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What are you buying?

2M views 7K replies 514 participants last post by  junior minor 
#1 · (Edited)
I thought it would be interesting and hopefully informative to start a new thread to pass on what we are buying. It would be a little more helpful if you would also provide a bit of the buy story (even if it's just a "hot tip" from a friend.).

To start off, here are a couple that I've just purchased.

Futuremed Healthcare (FMD.UN) - They are the largest provider of nursing supplies, medical supplies and equipment to nursing homes in Canada. I figure this has be a growing industry and somewhat recession proof. Provides a 9.3% dividend. P/E 13.7 P/B 1.2

Interpipelines (IPL.UN) - Utilities seem to be a conservative bet and somewhat recession resistant play in this environment. Provides a 8.1% dividend. P/E 10.6, P/B 1.9
 
#52 ·
topped up ry, td, ing bank, arc energy & fort chicago during recent lows.

sold calls in bmo, ry, arc, power, intel; sold strangles in ing, talisman, cnq.

stuffed the poor old tfsa like a foie gras goose with highly leveraged energy & prec metals, including a diamond driller in ungava, all of which have turned out in the very short term to be a dumb idea. However the year is young. A similar approach in 2009 generated a return of over 50%.
 
#54 · (Edited)
Bought some BPO. Good fundamentals, IMO, and they have some cash that they're looking to employ to buy property at depressed prices. That LIQ.UN looks interesting Stintsont, I've added it to my study/watch list. I was looking at CDL.A (Corby Distilleries), but it looks as though the shareholders may be a little too contolled by the family that owns the majority of the shares. I would still consider CDL.A but not at the current price.
 
#56 ·
I have to share my enthusiasm with LIQ.UN. I bought a short time ago for the high yield with a profitable and growing company. The juicy part for me was the insider buying that was taking place after the big market selloff. Oh, and don't tell me that no one is drinking during these Olympics. I'm looking for an Olympic pop in earnings.
 
#57 ·
I recently purchased shares of National Presto Inc. (NPK)

Small-cap ($850 million)
6 year annualized earnings growth: 26%
6 year annualized dividend growth: 38%
Dividend yield: 6.5%*
Balance sheet: Tons of cash, zero debt
PE: about 14.5

*Dividend is a bit tricky. On some screeners, like Google Finance, it shows only a 0.9% yield. That's because NPK pays an annual regular dividend of $1 (which comes up on the screeners), but also pays a huge annual special dividend every year at the same time that is based on previous year's profits.
 
#58 · (Edited)
I bought Ford @ $11.35 a few days ago. Its doing well : )

I also bought Coke @ 52.75 on Friday, I think its going to be a winning stock as well.

I don't see Dow Jones doing good in the short term however, if your going to be a short term investor, there's still time to invest : )

Edit: Up lots today :) Almost 10% for F and it has only been a week.
 
#59 · (Edited)
Couldn't resist picking up CLC.UN ($12.23) after it hit a 52 week low today. RBC gave the company a slight downgrade to "perform" from "outperform" and that lead to the drop. The fundamemtals and long term outlook still look good to me, although I'm expecting a dividend cut after conversion to a corp.
 
#60 ·
How do you put dividend cut, and good long term outlook into the same sentence?

To me dividend cuts are a kiss of death.

But, considering what this company does, along with a growing population that will require more and more testing, it would appear good.

Does the dividend cut have to do with the conversion back to a corp?
 
#61 · (Edited)
It depends on the reason for the cut. In this case, it is due to restructuring to a corporation and has nothing to do with reduced earnings. I could never understand why someone would necessarily avoid a stock paying, say, 10% for fear that the dividend might be cut perhaps to 6% when at the same time they anxiously buy a stock with a 3.5% dividend in anticipation of that dividend being raised to 4%.

That being, the dividend isn't the only consideration and the high dividend must be accompanied by a quality company. In CLC.UN's case the P/E is 10.91, the forward P/E is 10.81, the P/B is 1.86, P/S is 2.09 and Debt to Equity is 0.77. The dividend is currently 8.2% representing $1.07 per share annually. The EPS is 1.12, which is greater than the dividend. (Many trusts are the other way around.) These are the current G&M stats, TSX is slightly different.

