Canadians Enter Here

[accountingsucks]

Us Canucks are in the minority here, so I would like to create this thread for all us Canadians to discuss Canadian specific stocks

I recently picked up some BMO after their huge gas trading losses at around $69 as their div. yield was close to 4% after the drop and the news - although troubling - will not affect their future cash flow (ie dividend will remain).

Overall I don't see too many buy opportunities in the TSX at the moment.

 

[kumquat]

RY might have been one a day or 2 ago. Similar senario to BMO.

 

[kcowan]

If you can handle volatility, Jones Soda (JSD.V) is being beaten down by their 1Q results missing the street. Currently about $20 after a high $10 more. Connacher O&G is also fairly priced (CLL.TO). Most everything else is pretty high. For a riskier play, Ondine Pharma (OBP.TO) has been hit too.

 

[Calgary_Girl]

What do you think of Tim Horton's? The price has come off the past couple of weeks and I've heard rumors of them planning to use excess cash to increase their dividend.

 

[accountingsucks]

I don't own any Tim Hortons as I don't like to hold anything in retail or the food industry. Having said that I read that same store sales frowth data was really good (about 8%) and they have super aggressive expansion plans into the U.S. If Tims' becomes as popular there as it is here, then it will take off, but I personally do not think it will. They'll do just OK in the US I think, but not anything spectacular.

 

[kcowan]

We bought THI in the IPO to avoid missing out on another Starbucks. We are hanging in for the dividend. But like AS, we would not have it if not for the IPO pop.

 

[Freein05]

Not a Canadian but own some Canadian Royal Trusts. I have been trying to understand what will happen to these with the tax changes. I do not know if I am lucky or not all of them except one have been bought for cash by other companies. I was looking at putting the money into Canadian REITS. As I understand the tax law changes these will not be affected. Is this true?

 

[AltaRed]

Tax changes on trusts will affect some REITS. It depends on the sourcing of their income. I have not followed which ones, but the one I own REI.UN is not affected by the tax changes.

Consider doing a REIT thread search on Financial Webring Forum :: Index or Google 'Canadian REIT Tax Changes' for possible leads. Or better yet, inquire with Investor Relations of the REIT that you are considering. Most Canadian REITs know where they stand vis-a-vis tax changes.

 

[Freein05]

Tax changes on trusts will affect some REITS. It depends on the sourcing of their income. I have not followed which ones, but the one I own REI.UN is not affected by the tax changes.

Consider doing a REIT thread search on Financial Webring Forum :: Index or Google 'Canadian REIT Tax Changes' for possible leads. Or better yet, inquire with Investor Relations of the REIT that you are considering. Most Canadian REITs know where they stand vis-a-vis tax changes.

Thanks!

 

[Meadbh]

I don't own any Tim Hortons as I don't like to hold anything in retail or the food industry. Having said that I read that same store sales frowth data was really good (about 8%) and they have super aggressive expansion plans into the U.S. If Tims' becomes as popular there as it is here, then it will take off, but I personally do not think it will. They'll do just OK in the US I think, but not anything spectacular.

I agree about Tim's. Tim's is a cultural icon in Canada, but it has many competitors in the US and probably the quality of the coffee will not be enough to stand out in a saturated market. Having said that, limited growth in a huge market could be significant.

As for the retail or food industries, some of my best buys have been in these industries. Some years ago I held Danier Leather and made a significant profit within two years. Within the past 18 months I bought Shoppers Drug Mart at $41.59. Its current market value is $50.43; I bought Sobeys at $38.02 and current market value is $57.65. In fact, shareholders are being offered a buyout at $58. I voted yes and plan to put the profits towards a downpayment on some investment real estate.

I think there are two issues here. First the industry. Retail has a very low profit margin and is highly volume dependent. So you really have to read the strategic plan, look at the implementation, and see whether the company is pursuing a good business plan in areas of population growth. For example, retail pharmacy and health products in an aging boomer society is obviously a growth sector. And everyone has to eat, and Sobey's is expanding in the West, where the action is. Another factor in choosing these stocks because I liked the product, the quality approach in Sobeys' case, and the business plans. I use the research tools on TDW's site to compare firms with industry peers in terms of volume, PE, etc.

