Gordon Reid, President & CEO, Goodreid Investment Counsel

FOCUS: U.S. Equities

_______________________________________________________________

MARKET OUTLOOK:

The core question for market participants: Why is the market near all-time highs in the face of an earnings recession, a tepid economy and a myriad of negative macro issues? The answer is a Federal Reserve that the market believes has its back and a complete lack of viable options to invest in. Goodreid’s reaction is to stress quality, pay attention to valuations and be responsive to asset mix targets.

 

Top Picks:

Helen of Troy (HELE.O), Latest purchase April 2016 @ $100

Helen of Troy is a consumer-based developer and marketer of household and beauty products. After a steep growth phase, the company’s fortunes did a stutter step over the last couple of years, held back by a stronger U.S. dollar, and a higher tax rate. A 10 per cent correction coupled with renewed growth should lead to a good opportunity.

Priceline Group (PCLN.O), Latest Purchase July 2016 @ $1317

As with past commentaries on PCLN, the time to buy this issue is on nervousness about how a world event will affect operational performance. Whether a terrorist attack or the Ebola or Zika virus, there are many entry points. The good news for long term investors is that this issue continues to perform.  Continuing strong growth in fundamentals and a very reasonable price-to-earnings multiple of 19 times expected 2016 results presents an attractive opportunity.

Tenneco (TEN.O), Latest Purchase April 2016 @ $45

Tenneco is a manufacturer of exhaust and ride control systems. While foreign exchange headwinds are temporarily slowing earnings growth, this company has a solid future as emission standards are tightened, the non-North American automotive market recovers, and the company’s internal operations become more efficient.

Disclosure Personal Family Portfolio/Fund
HELE.O N N Y
PCLN.O N N Y
TEN.O N N Y


Past Picks:  August 26, 2015

Apple (AAPL.O)

  • Then: $109.69
  • Now: $105.49
  • Return: -3.83%
  • TR: -2.30%

Boeing (BA.N)

  • Then: $129.34
  • Now: $131.98
  • Return: +2.04%
  • TR: +4.48%

La-Z-Boy (LZB.N)

  • Then: $27.32
  • Now: $29.80
  • Return: +9.08%
  • TR: +10.69%

Total Return Average: +4.29%

Disclosure Personal Family Portfolio/Fund
AAPL.O Y Y Y
BA.N N N Y
LZB.N N N Y

 

Fund Profile

Goodreid’s balanced approach allows investors to participate in the potential growth of equity holdings while mitigating risk through ownership of quality fixed income instruments.

Name: Goodreid North American Balanced Composite

Performance as of: June 30, 2016

  Fund Index*
1 Year -0.2% 0.3%
3 Year 8.9% 6.6%
5 Year 7.7% 4.7%

 

* Index: Globe Canadian Equity Balanced Peer Index. Returns are based on reinvested dividends and are net of fees.

 

Top 4 holdings and weightings:

  1. Canadian Equities - 34%
  2. U.S. Equities - 37%
  3. Canadian Fixed Income - 24%
  4. Cash – 5%

 

Website: www.goodreid.com