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BNN MARKET: CALL DAVID BASKIN

BNN-Business News Network

David Baskin is president of Baskin Financial. He oversees oversees the management of more than $400-million in assets.

CURRENT PICKS

Manulife Financial Corp.

(MFC-TSX) $39.52

This insurance company trades at a significant price/earnings discount to the major Canadian banks. Mr. Baskin believes Manulife's strong cash position will be able to finance its continued expansion outside of Canada, giving it a much better growth profile and he adds "their dividend at 2.2 per cent is less than the banks, but will probably rise faster."

Morguard Corp.

(MRC-TSX) $46.70

Morguard Corp. is a classic example of an illiquid stock trading at a large discount to net asset value. Mr. Baskin believes the real estate portfolio plus the value of the units in Morguard REIT have a value of at least $75 a share and says "buying a $75 asset for $45 is always a good idea."

Cinram International Income Fund(CRW.UN-TSX) $26.70

For Mr. Baskin "Cinram is like a cat with nine lives." He believes over the years, Cinram has successfully transitioned from audio /video cassettes to CDs to DVDs. Mr. Baskin believes that as a result of a new deal with Motorola this company is on the brink of becoming a major logistics player and says "the message here is that good management will find a way to make money even as industry conditions change."

PAST PICKS July 27, 2006

Canadian Pacific Railway

(CP-TSX)

Then: $54.17 Now: $75.54, +39%

Groupe Laperriere & Verreault (GLV.A-TSX)

Then: $23.60 Now: $40.78, +73%

Power Corp. (POW-TSX)

Then: $30.86 Now: $39.98, +30%

OUTLOOK

Mr. Baskin's market outlook is "guarded." He explains that the major gains in North American markets have stretched valuations in some sectors, and made bargains harder to find.

BNN-Business News Network presents Market Call live Monday to Friday at 12:30 p.m. ET/9:30 a.m. PT. To send a question to upcoming guests, e-mail marketcall@bnn.ca.

© 2007 The Globe and Mail. All rights reserved.

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