With the market generally winding downwards, it has been near impossible to make any substantial recommendations for stock trading, which is the goal of this blog. However, as certain great company stocks break past or even close to new 52 week lows, it opens up opportunities to pick them up at near bargain prices, at least for smaller positions. Take a look at the following:
Financials: Bank of Montreal (BMO), Scotiabank (BNS), CIBC (CM), Great West Life (GWO), National (NA), Royal (RY), Sunlife (SLF) & Toronto Dominion (TD). Look at the yields and P/E’s. Sunlife is paying near 6% in annual dividends, many of the banks close to 5%. Why purchase a low yielding bond ? The corporate fixed income market is probably not as secure as we’d like to think anyway…
Energy: Canadian Natural Resources (CNQ), Encana (ECA) paying a 3.5% dividend ! & Suncor (SU). Even 2nd stringers like Nexen (NXY) & Talisman (TLM) look interesting.
Resource-Industrial +: Agrium (AGU), Canadian National Rail (CNR), Canadian Pacific (CP), Potash (POT), Teck Resources (TCK.B). Careful with precious metal stocks, you never no how the wind can abruptly change. The agriculture stocks have held up reasonably well of late.
Safety Play: BCE. Continually churning out revenue and profits, almost irrespective of the economic conditions. Good luck, stay defensive but be open to possible longer term picks.
