Jason Donville.
Jason Donville is president and CEO of Donville Kent Asset Management. His focus is on growth and financial stocks.
Top Picks:
Cipher Pharmaceuticals Inc. (DND-TSX)
Cipher is a very profitable niche pharma company with plenty of cash. We think the company will either be bought or will make an acquisition, and either development will be positive for the company. Own it in the fund.
CGI Group (GIB.A-TSX)
The stock trades at 9.9x 2015 earnings which is exceedingly cheap for a stock with an ROAE of close to 22 per cent. This stock is overdue for a move up. Own it personally and in the fund.
Constellation Software (CSU-TSX)
Constellation has the best management team in Canada. We expect another year of 30-per-cent+ earnings growth in 2015. Own it in the fund and personally.
Past Picks: October 17, 2013
Home Capital (HCG-TSX)
Then: $76.02; Now: $52.12 +37.12%; Total return: +39.04%
Constellation Software (CSU-TSX)
Then: $185.84; Now: $295.59 +59.06%; Total return: +61.96%
Parkland Fuel Corp. (PKI-TSX)
Then: $18.59; Now: $20.67 +11.19%; Total return: +17.70%
Total return average: +39.57%
Disclosure: | Personal | Family | Portfolio/Fund |
HCG | N | N | Y |
CSU | Y | N | Y |
PKI | N | N | N |
Market outlook:
The markets are correcting but I don't think we are on the cusp of something really bad. Most economic cycles come to an end because central banks raise interest rates to stave off inflation. Inflation in this context is usually accompanied by higher energy costs. The problem we face in most parts of the world today is in fact a lack of growth. Inflation has virtually disappeared and oil prices are falling. My best guess for the next 12 months is more of the same: low inflation, tepid GDP growth, and a generally sane environment for investing in stocks.