tends to be around that level or higher. So I think that investors in oil today have to take a very long term view.

Oil is a cyclical industry. We have seen these cycles before. So you want to pick the companies that are going to survive, and not only survive, but possibly prosper as a result of weaker companies finding themselves in more trouble. So you’re looking for companies that have strong balance sheets, good management of gain, companies such as Suncor Energy Inc. (TSX: SU), Canadian Natural Resources Limited (TSX: CNQ), even companies like Cenovus Energy Inc. (TSX: CVE), which had been very proactive in cutting back capital expenditures going forward. Companies like Vermilion Energy Inc. (TSX: VET), which have more international operations or companies like ARC Resources Ltd. (TSX: ARX) that are just well-managed. In the smaller areas, you want to pick those companies that are very well-managed, companies like Bonavista Energy Corporation (TSX: BNP) and so on.

SmallCapPower: Aside from the energy sector, what do you think will affect Canadian markets?

Michael: I think we have a few unknowns in the Canadian markets, particularly with the recent election of an NDP government in Alberta. I don’t think anybody really knows what the consequences of that are going to play out to be. But generally speaking, I don’t think that business is looking for an overly positive environment to come out of that. At the same time, we still have a Liberal government in Ontario. Ontario has found itself in a great deal of debt over the last 10 years since the Liberals have been in power and our hydro rates have gone up significantly.

Our labour rates are relatively high and so as a base for manufacturing we are finding it harder and harder to compete. So with higher taxes, higher labour cost and so on, and now the prospect of a federal election, which again, could change from a more business-friendly government to one that may be less so, I think that there are some uncertainties in Canada. So again, you want to invest in firms that are going to be well-positioned to go through a period where maybe the environment is not quite as robust as it has been.

SmallCapPower: Can you mention some examples of where you might look to invest today?

Michael: Sure. I think there’s a few areas in companies that we see positioning themselves rather well to compete not only in the Canadian market, but also in Canada and the U.S. and in some cases even beyond that. One of them would be AGT Food and Ingredients Inc. (TSX: AGT). That’s a company that we have been invested in for some time. They’re one of the leaders in pulses, pulses which included things like lentils, chickpeas, beans, canary seeds, and so on, as well as some pasta and rice.

That company, over the last number of years, has transformed itself from not just a provider of these pulses, but a manufacturer of ingredients from those pulses. There is growing demand globally for these kinds of products. As a matter of fact, next year, the United Nations has called 2016 the Year of the Pulses. So that should give them the company some further benefit as well as that becomes better known. As one of the leaders, they have been expanding capacity. We expect that their earnings can go up fairly significantly over the next number of years.

So for a company with a market capitalization that’s currently around $670 million, we think that it can prosper in this sort of environment. Another company that we might look to would be New Flyer Industries (TSX: NFI), which is North America’s largest manufacturer of heavy-duty transit buses. It has operations both in the U.S. and Canada. Just recently, as a sign of confidence, management has slightly increased their dividend. Here we’re dealing with a company with a market capitalization of around $850 million that is expanding not only in the manufacture of buses, but also in aftermarket parts and services.

There are fewer and fewer competitors in this industry. As I was saying earlier with the U.S. economy doing better, a number of users of buses, whether they’re municipalities or other transport companies that utilize buses, are getting into a better position to buy more buses. So again, we would be looking there. Maybe thirdly, another company that we would be looking at would be HudBay Minerals Inc. (TSX: HBM). HudBay has got operations primarily in copper and zinc through Canada, Peru, and some exposures in Arizona as well.

But besides making improvements at their current mines, the big story with them of course, is they have this Constancia mine in Peru, which has just come on stream and it has just achieved commercial production. So that’s going to really increase their production profile over the next few years. After that, we will see perhaps Rosemont coming on stream, which will then increase their production profile. So when we’re looking for mining companies, particularly cyclical, we’re looking for those that have got a good strong growth in production that are efficiently managed.

A few years back, it was questionable whether HudBay would have the wherewithal to finance and get Constancia going. They have done that, so we’re past that. We’re going to see capital expenditures perhaps drop down a little bit and the company should prosper as a result. Again though, you’re playing the commodity cycle with a company like HudBay just as you are buying oil company in the oil market. So one has to be wary of the cycle and the fact that profitability comes and goes along with the commodity cycle too.

