Sunday, February 21, 2010

Canadian Large Cap Stock Recommendations

Sunday, February 21, 2010
11 of the 12 Stocks Recommended Last Week (Feb. 14) have increased in price. Top pick Cenovus Energy (CVE) increased by 9.48% going from $25.10 to close at $27.48. The one recommendation that declined Agnico Eagle (AEM) did so by less than 1% from $61.47 to $60.72.

15 of the 16 Growth Stocks Recommended on the previous blog (Jan. 31) have increased in price with an average gain of 8.12%. All 5 Precious Metal Picks are up over 10%, the 3 Mining/Ag Picks are up over 13%, 4 of the 5 Energy Picks are up, Suncor (SU) being the one loser down 4.65%. 9 of the 10.

Income Recommendations have increased in value. Only Manitoba Tel (MBT) is down 5.02%, however BCE is up by 6.41%.

According to technical analyst Don Vialoux (quoted in National Post Feb 13), the Canadian Energy Sector has a history of moving higher between Feb 25 and May 9, 14 of the past 15 years. His bottom line recommendation is to “be prepared to enter the trade when short-term technical indicators turn positive.” In particular, profit for the leading stocks of this sector in terms of frequency with average gain are: 90% frequency of profit: CNQ & SU. 80% frequency: ECA, HSE, IMO, TLM, + COS.UN & PWT.UN. Average return per period in ranking order are: CNQ (19.4%), COS.UN (16.0%), SU (15.5%), ECA (14.8%) & TLM (12.7%). That’s some convincing evidence.

As this blog attempts to point out opportunities based upon short term price weakness, the following stocks would be placed upon that watch list: Suncor (SU), Agnico Eagle (AEM), Manitoba Tel (MBT), Talisman (TLM) & Sunlife (SLF). Ongoing recommendations include: TSX (X), Goldcorp (G), Encana (ECA), Nexen (NXY), Canadian Natural Resources (CNQ), Manulife (MFC), TD, RY, NA.

Watch closely as these are interesting times. Good luck, Warren.

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