New Opportunities in a Struggling Stock Market

With the TSX down 3.21% this past week, that puts the index in the negative column for 2011. For the shorter term investor/trader, there have been a few stocks where quick trades can net substantial gains. However, this requires the investor to spend a good deal of the day watching the screen. Please review the enclosed list of different stock opportunity categories:

Overall Strength during Market Weakness: For short to long term gains, a few stocks have demonstrated overall strength and market leadership. These include all the telecoms BCE, Rogers (RCI.B) & Telus (T). Other stronger performers include: Bombardier (BBD.B) & Lululemon (LLL).

Recent Market Strength versus Competitors include: Encana (ECA) & Potash (POT).

Value Opportunities on Recent Stock Weakness include: (1) The financials, particularly Laurentian Bank (LB), National Bank (NA), RBC (RY), Sunlife (SLF) & Toronto Dominion (TD). Watch Power Corp (POW) & Power Financial (PWF) for longer term opportunities. (2) The precious metals sector has also shown weakness even though metal prices are quite strong. Longer term opportunities in this sector include: Agnico Eagle (AEM), Barrick Gold (ABX), Eldorado Gold (ELD) & Goldcorp (G). CNBC’s Fast Money (Monday) recommended watching Silver Wheaton (SLW) for future gains albeit with lots of price fluctuations to be expected along the way. (3) Additional good value picks with strong dividend payouts include: Crescent Point Energy (CPG) & Pengrowth (PGF). Penn West (PWT) & Vermillion (VET) would count as secondary picks in this category.

Stocks to Watch Closely: The metals sector including Hudbay Minerals (HBM), Labrador Iron Ore Units (LIF.UN), Lundin (LUN), Thompson Creek (TCM), and Teck Resources (TCK.B). These have all been suffering of late and stand to increase substantially by early next year.

Stocks for Market Traders this week include: Research in Motion (RIM) announcing quarterly results on Thursday, Sino Forest (TRE) & Yellow Media (YLO). I won’t predict the direction of these stocks (probably negative) but there will lots of price movement. Enerplus (ERF) consistently demonstrates volatility.

Other Long Term Selections: For growth by next year, my traditional picks of Agrium (AGU), Canadian Natural Resources (CNQ), & Suncor (SU). Market sentiment is still somewhat negative so be careful. Have a great week ahead.

 

Opportunities in a Turbulent Market

Another difficult week in the market. However, this presents new opportunities for quality stocks that have been hit hard of late. Take a look at these:
Financials: Top New Picks: Laurentian Bank (LB) which suffered a 9.88% decline this past week. Certainly not my favorite ordinary stock pick but the sharp decline offers mid-long term reasonably solid growth. Royal Bank (RY) has been hit hard of late and rates a strong mid-term buy. Other financial stocks looking primed for mid-long term gains include: CIBC (CM), National Bank (NA) & Sunlife (SLF). TSX Group (X) has shown strong momentum of late.

Resources: Top New Picks: Eldorado Gold (ELD), Russel Metals (RUS) & Viterra (VT) which suffered a 6.81% loss this past week. Still on the buy list for mid-term gains include: Agrium (AGU), Agnico Eagle (AEM), Barrick Gold (ABX), Canadian Natural Resources (CNQ), Labrador Iron Ore Units (LIF.UN), Potash (POT), Suncor (SU), & Talisman (TLM).

Strong Momentum: Worth noting are stocks that have performed well in this drab market. These stocks include: BCE, CN Rail (CNR), Telus (T) & Trans Canada Corp (TRP). Newly added is Bombardier (BBD.B).

Speculative Picks: “Perennial Speculative Pick” Research in Motion (RIM) along with Yellow Media (YLO) – the preferred shares as noted last blog had a wild swing and big profits could have been made for those stout of heart investors. Imagine big quick profits from preferred shares ? Newly added is Toromont Industries (TIH) which suffered a 34.53% decline this past week. For fun, watch the action on Sino Forest (TRE) which dropped 71/56% this past week ! There are a few new picks worth strongly considering in particular the financial stocks listed above. Have a great week ahead and enjoy the heat.