Skip to main content

The Globe and Mail

Three top stock picks from Matco’s Jeff Parent

Jeff Parent.

Fred Lum/The Globe and Mail

Jeff Parent is vice-president and portfolio manager at Matco Financial. His focus is technical analysis.

Top Picks:

CanElson Drilling (CDI TSX)

Story continues below advertisement

CDI has a solid client base, its fleet consists of newer and deeper rigs compared to its peers, and increased drilling activity will lead to higher utilization rates. Good buying point, testing support now. Bullish pattern breaks down at $7.50.

Lumenpulse (LMP TSX)

Lumenpulse IPO'd in April at $16. The company manufactures LED equipment in an emerging industry and a positive regulatory environment. Generating positive earnings in Q3 2014 provides a near-term catalyst. Early chart formation may be the beginning of a longer term upwards trend. At $20, reduce and sell at $19.

Saputo (SAP TSX)

Recent acquisition in Australia provides access to new markets. Actively seeking suitable acquisitions in new markets and tuck-ins in existing markets. Nice breakout and little or no pullback this month bodes well. Begin reducing at $61.

Past Picks: Feb. 3, 2014

Hardwoods Distribution (HWD TSX)

Story continues below advertisement

Then: $9.98; Now: $11.15 +11.72%; Total return: +12.20%

CCL Industries (CCL.B TSX)

Then: $79.46; Now: $103.16 +29.83%; Total return: +30.48%

Raging River Exploration (RRX TSX)

Then: $6.77; Now: $10.80 +59.53%; Total return: +59.53%

Total return average: +34.07%

Story continues below advertisement

Market outlook:

The large energy weighting in the S&P/TSX composite index caused Canada to lag the U.S. from August, 2011 to April, 2013. Since then, increases in energy prices have brought us back in line with the U.S. We continue to be bullish on natural gas. Storage levels heading into next winter are low, and the sector has also gained some strength from the higher oil prices. We expect this will cause outperformance of Canadian over U.S. markets to the end of the year. Technicals may cause a summer pullback, but this should be muted. Bonds continue to perform well given the recent data showing weaker than expected Q1 GDP.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