Michael Sprung is president of Sprung Investment Management. His focus is on Canadian large caps.
Suncor is Canada's largest integrated oil and gas company. Upstream activities include extensive oil sands operations and core conventional business in eastern Canada, the North Sea, Africa, the Middle East and South America. Downstream operations include four refineries as well as some 1600 retail locations. Suncor is in a position to generate significant amounts of free cash flow over the coming years.
Bank of Nova Scotia
The Bank of Nova Scotia is Canada's most internationally diversified bank with branches in the Caribbean, Central and South America and investments in Asia. Historically, the Bank has held a reputation for relatively strong credit discipline that has served it well over the years. BNS shares are attractive at current levels with a dividend yield around 4.3 per cent.
HudBay Minerals is one of Canada's leading producers of zinc, copper and precious metals. The company has a very strong balance sheet with a large cash position and no debt. The recent retreat in the underlying commodity prices have caused the stock price to retreat to the point where current valuations provide an excellent purchasing level.
Past Picks: June 20, 2011
Royal Bank of Canada
Total return: -2.95%
Total return: -4.83%
Total return: -38.67%
Total Return Average: -15.48%
The uncertainty of developments in Europe will continue to impact the world financial markets and likely precipitate some setbacks over the coming months. Fears of the contagious effect these events may have in stemming economic growth and slowing global demand for goods and services are currently overshadowing some of the more positive developments in the North American economies. As housing prices stabilize and employment slowly improves, greater confidence should be evident later in the year. Investors should be buying the shares of well run, well financed companies as opportunities are present.
Compiled by Rob Moysey, BNN Market Call Tonight