UnlockRatingInvesting 101: Companies That Don’t Need Money are The Best Investments
This goes a bit in tandem with the first point. If a company doesn’t need money, and its growth is fully funded internally, you are not likely to get a phone call about it. The best companies simply go about their business, year after year, and compound capital. Without needing new equity, shareholders are not diluted. All growth accrues to the existing owners.
These companies can be harder to find. They may not trade much. They may not pay dividends. They may not make the news for 10 years, after which their strong investment performance might finally get noticed. But they are out there. Before buying any stock, an investor should look at how the share count has grown (or not) over the past 10 years. We certainly try to avoid companies that consider their stock like an ATM and issue shares too often.
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REITs lift TSX to record high
The TSX added only 14 points on Friday, but it was enough to lift the Canadian index to a new high of 27,048. Only four sectors lagged, led by tech and only slightly so. REITs did the heaviest lifting. Among the biggest winners of the day were H&R REIT, up 17.22%, Allied Properties REIT at 3.81%, and Boardwalk REIT up 2.72%. In contrast, Ivanhoe Mines sank 1.51% and TransAlta slipped 1.49%. In commodities, gold increased US$11 to US$3,337, and WTI shed half a dollar to US$66.50. Bitcoin slid 2.2% to US$107,550. The U.S. markets were closed on the fourth of July.
🏛 H&R Real Estate Inv Trust (HR.UN-T) +17.22%
🏛 Allied Properties REIT (AP.UN-T) +3.81%
🏛 Boardwalk REIT (BEI.UN-T) +2.72%
⛏ Ivanhoe Mines Ltd (IVN-T) -1.51%
💡 Transalta Corp (TA-T) -1.49%
🅱 Bitcoin (BTCUSD) (CRYPTO:BTC) -2.2%
UnlockRatingThe sector probably trades at a 20% discount to NAV on average. Fundamentals for real estate in Canada are great. Most of our population lives in cities with some kind of land constraint -- border, mountain, water. Land constraints tend to push up rents over time. We also have better population growth than almost any developed country, creating good demand. And Canada's a safe country.
Buying into a REIT at 20% off is a lot cheaper than hiring a firm to buy you a building at full price.
This Week’s Stock Picks & BNN Top Picks Summary: XYL-N, FTS-T and 15 Stock and 3 ETF Top Picks (Jun 27-Jul 03)
This week were 15 Stock and 3 ETF Top Picks in a wide range of industries: Industrials, Utilities, ETF, Healthcare, Basic Materials, Financials, Energy and Consumer. Here are this week´s Top Picks as selected by: Michael O’Reilly, Christine Poole, Chris… read more
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UnlockRatingOur PAST TOP PICK with BLX is progressing well. To remain well, we recommend trailing up the stop (from $32) to $36 at this time.
Markets extend highs
A positive employment number from the U.S. government helped lift markets on both sides of the border to fresh record highs. Wall Street closed early ahead of the July 4 holiday with the S&P adding 51 points and the Nasdaq rising 1% to new highs. Meanwhile, the Dow climbed 0.8%.
Major movers included Expedia up 3.2%, Norwegian Cruise Lines 2.9%, Citigroup 2.3%, Lennar -4.1% and Datadog leaping 14.9% on news of it entering the S&P. The U.S. 10-year yield rose to 4.34% while Bitcoin added US$670 to US$109,880.
Also making highs was the TSX, up 0.55% to close above 27,000. Nine sectors, led by tech and staples, rallied. Healthcare was a laggard. Cargojet soared 8.51%, Boyd Group -3.53%, Celestica 3.62%, Finning 2.95% and Brookfield Business Partners 2.92%. WTI slipped by 25 cents to US$67.20.
🧳 Expedia (EXPE-Q) +3.2%
🚢 Norwegian Cruise Line Holdings (NCLH-N) +2.9%
🏛 Citigroup Inc. (C-N) +2.3%
🏛 Lennar Corp. (LEN-N) -4.1%
💾 Datadog, Inc. (DDOG-Q) +14.9%
🛫 Cargojet Inc (CJT-T) +8.51%
👩💼 Boyd Group Services Inc. (BYD-T) -3.53%
🧬 Celestica Inc (CLS-T) +3.62%
🚚 Finning Int (FTT-T) +2.95%
🏛 Brookfield Business Partners L.P. (BBU-N) +2.92%
UnlockRatingWhat she does for clients is to take the dividend in cash. The DRIP is not a bad thing for accumulating stocks, but her firm likes to have a bit more control. Dividends come in, and they get to choose where to deploy them. This way gives you more flexibility.
