Stock Picks for the Week Ahead

Stock Picks from the Weeks Past: Most recent blog (2 weeks ago) noted to watch the overall market trend for any indications to re-enter. The last week of October was quite dismal. Two areas of concentration to closely monitor were (and still are) Energy Giants and Insurance Companies. The Energy industry took a nice hit the last week of October (some also this past week) offering some nice entry points. These stocks include Canadian Natural Resources (CNQ), Nexen (NXY) & Talisman (TLM). Manulife (MFC) & Sunlife (SLF) also took some major hits this past week. Previous blog also recommended/noted that I also took profits in the large Agriculture stocks, Potash (POT) and/or Agrium (AGU) after a nice run up from previous weakness.

Stock Trades Completed in the Past Two Weeks:  In my RSP and M-in-Law’s RSP accounts, I sold NXY @ $24.91 (cost $24.64) and $24.91 (cost $24.46). Stock was held between 5 and 8 trading days. Nexen had also slipped to $22.88 this week, closing at $25.17.

New Positions Taken in the Past Two Weeks:  I purchased CNQ on weakness in both my wife’s and M-in-Law’s RSP’s for $67.10 & $67.24. Stock closed at $70.20 and had slipped to $66.51 during the week.  I also purchased more TLM in both my RSP and Cash accounts for $17.83 & $18.75 reducing my average cost price if the stock to $18.73 (RSP) and $19.41 (Cash). I’m comfortable with holding them and adding more. Stock closed @ $18.39.

Stock Pick for the Week Ahead: It appears that the market will hold this upcoming week but caution is always the overall recommendation. I would rate CNQ & TLM as strong buys on weakness. I would also rate SLF as a strong buy in small quantities. In the mining sector, Agnico Eagle (AEM) declined by over 20% last week of October and bounced back but is still $10 below its October 23^rd closing price. Assuming that precious metals continue to shine, I rate it a strong buy.  New stocks of interest based upon recent weakness include: Husky Energy (HSE) @ $28.19 which also offers a 4.26% dividend, Suncor (SU) down almost $3 in 2 weeks, and TSX Group (X) down $5.64 (16.5%)in 2 weeks, also offering a 5.33% dividend. The stock will probably decline Monday as it becomes ex-dividend as of Tuesday’s market open. Could be an interesting opportunity after it drops. Kinross (K) also dropped over 10% 2 weeks ago and has not come back (yet). Sunlife as noted above now pays a 5% dividend. Power Financial (PWF) also pays over 5%. Keep a close eye on opportunities and good luck ! I wish you all a successful week ahead, Warren.