Ottawa Citizen - - FINANCIAL POST -

Can aC­Cord Fi­nan­Cial inC. (CF/TSX)

The po­si­tion: Ini­ti­ated in fall 2012.

Why do you like it? Sk­iba con­sid­ers Canac­cord a high-beta play that an im­prov­ing stock mar­ket will gen­er­ate stronger cap­i­tal mar­kets, in­creased trad­ing vol­umes and more M&A ac­tiv­ity.

“As the mar­kets move up and peo­ple move more to eq­ui­ties, as­sets un­der man­age­ment in­crease,” she said.

When Canac­cord’s stock was trad­ing at $5 per share in De­cem­ber, Sk­iba noted in­vestors were es­sen­tially only paying for its as­set man­age­ment busi­ness and get­ting its bro­ker­age op­er­a­tions for free. She also owns as­set man­ager IGM Fi­nan­cial Inc.

Big­gest risk: A slow­down in cap­i­tal mar­kets.

CiT­i­group inC. (C/nYSE)

The po­si­tion: Added in re­cent months.

Why do you like it? Sk­iba ex­pects Cit­i­group to ben­e­fit from im­prov­ing loan ac­tiv­ity by U.S. con­sumers and busi­nesses, as well as the growth in emerg­ing mar­kets due to its global pres­ence.

She is also look­ing for Cit­i­group to dis­pose of more of the toxic as­sets in Citi Hold­ings, where a lot of its cap­i­tal is tied up.

“There is huge room for cost cut­ting,” Sk­iba said. “The earn­ings power is much higher than peo­ple ex­pect.” She also owns Mor­gan Stan­ley.

Big­gest risk: The U.S. econ­omy stalls due to the fis­cal cliff.

CaE inC. (CaE/TSX)

The po­si­tion: Long-term hold­ing.

Why do you like it? CAE makes flight sim­u­la­tors and pro­vides train­ing for pi­lots, with its busi­ness roughly split be­tween civil avi­a­tion and the mil­i­tary.

While there has a lot of dis­cus­sion about bud­get cuts for the U.S. mil­i­tary, the man­ager noted 50% of CAE’s new mil­i­tary or­ders in 2012 came from Asia.

“Un­for­tu­nately, there is al­ways a war some­where and the emerg­ing na­tions are buy­ing equip­ment and train­ing pi­lots for their mil­i­tary,” Sk­iba said.

She also be­lieves CAE is an at­trac­tive takeover can­di­date for larger aero­space play­ers such as Gen­eral Dy­nam­ics Corp.

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