Market Call Tonight:
For video, market analysis and more click here
Bruce Campbell, President, Campbell & Lee Investment Management

FOCUS: Canadian Large Caps

Market Outlook: Europe remains a problem, although investors are a bit less nervous as expectations are pretty low. Growing anticipation for the ECB next week to stimulate may help. The American economy has been a bit soft, although housing looks like it has bottomed. The primary focus will be on crafting a credible "roadmap" and working on creating new "control" mechanisms, but there are also calls for more immediate actions to help calm investors. As it gets calmer, markets are cheap enough that a lift could come with any positive outlook, even though it will take years to fix.

TOP PICKS:

  • Crescent Point Energy (CPG TSX) Paid $36.02 this week.
    A growth, oily, Western Canadian producer that now yields 7 1/2 percent with a low payout ratio and lots of ability to grow production through potential, lower oil prices.
  • Manitoba Telecom (MBT TSX) Paid $33 last week-new position.
    A five percent yield, combined with low risk and the possibility of a takeout of Allstream and/or the whole company at higher levels than the current price.
  • TD Bank (TD TSX) Paid $78 recently.
    The yield is almost four percent, they have good growth including the U.S. retail side. It has a good capital position with conservative loan portfolios, and so should be able to continue to raise dividends.

 

Disclosure: Personal Family Portfolio/Fund
CPG Y N Y
MBT Y N Y
TD Y N Y

PAST PICKS: June 7, 2011

TD Bank (TD TSX)

 

Then: $79.60 Now: $78.25 -1.68% TR: +1.79%

AvenEx Energy Corp (AVF TSX)

 

Then: $5.52 Now: $2.98 -46.01% TR: -39.50%

Allied Nevada (ANV TSX)

 

Then: $32.08 Now: $27.74 -13.52% TR: -13.52%

Total Average Return: -17.07%

 

Disclosure: Personal Family Portfolio/Fund
TD Y N Y
AVF Y N Y
ANV Y N Y

Follow us on Twitter: @marketcall