SmallCapPower: Thanks for taking the time for today’s interview, Michael.

Michael: Thank you.

View the interview on the SmallCapPower site here>>

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The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.

 

    Michael Sprung on BNN Market Call, February 25, 2015

    Top Pick Sales:

    Agrium Inc. (TSE:AGU, Mkt cap 20.54B, P/E 19.86, Div/yield 0.97/2.71, EPS 7.25, Shares 143.73M) We scaled back in a few accounts where weight had become larger than desired due to recent price appreciation.  Still owned in many accounts.Sold at $143.12 on February 24, 2014.

    Market CallTop Picks Michael Sprung Royal Bank

    Top Picks:

    Royal Bank of Canada (TSE:RY, Mkt cap 112.31B, P/E 12.97, Div/yield 0.75/3.85, EPS 6.01, Shares 1.44B) Owned by clients, Last Purchase September 10, 2014: $81.15

    The Royal Bank is Canada's largest financial institution with extensive domestic and wealth operations as well as global capital markets, custody and brokerage networks.  The positive results in the most recent quarter are illustrative of the strength of a well diversified and managed company.  Longer term, we expect  Royal Bank to prosper and provide further dividend enhancements.

    HudBay Minerals Inc. (TSE:HBM, Mkt cap 2.49B, P/E – , Div/yield 0.01/0.19, EPS -0.25, Shares 233.62M) Owned by clients, Last Purchase September 10, 2014: $10.96
     HudBay Minerals is one of Canada's leading producers of zinc, copper and precious metals with operations in Canada, Peru and the US.  Constancia, a major copper-molybdenum-silver mine in Peru, will be ramping up production over 2015.  With other project coming onstream over the next few years, we anticipate that valuation levels will increase.

    Aecon Group Inc (TSE:ARE, Mkt cap 665.52M, P/E 21.44, Div/yield 0.09/3.05, EPS 0.55, Shares 56.45M) Owned by clients, Last Purchase December 1, 2014, $11.57
    Aecon Group is one of Canada's largest construction companies.  A large portion of Aecon's business is related to the energy sector and the company's stock price has been under pressure as a result.  Over the last number of years, management has taken steps to strengthen the financial position of the company.  At current prices, the stock presents good value to investors for longer term appreciation.

    Outlook:


    Geopolitical concerns (Ukraine/Russia, ISIS in the Middle East, etc.) are still prevalent but investors' concerns  are becoming more focused on the fallout of weak oil prices, low inflation (possibly deflation), and, weak demand for goods and services.  The US dollar continues to dominate currency markets reflecting the relatively strong fundamentals of the US economy while the European and Japanese economies are weak and the growth in China has been less than expected.  While low oil prices may ultimately benefit oil importing countries,  oil exporters are feeling the pinch and Canada is no exception.  As the impact of the weakening energy sector reverberates throughout the Canadian economy, the stock market in Canada will continue to exhibit higher volatility for the next number of months.  During this period, investors would be well advised to to position their portfolios in companies with strong financial positions that will weather the storm and ultimately benefit from the opportunities presented by weaker companies' distress.

    You can view this and previous Market Call interviews here>>

    What is Successful Investing? Learn more here>>

    Download Our Free Special Report – How to Hunt For Value Stocks. Michael Sprung will share with you 5 stocks set for long-term gains here>>

    We believe that investment management is about managing risk, not chasing speculative returns.  

    Like to learn more? Please contact us here>>

    The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.

     

    Stockwatch – Michael Sprung on BNN’s Market Call

    Stockwatch – Michael Sprung’s Top Picks

    Stockwatch Manulife strongest capital bases industry

    Stockwatch – Manulife has one of the strongest capital bases in the industry.

    Manulife Financial Corp. (TSE:MFC, Mkt cap 37.99B, P/E 11.68, Div/yield 0.13/2.54, EPS 1.75, Shares 1.85B) Owned personally and by Clients, Last Purchase: April 10, 2014, $20.54

    Manulife is a leading Canadian-based financial services group with operations in Asia, Canada and the United States. Over the past five years, the company has made tremendous strides in de-risking the balance sheet and improving profitability through increasing wealth management operations as well as redirecting the mix of products sold. The insurance companies will be amongst the beneficiaries should interest rates start to rise. MFC has one of the strongest capital bases in the industry and future dividend increases would not be unexpected.

