Pro Picks: 3 Stocks from a Bearish Investor

Investment ideas from Ross Healy of Strategic Analysis Corp

3 Stocks to Buy According to a 60-Year Investing Veteran

Watch the full episode: Veteran investor Ross Healy has been navigating markets for 60 years and right now, he’s sounding the alarm. In this episode of In the Money with Amber Kanwar, Ross warns that U.S. stocks are dangerously overvalued, the S&P 500 could drop more than 50%, and the AI-fueled market rally may be repeating the same mistakes of the dot-com bubble.

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1. Fortuna Mining (TSE: FVI)

• What the Company Does: Fortuna Mining, previously Fortuna Silver, has shifted to being over 80% gold-focused, with its primary gold mine in Ivory Coast, a relatively stable political environment. The company is expanding its reserves, with significant undeveloped potential.

• Why It Can Go Higher: Trading at about 1.5x book value, the stock is undervalued, with a fair market value roughly double its current price of CAD $9.60. Its strong balance sheet and gold exposure make it a low-risk, long-term hold, especially as U.S. investors may drive interest in gold stocks.

• Potential Upside: Immediate target of CAD $13 (35% upside), with potential to go much higher if broader market interest in gold stocks increases.

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2. Laurentian Bank (TSE: LB)

• What the Company Does: Laurentian Bank is a smaller Canadian bank offering retail and commercial banking services. Despite recent challenges, including a failed strategic review and a 20% profit drop, it maintains a sustainable 6% dividend.

• Why It Can Go Higher: With its fair market value 150% above where the stock is currently trading, the stock is deeply undervalued. Its small size makes it an attractive acquisition target for larger banks like TD, which could double its return on equity by absorbing Laurentian. Even without a buyout, its cheap valuation and dividend support gradual gains.

• Potential Upside: Fair market value suggests 150% upside, with potential for steady appreciation or a significant jump if acquired.

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3. ATCO (TSE: ACO.X)

• What the Company Does: ATCO is a utility company distributing electricity and managing infrastructure projects across Canada, the UK, and Australia. It offers a stable dividend yield and operates in a predictable sector.

• Why It Can Go Higher: Trading at a discount relative to its historical valuation, ATCO is a low-volatility anchor for portfolios. Its consistent cash flows and decent yield make it a reliable hold, even in economic uncertainty, with less exposure to bond yield spikes in Canada compared to U.S. utilities.

• Potential Upside: Described as offering comfortable gains over one to two years, with minimal downside risk due to its stable business model.

Disclaimer: The information provided in this podcast is for informational purposes only and does not constitute financial, investment, or professional advice. The views expressed by the host and guests are their own and do not necessarily reflect the opinions of any organization or company. The host and guests may maintain positions in any securities discussed on the podcast. Always consult with a qualified financial advisor or professional before making any investment decisions.