Canadian Large Cap Stock Pick Update

13 of 14 Canadian Large Cap Stocks recommended last blog (May 9) increased in price. Average gain for the portfolio was 2.87% versus the TSX Composite gain of +2.76%.

Top Gainers included:

• Kinross (K) +8.06%
• Goldcorp (G) +5.86%
• Yellow Pages (YLO.UN) +5.26%
• BCE +4.59%
• Cineplex Galaxy (CGX.UN) +3.85%.

14 of 21 Stocks on Watch List increased in price for an average gain of 1.54%.

Top gainers included:

• Penn West (PWT.UN) +8.67%
• Talisman (TLM) +7.92%
• Vermillion (VET.UN) +6.13%
• Encana (ECA) +4.72%
• Arc Energy (AET.UN) +4.64%

I recently purchased:

• Crescent Point Energy (CPG) @ $40.81 (closed $40.14)
• Yellow Pages (YLO.UN) @ $6.18 (closed $6.60)
• Teck (TCK.B) @ $35.01 and sold @ $36.23 (closed $35.34).

Stock recommendations going forward include:

• Precious Metals: Agnico Eagle (AEM), Barrick (ABX), Goldcorp (G), & Kinross (K).
• Agriculture: Agrium (AGU) & Potash (POT).
• Financials: Bank of Montreal (BMO), National Bank (NA), Royal Bank (RY), Sunlife (SLF), & Toronto Dominion (TD).
• Income Stocks: BCE, Telus (T), TransCanada (TRP), TSX (X), & Yellow Pages (YLO.UN).

• Watch List Includes the following Energy Stocks: Canadian Natural Resources (CNQ), Cenovus (CVE), Crescent Point (CPG), Encana (ECA), Nexen (NXY, Suncor (SU), & Talisman (TLM).
• Energy Trust Units on Watch List include: Arc (AET.UN), Bonavista (BNP.UN), Canadian Oil Sands (COS.UN), Pengrowth (PGF.UN), Penn West (PWT.UN), and Vermillion (VET.UN).
• Be Cautious on: Manitoba Tel (MBT). Latest earnings now represent half of dividend payout and this would lead one to expect a substantial dividend cut.

Be prudent, market could go either way this week. Good luck, Warren.