Three top picks from Stephenson & Co.’s John Stephenson

John Stephenson is president and CEO of Stephenson & Company. His focus is North American equities.

Top picks:

Constellation Brands Last bought on March 7, 2016 @ $140.61

Improving wine business is a huge positive; it is benefiting from premiumization, increasing penetration by millennials and improving per capita consumption. The company has made strong inroads in beer, particularly targeting the growing U.S. Hispanic population.

Discover Financial Services Last bought on April 1, 2016 @ $51.38

The company has very strong financial performance with approximately 20-per-cent ROE and very healthy earnings-per-share growth. It is poised to take share in the credit card business and has a strong excess capital position which should support earnings growth via share repurchases.

*Short*Guess Inc. Last shorted on February 29, 2016 @ $21.07

The company is a declining brand in a crowded space. It has had disappointing financial results over the last several quarters.

Past Picks: May 6, 2015

Actavis PLC (ACT.N)Combined with Allergan June 15, 2015 – now Allergan

Actavis and Allergan combined under the combined title Allergan. We held Allergan until February 8, 2016 when we sold the remaining shares. While this was one of our favourite names, health care had been under pressure for some time due to the Valeant controversy and the associated issues.

Then (ACT): $283.31 Now (as AGN): $219.94 -22.37% Total return: -22.37%

Brookdale Senior Living

Then: $35.57 Now: $18.94 -46.75% Total return: -46.75%

The Blackstone Group

We held a small amount of Blackstone until April 11, 2016. While the name is strong, the cyclical pressure on alternative asset managers made it necessary to reduce our exposure.

Then: $41.75 Now: $28.67 -30.00% Total return: -25.98%

Total Return Average: -31.70%

Market outlook:

With the stock market stabilizing over the last month and earnings expectations exceedingly low, now is a good time for investors to start slowly wading back into equities. Stocks in North America have been driven lately by resources and financials. However, there is a lot of opportunity for investors in the consumer staples, health care and technology sectors.

Also on The Globe and Mail

Market Call Tonight: Top Picks from Stephenson & Co.’s John Stephenson
(BNN Video)

Courtesy: The Globe And Mail

8 Comments Categories: Investing Tips

8 Replies to “Three top picks from Stephenson & Co.’s John Stephenson”

  1. we all readers should revolt how these experts are allowed to appear to make their picks after lousier performance, worse then any index. Globe Investor must take responsibilitie­s so does BNN. What do you think all readers?

  2. Ouch.. I appreciate the full transparency from the historical picks but will need to do further research on current picks.

  3. Wow, this is pretty scary. I’ll however give full marks to John for reappearing after the horrible last picks.

    Retail investors with no financial advisor, take heart! One has to be an accredited investor to purchase Stephenson funds. So those poor sods would appear to be getting hosed.

    I found it interesting that one could not glean any information on the performance of their funds on their website (although it’s quite Flashdance glitzy).

    Based on the past picks (which were presumably the best of their bunch at that time) I suspect that Stephenson has not racked up too many ‘Performance fees’ – so the HNW crowd lost 2% less than they could have.

  4. All the ‘experts’ commenting here forget that these picks should properly be evaluated over more than a single year. Its called buy and hold. It works.

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