March 2022 Stock Recommendations
- Constantine’s investment recommendations for March 2021 (up 13.9%) exceeded the MSCI World Index ETF (7.1%) in US dollars, on average.
- Rising inflation based on the pandemic and recent warfare suggest the resource and defense sectors should do well. Relatedly, nuclear energy may come to the forefront as countries emphasize energy security.
Hello. Today is March 2, 2022, and it’s time for some new stock picks. As always, I’ll start with reviewing my picks from this time last year.
Reviewing my picks from March 2021, I had the following total returns year-to-date:
- Canfor (TSE: CFE) up 6.4%
- Fidelity National Financial (NYSE: FNF) up 20.7%
- Kulicke & Soffa Industries (NASDAQ: KLIC) up 14.6%
- Constantine’s total average return: 13.9% in US dollars
- MSCI World Index ETF total average return: 7.1% in US dollars
This time around, we are staying away from adding money to financials. The reason is potential ripple effects from the recent Russian default on the some of their debt. This default may, with a low probability, cause some issues there. Hopefully not. We already own a lot of financials, so for us, it’s okay to not add any more.
Legacy Housing Corp. (NASDAQ: LEGH)
I’m starting with a housing play and consumer cyclical, a company called Legacy Housing Corp. (NASDAQ: LEGH). This company builds, sells, and finances manufactured homes and tiny houses, which are distributed through a network of independent retailers and company owned stores. The company is very profitable. The stock is doing well. Additionally, with inflation doing what it’s doing, they should be able to participate in increasing their prices and continue to do well.
Reliance Steel & Aluminum Co. (NYSE: RS)
Our second stock, second pick is Reliance Steel & Aluminum Company (NYSE: RS). They deal with basic materials: metals, steel, aluminum and alloys. They have about 100,000 product types, 125,000 customers, non-residential construction, automotive, aerospace, energy transportation, etc. It seems they’re a good company, they’re doing really well, and valuation is okay. Again, they should be able to increase prices with inflation or more in case of supplies shortages and such.
Energy Fuels, Inc. (TSE: EFR)
The third pick is a uranium stock. Since uranium stocks tend to be a little bit more volatile, this pick is riskier. So, with that in mind, it’s possibly time to invest in the industry.
I personally stayed away from nuclear power generation for many, many years. I didn’t want to be involved or feel responsible in any way for any nuclear accident like the most recent one in Japan. But, for people that are okay with investing in the industry, owning uranium producers now maybe a good idea. The price of uranium is probably undervalued and the price of the stocks may be undervalued, as well. And, one such example is Energy Fuels (TSE: EFR).
If you’d like some additional information on these and other investment ideas, please don’t hesitate to give us a call. Ask your investment advisor or ask us whether these fit into your hopefully already well-diversified portfolio. Thank you very much.