    Stockwatch - Hudbay Minerals Lalor

    Stockwatch – Hudbay Minerals – Lalor mine to ramp up production in the second half of 2014

    HudBay Minerals Inc. (TSE:HBM, Mkt cap 1.83B, P/E – , Div/yield 0.01/0.21, EPS -0.75, Shares 193.01M) Owned by Clients, Last Purchase: June 3, 2014, $9.85

    HudBay Minerals is one of Canada’s leading producers of zinc, copper and precious metals. As the Reed and Lalor mines ramp up production in the second half of 2014, investors’ attention will shift to the anticipated start of production at Constancia in Peru late this year or in early 2015.   After completing a streaming agreement with Silver Wheaton on Constancia, HBM has arranged extended credit facilities with BNP Paribas and ING Capital. At current prices, long term investors can initiate positions and participate as HBM’s projects mature.

    Stockwatch - Northern Store, Baker Lake, Nunavut - North West Company Canada oldest retailers

    Stockwatch – Northern Store, Baker Lake, Nunavut – North West Company is one of Canada’s oldest retailers.

    North West Company Inc (TSE:NWC, Mkt cap 1.14B, P/E 17.89, Div/yield 0.29/4.93, EPS 1.31, Shares 48.42M) Owned by Clients, Last Purchase: June 12, 2014, $23.52

    North West Company is one of Canada’s oldest retailers with operations in Canada, Alaska, the South Pacific and Caribbean. Recent results reflecting a weaker retail environment in Northern Canada and greater competition in some Giant Tiger and Cost-U-Less banners has caused the share price to pull back to attractive levels. Management has outlined a plan to focus more on the company’s top 40 markets, optimize inventory and in-store mix as well as improve the customer experience. In the interim, the 4.9% yield will appeal to investors.

    Stockwatch – Market Outlook:

    North American markets have demonstrated a great deal of resilience in the the past few years during a slow, fragile recovery in business conditions. In Canada, 2014 has been particularly strong despite weakness in the materials sector and manufacturing.   Individual stocks representing good long-term value are becoming harder to uncover. Investors would be well advised to have funds available to take advantage of a market setback.

    See Michael interviewed by Mark Bunting on BNN’s Market Call here>>

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    The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.

       

      Stock Watch – HudBay Minerals Extends Hostile Bid for Augusta Again

      Stock Watch – HudBay waived a condition of its bid that two-thirds of Augusta’s stock had to be tendered for the transaction to close.

      Canadian mining corporation HudBay Minerals Inc. (TSE:HBM, Mkt cap 1.98B, P/E – , Div/yield 0.01/0.19, EPS -0.59, Shares 193.01M) has announced yet another extension of its hostile bid to take over smaller copper-mine developer Augusta Resource Corp.

      HudBay Minerals Extends Hostile Bid for Augusta Again

      HudBay Minerals Extends Hostile Bid for Augusta Again

      The offer for the developer of the Rosemont copper-molybdenum project near Tucson, Arizona, was due to expire last Friday but has now been extended until May 27.

      The Toronto-based company, which already owns around 16% of Augusta’s issued and outstanding common shares, has offered 0.315 of a Hudbay share for each share of Augusta. That values the target at some $458 million, or $3.15 per share, based on stock prices on Friday when Augusta shares closed at $3.01 on the Toronto Stock Exchange.

      Earlier in May, the British Columbia Securities Commission (BCSC) ruled that it would allow Augusta to leave its shareholder rights plan in place until July 15 if the Hudbay bid is extended to July 16. Augusta approved its shareholder rights plan last year, after Hudbay bought a significant stake in the company. The target’s shareholders reaffirmed the plan at its annual meeting, chiefly in an effort to head off Hudbay’s buyout attempts.

      With the BCSC decision, Augusta will have more time to find alternatives to Hudbay’s offer. The company stated recently that it had signed confidentiality agreements with ten possible investors as part of its strategic review process.

      In March, Hudbay waived a condition of its bid that two-thirds of Augusta’s stock had to be tendered for the transaction to close.

