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3 top stock picks from Northland's David Cockfield

David Cockfield, senior vice-president and managing director for Northland Wealth Management.

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David Cockfield is senior vice-president and managing director of Northland Wealth Management. His focus is on Canadian equities.

Top picks:

Pacific Rubiales

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The largest independent oil producer in Columbia the company has been very successful in growing its oil production which is sold into the higher priced international markets. The company has years of drilling prospects and has a supportive stable political environment. The company stock trades at a price under 10x earnings and pays a small dividend.

Baytex Energy

An Alberta heavy oil producer with a consistent record of increasing production and dividends. The company has significant low risk drilling prospects and continues to improve its recovery ratios with improved technology. The company has been quick to ship increasing amounts of output by rail to achieve better pricing. The stock provides a good yield of 5.5 per cent.

SNC-Lavalin

A Canadian based world class engineering and construction company with offices across Canada and in 35 countries worldwide. The company provides a wide range of services including engineering, procurement, construction, project management and financing. Recent scandals involving payoffs to acquire business in one of the company divisions has resulted in the company stock trading down to multiples well below its peers. Significant and profitable new business deals have continued to be added to the SNC project backlog. The stock pays a dividend yielding 2.29 per cent.

Past picks: Oct. 21, 2011

Bell Aliant

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Then: $27.90
Now: $26.94
Total return: +3.57 per cent

Inter Pipeline Fund

Then: $16.52
Now: $22.37
Total return: +42.52 per cent

iShares 1-5 Yr Laddered Corp. Bond ETF

Then: $20.36
Now: $20.28
Total return: +4.19 per cent

Total return average: +16.82 per cent

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Market outlook

The TSX after performing very well in the 2nd quarter is running into resistance at the 12,500 level. We have just seen the third attempt to break through this level. A breakout could carry the TSX some 500 points higher. However continued failure could cause a pullback to below 12,000. The odds would seem to favour a breakout supported by the Fed easing programme, improving US housing numbers, calm in Europe and better news from China.

Watch Mr. Cockfield on BNN.

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