Market Call: For video, market analysis and more click here
Rick Stuchberry, Portfolio Manager, Macquarie Private Wealth
FOCUS: Canadian Large Caps and International ADRs
Market Outlook:
The market has rallied for over six months in a typical melt-up fashion where money continuously moves in preventing solid pullbacks. Canada and emerging markets have had corrections, but the U.S. markets have not. The American markets will likely take a rest, and then respond to improving economies later this year and next. The emerging markets are beginning to turn up and we think this is a very positive change.
TOP PICKS:
HSBC Bank (HBC NYSE)
The world’s local bank, has more than 50 percent of revenue coming from Asia. The bank has a 5 percent dividend that is basically bulletproof and after consolidating some operations we see strong growth going forward.
AltaGas (ALA TSX)
Very safe dividend play with good assets in safe jurisdictions, a dividend that can grow with time; and further growth left in the stock price.
AmBev (Companhia de Bebidas Americas) (ABV NYSE)
The South American and Canadian division of the giant brewer Anhauser Busch Inbev has had a solid growth profile of about 15 percent a year over the last few years, solid balance sheet, and a great dividend policy with last year’s dividend over 8 percent including special dividends.
| Disclosure: | Personal | Family | Portfolio/Fund |
| HBC | Y | Y | Y |
| ALA | Y | Y | Y |
| ABV | Y | Y | Y |
PAST PICKS: May 4 , 2012
Keyera Corp (KEY TSX)
| Then: $39.63 | Now: $61.75 | +55.82% | TR: +62.72% |
Cameco (CCO TSX)
| Then: $22.37 | Now: $19.27 | -13.86% | TR: -12.17% |
CASH
| Then: N/A | Now: N/A | N/A | TR: N/A |
Total Average Return: +16.75%
| Disclosure: | Personal | Family | Newsletter Pick |
| KEY | N | N | N |
| CCO | Y | Y | Y |
| CASH | N/A | N/A | N/A |