      Free Portfolio Review – Markets were up in 2013. Are you at risk in 2014? Sprung Investment Management Is Pleased To Offer Qualified Investors A Free Portfolio Review—Without Cost or Obligation. Learn more here>>

      The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.

      Stock Watch – Hudbay Minerals Extends Augusta Offer For Final Time

      Stock Watch – Hudbay Minerals Extends Augusta Offer For Final Time

      Stock Watch > HBM >  HudBay Minerals Inc. (TSE:HBM, Mkt cap 1.71B, P/E – , Div/yield 0.01/0.23, EPS -0.59, Shares 193.01M) has announced a “final extension” of its unsolicited offer to take over smaller copper-mine developer Augusta Resource Corp, valuing the company at $540 million.

      With the offer, which is now valid until 5 May, Hudbay seeks to acquire the Rosemont Mine developer at a price of 0.315 of a Hudbay common share for each share in Augusta. In response, Augusta’s management recommended that shareholders do not accept the offer, saying it was financially inadequate.

      The Toronto-based company, which already holds around 16% of Augusta’s outstanding shares, said that the offer would not be extended beyond 5 May unless the remaining conditions have been met by that time. That includes Augusta’s shareholder-rights plan being waived, invalidated or cease-traded. It’s interesting to note that this plan was approved last year with the specific purpose of fending off Hudbay’s acquisition attempts, the Arizona Daily Star commented.

      Stock Watch > HBM >  HudBay has announced a "final extension" of its unsolicited offer to take over Augusta Resource

      Stock Watch > HBM > HudBay has announced a “final extension” of its unsolicited offer to take over Augusta Resource

      Hudbay, which is planning to apply the British Columbia Securities Commission in an effort to cease-trade Augusta’s shareholder-rights plan, still considers that its bid offers “full and fair value” to its target. According to Hudbay, the strategic review process implemented by Augusta’s management to find alternatives to its offer eventually failed. Hudbay claims that Augusta shareholders face the risk of value erosion and dilution if it remains a stand-alone entity, resulting from uncertain permitting timelines and financial challenges that might occur in the short term.

      Free Portfolio Review – Markets were up in 2013. Are you at risk in 2014? Sprung Investment Management Is Pleased To Offer Qualified Investors A Free Portfolio Review—Without Cost or Obligation. Learn more here>>

      The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.

      HudBay To Continue Acquisition Drive Regardless Of Augusta Deal Outcome

      HudBay is prepared to move to other projects whether or not it finalizes the deal with Augusta

      HudBay Minerals Inc. (TSE:HBM, Mkt cap 1.60B, P/E – , Div/yield 0.01/0.24, EPS -0.59, Shares 193.01M) currently pursuing a takeover of Augusta Resource Corp, will likely continue its acquisition drive even if it doesn’t succeed with the purchase of the local copper-mine developer, chief executive David Garofalo said last week.

      HudBay To Continue Acquisition Drive Regardless Of Augusta Deal Outcome

      HudBay To Continue Acquisition Drive Regardless Of Augusta Deal Outcome

      Toronto-based HudBay filed a C$334 million hostile offer to buy the owner of the Rosemont copper project in Arizona in early February. The bid proved to be 16% lower than the target’s closing price in Toronto on March 10, implying that investors are most likely expecting a better offer. According to data compiled by Bloomberg, the bid represented the widest discount for any current acquisition on the Canadian market.

      HudBay is prepared to move to other projects whether or not it finalizes the deal with Augusta, Garofalo said, adding that his company has already carried out “extensive” due diligence on a number of potential targets. The company plans to focus on purchases in Canada, the US, Mexico, Chile and Peru and will seek to buy projects that already have resource estimates.

      There are several projects that match those criteria, but they are at an earlier phase than Rosemont and would likely require a lower amount of upfront capital, the CEO commented.

      Last year, the level of M&A activity across the mining industry declined overall. The number of deals made in the sector amounted to 948 and their combined value stood at $50.8 billion, compared to more than 1,000 transactions with a total size of $109.7 billion sealed in 2012.

      Free Portfolio Review – Markets were up in 2013. Are you at risk in 2014? Sprung Investment Management Is Pleased To Offer Qualified Investors A Free Portfolio Review—Without Cost or Obligation. Learn more here>>

      The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.

