Hugh Cleland is portfolio manager for the Northern Rivers Innovation Fund LP, Northern Rivers Innovation RSP Fund and the Horizons Northern Rivers Fund LP.
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Systems Xcellence (SXC-T) $26.48
Systems is a provider of pharmacy benefits management services and Mr. Cleland believes "that accelerating adoption of their disruptive business model will drive earnings above $1 (U.S.) per share within the next 12 months."
Neptune Tech (NTB-V) $7.60
Neptune provides natural biological marine biomass extracts for the fields of nutraceuticals, pharmaceuticals and food ingredients. Mr. Cleland cites a recent analyst report that attributes $10.50 per share to their food ingredients and over $20 per share to their pharmaceutical opportunity.
Western Goldfields (WGI-T) $2.09
Western is a gold mining company that Mr. Cleland has owned and will continue to hold "expecting a marked upward revaluation in the shares as the company goes into production in Q1 2008."
Past Picks: September 7, 2006
Then: $16.69 Now: $26.48
Up: 59 per cent
Neptune Tech & Bioresource
Then: $2.96 Now: $7.60
Up: 157 per cent
Then: $2.63 Now: $2.09
Down: 21 per cent
After the significant rise in the markets, Mr. Cleland is positioned for a correction by selling non-core holdings and scaling back into a hedge overlay. Although he says "that his indicator pointing to a recession or bear market is still not flashing red," he will maintain his basic positive bias, believing that sticking to companies with a sustainable competitive advantage will continue to be the best way to generate solid returns on a 2-to-5 year horizon.
© 2007 The Globe and Mail. All rights reserved.
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