Okay, that is a stupid title for any thread, but often it matter in the market. It at times will favour some sectors and ignore, hate others. and then it all changes.
for example the past three years the best sector in Canada was the reit, and utilities, people chased yield, stocks that would yield 8%+ (reits) or well over 4-5% utilities have been bid up and up, almost to the level they are now trading like high flying growth stocks.
here are some examples.
1. ENB (US/Cdn. ) $39.86 Enbridge is a great pipeline stock own it in a drip/spp plan, for over a decade almost two. yield was 8% and it grows the div.
however though the div should continue to grow and nothing wrong with 2.83% yield used always give 4%, also pe is 28.
now they should be able to grow over 5 years but you are paying for that growth.
would rate it a hold and a sell (well some of positon over $40.) great company just not cheap.
2. TRP starting talking about this company at 18 and well mostly at 28 and up, mainly liked the yield, bought most of positon at 28-34.
very good pipeline theme here, 3.85% growth but also trades PE 23, there is growth but slower than enb. now at 45cdn. (tradesUScdn.)
another hold buy below 40.
3. Fortis cdn. utility, started a thread called investing is easy, well sometimes, believe this was 24-25, plus the yield were looking for 10%
now at 33.21 yield 3.61%
good long term hold they have increased their div for the past 52 years, but who is counting. still they will grow very slowly, a hold.
Reit. the reits looking at in cnd. now barely yield 5%, also if rates do go up they will be hurt by them also it the economy tanks, limited growth and small to no div increases for the most part.
the sector is a buy on a 10% pullback, if it comes.
THE INGNORED
oil and gas stocks, stocks like cnq and SU are trading at around 10X earnings and as if oil is already at 70 maybe it gets there, but no one wants an oil.
jr. oils, that is even worse the stock I profiled here top 3, went from 3.50-3.80 to 4.30 then hello 3.
also stocks like legacy oil and gas toronto went below 6 now at 6.80. still cheap.
Athabasca went to 10.50 now 12.60 still cheap, note sold puts at 10 so mostly biased on this name staying above 10 in the next four five months, premiums were/ are excellent.
golds, okay the sr. golds suck, but they trade at 10X pe there historical is 25-30 for many years. not sure if they deserve that but any rebound in gold and these should at least hold there own.
yes forgetting about tech companies that are growing profits and trading at 10-15X earnings but only so much room.
thanks
selkirk
for example the past three years the best sector in Canada was the reit, and utilities, people chased yield, stocks that would yield 8%+ (reits) or well over 4-5% utilities have been bid up and up, almost to the level they are now trading like high flying growth stocks.
here are some examples.
1. ENB (US/Cdn. ) $39.86 Enbridge is a great pipeline stock own it in a drip/spp plan, for over a decade almost two. yield was 8% and it grows the div.
however though the div should continue to grow and nothing wrong with 2.83% yield used always give 4%, also pe is 28.
now they should be able to grow over 5 years but you are paying for that growth.
would rate it a hold and a sell (well some of positon over $40.) great company just not cheap.
2. TRP starting talking about this company at 18 and well mostly at 28 and up, mainly liked the yield, bought most of positon at 28-34.
very good pipeline theme here, 3.85% growth but also trades PE 23, there is growth but slower than enb. now at 45cdn. (tradesUScdn.)
another hold buy below 40.
3. Fortis cdn. utility, started a thread called investing is easy, well sometimes, believe this was 24-25, plus the yield were looking for 10%
now at 33.21 yield 3.61%
good long term hold they have increased their div for the past 52 years, but who is counting. still they will grow very slowly, a hold.
Reit. the reits looking at in cnd. now barely yield 5%, also if rates do go up they will be hurt by them also it the economy tanks, limited growth and small to no div increases for the most part.
the sector is a buy on a 10% pullback, if it comes.
THE INGNORED
oil and gas stocks, stocks like cnq and SU are trading at around 10X earnings and as if oil is already at 70 maybe it gets there, but no one wants an oil.
jr. oils, that is even worse the stock I profiled here top 3, went from 3.50-3.80 to 4.30 then hello 3.
also stocks like legacy oil and gas toronto went below 6 now at 6.80. still cheap.
Athabasca went to 10.50 now 12.60 still cheap, note sold puts at 10 so mostly biased on this name staying above 10 in the next four five months, premiums were/ are excellent.
golds, okay the sr. golds suck, but they trade at 10X pe there historical is 25-30 for many years. not sure if they deserve that but any rebound in gold and these should at least hold there own.
yes forgetting about tech companies that are growing profits and trading at 10-15X earnings but only so much room.
thanks
selkirk