      BNN – Top Stock Picks and Market Outlook – Market Call Tonight, December 11, 2013

      BNN – Top Stock Picks and Market Outlook : Market Call Tonight, December 11, 2013

      The global economy exhibits encouraging trends as conditions in Europe have recently been more stable with signs of modest growth, the decline in the growth rate of the Chinese economy has been arrested and the North American economy continues to expand with growing momentum.  Stock markets, particularly in the US, have surged as investors have regained confidence in the sustainability of the recovery.  As we approach the New Year, we suspect that the markets may be vulnerable to a correction as concerns about the curtailment of monetary easing persist, or some geopolitical event, perhaps from the Middle East, disrupt investors’ confidence.  Beyond that, the Canadian market which has lagged the US this year, should improve as the demand for energy and materials expands with improving economic conditions.

      Top Stock Picks

      Encana Corporation (TSE:ECA) Market cap 14.37B, P/E 33.18, Div/yield 0.07/1.50, EPS 0.59, Shares outstanding 740.14M, Website: www.encana.com Owned by Clients, Last Purchase $18.97 on Oct 29, 2013.

      Top Stock Encana Corporation Montney, Duvernay, San Juan, DJ Basin Tuscaloosa Marine Basin.

      Top Stock Pick – Encana Corporation plans to expand liquids production in Montney, Duvernay, San Juan, DJ Basin and Tuscaloosa Marine Basin.

      Encana Corporation is the third largest natural gas producer in North America. ECA’s operations include the transportation and marketing of natural gas, oil and natural gas liquids (NGLs). Encana’s Canadian Division includes the exploration for, development of, and production of natural gas, oil and NGLs and other related activities within Canada. The company’s USA Division carries out the same activities within the United States. During 2012, Encana acquired certain exploration and evaluation lands and properties. On February 9, 2012, it sold two natural gas processing plants in the Cutbank Ridge area of British Columbia.

      ECA has enviable positions in key emerging properties.  Going forward, the company has announced plans to expand liquids production in Montney, Duvernay, San Juan, DJ Basin and Tuscaloosa Marine Basin.  This expansion will be done with a focus on maintaining the integrity of the balance sheet through disciplined capital spending in line with cash flow.

      HudBay Minerals Inc.(TSE:HBM) Market cap 1.33B, P/E – , Div/yield 0.01/0.26, EPS -0.22, Shares outstanding 172.08M, Website: http://www.hudbayminerals.com  Owned by Clients and Personally, Last Purchase $8.70 on Oct 28, 2013.

      HudBay Minerals Inc. produces copper concentrate (containing copper, gold and silver) and zinc metal and focuses on the discovery, production and marketing of base and precious metals. It owns mines, ore concentrators and zinc production facilities in northern Manitoba and Saskatchewan and South America. The South America properties include the Constancia project in Peru, Hudbay Chile, Hudbay Colombia and Hudbay Panama.

      HudBay Minerals is one of Canada’s leading producers of zinc, copper and precious metals.  The company has a very strong balance sheet.  The company has been methodically addressing concerns regarding its ability to finance the construction of Constancia in Peru, most recently through a royalty streaming arrangement with Silver Wheaton (SLW) and an issue of unsecured notes.

      George Weston Limited (TSE:WN) Market cap 9.84B, P/E 21.84, Div/yield 0.41/2.16, EPS 3.52, Shares 127.90M, Website: http://www.weston.ca  Owned by Clients, Last Purchase $79.06 December 9, 2013.

      George Weston Limited is a Canada-based company engaged food processing and distribution. The Company has two operating divisions: Loblaw and Weston Foods. The Loblaw division, which is operated by Loblaw Companies Limited and its subsidiaries, is a food retailer and a provider of drugstore, general merchandise and financial products and services. The Weston Foods division is a fresh and frozen baking company in Canada and operates a frozen baking manufacturing business in the United States and a North American biscuit manufacturing business

      Weston has a strong cash balance and the company will benefit from the operational improvements undertaken by Loblaw over the last few years.  The current competitive environment, particularly in the Ontario region, has caused the shares to retreat to an attractive price level.

      See Michael discuss these stock with Mark Bunting on BNN Market Call Tonight here>>

      The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.