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Globe editors have posted this research report with permission of Euro Pacific Canada. This should not be construed as an endorsement of the report's recommendations. For more on The Globe's disclaimers please read here. The following is excerpted from the report:
We are pleased to present Euro Pacific Canada's Research Top Picks for 2016. We recognize that 2015 was a significantly more challenging year relative to 2014. The overall TSX composite declined 11.1 per cent following a gain of 7.4 per cent for 2014. We are pleased to note the full year return of 10.5 per cent across our portfolio of 2015 Top Picks. The portfolio gained significant outperformance from the take-outs of Wanted Technologies and Probe Mines generating a full year gain of 24 per cent and a first half gain of 51 per cent respectively. Furthermore, the portfolio performance reflected the significant outperformance of TSO3 Inc. (TOS-T) ahead 59 per cent (from date of publishing 15/01/2015) on the year and the 16-per-cent return (from 14/01/2015) on the shares of Espial Group Inc. (ESP-T). Within the sectors, mining continued to underperform with the index down 40.4 per cent on the year, following on the sector's 21.7-per-cent decline in 2014. Moving the 10-year rates down by -35 bps on the year was not enough to support net gains for the REIT Index which was down 9.9 per cent over the year (-5.2 per cent 2015 total return) following 2014's 4.2-per-cent advance (9.5-per-cent total return).
Euro Pacific Canada continues to look for outperformance in the technology and health-care/life sciences sectors, where Canadians are recognized leaders. On the natural resource side, we are purposefully focused on gold and technology-focused extraction.
We are pleased to maintain our Top Pick Status with Pure Industrial Real Estate Trust, TSO3, DHX Media and Computer Modelling Group. Our reports on both DHX Media and Computer Modelling address the progress each company made during 2015 despite their share price declines on the year.
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