Large Cap Stock Recommendations of last blog (May16) performed slightly better than the overall market, -3.84% versus the TSX Composite -4.1% and the TSX unweighted -6.1%. My recommendations are always unweighted.
Top Gainers included: Nexen (NXY) +4.68%, Cenovus (CVE) -0.44% & Royal Bank (RY) -0.83%. Precious Metal Stock picks dragged down the portfolio. Crude Oil is down 18.7% in May. TSX and S&P crossed below crucial 200 day moving averages as the week neared its end. This would be a negative technical indicator. Of interest, market guru Jim Cramer of CNBC’s Mad Money highlighted Bank of Montreal (BMO) as a top pick on Monday May 17. Most market experts recommend purchasing or holding higher dividend yielding large cap stocks to weather the storm.
My top defensive holding recommendations are as follows:
- Telecom: BCE (5.61% dividend), Rogers (RCI.B) 3.56% & Telus (T) 5.24%.
- Income Trusts: Bell Alliant (BA.UN) 11.02%, Cineplex Galaxy (CGX.UN) 6.22%, Riocan (REI.UN) 7.44%, & Yellow Pages (YLO.UN) 12.73%.
- Resources: Crescent Point Energy (CPG) 7.04% & TransCanada (TRP) 4.62%.
Assuming a market upturn, the following large cap stocks on a watch list would be recommended:
- Financials: BMO, National Bank (NA), Power Financial (PWF), RY & TD.
- Mining: Agrium (AGU), Potash (POT) & Teck (TCK.B).
- Energy: Canadian Natural Resources (CNQ), Cenovus, Encana (ECA), Nexen, Suncor (SU), & Talisman (TLM).
- Energy Trusts: Arc (AET.UN), Bonavista (BNP.UN), Baytex (BTE.UN), Canadian Oil Sands (COS.UN), Pengrowth (PGF.UN), Penn West (PWT.UN), & Vermillion (VET.UN).
- Precious Metals: Agnico Eagle (AEM0, Barrick (ABX), Goldcorp (G), & Kinross (K). Two stocks to watch based upon market direction are Manulife (MFC) and Sunlife (SLF), both of which are highly levered to the market. Continued caution is the watchword for the weeks ahead.
Good luck, Warren.
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