HEM top pick again for Contra guys Benj Gallander, President, Contra The Heard Investment Letter
FOCUS: Contrarian Investing
Market Outlook: Sentiment has definitely shifted and investors are keen to grab returns. Plus, mutual funds, ETF´s and institutions want to be sure to be in on the action and help investors spend their RSP contributions, helping fuel the markets. On the negative side, governments remain mired in a debt/deficit quagmire that is just getting deeper and deeper.
TOP PICKS:
Hemisphere GPS (HEM TSX) Purchased in 2011 at $0.66
A relatively new head honcho, a move to Kansas from Calgary, major cuts to staff and the sale of product lines indicate that this outfit should have a sharper, leaner focus going forward. Initial Sell Target: $3.49.
France Telecom (FTE NYSE) Purchased Nov. 2012 at $10.38.
This company cut the dividend twice prior to our purchase but the payout remains juicy. It is the leader in the French telecom market with the potential for fat capital appreciation. Initial Sell Target: $27.74.
Flextronics (FLEX Nasdaq) Purcased in 2006 at $9.06
This was my pick in the Globe and Mail's My One and Only contest. After taking a bashing during the recession, the company is returning to form. It has been on a takeover binge that could be crucial to future success. Initial Sell Target: $18.74.
Disclosure: | Personal | Family | Portfolio/Fund |
HEM | Y | N | Y |
FTE | Y | N | Y |
FLEX | Y | N | Y |