BNN, Business Day: Beaten-down value plays

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“Our next guest [David Barr] has been using the shaky state of the equity markets to put fresh money into stocks. Last August the Value Fund he manages had about a third of its assets in cash. Today it’s dropped down to about 10% cash.”

David Barr - BNN - 26 Jan 2016“[We’re] a lot more optimistic… You don’t make great returns in the stock market buying companies at 52 week highs at the end of a great five year run. Having a pullback in the markets like this presents great opportunities for us.”

“When we see stocks cut in half, that’s when we get really excited and start buying.”

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He goes on to talk about several current picks:

  • Wi-LAN (WIN): How cutting its dividend and being de-listed makes a stock a “buy”
  • Photon Control Inc (PHO): The basic value story – precision technology with a market leading position in a big growth market.
  • Quantum Corp (QTM): How legacy business is masking “free” growth.
  • Espial Group (ESP) and Vixs Systems Inc (VXS).