FOCUS: North American Equities

Market Outlook:

After a sharp pullback to start the year, markets have put in their bottom for the year and stable value stocks should be favored at this point in time.  Markets are likely to move sideways for the next  few months, but volatility, while currently muted, will reassert itself in the future and investors should be prepared by adopting a defensive stance.  Cyclical names can be traded but should not be a mainstay of investment portfolios.

TOP PICKS:

Whirlpool Corporation (WHR.N) 

- Benefits from large opportunities in International Markets which are characterized by low levels of appliance penetration
- Benefits from increasing wages and sustained increase in consumer spending
- Strong free cash flows which are likely to grow in the coming quarters

Last Bought on March 10, 2016 @$159.91.

Reynolds American (RAI.N)

- Recently acquired Lorillard which are now starting to show deal synergies
- Decline in gasoline prices benefits cigarette companies
- Strong free cash flow and good defensive characteristics 

Last Bought on March 24, 2016 @ $50.00.

Newell Rubbermaid (NWL.N)

- Its financing for the Jarden acquisition is now in place – 5 times oversubscribed
- Stock could double in 5 years’ time
- Improving U.S. housing market positively benefits the company

Last Bought on March 24, 2016 @42.78

 

Disclosure Personal Family Portfolio/Fund
WHR N N Y
RAI N N Y
NWL N N Y

Past Picks: Mar. 23, 2015

*Short* Pacific Rubiales (PRE.TO)

Recommended at: Now at: Change Total Return
$3.23 $0.68 +78.95% +78.95%

Salesforce.com (CRM.N)

Recommended at: Now at: Change Total Return
$67.66 $72.30 +6.86% +6.86%

Spirit Airlines (SAVE.O)

Recommended at: Now at: Change Total Return
$77.71 $48.45 -37.65% -37.65%

 

Total Return Average : +16.05%

Disclosure Personal Family Portfolio/Fund
PRE N N N
CRM N N N
SAVE N N N