This week we note a nice rebound from the Metro Inc. (MRU) stock. It’s jumping at its 52-week high just 2 months after hitting its 52-week low.
Here’s this week’s new 52-week highs stock list …
He is a big fan of this company and likes their management team. Their own risk management tolerance is low. A lot of buildings in Toronto and Vancouver, but they also hold office space in tight markets. They find older buildings and turn into nice new spaces. The balance sheet is healthy.
Office properties. They may get reconfigured in the future. It has not recovered and still is not all that cheap. They have a heavy debt load.
It is one of the two sectors he really likes within real estate. Multi-unit residential properties in Toronto, Ottawa and Montreal. Housing affordability is very low. They buy properties in strategic locations – key jurisdictions in high demand. (Analysts’ price target is $16.02)
Eastern Canada focused in the multifamily space. He likes the company. This is a sector you want to be invested in. It trades at a discount to its net asset value. It sold off too much.
He likes it for being in multi-family rentals. It's challenged because it's controlled by Morguard Corp. Diversification is 43% in Canada, 57% in the United States. Nice dividend. Probably worth $22/share. But there's better value elsewhere like CAP REIT or BSR.
A lot of investors were agnostic about what area of real estate to get into before the pandemic but now they are getting more selective. Even within retail they are picky. He would prefer this one to other retail REITs. They can capture some of the upside. It is necessary that we can maintain these…
It is a hold like most utilities. Canadian utilities cleaned up their balance sheets since the last recession and then used them to acquire US companies. This has largely been played out now. The CEO has recently stepped down and this creates uncertainty.
A good dividend play. The yield is at 4.6%. People tend to focus on the tech side of green stocks, but this has utilities that have consistent income. They are a potential takeover target for Brookfield so the price has recently shot up. Could get decent returns.
🛢 Basic Materials
There were forced lows from a massive liquidation from parity funds. The trend has been up, up, up and he still sees a lot of upside.
You want defensive stocks right now. Big thing is Jean Coutu, and integration will create earnings and cash flow growth. More difficult issue is how to expand that brand beyond Quebec, and this is already priced into the stock. A defensive name, and you can do quite well. Yield is 1.7%.
Short vs. long term bonds. Generally as the expectation comes for rate hikes, you want longer term bonds. You don’t want corporate because if the economic slows, you just want government bonds.
He prefers corporate bonds because they yield more than government bonds. Prices will probably continue to fall. You are getting a bigger yield payment than the yield to maturity on the bonds themselves. CBO-T would be the replacement for this ETF.
How do DLR and DLR-U work? One bets on the US dollar, and the other bets against it. They're currency plays. He prefers betting on it, the DLR, because the USD is on the upside.
(A Top Pick Jul 31/19, Up 0.4%) This is a way to lower volatility. A return of 2.15% per year, paid monthly. Hold it during volatility, sell it, and use the return to pick up your cyclicals during periods of seasonal strength.
Use this list wisely to identify buying opportunities.
Happy trading !