Latest Stock Buy or Sell? Make More Informed Decisions!

Markets. The breadth of the NASDAQ is lowering even though it made an all time high last week. The Russell 2000 (mostly NASDAQ small cap stocks) was actually down on the day, which is not a positive sign. OIH-N is bottoming, but because the glut in oil supply is not getting cleaned up any time soon, this bottoming process will take some time. Maybe into next year it will come back down again as part of that bottom process. Take some long term money and put it into the energy sector for 5 years and get a good dividend. We are starting to see growth in Europe. The biggest export in Greece is refined oil products. He thinks this will be an interesting play.

There is not a Canadian ETF that is similar. He loves the sector longer term. The uranium sector has been crushed 60-70% since the Japan crisis so it is ready for double or triple. We could lose 10-15% in the currency, but that is not a problem. There is an easy 50% in the next two years in the ETF. It will be very volatile. You have no choice, but to take on the US$ exposure.

There is always risk in these. Every day, to get the 2 to 1 leverage, when the market goes up they have to buy more of the derivative the next day to get the same benefit. When the underlying commodity is volatile, you get more erosion of the ETF value. Nat gas is amongst the highest in volatility. It is better to play it with the equity ETFs. ZJN-T, for example.

2/3^rds of revenue is from refining and marketing through Petrocan gas stations. He expects them to surprise to the upside. Technically there is a lot of overhead resistance in the $42 area. If oil prices revisit their lows then this one will fall to $35 and he really likes owning it there and then sell close to $42.

Educational Segment. Couch Potato Investor. There is risk in buying and holding. RAFI smart indexes have a great track record of forecasting forward based on what the inflation rate is, on bond yields and what a 60/40 balanced portfolio might look like as we move forward. They are forecasting a 4% return in a balanced portfolio over the next 10 years. They have a web site so people can follow this. You have to look at risk and return together. Higher returns are going to come in the future from emerging markets.

When the markets go down the VIX spikes up. This ETF will work for a few days, but you have to be precise on the timing on when to go into it. This one makes money when you think the markets are going up. When the markets go down, this one goes down very hard.

Markets. The big story is that since the beginning of the year 14 countries have cut interest rates around the world. There is very anemic global growth and deflationary worries around the world. Interest rates should stay lower for longer. He likes mid cap value and small cap stocks. There are bargains out there, but they are increasingly hard to find. He is keeping more than 5% cash on the books. Over half of his stocks are benefiting from a higher US$. This approach should pay him good dividends for the remainder of the year.

One of his largest holdings for 9 years. Used to be dirt cheap and growing and is now revalued as an infrastructure stock. They have some huge projects to expand their container facility in Montreal. Well warranted valuation. 15 times forward earnings. Buy it and put it away.

The valuation is extremely expensive. He feels this whole sector is very saturated, competitive and expensive.

A rock solid company. Trades at a premium and is rather expensive. He is watching it. Hold it and buy more if it goes down a lot. Don’t think about stop losses.

They may have more synergies and results because of Shoppers, but it is a very expensive and tough sector. He would only buy it on weakness. In hind sight he should have kept his Shoppers stock before the acquisition and held it as L-T.

His impressions were that they are focused on an acquisition and roll up strategy. Their conference call did not focus on operations. He does not know if they can integrate their acquisitions and operate them properly.

They generated a lot of revenue from fees and he needs to know the source of them. He needs to know it is not a play on credit ratings just so you get a lower cost of funds. He would suggest you keep it if you hold it. Keep an eye on the sectors they are in. They are well managed and well positioned.

Really likes the story, but the stock went parabolic and they issued a lot of shares last week. Initially the stock reacted positively. Now there is an overhang that a founding shareholder still holds a lot of shares he wants to sell. He does not know if they can keep up their buying of troubled hospitals over the next couple of years. In the $6 range, it would be interesting for him.

(Top Pick May 5/14, Up 34.70%) The stock treaded water for a while. He knew there was potential in a business called ‘exact earth’. The stock is up about a dollar due to re-valuation. They also made two more acquisitions in the last year. They made a lot of really good moves. The core business is worth a lot more. It is a core position for him.