Alex RuusTibor Kolley/The Globe and Mail
Alex Ruus is portfolio manager at Arrow Capital Management. His focus is on North American equities.
Top Picks:
WellPoint Inc. (WLP NYSE)
WellPoint is one of the largest health care insurance providers in the world and the largest owner of Blue Cross and Blue Shield brands in the United States. The company is well positioned to thrive under the changing health care environment in America and trades at a discount to its intrinsic value, while paying a growing dividend. WellPoint reported strong first quarter results, and earnings estimates continue to rise.
LyondellBasell Industries (LYB NYSE)
A global leader in plastics and chemicals, Lyondell is thriving amidst a resurgence of the North American petrochemical sector. The stock trades at a discount to its intrinsic value, pays an attractive and growing dividend, and is buying back shares.
Neptune Technologies & Bioresources (NTB TSX)
Neptune is an emerging neutraceutical/pharmaceutical company which produces Neptune Krill Oil (NKO), a proprietary omega-3 phospholipid. The company is substantially undervalued and the stock is poised to outperform as its new manufacturing plant comes into production during June and its potentially revolutionary new drug, CaPre, approaches release of Phase 2 clinical trial results.
Past Picks: May 2, 2013
Magna International (MG TSX)
Then: $60.86; Now: $117.25 +92.66%; Total return: +96.67%
Alaris Royalty (AD TSX)
Then: $27.64; Now: $27.47 -0.62%; Total return: +4.50%
Philip Morris International (PM NYSE)
Then: $95.01; Now: $89.03 -6.29%; Total return: -2.17%
Total return average: +33.00%
Market outlook:
The global economy continues its slow, steady recovery from the "Great Recession" of 2008-09. This provides a perfect economic backdrop for leading companies with a sustainable competitive advantage to thrive and grow shareholder value. Current equity markets are modestly undervalued with large divergences in valuations between companies providing excellent opportunities for stock picking funds like Exemplar Leaders and Northern Rivers Conservative Growth LP to continue to build client wealth.