Jordan Zinberg's Top Picks: March 1, 2022
BNN Bloomberg
Top picks from Jordan Zinberg, president and CEO, Bedford Park Capital
MARKET OUTLOOK:
Geopolitical tension has escalated, which coupled with concerns around inflation, interest rates and supply chain constraints, has resulted in a tough start for equities so far in 2022.
Notably, fourth-quarter earnings have been very solid and the share price declines we are seeing are largely due to risk reduction and contractions in valuation multiples as opposed to company-specific developments.
Small and mid-cap equities have fallen harder than their large-cap peers and are presenting some of the best buying opportunities that we have seen since the March 2020 COVID lows. Investors should be looking to take advantage of increased volatility to “high grade” their portfolios — shifting capital to their higher conviction ideas at levels they feel comfortable stepping in.
TOP PICKS:
Softchoice Corp (SFTC TSX) Softchoice is an IT solutions provider that helps customers implement and manage cloud-based services, software, and hardware. The company offers investors exposure to several fast-growing segments of the IT services market and has an above-average organic growth profile. We are expecting meaningful improvements in profitability going forward and believe the stock is undervalued at current levels.
Three weeks into an escalating war, the U.S. is sending more warships and marines to the region even as U.S. President Donald Trump said Friday that his administration was considering “winding down” military operations in the Middle East.
The Ontario government’s push to cap resale ticket prices for events across the province might not be much help to fans.
Tesla is looking to buy equipment worth US$2.9 billion for manufacturing solar panels and cells from Chinese suppliers including Suzhou Maxwell Technologies, two people familiar with the matter said, as CEO Elon Musk aims to add 100 gigawatts of solar capacity in the United States.
U.S. President Donald Trump is widening the cracks between the United States and European NATO members with his calls for allies to help him finish the war he started with Iran.
The Canada Revenue Agency says it will get rid of dozens of drop boxes used for tax filing and payments across the country after this tax season.
The Pentagon is seeking US$200 billion in additional funds for the Iran war, a sizable amount that is certain to be met with questions from Congress, which would need to approve any new money.
Defence Minister David McGuinty says the federal government is giving a big boost to the munitions industry to build up the domestic supply of heavy artillery shells.
Defence Minister David McGuinty says the federal government is giving a big boost to the munitions industry to build up the domestic supply of heavy artillery shells.
The Bank of Canada today held its target for the overnight rate at 2.25 per cent, with the Bank Rate at 2.5 per cent and the deposit rate at 2.20 per cent.
Saskatchewan’s government is planning to table a deficit budget today in a move that Premier Scott Moe says protects public services.
Culture Minister Marc Miller says the government must have a serious conversation about AI systems’ use of news.
Delta Air said on Tuesday it expects first-quarter profit within its initial forecast range but raised its revenue expectations on strong demand, amid high jet fuel prices due to the conflict in the Middle East.
The United Arab Emirates briefly closed and then reopened its airspace Tuesday, temporarily halting flights in a crucial travel hub, as the country’s military said it was facing incoming attacks from Iran.