Your client has a well-balanced and diversified portfolio, and the idea of ​​investing away from the crowds the more speculative part of the attracted investments? Here are three ideas against the current to be explored for 2012.

The worst is probably past the lumber industry, auto parts and natural gas, advance Martin Roberge, quantitative strategist Canaccord Genuity.

At the beginning of each year, it has three themes against the current stock which contain a potential turnaround in his eyes. “These unpopular industries seem to have hit rock bottom. We do not predict a comeback, but a stabilization of their perspectives gives these industries a good risk-reward, “he said.


The wood

In the timber industry, five years to reduce production capacity and rising Asian demand bodes well for the future profitability of the industry.

Exposed by the meltdown of the U.S. residential construction between 2006 and 2011, producers have turned to China, which now represents 13% of industry sales.

So that the industry is operating at 74% capacity from 58% five years ago. This rate is expected to improve further now that residential construction is showing signs of improvement, the United States, says Martin Roberge.

Purchase intent of homes increase, as the hours worked in construction contractors. “The low cost of labor and improved indicators of future demand portend a rebound in earnings forecasts in 2012,” he said.

Three tracks allow the industry to participate in West Fraser (Tor., WFT), Canfor (Tor., CFP) and International Forest Products (Tor., IFP.A).

The auto parts

The global automotive industry should continue to get better in the coming years, thanks to pent-up demand for new cars that manufacturers must meet.

In the U.S., household deleveraging and job creation are boosted intentions to purchase automobiles. In addition, the average age of vehicles is 10.6 years.

After reducing their production capacity for three years, manufacturers are now using 70% of their production capacity, compared to only 25% in January 2009.

The best purchasing power of consumers and lower prices for steel and aluminum should improve the profitability of the automotive industry.

Manufacturers of auto parts could surprise as investors have low expectations towards the sector. Analysts forecast a rise of just 4.5% of industry revenues in 2012. Their shares traded as an assessment of depressed 7 times earnings expected in 2012.

Magna (Tor., MG), Linamar (Tor., LNR) and Martinrea (Tor., MRE) are the three main manufacturers of auto parts in Canada.

Natural gas

After reaching a floor price in ten years, the worst may be over for natural gas, despite the fact that output growth still exceeds the demand.

Industrial demand for natural gas in the United States, as the economy withstand well in 2012, believes Martin Roberge.

Consumption reacts to the increase in hours worked in manufacturing. In addition, the number of active gas wells compiled by Baker Hughes began to decline in the second half of 2011.

The low prices for natural gas, compared to other fuels (including coal) also stimulates the demand for power plants and industries.

Finally, the prices are so low that it is less attractive to traders, speculators bet on a further decline in the price of natural gas.

The stock prices of natural gas producers are also inexpensive, at a time when the relationship between supply and demand improves.

The main Canadian securities giant Encana (Tor., ECA), and small producers Progress Energy (Tor., PRQ), Celtic Exploration (Tor., CLT) and Open Range Energy (Tor., ONR).

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