Bruce Campbell’s High Decide: November 21, 2022

Market Outlook:

October’s US Shopper Value Index (CPI) report helped brighten the temper on Wall Avenue because the report got here in higher than anticipated and buyers started to deal with the US Federal Reserve’s attainable pivot in its rate of interest coverage in 2023.

A number of Fed board members and regional chairmen have tried to average buyers’ expectations a few pivot in rate of interest coverage in speeches final week, saying that controlling inflation could possibly be troublesome. In consequence, buyers stay unsure in regards to the route the Fed’s rate of interest coverage will take sooner or later.

We proceed to see extra main indicators pointing to the truth that the economic system is both near a recession or already in a single. The weak financial information could sound bleak, however wanting beneath the floor, some vivid spots are starting to emerge. After being one of many strongest asset courses all 12 months, the US greenback has pulled again considerably from highs. This will likely point out a change within the threat tolerance of buyers.

Many buyers are feeling uninterested in the bear market and are beginning to cease investing in equities. Whereas that is the case it might be a contradictory sign as most of the long-term technical indicators we monitor are displaying a possible shift in buyers’ threat urge for food. A few of these indicators have began to enhance similarly to earlier market bottoms. these long-term indicators we have gotten extra optimistic that the markets could also be inside just a few months of a brand new uptrend.

  • Join the Market Name High Picks e-newsletter
  • Take heed to the Market Name podcast at iHeartOr wherever you get your podcast

High picks:

Bruce Campbell’s High Picks

Bruce Campbell, president and portfolio supervisor of Stonecastle Funding Administration, discusses his prime picks: Salona International Medical Gadgets, Relic Well being Applied sciences, and Inexperienced Thumb Industries.

Salona International Medical Gadgets (SGMD CVE)

Salona International Medical Gadgets is a healthcare provider targeted on the $30 billion restoration science medical gadget market. The corporate is led by an government chairman with a historical past of profitable building and exit in the identical discipline. SGMD generated a optimistic EDITDA with 154 p.c annual income progress. SGMD continues to develop via acquisitions and organically and trades at a gorgeous valuation to friends. The final buy was $0.62, owned by the fund itself, personally or by my household.

Reliq Well being Applied sciences (RHT CVE)

Reliq Well being Applied sciences is a healthcare know-how firm offering software program as a service to the neighborhood well being sector. RHT generates recurring income via a subscription mannequin and is rising organically because it provides healthcare organizations and finish sufferers. Up to now 12 months, it has grown income by 460 p.c to $8.5 million and is projecting to exit 2022 with run charge income of $60 million. The final buy was $0.71, the fund owns, owns nothing personally, and isn’t owned by my household.

Inexperienced Thumb Industries (GTII CNSX)

Inexperienced Thumb Industries is a Chicago, primarily based hashish multi-state operator (MSO) with 17 manufacturing services, 77 retail areas in 15 US states. Within the final quarter, the corporate has elevated income by 5 p.c and EBITDA by 17 p.c. GTII just lately introduced a take care of Alimentation Couche Tard in Florida. Final buy was $17.99, fund owns, owns nothing personally, and isn’t owned by my household.

Previous alternatives: December 30, 2021

Bruce Campbell’s Previous Picks

Bruce Campbell, president and portfolio supervisor of Stonecastle Funding Administration, discusses his previous picks: Avanti Helium, Verano Holdings, and Tricon Residential.

Avanti Helium (AVN CVE)

  • Then: $1.64
  • Now: $0.51
  • Return: -69%
  • Complete Return: -69%

Verano Holdings (VRNO CNSX)

  • Then: $15.71
  • Now: $7.27
  • Return: -54%
  • Complete Return: -54%

Tricon Residential (TCN TSX)

  • Then: $19.16
  • Now: $11.79
  • Return: -38%
  • Complete Return: -37%

Complete Return Common: -53%


About the author


Leave a Comment