Last week’s primary recommendation was to wait for a market pullback. In all told, only 7 income/dividend stocks were recommended for any accumulation including 3 banks (Bank of Montreal, CIBC & Royal), 3 telecoms (BCE, Rogers & Telus) and 1 pipeline (Transcanada). The overall gain for these stocks was a small 0.06% although positive when compared to the TSX Composite loss of -0.49%. One stock which was highlighted to watch carefully: Labrador Iron Ore Units (LIF.UN) increased by 4.65% and hit a new 52 week high. The stock has also hit new 52 week highs 6 of the last 7 weeks. This warrants further attention to buy on dips.
The market appears to be headed lower still before climbing back. As such I’ll recommend readers to continue with caution. My personal margin and RSP portfolios are currently over 90% in cash as I wait for opportunities. I can and do move in and out quite rapidly. This past week I purchased and sold for profit Research in Motion (RIM) on 7 occasions. It’s a good trading stock with lots of intraday movement.
Income stocks with potential to accumulate on weakness include: BCE, Bank of Montreal (BMO), CIBC (CM), Rogers (RCI.B), Royal Bank (RY), Telus (T), Toronto Dominion (TD), & Transcanada (TRP) – the same as recommended previously with the addition of TD. I also like Brookfield Properties (BPO) which has both a low PE ratio and reasonable dividend payout.
Long Term Growth Stock recommendations include: As recommended previously, Agrium (AGU), Canadian Natural Resources (CNQ), Potash (POT), RIM & Teck (TCK.B). There’s no rush to jump into the market but be open to wild price movements to capitalize on opportunities.
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