Weekend Review

An update on some trades I made this week:

Sold Manulife (MFC) @ $23.09 (+$0.13 dividend arriving). Cost $22.44. Holding period: 11 trading days. Wife’s RSP.

Sold Manulife @ $22.62 (+ dividend). Cost $22.36. Holding period: 10 trading days. Cash account.

Purchased Nexen (NXY) @ $21.58 & Teck Cominco (TCK.B) @ $27.61. M-in-Law’s RSP.

Purchased Nexen @ $21.62. Cash Account. Current average cost price: $22.04

Purchased Nexen @ $22.50. RSP. Closing Prices: NXY $22.44, TCK.B $27.55, MFC $22.36.

Media and Financial Institution Discrepancies:

You’ll notice that different media agencies and/or financial institutions have differing data on the same corporations which leads one to consider how accurate are any of these agencies’ information. In defining Price-to-Earnings Ratios, irrespective if they take into account historical or future ones, these institutions have widely different data on numerous occasions. Who’s right ? Who knows ? Please review some examples of P/E Ratios as defined by (in order): Financial (National) Post, Globe & Mail, TD Waterhouse & Wall Street Journal. Please note that the WSJ doesn’t use decimal points.

CIBC (CM): 28.6, 29.96, 28.6, 26. RY: 22.2, 22.0, 23.38, 22. Encana (ECA): 6.9, 6.46, 6.46, 7. NXY: 13.6, 13.77, 13.6, 15.

CNR: 6.9, 13.05, 13.14, 14. Agrium (AGU): 9.5, 8.92, 8.89, 10. TCK.B: 24.4, 27.55, 22.4, 26. Goldcorp (G): 20.1, 19.18, 18.58, 21.

The Reliability of Market Analysts “Analysis’:

July 8: Canaccord Adams analyst put his target price on Crescent Point Energy (CPG) @ $31.00. Closed Friday @ $37.59.

July 10: Peters & Co analyst lowered his 12 month target (then @ $15.25) on Talisman (TLM) to $17.00. Closed Friday @ 17.90. Traded over $18.00 most of the week. While in August: UBS Inv. Research analyst raises his 12 month target on Talisman to $22.00.

In May: Edward Jones analyst put a hold on BMO, then trading @ $33.20. Closed Friday @ $52.45. All of my recommendations are for short term (1-6 week) periods to take advantage of opportunities in momentum.

Stock Pick for the Week Ahead:

Based upon a positive market, take advantage of dips in price for: Canadian Natural Resources (CNQ), RIM, Potash (POT) and Teck Cominco (TCK.B). Good luck and remain cautious. Keep a good portion of cash available to take advantage of short term opportunities. Warren.