Today, I just wanted to say what I did with my new money for TFSA for January 2015. I had been looking at a number of options, but decided to buy Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF) with most of the money. I had a bit left over so I bought as filler some more McCoy Global Inc. (TSX-MCB, OTC-MCCRF).
I recently reviewed Transcontinental Inc. and my reports are available here and here. See my spreadsheet at tcl.htm.
This is a dividend growth stock and no one seems concerned about this company's dividend even though they have had some trouble since 2008. The company just raised their dividends by 10.3% showing they have faith in the future. I have not yet decided if I will keep this for the long term or just until it recovers. I will keep an eye on it.
I am using small dividend paying stocks to soak up extra money I have in my accounts. McCoy Global Inc. is one such stock I am been using. My most recent reports on McCoy were in June of 2014 and are availablehere and here. See my spreadsheet at mcb.htm.
On my other blog I am today writing about Rogers Sugar Inc. (TSX-RSI, OTC-RSGUF) ... 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.
Wednesday, January 28, 2015
Monday, January 26, 2015
Analysts' Recommendations and What They Mean
Do you find that analysts' recommendations are confusing? It is not so bad when you realize that almost all analysts' recommendation are on a 5 point scale.
Most places where you find a collection of analysts' recommendations, they will be using a 5 point system, and they will make a consensus call based on what the majority of the stock analysts think, according to this scale.
Say, according to Morning Call, there are 9 analysts and 5 say a stock is a buy, 3 say a buy/hold and 1 say hold. You should consider this a buy. If you take the Morning Call ratings, you would give the buys 1 point for each analyst (or 5 points) and buy/hold 2 points for each analyst (or 6 points) and the hold 3 points for each analyst (or 3 points) for a total of 19 points. Divide by 9 to get 1.5, which is a buy.
The Globe & Mail no longer gives out ratings. However, Morning Call rates stocks as Buy (1), Buy/Hold (2), Hold (3), Hold/Sell (4) and Sell (5). See their recommendations at their site.
Another place to get analysts' recommendations is at 4 Traders. They use ratings of Buy (1), Outperform (2), Hold (3), Underperform (4) and Sell (5).
Possible ratings you will come across are:
Got a Buy on Weakness or Watch recommendation? Generally this is because they think that the price is currently too high and it might go lower. Sometimes the "Don't Buy" recommendation is meant as a Hold.
On my other blog I am today writing about Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF) ... 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.
Most places where you find a collection of analysts' recommendations, they will be using a 5 point system, and they will make a consensus call based on what the majority of the stock analysts think, according to this scale.
Say, according to Morning Call, there are 9 analysts and 5 say a stock is a buy, 3 say a buy/hold and 1 say hold. You should consider this a buy. If you take the Morning Call ratings, you would give the buys 1 point for each analyst (or 5 points) and buy/hold 2 points for each analyst (or 6 points) and the hold 3 points for each analyst (or 3 points) for a total of 19 points. Divide by 9 to get 1.5, which is a buy.
The Globe & Mail no longer gives out ratings. However, Morning Call rates stocks as Buy (1), Buy/Hold (2), Hold (3), Hold/Sell (4) and Sell (5). See their recommendations at their site.
Another place to get analysts' recommendations is at 4 Traders. They use ratings of Buy (1), Outperform (2), Hold (3), Underperform (4) and Sell (5).
Possible ratings you will come across are:
| 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|
| Strong Buy | Buy | Hold | Underperform | Sell |
| Buy | Buy/Hold | Hold | Hold/Sell | Sell |
| Buy | Overweight | Hold | Underweight | Sell |
| Buy | Buy/Hold | Hold | Weak Hold | Sell |
| Action Buy | Buy | Hold | Reduce | Sell |
| Buy | Outperform | Hold | Underperform | Sell |
| Buy | Outperform | Market Perform | Underperform | Sell |
| Buy | Outperform | Sector Perform | Underperform | Sell |
| Strong Buy | Moderate Buy | Hold | Moderate Sell | Strong Sell |
| Top Pick | Buy | Hold | Don't Buy | Sell |
| Strong Buy | Accumulate | Neutral | Swap | |
| Top Pick | Buy | Outperform | Market Perform | Underperform |
| Overweight | Equal Weight | Underweight | ||
| Outperform | In line | Underperform |
Got a Buy on Weakness or Watch recommendation? Generally this is because they think that the price is currently too high and it might go lower. Sometimes the "Don't Buy" recommendation is meant as a Hold.
On my other blog I am today writing about Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF) ... 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.
Wednesday, January 21, 2015
Sample Portfolio
One thing that people have mention is that they would like to see a sample dividend growth portfolio. I have made one up on a spreadsheet that can also be used to determine how much to allocate to each stock. See my spreadsheet at sampleportfolio.htm.
In the spreadsheet you can put in Total Fund (Amount for investment. I am assuming $200,000 in my spreadsheet). You need to get updated shares costs and dividend information before you begin. The Globe and Mail website is a good place to get this information. Put in your commission rate in top box of "Comm"of column J. Here I am assuming $9.99 which is a common amount.
Under the column of Shares Possible (G), it will say approximately how many shares you can purchase for Total Fund divided by number of stocks. Then you will manually enter into the spreadsheet in the "Share Pur"(column H) a number close to the number shares of column G. Shares can only be purchased in lots of 100. You can play around with the share number until you get an amount total at the end of column K that is close to but less than your fund amount.
This portfolio has 15 stocks and they are all dividend growth ones. The following is the list of companies I have chosen for my sample portfolio:
If you want a copy of my spreadsheet, just email me.
On my other blog I am today writing about Enghouse Systems Ltd. (TSX-ESL, OTC- EGHSF) ... 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.
