BNN's portfolio manager interviews are a great repository of investment ideas from across the asset management spectrum.
Today we feature John Zechner, of Zechner and Associates, who appeared on BNN's Market Call, September 9, 2010.
During the appearance, Zechner, who manages mutual funds for NexGen Financial, discussed his views and shared his 3 top picks for the coming period.
The first of his top picks is Canadian copper producer Quadra FNX Mining Ltd, (QUX-T). Zechner likes copper, which he says has acted exceptionally well. He added that because there is a lot of political risk in some of the African and South American countries, a North American producer is more attractive. "This [company] has become a great North American producer with lots of upside in the valuation and potential trading at 3X operating cash flow.
He also likes Uranium Participation Corp., (U-T). Zechner's outlook is that uranium prices are going back into the long-term prices of $60’s and will go higher. He believes that supplies will tighten longer term, that demand is growing because nuclear capacity is growing. He added that the company's NAV is probably north of $7.
Finally, he likes the contrarian bet in Research In Motion (RIM-T), whose stock price has been battered by negative outlook as a result of heightened competition from iPhone and Android. "RIM is Trading at 7X forward earnings. Americans have completely moved out [of the stock] of this as they think it is dead." Zechner added that "analysts are expecting earnings of $5.50-$6 going forward, but the market is pricing at $3-$4."
"[RIM's] Earnings are due out next week and it should be a very interesting call," he said
Report Card (one year later)
John Zechner's Top Picks of September 8, 2009
Open Text (OTC-T) 46.910 (Since Sept 8/09. Up 21.79%.)
Biovail Corp. (BVF-T) 27.720 (Since Sept 8/09. Up 104.86%.)
Yamana Gold Inc. (YRI-T) 10.390 (Since Sept 8/09. Down 5.85%.)
Data: Stockchase.com
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