Stock Picks – Fall of 2016

Stock Picks – Fall of 2016

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If I had $100 000 I would currently research the stocks below and make picks from this list.

I started by reading multiple research papers to identify some potential stocks that I may invest in as part of my portfolio.

Quick Notes:

  • Air Lease Corporation ( NYSE:AL) – I don’t normally like to invest in the airline industry, however Air Lease is more of a financing company, and I expect air travel demand to continue to increase given the demographic changes ( I have noticed more and more people traveling). Also the potential return is very attractive. The research indicates a probability of 150% return over a 12month period.
  • Dollar Tree – (NASDAQ: DLTR) or Dollarama Inc ( TSX:DOL) – I have always thought the dollar store concept is easy to copy – low barrier to entry. However, based on my experience of visiting dollar stores, the one factor that I find makes them successful is the merchandise available (value for the dollar?). I think this can also be a good hedge if there is an economy downturn. I can see more and more people using the dollar store if the economy were to suffer. This is one of my biggest fears when investing – what if the market crashes? (I am sure most people share this fear). It is always a good idea to have hedge stocks in your portfolio.  I have shared two symbols, they are both companies that follows the dollar store concept. They are competitors.  Either one will be a good trade and I believe they can coexist and do well. If you have only a CAD investing account, I would recommend Dollarama in your portfolio. This is so you can avoid the cost of exchange.
  • Brookdale Senior Living Inc ( NYSE : BKD ) – As most people know there is a large number of seniors in North America ( baby boomers) . Companies that provide services and products to this demographic is expected to do well as the demand increases  ( more and more seniors). This stock can be used to invest in the aging US population.
  • Marathon Petroleum Corporation (NYSE: MPC) – It extracts oil out of both the gulf course and Midwest. It also has a retail franchise business. The allure of a possible rebound on oil price is always there. Currently the oil price is fluctuates in the range of $45 to $50.
  • Bank of Nova Scotia (TSX: BNS) – Has a price target of 77$ in the report I read. On yahoo finance it has a price target of $57. Current price is $53.66. I like the idea of owning a Canadian bank – Two items that keeps me from investing in a Canadian bank are the  Canadian housing balloon ( my view) and the growing Canadian consumer debt levels. Will have to think a bit deeper.
  • Brookfield Asset Management Inc (NYSE: BAM) – I like that it invests in real assets around the world. It is a good way to get exposure to real estate, renewable power, infrastructure and investments around the globe.
  • Canadian Natural Resources Limited ( TSX: CNQ) – This is a well-run company that is dependent on oil prices and natural gas prices . It is a good way to invest in oil.
  • Cenovus Energy (TSX:CVE) – This is an Oil company with a strong portfolio of oil assets. It also has large amount of liquidity – about 7.8 billion. If you have the stomach to invest in oil this may be a good company to invest in.
  • MacDonald, Dettwiler and Associates ( TSX: MDA) – This company is a global leader in commercial satellites . This is a stock I would invest and hold for long term. Perhaps a good stock for RRSPs.

researched from many different sources on different stocks and narrowed the choices to the list above. I will post further details on actual buys I make from this list and my rational for the picks.

Happy researching! Always do your own due diligence when you read a recommendation from someone. If you don’t know how to go about it and has no desire to learn you have no business investing in stocks 🙂  .

Update : I own positions in BAM, BKD and AL

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