Sunday, May 15, 2011

Struggling through Market Weakness

Sunday, May 15, 2011

As predicted, the month of May is generally cruel to investors. With the TSX down over 4% over the past two weeks, that puts the overall market’s performance in the negative column for the year 2011. This could be a sign to slowly pick up some great companies at lower costs. It also shows which companies have survived the turmoil intact.

Strong Performers in May have included: Canadian National Railway (CNR), Crescent Point Energy (CPG) which also pays a 6.19% annual dividend distributed monthly, Encana (ECA), Grande Cache Coal (GCE), National Bank (NA), Pengrowth (PGF), Penn West (PWT), plus all the high dividend paying telecoms, particularly BCE & Telus (T.A), both of which hit 52 week highs.

Conservative picks still available include: Preferred Shares: BBD.PR.C (6.47%), BPO.PR.L (6.345), CWB.PR.A (6.59%), BPO.PR.N (5.93%), LB.PR.D (5.92&) & NA.PR.O (5.95%). In the fixed income category, Bell Alliant offers some 5-8 year out corporates paying between 3.52% - 4.80%. In the 8-10 year out category, paying between 4.8% - 4.98% are Shaw, Transalta, Brookfield, Enbridge Income & Rogers.

Great Companies Moving Forward: many great stocks have been hit hard of late and their current price could offer considerable upside if held for the next 6-10 months. Divided into their respective categories, these include:

Energy: Canadian Natural Resources (CNQ), Suncor (SU) & Talisman (TLM). Precious Metals: Agnico Eagle (AEM), Barrick Gold (ABX), Goldcorp (G), & Silver Wheaton (SLW). Metals: Hudbay Minerals (HBM), Labrador Iron Ore Units (LIF.UN), Lundin Mining (LUN), Teck Resources (TCK.B), & Thompson Creek Metals (TCM). Agriculture: Both Agrium (AGU) & Potash (POT) have pulled back severely of late and should be much stronger by next year.

Other Opportunities: Canadian Pacific (CP), Research in Motion (RIM), Rogers Communications (RCI.B), Sunlife (SLF).

Keep a cool head under fire ! There are several opportunities unfolding for long term gains. Good luck.

 

 

0 comments:

Post a Comment