Large Cap Stocks for Short & Long-term Gains

As noted in recent blogs over the past month, mid-late spring is historically not the best time to enter the market. As such, I’ve continually recommended caution and accumulating versus taking major positions in any stock. Defensive and income stocks were highlighted last week. Irrespective, there are still some potential quick and long-term gains based on calculated small moves. Some of these include the following stocks:

Energy: After a sizeable drop last week and into early this, a few major players have potential gains ahead. These are: Canadian Natural Resources (CNQ), Nexen (NXY), Suncor (SU) & Talisman (TLM). For income (and potential growth) watch Crescent Point (CPG) & Penn West (PWT).

Mining: Labrador Iron Ore Units (LIF.UN) & Teck Resources (TCK.B) and more speculative Grand Cache Coal (GCE).

Precious Metals: Agrium (AGU), Iamgold (IMG) & Silver Wheaton (SLW).

Agriculture: Agrium (AGU) & Potash (POT).

Industrials: Canadian National Rail (CNR) & Canadian Pacific (CP). For growth and income, watch Russel Metals (RUS).

Telecom: All 3 major Canadian companies appear headed for solid long-term growth: BCE, Rogers (RCI.B) & Telus (T).

Financials: All six major Canadian banks look strong: BMO, BNS, CM, NA, RY & TD. Also watch Sunlife (SLF).

Speculative owing to recent weakness: Research in Motion (RIM) & Yellow Media (YLO) offering over 13% in annual income.

Continue with caution. Keep plenty of reserves for opportunities (e.g. this past Monday). Good luck and happy holidays.

 

 

Conservative Income & Yield Selections Going Forward

The TSX/S&P dropped 2.9% this past week and year to date is now only up a meager 2.6%. With spring usually signaling market softness, maybe it’s time to reflect on some more conservative stock and bond picks for longer term growth and income ? Take a look at some of the following:

Preferred Shares: Top tier: Bombardier BBD.PR.C 6.538%, BBD.PR.D 6.125%, Brookfield Properties BPO.PR.L 6.436%, Canadian Western Bank CWB.PR.A 6.536%. 2^nd tier (all paying over or close to 5.9%): BPO.PR.N, + Bank/Financials: CM.PR.L & M, LB.PR.D, MFC.PR.D, NA.PR.O & P, PWF.PR.I.

Corporate Bonds: The benefit of corporate versus government bonds must be a substantially higher yield to offset lower security of the guarantee. In addition, long term bonds in general can be very dangerous as yields presumably will rise over the next few years thereby causing their prices to fall. In the mid-term category, Calloway Reit offers annual yields of 4.56% (Oct 2016) & 4.15% (June 2015). In short term category, Citigroup Financial 2.34% (Mar 2013) & 2.06% (Nov 2012), along with Riocan Reit 2.63% (Mar 2013) & 2.04% (Sep 2012). An anomaly worth considering for RSP’s is CIBC’s Strip Bond May 2014 paying 2.91%.

Dividend Paying Stocks: Many of the pipeline and real estate trusts (REIT’s) still offer reasonable 6% type yields. My favourite high paying dividend common stocks include the following: BCE (5.55%), Bank of Montreal (BMO) 4.52%, CIBC (CM) 4.22%, Crescent Point Energy (CPG) 6.34%, National Bank (NA) 3.46%, Pengrowth (PGF) 6.42%, Russel Metals (RUS) 4.24%, Telus (T) 4.28%, & TSX Group (X) 4.0%.

 

 

Large Cap Canadian Stocks Worth Accumulating

As highlighted in blog of last week, the market appears to be near a spring top and this provides for fewer opportunities for short term trading gains. Still, many of the stocks recommended last week for short to mid-term gains posted some very solid mid-week marks, only to shrink back down by week’s end.

These included: Agrium (AGU), Potash (POT), Canadian Natural Resources (CNQ), Suncor (SU), Canadian National Railway (CNR), Russel Metal (RUS), & Teck Resources (TCK.B). Longer Term Precious Metals Recommendations also performed well, including: Agnico Eagle (AEM), Barrick (ABX), Iamgold (IMG) & Silver Wheaton (SLW).

Recommendations Going Forward represent: Stocks in companies worth accumulating and not necessarily short term gains.

These include: Precious Metals: top pick Agnico Eagle (AEM). Metals: Russel (RUS) & top pick Teck (TCK.B). Financials: Bank of Montreal (BMO), Scotia Bank (BNS) and top pick National Bank (NA). Industrials: top pick Canadian National Railway (CNR). Energy: top picks Canadian Natural Resources (CNQ) & Suncor (SU). Income: BCE, Crescent Point Energy (CPG), Rogers (RCI.B), Telus (T), and all the other major banks.

Speculative Longer Term Recommendations include: Cameco (CCO), Silver Wheaton (SLW) – maybe wait for a pullback, and Research in Motion (RIM).

I recognize that most of the recommendations above represent stocks already and often highlighted. However, considering the frothiness of the market at present, it would be best to remain cautious and pick your spots. Continue Market Holding Pattern. Keep ample reserves on hand for opportunities.

Market Nearing Spring Top ?

With the market edging higher, there are less opportunities for picking stocks for quick trading profits. There are however, certain longer term potential gains available. Some of these would include the agriculture, energy and financial stocks. Precious metal stocks are often a 50-50 luck of the dice pick, irrespective that long term prospects for the price of gold look very promising. It’s in the interest of the US to maintain a weak dollar as it fuels export growth and makes debt repayment to foreign lenders less expensive. As such, gold and oil hold long term growth potential.

Short to mid-term stock recommendations include: (Agriculture) Agrium (AGU), Potash (POT) & Viterra (VT). (Energy) Canadian Natural Resources (CNQ) & Suncor (SU). (Financial) Bank of Montreal (BMO), Scotiabank (BNS), National Bank (NA), Royal (RY) & Toronto Dominion (TD).

Mid-to long term recommendations include: (Telecom) BCE, Rogers (RCI.B), Telus (T), (Industrial) Canadian National Railway (CNR) & Russel Metals (RUS), (Mining) Labrador Iron Ore Units (LIF.UN) & Teck Resources (TCK.B).

Speculative or more long term recommendations include: Agnico Eagle (AEM), Barrick (ABX), Cameco (CCO), Iamgold (IMG), Research in Motion (RIM) & Silver Wheaton (SLW).

Second tier recommendations include: CIBC (CM), Cenovus Energy (CVE), Nexen (NXY), & Talisman (TLM).

Market Hold Pattern for now. Good luck.