9 of the 10 (income) stocks recommended last week increased in price for an average gain of 1.2% as compared to the TSX Composite loss of 0.1%. Top gainer was Rogers (RCI.B) @ +2.89%. Two stocks hit new 52 week highs including Rogers and BCE. 6 of the 8 stocks recommended to purchase only on weakness dipped below their closing price of last week but only two bounced back. These are Research in Motion (RIM) and Talisman (TLM).
Going forward I still recommend holding and/or closing positions as many stocks are near or have crossed their 52 week high mark.
Hot Stocks include: Some performances over the past 4 weeks worth noting are: Agrium (AGU) +12.6%, Canadian Pacific (CP) +9.25%, Nexen (NXY) +11.9% & Talisman (TLM) +9.4%. These stocks should be watched closely for any pullback opportunities. The major banks surged early in the week only to settle back by Friday. These should also be watched for pullback opportunities including Bank of Montreal (BMO), CIBC (CM), National Bank (NA), Royal Bank (RY) and Toronto Dominion (TD). Bank of Montreal and Royal Bank have been the weakest performers and would merit the highest rating of accumulate on weakness. The telecoms should be accumulated for their high dividend payouts including BCE, Rogers (RCI.B) & Telus (T).
Long Term Buys: Encana (ECA) dropped 7.59% this week and is near a 52 week low. It also pays a (reasonably safe) 2.98% annual dividend. Sister firm Cenovus (CVE) also dropped 3.8% this week and pays a 2.76% dividend. Research in Motion (RIM) should increase substantially by next year.
Resource Stocks could be in for a correction shortly however, for the long term keep a close watch on Canadian Natural Resources (CNQ), Kinross (K) & Teck Resources (TCK.B), all of which should be accumulated on weakness.
Speculative Buy: Potash (POT). Depending on the “political” outcome of a possible sale or not. Have a great week ahead and remain conservative.
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