Jason Donville.
Jason Donville is president and CEO of Donville Kent Asset Management. His focus is growth stocks.
Top Picks:
MacDonald Dettwiler and Associates Ltd. (MDA-TSX)
Vancouver-based MDA is a leading manufacturer of satellites and systems. The company recently reported a strong quarter with improving margins, and an uptick in bidding activity suggests another couple of years of strong earnings growth. Trading on 14.6x 2015 cash earnings, MDA is inexpensive relative to other technology growth companies in Canada. (Own it in the fund.)
CRH Medical (CRH-TSX)
Vancouver-based CRH Medical has emerged as one of the more exciting companies in the allied medical services industry. The company is a leading player in the gastrointestinal services industry (think colonoscopies). We really think the management of this CRH is outstanding, and trading on 11.9x 2015 cash earnings, we think the stock has significant upside. (Own it personally and in the fund.)
Pivot Technology Solutions (PTG-TSX Venture)
California-based Pivot Technology is a small, value-added reseller of software. What makes the company interesting to us is that it is very inexpensive, trading on 7.0x 2015 cash earnings, and has a projected return on equity of more than 40 per cent. What also makes this company interesting is that its chairman is John Sculley, former CEO of Apple Computer. (Own it personally and in the fund.)
Past Picks: June 24, 2014
Valeant Pharmaceuticals (VRX-TSX)
Then: $129.41; Now: $260.20 +101.07%; Total return: +101.07%
Rifco (RFC-TSX-Venture)
Then: $6.55; Now: $1.90 -70.99%; Total return: -70.99%
Parkland Fuel (PKI-TSX) *Sold it last year and do not own it personally or in the fund.
Then: $20.91; Now: $24.92 +19.18%; Total return: +24.06%
Total return average: +18.05%
Market outlook:
Sell in May and go away! The TSX appears to be following a regular pattern of selling off in May, with profit-taking appearing to be heaviest in those sectors that have performed best over the past year. We believe this correction is largely technical in nature and not based on an expectation of higher interest rates or lower corporate earnings. By this time of year, investors should have built up cash positions in anticipation of bargain hunting season which runs through the summer. Thus, we expect a quiet summer followed by a renewed leg in the bull market which should get going in the Autumn. At Donville Kent, we are about 20-per-cent cash which we expect to steadily employ over the next 3-4 months.