Benj Gallander, president of Contra The Heard Investment Letter 
FOCUS: Contrarian investing
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MARKET OUTLOOK

While newspapers are filled as usual with the problems that plague the world, stock markets are generally blowing them off and surging ahead. It is important that investors appreciate this wonderful ride while being wary of complacency and keeping all of their chips on the table. If one has the ability to pay down some debt, even in this low interest rate environment, and/or enhance lifestyle with some profits, this could be a good time to consider it. One should enjoy the fruits of their labour before the stock market balloon is pricked and the paper profits evaporate.

TOP PICKS

QUARTERHILL (QTRH.TO)
Quarterhill had boffo quarterly record results with revenues in the quarter of $86 million, compared to $93 million for all of last year. Net quarterly income was $26.2 million or $0.22 per share. One would have expected the stock price to fly, but instead it turned down. The stock market is a strange beast. Meanwhile, we’ll collect the dividends. A triple in the stock price is not out of the question. Purchased at $1.98 in 2016.

FIRST US BANCSHARES (FUSB.O) - formerly United Security Bancshares
This is a small, regional bank based in Birmingham, Alabama. It pays a dividend, which is likely to increase handsomely before the end of 2018. Insiders own about eight per cent and it trades below book value. It also has good capitalization ratios with the stock price having double potential. Purchased at $8.32 in 2015.

GMP CAPITAL (GMP.TO)
As with others in the sector, GMP has been suffering. Revenues have been decreasing and the recent quarterly loss was $2.8 million. Fortunately, many competitors have fallen by the wayside or merged opening up the potential for GMP to expand its marketplace. The increase in commodity prices and the corporation’s move to finance blockchain companies should help the bottom line. From this angle, the stock price could hit double digits. Albeit, not tomorrow. ​Purchased at $3.32 in 2017. 

PAST PICKS: DECEMBER 22, 2016

AEGON (AEG.N)

• Then: $5.56
• Now: $6.08
• Return: 9.35%
• Total return: 15.46%

INNODATA (INOD.O)

• Then: $2.15
• Now: $1.08
• Return: -49.76%
• Total return: -49.76%

BLACKBERRY (BB.TO)

• Then: $9.51
• Now: $13.68
• Return: 43.84%
• Total return: 43.84%

TOTAL RETURN AVERAGE: 3.18%