Sunday, October 17, 2010

Canadian Large Cap Stocks: Hold Recommendation

Sunday, October 17, 2010

With many stocks at or near 52 week highs, I’ll recommend that you hold and not purchase too many stocks unless market weakens. While only 7 of the 14 stocks recommended last week increased in price, the average portfolio gain was 1.06% versus the TSX Composite of 0.59%. Top gainers included Agrium (AGU) +7.34%, Nexen (NXY) +4.62%, Teck (TCK.B) +2.22% & Bank of Montreal (BMO) +2.04%. Top loser was Research in Motion (RIM) -1.52. 4 of 14 recommendations hit new 52 week highs including Agrium (AGU), BCE, Rogers (RCI.B) & Telus (T). As predicted the market did not move too much.

Bond Recommendations include: Instead of holding cash consider Riocan Reit corporate bonds due June 2012 yielding 2.41%. Other high yielding corporate bonds include: Consumer Waterheater April 2014 yielding 4.57% & Yellow Pages Feb 2016 @ 5.01%.

Income Recommendations include: BCE (5.38% dividend), BMO (4.63%), Crescent Point Energy (CPG) 6.90%, Rogers (RCI.B) 3.21%, Royal Bank (RY) 3.60%, Riocan Reit (REI.UN) 6.17%, Telus (T) 4.32%, TSX (X) 4.83%, Toronto Dominion (TD) 3.29%, & Vermillion (VET) 5.76%.

Growth Stock Recommendations on weakness include: Canadian Natural Resources (CNQ), Nexen (NXY), Suncor (SU), Talisman (TLM), Kinross (K), Potash (POT), Research in Motion (RIM) & Teck (TCK.B). I recommend holding and not increasing Agrium (AGU) Canadian National (CNR) & Canadian Pacific (CP).

Nothing wrong with taking some profits and preparing for another upleg later this year. Good luck.

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