Canadian Money Forum banner

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
 
#2 ·
I recently bought YPG Holdings Inc. 7.3% 2/2/2015
Will be adding to my existing position in TRP within TFSA this month, hopefully @ $35 or less.
Bought the same last year same time at around $30, but no such deal around this time :eek:)

Eyeing several other stocks including CPD, XRE and FTS however, none of them within my expected price range.

Come to think of it, not much out there to buy among the well-known names.

Spidey, I assume both of your buys are income trusts.
Do you have any concerns around their upcoming conversions?
Do you believe a distribution cut is already built into the pricing?
 
#6 · (Edited)
Will be adding to my existing position in TRP within TFSA this month, hopefully @ $35 or less.
TRP is at $35.15 right now, so I'm getting some too. Got rival ENB at $41 in November and now is trading at $47.

Canadian: Bombardier, Canadian National Railway, Goldcorp, Magna, Suncor + banks.

American: Took a chance on Ford & Citigroup at $9 and $3 respectively. Intel & JNJ.

Any thoughts on:

Potash Corp.
RIM
Tata Nano

Waiting for 4th quarter earnings.

Here are some thoughts from money manager of the decade.
http://www.theglobeandmail.com/glob...n-money-manager-of-the-decade/article1416065/

@Spidey: nice thread, thank you!
@Berubeland: thanks for the info. & link on warrants.
 
#3 ·
I buy warrants. For those who don't know warrants are the right to buy a stock at a given price for a given amount of time.

For example I just bought some warrants for Canadian Western Bank. This particular warrant gives me the right to buy a Canadian western Bank share for 14$ until 2014. CWB is currently trading at $20.79 and the warrant at $7.16. So the warrant in this case is trading at a premium of 0.37. If you don't understand this don't worry warrants are usually traded by banks and most people don't understand them.

I have a small amount of capital to work with. To buy CWB I would have to have a minimum of 2079$. I would have 100 shares but I just bought 300 warrants for the same amount. The warrant tracks the share price if the price goes up on the stock the warrant also goes up. So I will get 3 times the appreciation as someone who buys the share.

I also often buy warrants that trade at much lower prices. I just bought 225000 OSU.WT at .005 which is the cheapest a share can go. Then I immediately put them on a GTC for .01 which doubles my money. Then I go about my regular job and wait for email alerts. The biggest problem is not getting excited or urgent about anything and buy low and sell when it goes up even a few cents.

When I started investing I tried to buy good companies and lost my shirt. Now I buy what has no choice but go up. I buy lots of shares and if It goes up even one penny I make a really good return.

Right now I have buy orders in for .005 for CCJ.WT, EMC.WT, and CEK.WT

Remember what I said about banks buying warrants? Well banks buy in large lots and sell in large lots. So when they want to sell I am sitting there waiting to buy and when they want to sell I am waiting to sell. In that way I am market making more than trading.

So yeah that's what I do/trade.

If you want more info.... www.canadianwarrants.com has all the warrants listed and is a great place to start.
 
#4 ·
I've bought some bond funds, CLF, CBO, and CAB (when it was low 19 range). I'm treating CAB as an experiment. ;)

I want to buy some D.UN, but given the price has jumped like crazy I am waiting, even if they are still at 10% yield.

Other than that, I have sold some stuff; which opens up the other side of the question; what are you selling?

I have sold YLO.UN not because I made any cap. gains (maybe 1%), other than the 15% yield they are paying, buy because I thought my position was too large with them; i.e. I had gotten greedy because of the 15% yield and I have no idea what will happen to them year end in terms of yield.

I have also sold some CYH for the 28% capital gain. ;)

So I've been mostly sitting on the fence the last couple months, waiting and hoping for a bit of a correction.
 
#5 ·
A reasonably large portion of my portfolio is sitting in cash at the moment. Still trying to decide; there aren't that many good deals that would nicely complement my portfolio at this time, so I'm on the sidelines waiting for some nice opportunities.
 
#7 ·
Spidey, I assume both of your buys are income trusts.
Do you have any concerns around their upcoming conversions?
Do you believe a distribution cut is already built into the pricing?


Both picks have, pretty solid fundamentals. For example, I compared the ratios of IPL.UN to TRP (which I also own) and ENB and it stacks up fairly well.
I would guess, based on earnings, that FMD.UN may have a 30% dividend cut after the conversion and IPL.UN may be able to keep their current distribution or have a small cut. So yes, I believe that potential distribution cuts are already built in to the pricing.
 
#9 ·
Anyone still here?

Well just in case I am buying Slam Exploration - SXL.V on the venture exchange. They have great proven reserves in their Nash property. At current pricing the value is about 80 cents for just one property. They have several. Results are starting to come in. Few months ago share price was .04 cents. Yesterday it traded around .13 / .14 cents and currently sitting at .11 / .12 cents. The early birds will profit most. This company should be valued well over a dollar.
 
#11 ·
For Capital Gains or 'couch potato'
Continuing to invest in Montrusco Bolton Cdn Small Cap fund, hoping past performance is indicative of future performance...
TD e-series for Can/US/International diversification

For specific Dividend income
One of my goals is dividend income for retirement (or not working) as thus targeting more of EMA/FTS/RY/TD/T/SJR/ENB/TRP/PWF/SLF/SU. No BMO/CIBC yet but maybe. First I have to figure out why I'm uncomfortable about these two and do I really need more finance stocks.

For my US stocks, just CL/ED/GE right now. I believe the CDN to the US is medium-term unsustainable (target is 0.8ish) and thus trying to figure out what to purchase given the tax treatment of dividends outside the RRSP. Perhaps just go with more ALGN.