CML healthcare does imaging, lab tests and other medical services. With baby-boomers heading straight into the mega-medical-test stage, I think this has got to be a growth industry.
 
#63 ·
one has to be careful how one is throwing around the word "dividend."

distributions paid out by income trusts are not true dividends. The former contain a mixture of payouts with varying tax consequences, including return of capital, interest, other income, possibly even foreign income, and true dividend. In some cases the proportion of true dividend is negligible.

unfortunately in ordinary parlance, and most unfortunately here on cdnmoneyforum, the generic word "dividend" is being used for both true dividends and for trust distributions.

at the present moment, an income trust can plan to cut its distribution after it converts to a corporation; and can have already announced the dividend that it plans to pay after conversion; and that dividend can be substantially less than present trust distribution; and yet many analysts can still wind up "liking" the situation.

a lot depends on what kind of tax losses the trust will carry forward into its post-conversion existence. A lot also depends upon what kinds of growth initiatives the trust may already be undertaking, so as to enrich its future corporate development.

i don't know spidey's medical service choice, and unfortunately don't have the time right now to take a good look. Just thought i'd post because trust distributions and corporate dividends are apples and oranges, and the word "dividend" should not be promiscuously applied to both; and also because some trusts will be able to carry on as successful corporations even though their future dividends will be less than their present distributions.

(on 2nd thought, though, i tend to agree with the mohgge's point that health service industries are a bit moribund at the present time. Who's to say, for example, that both future governments and insurance companies will not control rising costs of elder health care by chopping and limiting services.)
 
#69 · (Edited)
I had a bit of luck on my side, as the stock shot up to 12.12 at close. Put in a stop around 11.70, so nothing lost if it drops again. CLC.UN is a tricky one, as it was steady-eddy for months, but seem to have run into some tough times with their US division recently. We shall see....as this one could easily be one of those proverbial falling knives. Definitely handle this one with some care...
 
#70 ·
I also picked up more shares today at $11.65. (Tried for $11.50 but it got away from me.)

I've been going over the negativity on various forums but I still can't see this being a discretionary service in any way so I would think that the income has to be fairly stable. And while the debt could be lower, the other ratios stand up quite well (and even the debt is lower than many higher priced stocks).

As a general aside - I offer my buy picks for 2 reasons. The first is to share them with anyone who might also be interested. The second, is to hear any negativity or things I haven't considered while trying to keep an open mind. That being said, I've learned that it should all be taken with a grain of salt. In general, I've probably lost more profits from giving too much credence from negative views (some seemingly well-informed) than I've been saved from losses for being over-ambitious about an investment.
 
#71 ·
Long term I'm with Spidey on this one but there may be a rocky road ahead.

Everyone has seen stocks go through the floor when the distribution gets cut so it's not surprising that there is a lot of negativity about buying before the dividend gets cut. However it seems to me that with the upcoming conversion to corporations a lot of the adjustment is already priced into these shares. People seem to be avoiding these stocks like the plague because of the fear of the future. When the dust settles after the initial announcements there may actually be a bit of pent up demand in the market for the good ones.

Its not likely that people will stop getting sick anytime soon so I think this is a growth industry with decent long term profits.
 
#73 ·
Well, I dumped my CWI a few days ago. Got into MPT.UN on Friday. I always thought they were a decent power company trust, but never really got behind the concept of having a nursing home rolled into the same business. The latest report raised the possibility of spinning that out though, which is what led me to buy in.
 
#74 ·
Cash will be fully deployed by the end of this coming week into mostly junior resource companies. This is in anticipation of a strong move for commodities, including a new high for gold by end of April. Gold has made new ATH's in the past few weeks in several currencies but now expecting for the USD and hopefully CDN$.
 
#75 · (Edited)
This is perhaps a little boring, but I've been switching off equity index funds into bond funds (mostly of a shorter term duration). I think a TSX of close to 12000 represents a bit of a ceiling for now and I'm not prepared to be caught with my pants around my ankles as I was during the last crash. If I'm wrong about the ceiling, I'm still holding enough equities to benefit as well. IMO, that's what we have to do in this environment -- try to be prepared for anything.
 
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