Mid September Thoughts
Good evening! (well good morning since I will probably publish this until tomorrow morning)
This post will just be about what I’m thinking about currently in the stock market as well as what I’m watching or wishing I could buy at the moment.
The market keeps on chugging on and stocks keep climbing. The TSX ain’t the hottest market out there but its starting to put out again. I read a post awhile back stating that September is historically the worst month for stocks. I find Mondays my portfolio tends to pull back but not today.
Recently some of my stocks have really been doing well. Of course the financial ones got the boost from the decision to raise interest rates again while Utilities and Reit’s have pulled back a bit on the news.
My stocks making me smile these days…..
Aecon has soared on the news that the company is looking into options to sell the company to create some great shareholder value. Being one of Canada’s top construction companies, the shares are getting valued ranging from 20$ to up to 25$ a share, based on various analyst’s predictions.
Cineplex got me worried there for a bit once it pulled down another 6% the day after I bought them. I’m now up 4%. I think this one will be volatile until star wars. After that I will seriously look into selling this stock. Personally I prefer going to the movies in the winter so their numbers should be way up then.
Potash Corp of Saskatchewan slowly is making its way up. 2% on Friday and another 3.5% gain just today. The Canadian Competition bureau approved the proposed merger between them and Agrium. This is big news but doesn’t finalize the deal. Rbc even bumped their forecast for potash corp to 20$ us. I like this merger and keep debating adding to our position. The merger is now delayed to later in the year so we will see if the price pulls back again.
Short term Nightmares?
Boardwalk Reit has been getting killed. Awhile back I added a bunch of their shares at around 42.60? Either way its now at 38.60. As much as I want to dollar cost average this one its a decent holding for me at 4% of my portfolio. I don’t want to add to that at the current moment. I think next quarter it will rebound since most of their reno’s will be done and rented out.
Canadian Stocks I Like Right Now
Currently in my portfolio I don’t feel there’s a bargain to add to a specific position. While I’m trying hard to not add another holding to our Canadian portfolio, there are 3 stocks I find really tempting right now and am keeping a eye on.
High Liner Foods – I have made a post before about wanting to buy them but started a position in general mills and boosted my consumer defensive position way up. So I stepped back. Well high liner is even cheaper now sitting at 8 cents over their 52 week low @ $13.45 per share. They also offer a unheard of %4.10 dividend yield for a defensive company. They have raised their dividend the past 9 years too!
Algonquin Power and Utilities – Last time it was around 13 bucks I himmed and hawwed then it shot up roughly 50 cents. Now its below 13 bucks @ 12.95. I love the renewable’s and the water aspect of it is really tempting. I also like companies that pay in usd. My biggest drawback is how much acquisitions they do. While some people would love this I would be more comfortable if they paid some of that debt off first (especially with these rising interest rates). We will see how low this can go.
Intertape Polymer group – The amazon effect? This company loves tape and makes a tonne of it. For some reason their sales went down and the stock has really pulled back recently . It offers a 3.59% yield currently and sits just 7 cents above its 52 week low @ $18.04 This one has a lot of potential in the long term but being a new dividend company makes you wonder how solid that dividend will be.
US Stocks I’d Buy Today.
We currently don’t have much cash in our RRSP or I would definitely be making some purchases. I feel the US market has a couple great ones I’d buy today.
L brands – They have been recovering slowly from their low of 35$ a share not to long ago. Still under 40 bucks @ $39.86. I feel this is a bargain. Oh and a 6% yield to boot. They also like to give a bonus payment every year to say thanks for holding their stock. Winter’s coming. Victoria’s secret and bath and body works will be packed again. My girl always loves their candles and I always like getting her something for me =() The Victoria’s secret show is scheduled for November 28th. I will be tuning in for sure! Get ready to collect some profits.
Genuine Parts Co – A Dividend king! A undervalued one to boot! 61 years of dividend increases…. Sitting at 7 bucks above their 52 week low and 15$ below the 52 week high @ 86.86 per share. It offers a %3.11 yield dividend as well. People will be driving cars or other vehicles for awhile. They will also need parts to fix their cars.
Well That’s my rambling. Hope you learned about a stock you weren’t watching. Curious though would you add another position to your portfolio if you had over 20 positions already? Or try to keep that diversification down? Also what stocks are you watching? Maybe you got a idea for me!
Cheers everyone, to another good month
Hey I’m Rob, creator of Passive Canadian Income.
In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.