Review of Top Picks

From September 12 2017 to March 29 2018, an equal weight in all 10 business has returned 9.15%.

Refer to the Top Picks tab to find a breakdown of all 10 businesses.
Recent Events

-The portfolio has returned 9.15%, versus the S&P 500 returning 5.15% from September 12 2017 to November 29 2018.

-Shopify (TSE: SHOP) has been targeted by short-seller Citron again, claiming they have an unhealthy link to Facebook as a driver of growth. You can read Citrion’s report here. I personally would view the short term selloff of Shopify’s stock as a buying opportunity, but being aware of their valuation and the risks involved.

-Brookfield Asset Management (TSE: BAM.a) has seen some selling pressure due to rising interest rates, but the business remains solid and should remain a hold indefinitely. Their speciality of investing in distressed assets makes them a unique business that investors can depend upon in the long run.

-Dollarama (TSE: DOL) reported Q4 earnings of $1.45 vs. estimates of $1.40. They also increased their dividend 9% to $0.12 per share and announced a 3-1 stock split. Dollarama’s results were encouraging as same store sales increased 5.5% and the increased liquidity from the stock split should boost the price in the short term. I remain encouraged from their business as they roll out bulk purchases and expand their retail footprint.

-CCL Industries (TSE: CCL.b) reported Q4 earnings of $0.83 vs. estimates of $0.63. One of Canada’s best capital allocators, CCL increased their dividend 13% to $0.13 per share. They remain a great business that’s under-appreciated and under-followed.

-TD Bank (TSE: TD) reported Q1 2018 earnings of $1.56 vs. estimates of $1.46. The Canadian bank with the largest footprint in the United States increased their dividend 11.7% to $0.67 per share. TD is the only bank I hold in my portfolio and I am bullish due to tailwinds of rising interest rates throughout North America.

-Waste Connection (TSE: WCN) reported Q4 earnings of $0.52 vs. estimates of $0.50. With the increase in market volatility, the stability of Waste Connection’s business should succeed throughout any economic period and any market environment.

-Spin Master (TSE: TOY) reported Q4 earnings of $0.25 vs. estimates of $0.21 and revenue rose 30% to $440 million. Spin Master was also added to the S&P/TSX Composite Shareholder Yield Index.

-Barrick Gold (TSE: ABX) has been cutting guidance, and even the rising price of gold can’t seem help the stock.

Actions

-On March 19 2018, I purchased 60 shares of Savaria Corporation (TSE: SIS) at $18. I do plan on adding more in the near future. You can view Savaraia’s most recent quarter and year end financials here. Highlights: revenue up 50.8%, earnings up 33% and a dividend increase of 38.5%.

-I am removing Barrick Gold from the top picks portfolio and adding Kinaxis (TSE: KXS). Closing price for Kinaxis as of 3/29/2018: $82.84. 

-Why am I adding Kinaxis? You can view my recent earnings report here.

-I am also removing Air Canada from the top picks portfolio and adding Manga International (TSE: MG). Magna reported Q4 earnings of $1.57 vs. estimates of $1.55 and raised their dividend 20%. They are also investing $200 million in Lyft to partner in developing self-driving cars.

Disclosure

Please consult a financial advisor before making investment decisions. This report represents my short term views, not actionable advice. I may have investments in the securities listed above.