(Business Edge writer David Hatton regularly profiles the top stock picks of some of Canada's most accomplished investment pros.)
FEATURED PRO: Ross Healy is CEO of Toronto-based Strategic Analysis Corp. (www.strategicanalysis.ca) Fund form: The Accumulus Talisman 'A' Fund has a one-year return of -6.4 per cent compared to the group average of 16.8 per cent.
Management Expense Ratio: 1.95 per cent Healy's Strategy: "Our strategy has remained the same. The weight in our portfolio is natural resources, with a fair weighting in gold and some cheap oil and gas stocks. I had hoped that by avoiding the banks and real estate, we would do ok. As the year goes on, I may get more heavily into cash because there is a significant market warning south of the border. The fundamentals are deteriorating. There are enormous cross-currents we shouldn't overlook. The big thing is the Fed trying to get everything through to the (U.S. presidential) election in November. Look, I think the Bank of Canada will save their real powder for when things do get bad.
I don't know what the new guy (incoming governor Mark Carney) is going to do, though."
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| Ross Healy |
FIRST STAR
• Barrick Gold Corp. (TSX:ABX) • Recent price: $50.47 • 52-week range: $53.76-$29.74 (01/14-06/08) • Snapshot: Barrick Gold Corp. is the world's largest gold producer, with 27 operating mines in five continents and 123 million ounces of gold reserves, six billion pounds of copper reserves and 964 million ounces of silver reserves.
• CEO: Gregory Wilkins • Head Office: Toronto • Vital Stats: Price/Earnings Ratio (trailing 12 months), 43.50; Revenue (last fiscal year), $5.8 billion; Earnings Per Share, $1.16; Market Cap, $42.8 million.
• Healy's View: "When you have any sort of market turbulence, gold is always a popular safe haven. They (Barrick) have a solid, conservative balance sheet and good management team. This still has room to go a bit higher than where the stock is valued at right now."
• Risk Rating: Medium • Web Watch: www.barrick.com
SECOND STAR
• Loblaw Companies (TSX: L) • Recent Price: $33.26 • 52-week range: $55-$30.73 (04/26-12/18) • Snapshot: Loblaw Companies Ltd. is a food distribution company with operations across Canada. The company operates grocery stores under various banners, including Fortinos, Loblaws, Provigo, SuperValu, Your Independent Grocer, Zehrs, Atlantic Superstore and The Real Canadian Superstore, Cash & Carry, Extra Foods, No Frills, Maxi, Shop Easy Foods, Valumart and Atlantic SaveEasy.
• CEO: Galen Weston Jr.
• Head Office: Brampton, Ont.
• Vital Stats: Price/Earnings Ratio (ttm), 17; Revenue (last fiscal year), $181.72 million; Earnings Per Share (ttm), 0.64; Market Cap, $106 million.
• Healy's View: "Yeah, they have some problems but everyone needs groceries. Young Galen has some good help. It's not so much him as it is the people around him. I did look at Shoppers (Drug Mart), but they're trading at four times book value right now and an awful lot of goodwill is on their balance sheet, which makes it difficult to determine."
• Risk Rating: Low • Web Watch: www.loblaw.ca
THIRD STAR
• Canadian Tire Corp. (TSX:CTC) • Recent Price: $80 • 52-week range: $102.45-$67.10 (05/09-01/22) • Snapshot: Canadian Tire Corp. Ltd. operates a series of businesses engaged in the retail, financial services and petroleum industries.
• Vital Stats: Price/Earnings Ratio, 16.30 (ttm); Total Revenue $8.3 billion; Earnings Per Share, $4.92; Market Cap, $6.1 billion.
• CEO: Tom Gauld • Head Office: Toronto • Healy's View: "We always used to buy shares of Canadian Tire when I was a money manager at Sceptre. It's been pounded on a regular basis and has never skipped a beat. Lots of (industry) insiders are buying it because it's steady and reliable ... My thesis is that when things get into trouble, you'll fix your own car rather than take it to a garage."
• Risk rating: Low • Web Watch: www.canadiantire.ca
Note: Healy may own shares in some of the above companies listed. This feature is provided for informational purposes. Investors are advised to do their own research or consult a qualified investment professional before making investment decisions.
(David Hatton can be reached at hatton@businessedge.ca)
