Benj Gallander, president of Contra the Heard Investment Letter
FOCUS: Contrarian investing

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MARKET OUTLOOK

While it is wise not to bet against the trend, markets do seem elevated. That does not mean that they will not go higher, but at some point there will be a blow-off. At this point, I am following a disciplined approach and have been very actively selling stocks when they have reached prices that are welcome exit points for me.


TOP PICKS

Benj Gallander's Top Picks

Benj Gallander, President of Contra The Heard Investment Letter discusses his Top Picks: Aegon, GMP Capital and Quarterhill.

AEGON (AEG.N)
Dutch company Aegon saw its net income increase by 23 per cent in the most recent quarter. Its group solvency ratio rose 28 per cent to 185 per cent, and there is enough cash in the till to pay another dividend. Back in the day the stock traded above $50. Purchased at $7.64 in 2014.

GMP CAPITAL (GMP.TO)
GMP recorded a quarterly loss of $54.2 million because of a non-cash impairment charge and tax expense. That caused the stock price to reel. However, looking beyond that revenues increased by 7 per cent and the company would have been profitable without the ugliness. Purchased at $3.32 in 2017.

QUARTERHILL (QTRH.TO)
Quarterhill, the former Wi-Lan, is undergoing a major remodelling as it becomes a holding company in the Industrial Internet of Things. Certainly there are some key questions about the new strategy they have undertaken and the price they have paid for two acquisitions, but the most recent quarterly results suggest that the company might be on the right track. Purchased at $1.98 in 2016.

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
 AEG Y N N
 GMP Y N N
QTRH Y N N


PAST PICKS: MARCH 1, 2016

Benj Gallander's Past Picks

Benj Gallander, President of Contra The Heard Investment Letter discusses his Past Picks: Veru Inc, Extendicare and Jinpan International.

VERU INC. (VERU.O) – formerly Female Health Care

  • Then: $2.00
  • Now: $1.45
  • Return: -27.50%
  • Total return: -27.50%

EXTENDICARE (EXE.TO)

  • Then: $9.18
  • Now: $9.45
  • Return: 2.94%
  • Total return: 10.57%

JINPAN INTERNATIONAL (JST.O) – merged and delisted on April 18, 2016

  • Then: $5.57
  • April 18, 2016: $5.94
  • Return: 6.64%
  • Total return: 6.64%

TOTAL RETURN AVERAGE: -3.43%

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
 VERU N N N
EXE Y N N
JST N N N

WEBSITE: www.contratheheard.com