In July 18's "Buy and Sell" section of the Globe & Mail:-
As a value investor, Mark Bonham, chairman and chief executive of
Toronto-based Strategic Value Corp., is choosing his spots carefully in the Canadian market, which he considers overvalued.
"The challenge is to search out special situations like a retructuring, acquisition, disposition, new management or product where the stocks are severely undervalued and the market has yet to discover their potential," Bonham said.
He continues to hold up to 30% of his portfolios in cash. Bonham is in charge of the Strategic Value series of funds with assets of $2 billion.
His top stock picks include:
Brookfield Properties Corp. (BPCir/TSE), which recently closed at $12.80 and has a 52-week trading range of $12.85 to $6.35. The Toronto-based real estate company has prime commercial properties in the U.S. and Canada.
"It is a classic turnaround situation," Bonham said. "Brookfield has become one of the major North American real estate companies."
He said the company is planning a New York Stock Exchange listing, which will improve U.S. coverage of the stock. It might also spin off its residential division, which would make it a pure commercial real estate play and substantially improve its balance sheet.
The stock is far cheaper than its peer, TrizecHahn Corp. (TZH/TSE) $29.95 ($33.50-$17.05), "which is fully valued."
Bonham's cash flow per share estimate for Brookfield is $1.20 in fiscal 1997 and $1.60 in 1998.
canoe.ca
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