4 days ago
- Business
- The Market Online
Alpha Ba Highlights Stock Picks from Canada to Latin America
In a recent appearance on The Expert Exchange, Alpha BA, Chief Investment Officer at Pillow Investment Partners, shared his top investment ideas, highlighting both Canadian and international companies he believes offer strong long-term potential in today's economic climate.
Watch the above video for a closer look at trending topic in the global market
Ba opened by revisiting a previous pick, Latin American e-commerce giant Mercado Libre, which has surged 50% since he last flagged it. 'We still like it,' he said. 'The company continues to grow around 35% annually, and we're paying 45 times earnings for that. With rising consumer wealth in Brazil, Mexico, and Argentina, and deepening commercial ties with China, we believe Mercado Libre still has a long runway.'
Turning his focus to Canada, Alpha spotlighted Constellation Software, calling it one of the best ideas 'right in our backyard.' He praised its acquisition-driven strategy in the vertical market software (VMS) space, noting that the company has acquired roughly 1,000 businesses over the past decade while maintaining a 20 per cent return on invested capital. 'This is a $10 billion revenue company operating in a $60 billion addressable market. We expect 25 per cent to 30 per cent annual EPS growth over the next three years,' Ba explained.
Another Canadian standout is AtkinsRéalis (formerly SNC-Lavalin), which Alpha described as 'very well-positioned' in the nuclear energy sector. 'It's trading at 30 times earnings with 45 per cent to 50 per cent expected EPS growth,' he said. 'As nuclear becomes a more important part of the clean energy mix globally, we think this business—its highest-margin segment—will receive greater market appreciation.'
On the global stage, Alpha emphasized that his firm doesn't take a top-down approach by country but instead focuses on individual quality businesses. Among them: Ferrari in Italy, which he called a luxury brand with unmatched exclusivity and pricing power. 'They produce just 15,000 cars a year, and their return on equity is close to 40 per cent . The stock is expensive—but rightly so.'
He also reiterated his firm's continued support for TSMC in Asia, citing its dominance in the global semiconductor supply chain.
Wrapping up the conversation, Alpha underscored his team's commitment to long-term, fundamentals-driven investing. 'We're looking for disciplined companies with pricing power, strong returns on capital, and durable growth—regardless of where they're based.'
Previously Ba gave a global market update in the the trade war disruption
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