Canadian Large Cap Stock Picks for 2010

Previous Stock Picks include: Agrium (AGU) recommended Nov 22 ($61.13) & Dec 6 ($60.98) hit 52 week high this week of $68.47 to close at $66.40. Also Potash (POT) recommended Nov 22 ($122.79) & Dec 6 ($122.98) high this week of $130.00 to close at $125.99. CNR recommended ($57.10) Nov 15 owing to strong momentum hit a 52 week high this week of $59.14 to close at $57.70.

Precious Metal Stocks Timing & Warning included: Kinross recommended Nov 8 ($20.12), Nov 15 ($20.23) Nov 22 ($20.39) hit $23.47 last week of November to close then at $21.56. I warned last week to watch out for more declines in the Gold Sector. Kinross dropped 5.4% or $1.17 this week. Similar timing strategies and warnings were given for Agnico Eagle (AEM) highly recommended Nov 8 ($62.00) recommended Nov 15 ($63.75), Nov 22 ($65.06) hit $71.50 to close $66.47. Subsequently dropped $1.60. Other gold stocks were recommended only on Nov 22 and followed the same pattern. Barrick (ABX) recommended @ $47.00, hit 52 week high $50.53, and settled @ $45.10 has since dropped $3.20 or 7% ! Similar recommendation patterns occurred for Goldcorp (G) and Yamana (YRI). I also warned of Imagold (IMG) which hit a 52 week high of $21.68 to settle @ $19.24 and then another 9.8% this week !

Financial Stocks: Royal Bank (RY) was recommended owing to long term technical strength throughout the past month to purchase on weakness. This week it dropped to as low as $54.10. I then purchased it in several RSP accounts for $54.48-$54.49 on Wednesday and it closed at $55.29.  TD Bank also recommended on weakness dropped to as low as $64.03, I purchased it Thursday @ $65.05, it closed at $65.98.

Energy Stocks: All stocks recommended throughout the past month popped nicely, though have since retreated a small amount. Only Encana (ECA) slightly below price at which it was strongly recommended.

Dividend Paying Stocks: Throughout the past month, all of the repeatedly recommended stocks moved up since original recommendation price including: Husky Energy (HSE) up 4 % this week, Power Financial (PWF) up 6% this week, TSX Group (X) up 3%. Though not a dividend paying stock, Teck Cominco (TCK.B) was listed a strong buy Nov 15 @ $33.48, hit a 52 week high 2 weeks later @ $38.42 and closed this Friday @ $37.46.

Top Picks for 2010:  Financials including RY, TD & National Bank (NA) which got hammered after releasing disappointing earnings. The momentum of AGU, POT & CNR can’t be discounted. Watch for any opportunity to get in at lower prices. Gold stocks are looking interesting now since the battering 2 weeks ago, including ABX ($41.90), G ($42.29), & IMG ($17.36). Energy Stock Giants such as CNQ ($68.87), ECA ($30.02), NXY ($23.55), SU ($36.29) & TLM ($18.10) all look perfectly priced for strong gains by the spring of 2010.  Imperial Oil (IMO) looks well priced now ($39.15) although it’s a slow mover. Manulife (MFC) appears well priced now although might go down  further still before year end owing to tax loss selling. Thanks to the many visitors to this sight for your loyalty and interest. Happy holidays and have a great year end and 2010. Regards, Warren

 

A Wild Week Past!

 A lot of stocks popped up big during the past week only to settle down lower. Agnico Eagle (AEM) began at $65.88, crested to $71.50 and ended at $66.47. Agrium (AGU) began at $58.28, hit a new 52 week high of $63.87 and ended at $60.98. Barrick Gold (ABX) Began at $45.25, hit a 52 week high of $50.53 and ended at $45.10. Goldcorp (G) began at $45.15, hit a 52 week high of $48.37  and retreated to $44.66. Iamgold (IMG) highly rated by Investor’s Daily began at $19.68, hit a 52 week high of $21.95 and ended at $19.24.

Stocks to Watch this Week include: Royal Bank (RY) & TD, both if which ended the week lower. I still highly recommend Canadian Natural Resources (CNQ), Nexen (NXY) & Talisman (TLM). Both Agrium (AGU) & Potash (POT) have been red-hot. For a little less volatility with strong dividends, keep a close watch on Husky Energy (HSE), Power Financial (PWF), Sunlife (SLF), & TSX Group (X).

The Precious Metals’ Group noted above are hard to predict now with the big sell-off in gold bullion by this week’s end. It could continue.

Energy stocks noted above usually strengthen in February so it could be early yet but some of the prices look interesting now.

Financial stocks are worth a look. Royal Bank has a spectacular short through to long term technical chart.  Manulife (MFC) is looking very weak but it could make for a good entry point. Tax loss selling begins soon so be careful of stocks that have demonstrated too much weakness. Have a great week ahead.