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BNN Market Call Tonight – December 15, 2016 – Top Picks

CHUBB LIMITED (CB.N) 
Chubb is a property and casualty insurance company. It is “best-of-breed” because it has the lowest combined ratio in the industry at 88 per cent, meaning that for every dollar or premiums written, it pays out only 88 cents in claims. The 12 cent difference is profit that can be used in their investment portfolio. Book value continues to grow at 10 per cent a year and the dividend growth has averaged 15 per cent over the past 5 years. I own it, my household owns it and our clients own it. We have no banking arrangements with them. Most recent purchase price was Nov. 21, 2016 at $126.80 a share.

A.O. SMITH CORP (AOS.N)
A.O. Smith makes residential and commercial water heating and water treatment equipment in North America, India and China. It’s most recent purchase of Aquasana in the US makes water filters which helps remove Chromium-6 in the drinking water of 218 million Americans. Overseas growth in China has been in the mid-double digits and the dividend has risen 26 per cent over the past 5 years. I own it, my household owns it and our clients own it. We have no banking arrangements with them. Most recent purchase price was Nov. 21, 2016 at $47.48 a share.

GEMALTO (GTOMY.PK)
Gemalto makes security software for e-identity documents (passports and drivers’ licenses), chip payment cards, network authentication devices and wireless modules. It also operates systems to manage confidential data and secure transactions. Their recent biometric acquisitions from 3M for iris scanning and fingerprint identification gives them another valuable division to help in cybersecurity. Five-year dividend growth has been 11 per cent. I own it, my household owns it and our clients own it. We have no banking arrangements with them. Most recent purchase price was Nov. 22, 2016 at 48.18 euros a share.


Disclosure      Personal         Family         Portfolio

CB                            Y                  Y                  Y

AOS                         Y                  Y                  Y

GTOMY                   Y                  Y                  Y