Full episode: Market Call Tonight for Tuesday, September 19, 2017
Gordon Reid, president & CEO, Goodreid Investment Counsel
FOCUS: U.S. Equities
Synchronized economic growth around the developed world is providing a backdrop to solid progression in equity markets. While valuations are somewhat rich and markets are always susceptible to market corrections, the environment supports prices at these levels. A wary eye should be on any sign of nearing recessionary conditions, likely to come in the form of inflation from a tightening labour force, but the cycle has a ways to go before we witness those conditions.
CELGENE (CELG.O) - Latest purchase Sept. 2017 at $138
Celgene develops, collaborates, and markets disease therapies, primarily in the oncology area. Its pipeline is robust and its flagship drug, Revlimid, a treatment for multiple myeloma, is protected from serious competition until the early part of the next decade. Earnings could reach $8 per share by 2018.
LEAR (LEA.N) - Latest purchase Sept. 2017 at $167
This company, a supplier of automotive seating systems, has operations in 35 countries and is a supplier to virtually the entire automotive industry. It is currently trading at roughly ten times expected 2018 earnings while expectations are for a mid-teens growth rate in sales, cash flow and earnings over the next few years. Two recent catalysts are the weak dollar and the need to replace hundreds of thousands of cars destroyed by recent weather events.
PRICELINE (PCLN.O) - Latest purchase Sept. 2017 at $1851
Priceline has been one of the most successful stocks of the last couple of decades and that success is far from over. As the world’s premier online travel company they are growing gross bookings by over twenty per cent annually and expanding search reach in hotels, cars, flights, restaurant reservations and other categories.
CITIGROUP (C.N) - Last purchase Sept. 2016 at $47
- Then: $48.99
- Now: $71.21
- Return: 45.35%
- Total return: 47.33%
TRI POINTE GROUP (TPH.N) - Last purchase Sept. 2016 at $12
- Then: $12.71
- Now: $13.10
- Return: 3.10%
- Total return: 3.10%
OWENS-ILLINOIS (OI.N) - Last purchase Sept. 2016 at $17
- Then: $17.37
- Now: $24.15
- Return: 39.03%
- Total return: 39.03%
TOTAL AVERAGE RETURN: 29.82%
GOODREID NORTH AMERICAN BALANCED COMPOSITE
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.
PERFORMANCE AS OF JUNE 30, 2017 (includes reinvested income)
1 Year: 14.6% Fund, 8.5% Index*
3 Year: 6.6% Fund, 3.6% Index*
5 Year: 10.9% Fund, 7.3% Index*
* Index: Globe Canadian Equity Balanced Peer Index. Returns are based on reinvested dividends and are net of fees. Three and five year returns are stated on an annual compound basis.
TOP HOLDINGS AND WEIGHTINGS
- Canadian equities -27%
- U.S. Equities - 38%
- Canadian fixed income - 27%
- Cash – 8%