 

[greg]

I'm not a Canadian, but I play one on message boards. So I bought a small amount of this one on a lark the other day:

KHD.TO: Summary for CANADIAN HYDRO DEVELOPERS - Yahoo! Finance

I'm thinking of buying more. Any . . . um . . . Canadian thoughts on it?

 

[kumquat]

PE seems rather high.

 

[greg]

PE seems rather high.

Yeah, no kidding. After thinking about it, my real question is about politics . Is Canadian national energy policy changing? I know they recently passed a law banning the sale of incandescent lights. Do you see a shift in policy toward clean energy and conservation?

Sorry if this seems off-topic, but it is related to how I choose stocks: the trend is your friend.

 

[kcowan]

There is a CO2 reduction movement underway. The minority government status should prevent any aggressive wrongheaded action by the politicians. Coal-fired plants will likely have to clean up their emissions. Not likely to be any new nuclear ones.

 

[greg]

There is a CO2 reduction movement underway. The minority government status should prevent any aggressive wrongheaded action by the politicians. Coal-fired plants will likely have to clean up their emissions. Not likely to be any new nuclear ones.

Thanks. A fair number of my stocks are energy related Canadian income trusts. And after they take out the 15% tax I feel [-]sore[/-] Canadian.

How bout that Canadian $?

 

[kcowan]

Thanks. A fair number of my stocks are energy related Canadian income trusts. And after they take out the 15% tax I feel [-]sore[/-] Canadian.

How bout that Canadian $?

C$ is up 9% YTD about the same as the DJIA.

The 15% will be credited to your income tax under the tax treaty. So it should be a wash. Just a cashflow issue (unless it is held in a 401K).

 

[ForeignExchange]

Anyone have any thoughts on Methanex, listed on the TSX as MX?

 

[kumquat]

Where are you Canucks?

Thanks. A fair number of my stocks are energy related Canadian income trusts. And after they take out the 15% tax I feel [-]sore[/-] Canadian.

How bout that Canadian $?

So does the rising C$ make you a happy camper? My VTI is up nicely in US$ and down somewhat in C$.

And to give this topic a bump, I've replied.

 

[Grizz]

In my E-trade "swing-for-the-fences account" I bought Timminco TIM on the TSX about 6-8 weeks ago. It's been nothing short of an adrenalin rush since I'm up 176% to date. It's at about $15.60, and in April was at .23 cents. I've never had a tenbagger before, and I'm staying in hell or high water until I either get my tenbagger, it slows down and trades sideways for a few months, or it drops like a rock. Volume is high, and 10-20% intraday moves are commonplace with this one.

This is the sort of thing that I use this account for. Not a blue chip anywhere in sight, only white knucklers chosen strictly by gut instinct on a story, and by how straight up the line goes.

You'd think I'd have learned my lesson since I'm still holding a few Paladin shares that were rocket ships for a while but now am down around 30% on that one.

 

[Meadbh]

Congratulations Grizz! In your situation, unless you spent less than $100 to purchase these shares, I would sell now and take the [-]profit[/-] capital gains.

Different strokes.......

 

[kcowan]

TIM is still on some buy lists so it might be worth hanging on for a higher ride.

We bought LLL on a pullback $34.90 3 weeks ago and it is at $43.50 but has been over $46...hanging on for the ride! 300 shares.

 

[Bigritchie]

If you can handle volatility, Jones Soda (JSD.V) is being beaten down by their 1Q results missing the street. Currently about $20 after a high $10 more. Connacher O&G is also fairly priced (CLL.TO). Most everything else is pretty high. For a riskier play, Ondine Pharma (OBP.TO) has been hit too.

I LOVE Jones Cola (the taste), the berry lemonade just rocks. They have a pretty large cult following also, and I figure sooner or later Coke or Pepsi will just buy them out. Great product though, they make their soda with pure sugar cane instead of that wacky syrup stuff the big boys use, and I think it taste much better.

 

[kcowan]

I LOVE Jones Cola (the taste), the berry lemonade just rocks. They have a pretty large cult following also, and I figure sooner or later Coke or Pepsi will just buy them out. Great product though, they make their soda with pure sugar cane instead of that wacky syrup stuff the big boys use, and I think it taste much better.

Yes they have a great future. Sadly they are learning about life being listed on NASDAQ and have attracted many class action suits. We are sitting on the sidelines until they work that out - sold at a PEG of 4!