For example, she owns AEM which has done very, very well. Instead of "dripping" in more shares at the elevated level, she'd rather put the dividends to work in something that's underperformed, is at a lower valuation, or has a higher yield.
Since she's a little nervous about the markets, she's taking dividends and putting them into money market funds as she waits for a market pullback.
UnlockRatingThe U.S. banks just passed the annual stress tests with strong results. All the 6 big banks raised dividends and some have announced share buybacks which will support the stocks. He owns many banks and expects the good times to continue. Bank valuations are favourable compared to the overall market.
UnlockRatingTwo Types of Behavioral Biases: Cognitive and Emotional
To simplify the classifications, a cognitive error can be defined as an information processing error (statistical and/or memory). It is often the result of faulty reasoning. Many times an investor will "think" they are using a rational process in their decision making but fail due to these errors. Conversely, emotional biases are much harder to correct because they stem from impulse and/or intuition. Often an investor needs to first recognize these issues, then find a way to minimize the effects.
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Trade hopes lift markets higher
The U.S. struck a trade deal with Vietnam on Wednesday, which injected hope into markets and lifted them to new highs. The S&P added 29 points to 6,227 and the Nasdaq rose 190 points or 0.94% to 20,393, both record closes. Reopening from Canada Day, the TSX edged up five points to a new record of 26,862. In contrast, the Dow slid 10 points. The trade news overshadowed a surprise jobs report in the U.S. private sector which cut 33,000 jobs in June.
Key movers on Wall Street included Nvidia jumping 2.58%, Tesla 4.97%, Intel -4.25%, Apple 2.22% and Ford 3.7%. On Bay Street, Bombardier rocketed 21.37% after closing a major aircraft deal, Novagold 9.29%, Energy Fuels 8.51%, Cenovus 4.64% and BlackBerry -8.15%. Meanwhile, Bitcoin climbed 3.4% to US$109,565, gold increased by US$20 to US$3,358, and WTI surged 2.78% to US$67.25. The U.S. 10-year yield edged up to 4.287%.
💾 NVIDIA Corporation (NVDA-Q) +2.58%
🚗 Tesla Inc (TSLA-Q) +4.97%
💾 Intel (INTC-Q) -4.25%
🍎 Apple Inc (AAPL-Q) +2.22%
🚘 Ford Motor (F-N) +3.7%
🚂 Bombardier Inc (B) (BBD.B-T) +21.37%
🥇 NovaGold Resources Inc (NG-T) +9.29%
🛢Energy Fuels Inc. (EFR-T) +8.51%
🛢 Cenovus Energy (CVE-T) +4.64%
📱 BlackBerry (BB-T) -8.15%
🅱 Bitcoin (BTCUSD) (CRYPTO:BTC) +3.4%
UnlockRatingIn his experience, silver is a late mover in a precious metals bull market. Happens when the generalist investor is attracted by the momentum in gold and comes into the precious metals market, and leadership generally changes from gold to silver. He'd expect that to occur because we're in a very endurable precious metals bull market.
It might not happen for a year or two, but you won't need him to tell you when it's occurred. Silver is extremely volatile to the upside when its time comes.
Weekly 52-Week Low (or 52-Week High): BSX-T, TBL-T, IB-X, GOLD-T and More 52-Week Highs and Lows (Jun 25-Jul 01)
52-Week High TSX Stocks Here’s this week’s 52-week high stocks on Stockchase… 🛢 Basic Materials 🚚 Industrials 🏛 Financials 💻 Technology 🛍 Consumer ⚡ Energy 52-Week Lows TSX Stocks Here’s this week’s 52-week lows stocks on Stockchase… 🛢 Basic… read more
Flat Wall Street
Q3 began with a flat session in New York after the Dow rose 0.91%, but the S&P slipped 0.11% and the Nasdaq shed 0.82%. The U.S. 10-year yield stayed around 4.249% while Bitcoin hovered around US$106,200 and WTI remained at US$65.45. The Fed’s Jerome Powell revealed he would have cut the key interest rate by now if it wasn’t for Trump’s tariffs. The most influential names on Wall Street were Nvidia at -2.97%, Tesla -5.34%, Apple 1.29%, Warner Bros. Discovery -4.54%, Ford 4.11% and Palantir -4.14%. The TSX was, of course, closed for Canada Day and will reopen on Wednesday.