Christine Poole is managing director of GlobeInvest Capital Management. Her focus is on North American large caps.
MacDonald Dettwiler and Associates Ltd.
MDA is a global provider of satellites and advanced technology solutions and information in the communications and surveillance markets. Its customers include commercial satellite operators, government agencies, sovereign nations and corporations. Its transformational acquisition of SSL last year significantly expands its satellite manufacturing capabilities and geographic presence. The valuation is attractive and the stock offers a 1.3-per-cent dividend yield.
CGI Group Inc.
CGI is a technology services firm that derives 57 per cent of its revenues from outsourcing and 43 per cent from systems integration and consulting. The integration of Logica, which was acquired last year at an attractive price, within an underperforming region (Europe) is running ahead of schedule. Management's proven track record provides confidence that synergy targets will be achieved.
Mondelez International Inc.
MDLZ is the global snacking leader with the No. 1 share in biscuits, chocolate and candy as well as No. 2 in chewing gum. Its long-term earnings power is supported by an attractive demographic footprint with 44 per cent of revenues coming from emerging markets, where the number of middle-income households is expected to double over the next eight years. Increasing consumer income drives demand within snacking categories.
Past picks: June 12, 2012
Chartwell Retirement Residences
Total return: +17.71 per cent
Total return: +15.30 per cent
Yum! Brands Inc.
Total return: +15.77 per cent
Total return average: +16.26 per cent
Corporate profit growth is highly correlated to rising equity markets. Factors that point to continued positive earnings growth include: the cyclical recovery in U.S. housing and auto demand; the manufacturing renaissance in America; corporate balance sheets strong enough to fund share buybacks; and resilient consumer demand from developing regions were incomes are growing.
Nonetheless, equity markets may trade sideways over the summer as investors adjust to higher bond yields on expectations of a gradual reduction in the Fed's bond buying program. The latter will only occur if U.S. employment and economic growth improve. Market pullbacks can be used to add exposure to companies positioned to benefit from the global recovery.