Brian Madden
Member since: Aug '16
Senior VP & Portfolio Manager at
Goodreid Investment Council

Latest Top Picks

(A Top Pick Aug 01/18, Down 11%) Still likes it, but was stuck in a corporate drama when the managers failed to sell it at the wrong time, when oil prices peaked a year ago. They got a few lousy bids for actually productive assets. Now, it's business as usual, producing 52,000 barrels a day from Colombia that get international pricing. They're growing production 20% a year and growing cash flow per share by 9%. They also buy back stock and don't carry debt on the books. Trades at 6x earnings. The market disagrees, but he's happy to hold it.
(A Top Pick Aug 01/18, Up 29%) Sold it in the spring because it was getting fully valued, but made a 20%+ return.
(A Top Pick Aug 01/18, Up 22%) A long-term core holding. It's a secular growth story. BAM benefits from a secular flow of funds, high fees and their breadth of expertise whenever someone is selling a birdge or tunnel. It's partially rate-sensitive, because some assets are long-duration like a bond. No, it's not a bond proxy, but a secular growth story.
A secular growth stock he's long owned. The business model is price sharply on fuel to drive traffic, then lure customers into modern shops to buy wide-margin cigarettes, coffee and candy (3-5x better than selling gas). They do well buying businesses and synergizing them, too. But they are pivoting more to organic growth with digital loyalty for instance. (Analysts’ price target is $90.00)
A contrarian pick. CNQ is Canada's biggest oil and natural gas producer. They have audited, proven reserve life of 27.7 years (current production rates until the lands are depleted to hydro-carbons). And yet, this trades at 10.2x earnings, which means the market ascribes zero value to the last 17 years of oil. This yields 4.7% which has grown 24% in the last 5 years. (Analysts’ price target is $46.17)