In a year when investors experienced more volatility in stock prices, the favourite five picks by Bizworld outpaced the Toronto Stock Exchange Index.
The five gained an average 11.86 per cent compared with a meagre .25 per cent on the TSE as of Dec. 25. It was a roller coaster year starting at the top, hitting the bottom in March when the lockdown occurred and ratcheting back by year end.
Two gold mining stocks led the favourite five. Equinox Gold gained 33.1 per cent to $13.30. Lundin Gold, pouring the first gold in its massive Brazilian mine, gained 32.4 per cent to $11.03
Empire, the owner of grocery banners Safeway and Sobeys among others, gained 15.1 per cent to $35.07 plus a 1.8 per cent dividend. The grocery business was strong with panic pandemic buying and more home cooking during the lockdown.
The losers were Enbridge, down 20 per cent to $41.25 before the 6.4 per cent dividend and Los Angeles-based Air Lease, down 9.4 per cent to $43.19US.
Enbridge was tarred with the dire straits of the oil patch and the inability to get the Line Six pipeline to the U.S. going until late in the year.
Air Lease bombed after the pandemic lockdown and the collapse of the airline business. Investors feared mass cancellation of aircraft orders from Air Lease, but the stock recovered most of the losses by year end.
The five favourite picks for 2021 are Equinox, Loblaws, Enbridge, New Found Gold, and Exbec Absorption.
Equinox, $13.30, was chosen for a planned increase in gold production this year and as insurance against global monetary issues.
Loblaws, $63.72, makes the five for its broad retail front from groceries to pharmaceuticals in Shoppers Drugs. Food and drugs are always needed.
Enbridge, at $41.25, remains a growing company with a hefty dividend while waiting for price gains.
New Found Gold, $4.30, is an unusual wild card choice for the favourite five. The Newfoundland gold explorer has no revenues but the spectacular drill hole results from five potential ore bodies are striking.
Three zones have greater than one ounce gold per tonne showings, an almost unheard of result. Two show three-quarters of an ounce gold or better.
The company has a treasury full of cash and backing from legendary gold investor Ross Beatty.
Xebec Absorption, $8.03, is in a relatively new industry of hydrogen energy. The company works with raw gas sources and creates renewable natural gas or blue hydrogen as clean energy sources.
With installations in Europe, North America and China, Xebec is cashing in on the corporate and government goals to reduce greenhouse gas emissions.
CAUTION: Remember when investing, consult your adviser and do your homework before buying any security. Bizworld does not recommend investments.
Ron Walter can be reached at ronjoy@sasktel.net
The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.
