BUY
In the long term he thinks they will come back. Government ownership is going to start to dissolve away. From this level you can look at it as a trading position but thinks they will come back and start to deliver. Sees decent earnings growth this year and next.
DON'T BUY
S&P/TSX Energy ETF. A lot of ups and downs in the chart and you can almost look at it from a trading perspective. Chart is showing lower highs. He would prefer individual energy names such as Pacific Rubiales (PRE-T) or Penn West (PWT.UN-T).
PARTIAL SELL
Relative Strength Index is 71 and anything above 70 is considered overbought and it will pull back at some point. You can ride the momentum but at this point if you are long the stock, consider taking some profits.
WATCH
Chart shows is starting to get back to the $32 level so you have to be careful if that is its ceiling. Doesn't particularly like the consumer staples area as it is more of a defensive play. Doesn't see a lot of earnings growth. 3.67% yield might be what is pushing the stock recently.
DON'T BUY
Which is better, Shoppers (SC-T) or Walgreen (WAG-N)? Movement and some of the fundamentals of the 2 stocks are very similar. Both yielding about 2.4% and are trading at 14X PE multiples. Shoppers long-term earnings growth is expected to be 4% while Walgreen's is 14%. Consumers staple is not his favourite area.
DON'T BUY
Which is better, Shoppers (SC-T) or Walgreen (WAG-N)? Movement and some of the fundamentals of the 2 stocks are very similar. Both yielding about 2.4% and are trading at 14X PE multiples. Shoppers long-term earnings growth is expected to be 4% while Walgreen's is 14%. Consumers staple is not his favourite area.
DON'T BUY
Chart shows it is falling and is bumping up against the 50-day moving average continuously. For the time being he would be very careful.
BUY ON WEAKNESS
Agriculture and fertilizer stocks have moved up very nicely. This one looks like it has got into the overbought area. Relative Strength Index is at 67. Look for a lower entry point such as the low $70's or high $60's. Earnings growth looks wicked going to be okay