In the spreadsheet you can put in Total Fund (Amount for investment. I am assuming $200,000 in my spreadsheet). You need to get updated shares costs and dividend information before you begin. The Globe and Mail website is a good place to get this information. Put in your commission rate in top box of "Comm"of column J. Here I am assuming $9.99 which is a common amount.
Under the column of Shares Possible (G), it will say approximately how many shares you can purchase for Total Fund divided by number of stocks. Then you will manually enter into the spreadsheet in the "Share Pur"(column H) a number close to the number shares of column G. Shares can only be purchased in lots of 100. You can play around with the share number until you get an amount total at the end of column K that is close to but less than your fund amount.
This portfolio has 15 stocks and they are all dividend growth ones. The following is the list of companies I have chosen for my sample portfolio:
- Bank of Nova Scotia (TSX-BNS)
- BCE Inc. (TSX-BCE
- Canadian Tire A (TSX-CTC.A)
- CDN National Railway (TSX-CNR)
- Emera Inc. (TSX-EMA)
- Fortis Inc. (TSX-FTS)
- Manulife Financial (TSX-MFC)
- Metro Inc. (TSX-MRU)
- Pembina Pipeline (TSX-PPL)
- Power Corp. (TSX-POW
- RioCan (REI.UN)
- Saputo Inc. (TSX-SAP)
- SNC-Lavalin Group (TSX-SNC)
- TD Bank (TSX-TD)
- TransCanada Corp. (TSX-TRP)
If you want a copy of my spreadsheet, just email me.
On my other blog I am today writing about Enghouse Systems Ltd. (TSX-ESL, OTC- EGHSF) ... 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.
Monday, January 19, 2015
Bloggers Portfolios
The blogger Save Invest Give has on his website a page listing about 100 blogs and what these bloggers are invested in. It may be a great place to find the next company you might want to invest in.
On my other blog I am today writing about Toronto Dominion Bank (TSX-TD, NYSE-TD) ... 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.
On my other blog I am today writing about Toronto Dominion Bank (TSX-TD, NYSE-TD) ... 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.
Saturday, January 17, 2015
Women’s Art Association Show
The Women’s Art Association of Canada is having an Art Show on Sunday, January 18, 2015. The show is called Romancing the Word. This show is on from January 14, 2015 to February 10, 2015. The Gallery is at 23 Prince Arthur Avenue. This is close to the St. George Subway Station, Bedford exit.
The Gallery is open from 1 pm to 4 pm. Otherwise if you go during the week you can view the Dignam Gallery paintings from 9:30 to 3:30 by appointment at 416 922 2060.
Wednesday, January 14, 2015
Mission Statements
One of the things that I will be looking for in the stocks that I review this year is a mission statement. What I am looking for is a statement that the company wants to do well by their customers, employees, and community and thereby earn shareholders a reasonable return.
So far on the 7 companies I have looked at this year, including 4 of our biggest Canadian banks, I can find nothing on their site that says mission statement. For one company I looked at I could find no statements at all that hit any of these points.
For most companies so far I have basically pieced together what they have said that covers what I am looking for. Mission statements have been around a long time now. I find it rather shocking that I am having a hard time finding any such thing on the sites I have looked at.
On my other blog I am today writing about Bank of Nova Scotia (TSX-BNS, NYSE-BNS) ... 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.
So far on the 7 companies I have looked at this year, including 4 of our biggest Canadian banks, I can find nothing on their site that says mission statement. For one company I looked at I could find no statements at all that hit any of these points.
For most companies so far I have basically pieced together what they have said that covers what I am looking for. Mission statements have been around a long time now. I find it rather shocking that I am having a hard time finding any such thing on the sites I have looked at.
On my other blog I am today writing about Bank of Nova Scotia (TSX-BNS, NYSE-BNS) ... 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.
Monday, January 12, 2015
Shareholder Value Maximization
Shareholder Value Maximization or SVM is one of world's dumbest ideas according to James Montier. You can read his paper at the GMO America site. On the GMO page look for recent commentary and The World's Dumbest Idea by James Montier.
Basically the best companies have mission statements like Johnson and Johnson that puts the community and its customers first and their responsibility to the shareholders last. However, JNJ with this mission statement has produced better returns over a very long to its shareholders.
I am a capitalist. Actually, I am an old fashion capitalist. I believe that for a company to do well, it must provide a product or service that people are willing to pay for. To stay in business for the long term, you must treat your customers well. Also, you have to treat your employee well for them to treat your customers well. You need to be a good corporate citizen also to keep customers. What you should look for, for all your hard work is a fair and reasonable profit.
It seems to me that our new social entrepreneurs are just getting back to what old fashioned entrepreneurs where like. This is just a thought.
One of the things I am going to be looking for when I review company is if they have a mission statement and what it says.
On my other blog I am today writing about Royal Bank of Canada (TSX-RY, NYSE-RY) ... 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.
Basically the best companies have mission statements like Johnson and Johnson that puts the community and its customers first and their responsibility to the shareholders last. However, JNJ with this mission statement has produced better returns over a very long to its shareholders.
I am a capitalist. Actually, I am an old fashion capitalist. I believe that for a company to do well, it must provide a product or service that people are willing to pay for. To stay in business for the long term, you must treat your customers well. Also, you have to treat your employee well for them to treat your customers well. You need to be a good corporate citizen also to keep customers. What you should look for, for all your hard work is a fair and reasonable profit.
It seems to me that our new social entrepreneurs are just getting back to what old fashioned entrepreneurs where like. This is just a thought.
One of the things I am going to be looking for when I review company is if they have a mission statement and what it says.
On my other blog I am today writing about Royal Bank of Canada (TSX-RY, NYSE-RY) ... 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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