6 of the 10 Stocks recommended as buys or accumulates increased in price since last week for an average gain of +1.5% versus the TSX Composite +0.6%. Top gainer was Research in Motion (RIM) +15.42%. Top loser was Rogers (RCI.B) -9.37%. Going forward the market appears stuck with many stocks hitting or near their 52 week highs. The results of the US elections will probably have the greatest impact on the market this coming week. A strong Republican showing will push stocks higher. A stronger than expected Democratic showing will pull stocks down. Impossible to predict which way the vote will go.
Energy and telecom stocks appear to be in correction mode. This could open up for opportunities to accumulate based upon weakness.
Stocks to accumulate on weakness include: BCE, Rogers (RCI.B), Telus (T) all paying large and reasonably safe dividends paying stock holders while waiting for price appreciation. Following the setback this past week, I recommend particularly watching Rogers for any opportunity. Canadian National Rail (CNR) which hit a new 52 week high lost 4.07% this past week owing to weakness in the resource sector and should be watched for any pullbacks to accumulate. Canadian Pacific (CP) should be put on the radar screen too.
Long term buys include: Potash (POT) & Research in Motion (RIM). It appears that the Potash sale to BHP Billiton will not go through and this could hurt the stock price which should offer an opportunity to pick it up much cheaper than now. Categorize it as a speculative long term buy.
Long term accumulates on weakness include: Canadian Natural Resources (CNQ), Nexen (NXY), Royal Bank (RY) & Toronto Dominion (TD). This past Friday evening a CNBC Fast Money commentator listed TD as a top pick going forward.
Income recommendations include: Preferred shares still paying high dividends are as follows: Bombardier BBD.PR.C 6.5984%, BBD.PR.D 6.548%; Brookfield Properties BPO.PR.L 6.3155% BPO.PR.N 5.8931%; Canadian Western Bank CWB.PR.A 6.5081%; Investors Group IGM.PR.B 5.8906%; Laurentian Bank LB.PR.D 5.9148%; Manulife MFC.PR.D 5.8929%; National Bank NA.PR.O 5.9331%, NA.PR.P 5.9055%; Power Financial PWF.PR.I 5.877%. It could be a momentous week ahead. Keep a close watch for large price moves and new opportunities. Good luck.
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