Jason Donville is president & CEO, Donville Kent Asset Management. His focus is on Canadian small caps and financial stocks.
High Liner Foods
This company is emerging as one of Canada's better consumer plays. The stock has a good return on capital, strong brands and the fact it is trading on just eight times 2013 cash earnings makes it a bargain.
This company is a play on north American infrastructure, as well as the oil and gas industry to some extent. A 3.6-per-cent dividend is attractive and the company's 29-per-cent ROE is very powerful.
The company has a focused strategy, lots of cash and should grow by at least 20 per cent in 2013. The dividend is decent at 1.7 per cent but the upside will come from more acquisitions.
Past Picks: Dec. 12, 2011
It remains our fund's largest holding.
Total return: +58.30 per cent
Home Capital Group
The best managed financial services company in Canada; our fifth-largest position.
Total return: +7.13 per cent
Our fourth-largest position.
Total return: +2.79 per cent
Total Return Average: +22.74 per cent
The recent correction has put value back into the market. We expect equity markets to remain strong until spring, favouring non-cyclical businesses over cyclical ones.