John Wilson.
John Wilson is senior portfolio manager at Sprott Asset Management. His focus is on North American large caps.
Top picks:
Vodafone Group PLC
A possible deal to sell its Vodafone's Verizon wireless stake back to Verizon seems likely in the near future. Even excluding the Verizon stake, you are getting the largest telecom operator in Europe for next to nothing.
SHORT Yum Brands Inc.
Fifty per cent of its revenue is derived from China, primarily through its corporately owned KFC outlets. Quality control problems with chicken suppliers in late 2012, followed more recently by the avian flu outbreak in China, hasn't left the average Chinese consumer keen to eat chicken right now. Recent April same-store sales comparisons in China were down 30 per cent year over year and, at over 22 times forward earnings, the stock is not cheap. We believe estimates could prove to be too optimistic for 2013, leaving the stock vulnerable to a decline in both forward estimates and the multiple.
Dundee Corp.
Pending distribution of its 50-per-cent interest in Dream Limited to Dundee shareholders as a catalyst to unlock net asset value. Listed value of Dream plus further clarity on management fees to shareholders should provide sufficient clarity on value to move the stock higher in the near to medium term.
Past picks: March 19, 2013
CGI Group Inc.
Then: $26.42
Now: $27.07
Total return: +2.46 per cent
ShawCor Ltd.
Then: $40.86
Now: $40.29
Total return: +1.03 per cent
Vodafone Group PLC
Then: $28.33
Now: $30.59
Total return: +7.98 per cent
Total return average: +3.82