FOCUS: Canadian Equities
Market Outlook:
One of those extremely rare occasions when nearly everything significant that is occurring was and is predictable. Rates continue to be static at their extremely low levels and forecasting rising rates remains impossible. The Canadian dollar was and is rising in coincidence with a strengthening oil price and gains in other commodities. Oil is reacting partly in empathy with the gains in other natural resources despite the ongoing production battle between the Saudis and Iran and perhaps other OPEC contrarians. Positioning in resources stocks, including gold should support the strength and so also should the ongoing merger events and fresh resources discoveries that are encouraging the market. Across to technology: observers are beginning to say that Apple is rolling over having long inferred that nothing stunningly new should be expected in the product range – a negative course being solidified by the FBI being able to break into hand phones turning consumers off bothering to buy new ones, sales actually reported as slowing for the first time in 10 years and the company announcing the unseemly raising of its authorized buy-back program to $250 billion of its own shares by 2018. If this uncreative move serves only management and other close interest parties it might turn out to be a faltering point for the communications technology sector at large. Despite all of this special opportunities will continue to arise across all sectors. Final touch: I was undetermined about a third pick this morn until that early day clarity hit me. Why not select something from the best performing sector – GOLD! Watching the political freak show in the United States makes it even more important to follow the trend.
TOP PICKS:
First National Financial (FN.TO)
Remarkable. Highest quality Mortgage Company in the land
Airboss of America (BOS.TO)
The stock has dropped too much on lumpy quarterly earnings and the company is the leader and sometimes the sole supplier in rubber wear for military purposes and in certain specialty hardened rubber goods for industry.
Pretium Resources (PVG.TO)
A last minute inclusion on fabulous grades announced this week – I think it is still owned by me since the wreckage of the last bear market.
| Disclosure | Personal | Family | Portfolio/Fund |
|---|---|---|---|
| FN | Y | N | Y |
| BOS | Y | N | Y |
| PVG | Y | N | Y |
Past Picks: May 11, 2015
Cara Operations (CAO.TO)
| Recommended at: | Now at: | Change | Total Return |
|---|---|---|---|
| $30.09 | $32.27 | +7.24% | +8.27% |
Milestone Apartment REIT (MST_u.TO)
| Recommended at: | Now at: | Change | Total Return |
|---|---|---|---|
| $13.71 | $17.18 | +25.31% | +31.13% |
Input Capital (INP.V)
| Recommended at: | Now at: | Change | Total Return |
|---|---|---|---|
| $2.92 | $1.60 | -45.21% | -45.21% |
Total Return Average : -1.93%
| Disclosure | Personal | Family | Portfolio/Fund |
|---|---|---|---|
| CAO | Y | N | Y |
| MST_U | Y | N | Y |
| INP | Y | N | Y |
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