Quoi de neuf? What’s new with Claude Lemire?

In his more than four decades of successful financial management, Claude Lemire has seen it all; perhaps too much at times. Claude was a founder and later president of the very successful Canagex Placements, a $14 billion Montreal based money management firm that was later acquired.

One morning, I stopped by his Montreal office to discuss the markets. During our conversation, a phone call came in. As was often the case, it was a sales call from a major New York based brokerage house representative offering their enlightening and high quality investment research. Claude politely told the gentleman that he was not interested. The caller was persistent but Claude got rid of him. His experience had left him dissatisfied with the accuracy and value of the major brokerage house brokerage research.

He has felt the major brokerage houses have become too powerful and focused on their own self-interest rather than finding and researching undervalued stocks. He has complained about that for years.

He found that independent and private investment services such as Value Line and others were more accurate and offered far better quality advice. His focus has always been the “overlooked and above all undervalued companies.” And for years he has successfully found them.

Daunting outlook Currently Claude is involved in the market advising several pension funds and investing for himself. He watches the economy closely. He is not positive to say the least. I must give him credit in that he was generally positive for the overall stock market until last April when he suggested to me that he was no longer bullish for the industrial stocks. Over the last two years he has always seen the benefit of taking profits.

Trend is over
Now, to Claude, the positive market trend is over-quite over! He feels that we are entering an economic period that will be similar to the nineteen thirties….we face difficult times in his view. Yes, the nineteen thirties! However, Claude feels that the markets will still offer exceptional investment opportunities as weak economies and bear markets do put numerous stocks literally “on sale.”

Corporate duplicity?

What he finds as concerning are the enormous corporate buybacks while at the same time some of the heaviest selling in history companies’ by officers and directors has occurred.

His favorites? Gold mining companies!

Claude has been patiently accumulating the Gold stocks during the current period of their price weakness. While he had not expected an immediate move up in gold bullion, the prices in his analysis indicate exceptional undervaluation which he takes advantage of. The sad fact is that very few investors ever take advantage of stocks when they are “on sale.” Claude does!