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.