I don't understand the implications of the Trust conversions nor Trusts in general I suppose so I have no plans to purchase these. While I do somewhat understand options/warrants, I just don't have the guts to invest with these.

For Fixed
No new bonds, no new GICs, just 1 year emergency fund in cash. I'm pretty much 80% equities and plan to increase that through normal purchases.
 
#12 ·
With stocks rocketing upwards since last March, my bond component is below target. So that's where new savings are heading. I use short-term bonds mostly through XSB. The 2.3% yield looks measly but the whole point of an asset-allocation driven investment policy is not to speculate on future direction of interest rates.

As an aside, I'm planning a post on this but thought I'd throw the idea out here as well. Anyone notice how REITs have bounced back and now seem fully valued? RioCan, for instance, is trading at $20 compared to a NAV estimate of $16.30 (according to TD Securities).
 
#13 ·
As an aside, I'm planning a post on this but thought I'd throw the idea out here as well. Anyone notice how REITs have bounced back and now seem fully valued? RioCan, for instance, is trading at $20 compared to a NAV estimate of $16.30 (according to TD Securities).
I did notice this. :p

We upped our exposure earlier in the year, but not the full position, only 50% of what we needed to add for our allocation. What happened to the pending crash/correction in commercial real estate?

Seems not as many companies (non-RE) went under as we first thought. Access to capital for small-caps is much improved and no longer a serious, serious threat - maybe we did get over this thing after all?
 
#27 ·
recently in registered plans bought arc energy for its expanding gas platform in the montney, fort chicago & dundee for high yield. Dundee subsequently rose too far, too fast, so am contemplating selling. Might re-buy if the froth subsides. Do not believe fundamentals have changed but am waiting on next earnings.

in non-registered added to mfc & td on dips, sold otm call options.
may add to tlm & cpg.
put on & quickly closed another diagonal call spread in potash. Out in 4 days w 15% capital gain. Will repeat. A favourite play.
closed diagonal call spread in fxi. This one, dating back to early 2009, had gone well also. Will not repeat.
set up long-term diagonal call spreads in merck, glaxo, canadian xgd. Pharma sector looking good.
numerous other option trades.
bought little-known tax-advantaged interest instrument ocs.un. Not for income but for short-term capital gain. Price had reached bottom of band.

a portion of portfolio is earmarked for hi-risk. Eyeing victoria resources, northland, south gobi energy, sino forest. Familiar w management & business plan 1st 3. This week vit issued another favourable NR that lofted stock 14%, so put plans to acquire more at this moment on back burner. Sino forest still a black box. Isn't everything in china lol.

would pass on bombardier (if the chinese introduce the line of smaller jets they are planning to build, will negatively impact bbd.b.) Pass on holding long rim although i do continuously sell otm puts in rimm, which is a form of mildly bullish approach.

tata motors - have exceptional respect for patriarch ratan tata who is a global business king. However stk is richly priced, i would now only buy stk accompanied by a strangle (a combination of both a short put and a short call, in this case to reduce cost base.)
 
#37 ·
Bought BNS and SU today in my new TFSA acct as their price dropped a bit. Hoping to add TRP and SJR.B shortly and then maybe an insurance juggernaut like SLF/MFC/POW

Don't really know what I'm doing so hopefully I don't burn myself too badly. I may hold these for a long time, or given the opportunity I may sell half the positions to diversify

In RRSP I hold BCE and LMT and I'd like to add more USD stocks while CAD is at par

Still holding 50% cash for this year
 
#38 ·
Been on a bit of a buying spree after taking some profits from some of my preferreds.

Added to my position of IPL.UN. Really like this stock -- has income from pipelines and liquid natural gas storage in Europe. Good fundamentals and is expected to keep the dividend after the conversion.

Bought Westshore Terminals (WTE.UN). This one isn't currently a darling of the analysts, but it has a good balance sheet and good income. There is some question about locking in future contracts, but with Jim Pattinson at the helm I not too worried. Clean balance sheet and no long term debt. China's demand for coal is expected to be grow at fantastic rates so I consider this to be a way to play the China market.

VET.UN - Vermilion Energy Trust. This one is currently a darling of the analysts. About 50/50 oil gas. I'm a long term bull on energy (but realize that the short term could be volitile). China passed Japan as the #2 vehicle market after the US. Enough said.
 
#42 ·
Yesterday Bought some :

BMO
CVE
BNS
HSE
XRE
CHB

Sold some:

CYH
D.UN - couldn't resist the cap gain that has happened in the last few weeks since I purchased. 21% up in a couple weeks; I'll take the cash. Some of you must really be smiling about this one ;). I'll re-buy when / if it does go back down.
CBO
CLF
 
#44 · (Edited)
We just finished a big debate about preferreds in another thread. Here's my opinion (others disagree):

High ranking preferreds (especially bank preferreds) are a good product to consider if you are more concerned about income and the security of that income. Common shares are probably better if you want some eventual growth in shares and income.

So if I was well into retirement and wanted reasonably stable income, my tendency would be to add bank preferreds to my portfolio.

If I had a few years to go until retirement, I would probably buy the common.

However, once in a while market forces may be such that you would want to break these "rules".

Here is Leslie's link on preferreds:

http://members.shaw.ca/retailinvestor/preferreds.html
 
#50 ·
US companies have been beaten down so much, lots of room for upside.. plus the majority of companies in the S&P derive lots of their overall profits from oversea sales

As long as you are buying with a margin of safety in a good company with ethical management and with a track record of success, it shouldn't matter where you buy your equities
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top