(Photo by Spencer Platt/Getty Images)
Questions of when to enter the market and in what to invest are at the forefront of Canadians’ minds. The current bull-run in equities simultaneously tantalizes and frustrates. Should you jump into the market now before it’s too late? Which stocks are worthy of your hard-earned investment dollars?
Periodically optimistic economic data from around the world buoy us—until subsequently dismal revisions appear to indicate the global recovery lacks traction. While Canada’s economic health seems to be slowly improving, the same can’t be said for Europe. And in the U.S., for every promising sign recovery is underway there is on the horizon a dark cloud of one kind or another.
What awaits national economies and small investors alike remains a mystery. Fortunately, the Investor 500, Canadian Business’ 50th annual ranking of stocks, can help you solve it.
For our flagship feature Canadian Business has enlisted momentum investing expert Norm Rothery to select the “Superstars of the I500.” Last year, Norm’s picks rose 16% so his 20 stocks are worthy of your close inspection. Check out the audio interview.
Our large-cap ranking is online, a sortable and searchable compendium of ranked companies and their essential fundamentals, with each stock rated out of five stars. As well, investment writer Bryan Borzykowski interviews fund managers and institutional investors on how they see the future shaping up and how they’re allocating their money. His market outlook gives you an excellent overview of the opportunities and hazards that await markets in the coming year.
Norm Rothery’s previous Investor 500 selections garnered a 16% return last year. Rothery’s newest investment picks, the 20 Superstars of the Investor 500 are available along with special stock screens and complete data on 500 stocks in the latest Canadian Business on newsstands now.
We also profile five fund managers—Stuart Kedwell, Brandon Snow, Dan Dupont, Les Stelmach and Cecilia Mo—to analyze their investing styles and get their top picks.
And finally, because this is the 50th anniversary of the I500, managing editor Conan Tobias offers a history of all the great investment advice we’ve offered in the past.
Canada’s top 50 large-cap companies
Market and fundamental data for each company plus each stock is ranked out of 5 stars
Investors seeing tantalizing market opportunities but must keep watch for hazards
Some investor characterize today’s environment as not quite a bull market, but ’a pretty fast cow,’ the next best thing. Will the U.S. markets continue to surge? Will Europe continue to suffer? Here’s where smart investors are finding true value in uncertain times.
Top picks from the pros
Brandon Snow: looking for value
When Cambridge Advisors’ Brandon Snow goes looking for companies to buy, he wants to see three things: a defensive business model, a history of capital allocation and a management team whose interests are aligned with those of shareholders.
Les Stelmach: focusing on small-caps
Les Stelmach isn’t bothered by what’s happening with the economy. He’s a bottom-up investor on the lookout for undervalued businesses in any industry.
Cecilia Mo: looking for return on invested capital
“I look at valuation first,” says Dynamic Funds’ Mo. That process begins with looking at cash flow and earnings power and then seeing what multiples people are paying for those earnings.
Stuart Kedwell: Rewarding consistency
If you catch RBC’s Stuart Kedwell ticking off boxes on a checklist, it’s likely he’s getting ready to buy another company.
Dan Dupont: success through simplicity
The best buys are the ones that have strong fundamentals but have fallen out of favour. “If I believe the market is wrong about the quality of a company, I’ll get very interested,” says the Fidelity portfolio manager.
Canada’s most profitable companies
Snapshot of Canada’s best companies
Although we still rely on resource companies, it’s financials that are the most profitable.
Mission: Recovery
Under the new CEO, the Husky Energy has met targets for 10 consecutive quarters and looks to be positioning itself for strong future growth.
Destination: USA
Bank of Montreal is making a big bet south of the border. Could this be its breakout year?
Target: Transformation
After losing its biggest customer, Celestica is reinventing itself yet again.
Operation: Innovations
It doesn’t even offer online shopping. But 2013 is the year Canadian Tire goes digital.
Bonus features
Picking the I500 Superstars (audio)
Samson Okalow interview investment strategist Norm Rothery on how the stocks are chosen, what trends he sees developing, what’s got him worried, what kind of investor can most benefit from his advice, and much more.
A golden anniversary
The Investor 500 has its 50th birthday this year. Check out the history of Canada’s favourite investing guide.
[adspot]