Fund manager Heather Hunter, who runs the Trimark Select Canadian Growth Fund, likes to buy "quality businesses at attractive prices" for the long term. Ms. Hunter says some current best bets are:
... ... ...
Talisman Energy Inc. (TLM-TSE). The Calgary-based oil and gas producer, which closed yesterday at $61.40, traded at a 52-week low of $43.75 last July and a 52-week high of $65.77 last week. "It has a very strong balance sheet, tremendous cash flow and excellent management," she says. "When I value it and look at its net asset value and assume a gradual decline in commodity prices, I think its huge cash flow and growth potential are not fully reflected in the share price."
Talisman also has a stake in a joint venture oil project in war-torn Sudan, and critics suggest the royalties are helping the government to prolong a civil war there. Clearly, the issue is a factor in the stock not reflecting its true value, but "how much a factor is debatable," Ms. Hunter says.
From The Globe & Mail, June 13 |
