BNN's portfolio manager interviews are a great repository of investment ideas from across the asset management spectrum.
Today we feature Aston Hill Financial President and CEO, Ben Cheng. During the September 20, 2010 appearance, Cheng, a "bottom up" stock picker, seasoned in income paying securities, as well as resources, and portfolio manager of four Ark Aston Hill Funds, and two IA Clarington Income Funds, discussed his 3 top picks for the coming period.
In the real estate/property sector, Cheng likes Brookfield Properties (BPO-T), well known for its extensive Toronto and New York portfolio of prime commercial properties. He said, "They have come under a lot of pressure since they announced the acquisition of the Australian office properties," but, he added, he likes the prospects in North America and Australia. "They have the best quality Class A office properties." The stock yields 2.65%.
Cheng's second top pick is well-known oil patch favourite, Pengrowth Fund (PGF.UN-T). Cheng pointed out that the trust owns "a couple of great carbonate plays at Beaver Hill Lake and Swan Hills region that the market doesn't fully appreciate."
He likes Dollar General Corp. (DG-N, 27.80) Cheng said he "likes both the stock and the company's bonds." Its similar to Dollarama in Canada but there is no relationship; one of the largest deep discount retailers in the US. Cheng added, "Its [same] store sales growth has been growing at about 5%-7% and they have also been growing their footprint in the stores by 5%-7%."
Report Card (How Did Last Year's Top Picks Do?)
Macy's Inc. US$ bond maturing Feb 15/28 A Top Pick July 13/09. Up 55%. 7%. Currently trading at a slight premium. The long-duration worrisome little bit at this point.
Cineplex Galaxy Income Fund (CGX.UN-T, 20.96) A Top Pick July 13/09. Up 37.8%. Cheng likes this one and still has a BUY on WEAKNESS call on it. He stated, "They are the major theatre/distributor across Canada with over 70% market share. The big revenue lift for them has been their advertising as well as 3-D films." Cheng added that "a 3%-5% pullback would be a good entry point." The trust pays 6% distribution.
Crescent Point Energy Corp (CPG-T, 37.39) (A Top Pick July 13/09. Up 27.65%. "Crescent has a major play in the Bakken region and it is currently rolling through their water flood operations now," said Cheng. "They're through the testing period now and this will increase production," he added. The stock yields about 7%.
Data: Stockchase.com
