By
BNNBloomberg.ca Staff
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Published: March 09, 2026 at 1:12PM EDT
Bruce Campbell, president & portfolio manager at StoneCastle Investment Management, shares his outlook on Canadian Equities.
Market Call – March 9, 2026
Bruce Campbell, President & Portfolio Manager , StoneCastle Investment Management
Focus: Canadian equities
Top Picks: Cavvy Energy, NEO Performance Materials, Kraken Robotics
MARKET OUTLOOK:
Our dashboard is beginning to flash some caution signals for the U.S. market. About three weeks ago our early warning indicator for the S&P 500 turned negative, which historically tends to precede periods of weakness. Then last week our intermediate-term signal also turned negative. When those two signals line up, it typically suggests the market may enter a period of consolidation or higher volatility. As a result, we have moved our U.S. portfolios to a neutral stance. We are not on full defense, but we have raised some cash and become more selective with new positions.
Interestingly, the picture in Canada looks different. Our indicators across all timeframes for the Toronto Stock Exchange (TSX) remain positive, including our early warning indicator, which continues to suggest underlying strength in the Canadian market. That divergence between the U.S. and Canada is something we are watching closely because it can create relative opportunities across sectors and individual companies.
Seasonality is another factor worth noting. The market tends to experience a softer period from mid-February through mid-March. However, once we move past the middle of March, markets have historically strengthened into May. In the near term geopolitical events may keep volatility elevated, but those periods of volatility often create opportunities to add to high-quality growth companies at better prices.
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TOP PICKS:
Bruce Campbell, president & portfolio manager at StoneCastle Investment Management, shares his top stock picks to watch in the market.
Cavvy Energy (CVVY TSX)
CVVY is a revamped energy company with producing natural gas assets and natural gas production assets. In addition to the natural gas production, the company produces 10 per cent of Canada’s sulfur production that is exported for many uses.
They have inventory of drilling locations, low decline and the added cash flow from sulfur production.
The company has strong and supportive institutional ownership.
NEO Performance Materials (NEO TSX)
NEO produces, refines and recycles rare earth metals and specializes in rare earth magnets. They are one of major manufacturers outside of China.
They have a 30-year history of magnetic powder production and are profitable with a strong balance sheet.
They have recently opened a facility in Europe which provides an alternative to Chinese production.
Kraken Robotics (PNG TSXV)
PNG is a developer of underwater robotics systems, sensors and batteries. The stock has been the darling of the Canadian market over the last 24 months, but continues to deliver on new orders.
Just last week they announced the acquisition of a company with complementary technologies in underwater navigation, monitoring and communications.
Both companies are profitable and have been growing at double digits. The recently pullback from the markets and the acquisition financing produces an entry opportunity.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| CVVY TSX | N | N | Y |
| NEO TSX | N | N | Y |
| PNG TSXV | N | N | Y |
PAST PICKS: AUG. 18, 2025
Bruce Campbell, president & portfolio manager at StoneCastle Investment Management, discusses his past stock picks and how they’re doing in the market today.
Anaergia (ANRG TSX)
Then: $1.46
Now: $2.12
Return: 45%
Total Return: 45%
Tenaz Energy (TNZ TSX)
Then: $21.33
Now: $50.49
Return: 137%
Total Return: 137%
MDA Space (MDA TSX)
Then: $46.36
Now: $40.07
Return: -13%
Total Return: -13%
Total Return Average: 56%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| ANRG TSX | N | N | Y |
| TNZ TSX | N | N | Y |
| MDA TSX | N | N | N |
Note: This article has been published automatically by sourcing from Access Newswire. The Stocktwits editorial team did not edit this article.