Wednesday, May 7, 2014

Something to Buy May 2014

There is always something to buy in the stock market. On Monday, I put out a list of the stocks that I covered and showed what stock might be a good deal based on dividend yield. Now I am trying to categorize what sorts of stocks may be a good deal based on dividend yield.

Categorizing stocks is not as simple as it might seem. Every site you go to has categorized stocks a bit differently. I try to keep this as simple as possible. See my spreadsheet at here. As in other spreadsheets, you can highlight a line or a number of lines for better viewing.

Of the Consumer Discretionary stocks I follow there is a few that are cheaper than their relative historical average price. These stocks would be Molson Coors Canada (TSX-TPS.B) and Thomson Reuters Corp (TSX-TRI). The other cheap Consumer Discretionary stocks are probably cheap for good reasons.

A number of Consumer Staple stocks seem to be cheap. Examples would be Dorel Industries (TSX-DII.B A) and Metro Inc. (TSX-MRU). (Please note that Canada Bread (TSX-CBY) has been bought out.)

The banks mostly seem to be cheaper than their relative historical average price. AGF Management Ltd (TSX-AGF.B) is probably cheap for good reason, but IGM Financial (TSX-IGM), Power Corp (TSX-POW) and Power Financial (TSX-PWF) are cheaper than their relative historical average price.

The stocks showing cheap in the Industrial section are probably cheap for good reasons. There are not many companies cheap in the Tech sector except for small companies like Calian Technologies Ltd (TSX-CTY) and Evertz Technologies (TSX-ET).

A number of energy stocks also seem cheap. Examples are Canadian Natural Resources (TSX-CNQ); Cenovus Energy Inc. (TSX-CVE) and Suncor Energy (TSX-SU). From the stocks I follow, 4 of 6 which are cheap on a relative historical basis are energy stocks.

The infrastructure type utility companies are not cheap. What utility companies that are cheap, seem to be cheap for a good reason. Examples are Atlantic Power Corp (TSX-ATP) and TransAlta Corp (TSX-TA). The Telecom type companies are generally cheaper than their relative historical average price, but I think that there might be future instabilities in this section as the company seems determined to introduce more competition. I must admit that so far the government has been unsuccessful at this.

On my other blog I am today writing about Canadian Natural Resources (TSX-CNQ, NYSE-CNQ)...continue...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.

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