Buyer Beware

 

Last blog (2 weeks ago) I repeatedly advised readers to reduce positions and await opportunities. With current uncertainty in Middle East politics and following the massive disaster in Japan, it’s still highly recommended to keep to the sidelines. Personally I reduced the majority of my stock positions with some handsome gains and most (but certainly not all) well above this week’s closing prices. These include: Bank of Montreal (BMO) $61.87 & $61.80 (closed $61.46), Canadian Natural Resources (CNQ) $48.97 & $49.00 ($45.15), Power Financial (PWF) $31.42 ($30.45), Research in Motion (RIM) $64.70 ($61.60), Royal Bank (RY) $56.69 (59.78), Talisman (TLM) $24.04 ($22.61), & Toronto Dominion (TD) $80.13 ($83.45). I also repurchased small positions in the following: Agnico Eagle (AEM) $67.86 ($64.95), Barrick (ABX) $51.16 ($49.40), Scotia Bank (BNS) $59.33 ($57.66), Canadian Natural Resources (CNQ) $45.08 ($45.15), & Potash (POT) $54.67 ($52.65).

Long Term Value Picks going forward include: BCE, Rogers (RCI.B), & Telus (T). The large banks have shown resilience in the face of recent pullbacks and should be held for now. Longer Term Buys in this category include: Scotia Bank (BNS), National (NA), Royal (RY) & Toronto Dominion (TD). A more speculative pick in this area for longer term appreciation is Sunlife (SLF).

Resource Stocks worth acquiring small positions include: Agnico Eagle (AEM), Agrium (AGU), Barrick (ABX), Canadian Natural Resources (CNQ), Cenovus (CVE), Goldcorp (G), Potash (POT), Suncor (SU) & Talisman (TLM).

Speculative Buys include: Athabaska Oil Sands (ATH) down 12.36% this week, Labrador Iron Ore Units (LIF.UN), Silver Wheaton (SLW) & Teck Resources (TCK.B). For income, keep watch on Crescent Point (CPG) & Vermillion (VET). Remain cautious as the markets can go either way but probably down further still. Good luck.