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Michael Sprung, President, Sprung Investment Management
FOCUS: Canadian Large Caps
TOP PICKS:
Scotiabank (BNS TSX) Last purchase Oct 29, 2012 at $53.76
A consistent performer, BNS is well managed, well capitalized and is judiciously employing a well balanced diversified strategy. The recent acquisition of ING is already contributing beyond expectations. International diversification provides some exposure away from potential slower growth prospects in Canada and the United States.
Encana (ECA TSX) Last purchase Dec 19, 2012 $19.99
ECA is the third largest natural gas producer in North America. At current levels, it is selling at a severe discount to peers yet it holds enviable positions in key emerging plays such as Montney, Horn River and Duvernay in Canada and Tuscaloosa, Eaglebine, San Juan, and Uticaa in the United States. Management has focused lately on more oil and liquids plays and with current gas prices the balance sheet is improving.
Barrick Gold (ABX TSX) Last purchase March 4, 2013 $29.77
Barrick has been severely impacted by the recent decline in gold prices along with the well publicized problems at Pascua-Lama and in the Dominican Republic. Today, Barrick's share price appears to reflect more than a total write down of Pascua-Lama. Management is now focused on prudent capital allocation. When conditions stabilize, the stock has significant upside potential from current levels.
| Disclosure: | Personal | Family | Portfolio/Fund |
| BNS | N | N | Y |
| ECA | N | N | Y |
| ABX | N | N | Y |
PAST PICKS: April 27, 2012
Manulife (MFC TSX)
| Then: $13.88 | Now: $14.54 | +8.67% | TR: +13.22% |
Talisman (TLM TSX)
| Then: $13.08 | Now: $11.83 | -9.56% | TR: -6.78% |
The Churchill Group (CUQ TSX)
| Then: $14.20 | Now: $7.20 | -49.30% | TR: -46.60% |
Total Average Return: -13.39%
| Disclosure: | Personal | Family | Newsletter Pick |
| MFC | Y | N | Y |
| TLM | N | N | Y |
| CUQ | N | N | Y |