Lorne Steinberg.
Lorne Steinberg is president of Lorne Steinberg Wealth Management. His focus is on global equities and value stocks.
Top Picks:
KB Financial
KB Financial is a South Korean bank trading at a steep discount to fair value . Unlike some other countries in the region, such as India, South Korea is running a current account surplus due to its export-based economy. As the economy recovers, bank earnings are poised to rise and valuations should return to a more normalized level, significantly above the current share price.
Camellia PLC
Camellia PLC is primarily a worldwide diversified agricultural company that takes a very long-term approach to both its people and its assets. It is a leading producer of tea in India, and other agricultural products in California, Brazil and Africa, engineering businesses, and a highly-regarded private bank in the U.K. The shares are trading at a steep discount to tangible book value, and the company has one of the longest records of annual dividend increases on the London Stock Exchange.
Futaba Corp.
Futaba is a global manufacturer of electronic displays and systems. It carries no debt and trades at for less than its net cash per share, which means that an investor gets a profitable, dividend-paying business for free! As a large exporter, they will be a beneficiary of the weakened yen and earnings are poised to grow. Another incredible value in Japan.
Past Picks: September 11, 2012
Manulife Financial
Then: $11.75
Now: $17.14
Total return: +51.04 per cent
TOTAL SA
Then: $52.65
Now: $58.06
Total return: +18.61 per cent
Hirano Tecseed
Then: ¥411.00
Now: ¥948.00
Total return: +138.43 per cent
Total return average: +69.36 per cent
Market outlook:
We expect markets to be volatile over the next year, as central banks start to unwind monetary stimulus, and growth slows in China and other emerging markets. This remains a stock picker's market. We have had much success by buying shares in companies which are extremely undervalued and totally out of favour. That is always where true value is found. We expect that markets in Europe and Japan will outperform those in North America.