While this is generally a blog devoted to weekly trades, there are certain recurring themes that should be noted and taken advantage of for the next few weeks. The is generally a strong period for most types of stocks except those that have shown tremendous weakness and could still fall further with end of year tax loss selling. Note the recommendations listed below:
Strong Buy Recommendations: These include Canadian Natural Resources (CNQ), off $4.00 in the past three weeks. It closed Friday @ $70.19 and hit a low of $68.77 during the week. I purchased some for my M-in-Law and personal RSP’s @ $70.82 & $70.86. Talisman (TLM), off $1.12 over three weeks, closing @ $18.27. Encana (ECA), down $4.69 over three weeks to close at $58.41. Agnico Eagle (AEM), still down over $8.00 closing @ $63.75.
Buy Recommendations: I still like Nexen (NXY) and Suncor (SU) although I’d prefer to buy both at slightly lower levels. I still hold Nexen in my wife’s RSP. In the precious metals sector, watch Kinross (K) which is down over 10% in 3 weeks and Teck Cominco (TCK.B).
Hot Stocks not Picked: Canadian National Railway (CNR) has been on fire. I can’t even guess as to how high it can still go further but it hit a new 52 week high almost every day this past week. Royal Bank (RY) has shown itself to be reasonably indestructible as a stock pick. This also holds true for its 1-3-5-10-15-20 year charts !
Value Picks: These include Husky (HSE) @ $28.30 still down over $2.00 in three weeks, also offering a 4.24% dividend, Power Financial (PWF) @ $27.65 paying a 5.06% dividend and TSX Group (X) @ $28.93 paying a 5.25% dividend. I still like and am holding in RSP’s and M-in-Law’s RSP Sunlife (SLF) down over $2.50 in three weeks, closing @ $27.98, paying a 5.15% dividend, although the technical chart doesn’t look all too strong.
Watch List: Hudbay Minerals (HBM) made a major discovery recently. The stock skyrocketed and has generally shown very strong performance. Reached a high this week of $17.00 to close @ $16.00. Keep an eye for any opportunities on weakness.
Income Recommendations: Note the Current Dividends of the Following: Bell Alliant units (BA.UN) 10.83%, Bank of Montreal (BMO) 5.44%, BCE 5.97%, CIBC (CM) 5.29%, Crescent Point Energy (CPG) which made a major recent acquisition @ 7.09%, Manitoba Tel (MBT) 8.29%, Telus (T) 5.79%.
As mentioned, the next six weeks are usually a very strong period for the market. Keep an open mind towards any weakness in stocks that have performed well for opportunities. It’s a good time to closely watch the market. Good luck, Warren.
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