Gordon Reid, president and CEO of Goodreid Investment Counsel
FOCUS: U.S. equities
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MARKET OUTLOOK

Valuations and fundamentals appear to be aligned. The fear of an overheated equity market is offset by a synchronized growth spurt being felt around the world and continued central bank management of interest rates and inflation. If this continues, the slow backup in interest rates should be fuel to the equity markets, but also may represent the beginning of the concluding chapters of this bull market story. 

TOP PICKS

ALPHABET (GOOGL.O)
Google continues to impress, growing revenues in the most recent fiscal quarter by 24 per cent year over year. The excitement over the traditional search-based advertising model is being supplemented by money makers like YouTube, a streaming phenomenon which has 1.5 billion monthly users watching an average of 60 minutes of content, as well as Waymo, the self-driving initiative, and their Cloud initiative (note their recent JV with Salesforce.com). Latest purchase in Nov. 2017 at US$1040. 

HALLIBURTON (HAL.N)
After working through the deepest trough for this oil services company since 1987, signs that management moves to extract efficiencies are appearing. Contrary to reports from their rival Schlumberger, HAL is growing their international business and taking market share. While activity in North American shale wells is decelerating, rig counts have rebounded nicely and have translated to a profitable position for Halliburton. Latest purchase in Nov. 2017 at $43.

KB HOME (KBH.N)
Homebuilders’ share prices have soared in 2017. Goodreid is well-positioned in our U.S. small cap portfolio, owning five builders. On a combined basis, their share prices have appreciated an average of 55 per cent in 2017. KB Homes concentrates its operations primarily in the west and southwest markets. At 16 times earnings and expectations for earnings to grow at 20 per cent in fiscal 2018, Goodreid views this issue as excellent value. Latest purchase in Sept. 2017 at $21.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
GOOGL Y N Y
HAL Y N Y
KBH N Y Y

PAST PICKS:  NOVEMBER 30, 2016

BANK OF AMERICA (BAC.N)

  • Then: $21.12
  • Now: $26.55
  • Return: 25.73%
  • Total return: 27.16%

CELGENE (CELG.O)

  • Then: $118.51
  • Now: $102.35
  • Return: -13.63%
  • Total return: -13.63%

TUTOR PERINI (TPC.N)

  • Then: $26.10
  • Now: $24.25
  • Return: -7.08%
  • Total return: -7.08%

TOTAL RETURN AVERAGE: 2.15%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
BAC Y N Y
CELG Y N Y
TPC N Y Y

FUND PROFILE
Goodreid North American Balanced Composite
Performance as of: September 30, 2017

1 Year: 12.4% fund, 5.2% index
3 Year Annualized: 7.3% fund, 3.9% index
5 Year Annualized: 10.5% fund, 6.8% index

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

TOP HOLDINGS AND WEIGHTINGS

  1. U.S. equities: 38%
  2. Canadian equities: 27%
  3. Canadian fixed income: 27%
  4. Cash: 8%

WEBSITE: www.goodreid.com