Stock Picks of the Week Past and Ahead

Assuming a positive market trend, Last Weekend’s Blog top recommendations were Potash (POT), Agrium (AGU) and Teck Cominco (TCK.B). All three  stocks had big upwards moves during the week although the two agriculture plays backed off by Friday. I sold Potash in my M-in-Law’s RSP account @ $107.24 (purchase price $105.53). It closed the week @ $105.95. Both companies announced this past week very poor quarterly profits and future guidance although they had jumped earlier owing to speculation of a possible takeover of Potash by Australian mining giant BHP Billiton. With the weak guidance ahead, I’d recommend to take any profits and repurchase at a lower price. Longer term outlook for both is very positive. Teck Cominco made a new 52 week high this past week and its current upward momentum looks very strong.

New Positions Taken Over the Past Week include: Cash Account: I purchased small positions of Talisman (TLM) each day during the week at prices ranging from $19.24-$19.99, averaging $19.68 (Friday close $19.37). I also purchased it in my M-in-Law’s and personal RSP accounts @ $19.75 & $19.63. For my wife’s, M-in-Law’s and my personal RSP accounts, I purchased Nexen (NXY) @ $24.87 & $24.64 (Friday close $24.52). Lastly, for my M-in-Law’s RSP account I purchased a small amount of CNQ @ $75.52 ($74.43) and Crescent Point Energy @ $37.57 ($38.15).

Stock Picks for the Week Ahead: Assuming a positive market trend, I still like CNQ, NXY & TLM. The big question being what direction will the Market take in the week ahead ?  It appears that the market will open as it ended this past week (on a rather sour note). As to the performance by the week’s end, it’s very difficult to get a handle on that. I’d recommend to stay defensive and await opportunities as they open up. In the more defensive sectors, the insurance companies are looking interesting, including Manulife (MFC), Sunlife (SLF) and Great West Life (GWO). All three had very soft performance this past week. Keep a close eye on the momentum mid week and good luck. Warren.