What did you Buy? What might you buy? (2018)

Discuss your favourite picks, broker, and trading or investment style.
Thegipper
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Re: What did you Buy? What might you buy? (2018)

Post by Thegipper » 12 Feb 2018 09:59

Bought 43 more shares in CM. Indications are quite positive for their US operation. I also like a dividend which is nearly 5%.

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Re: What did you Buy? What might you buy? (2018)

Post by AltaRed » 12 Feb 2018 11:25

Was time to finally establish a position in FTS. Have long debated FTS vs EMA as the additional and final entry in my electrical utility sector, and chose FTS because I like that FTS has a (small) gas utility position and I am skittish on EMA's exposure in the questionable economics in the Maritime Link project. I clearly don't know much about it, but ISTM that project could take a long time to pay off and may never be economic unless major exports can be made to the US Northeast.
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newin96
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Re: What did you Buy? What might you buy? (2018)

Post by newin96 » 12 Feb 2018 12:09

AltaRed wrote:
12 Feb 2018 11:25
Have long debated FTS vs EMA
I have been looking at establishing an EMA position (already have FTS in my Utility portfolio).
With the recent pull-back, I'm trying to get in...

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Re: What did you Buy? What might you buy? (2018)

Post by JaydoubleU » 12 Feb 2018 13:32

Good entry points in either FTS or EMA right now.

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Re: What did you Buy? What might you buy? (2018)

Post by zeno » 12 Feb 2018 14:46

It seems like ages since I bought something other than a 5yr GIC, so I thought I'd celebrate my mad splurge with a post to this thread.
I'm an index investor in the accumulation phase, so new money goes to the must under target category. For most of the last year, that's been fixed income. Last week it was Canadian equities, so I got a scoop of plain vanilla VCE for 31.55. It's apparently up since there, so I officially won the downturn - cue the further 10% drop.

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Re: What did you Buy? What might you buy? (2018)

Post by newin96 » 12 Feb 2018 17:14

newin96 wrote:
12 Feb 2018 12:09
I have been looking at establishing an EMA position (already have FTS in my Utility portfolio).
With the recent pull-back, I'm trying to get in...
Well my "I don't think I'll get it" bid for 465 shares went through... and then the price closed $0.20 lower (so far).
Back to the longterm hold rationalization to make me feel better. :lol:

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Re: What did you Buy? What might you buy? (2018)

Post by Peculiar_Investor » 12 Feb 2018 17:29

JaydoubleU wrote:
12 Feb 2018 13:32
Good entry points in either FTS or EMA right now.
Can you expand on how and why you've determined the 'good entry points' right now? Is it based on specific fundamentals or some aspect of technical analysis?
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Thegipper
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Re: What did you Buy? What might you buy? (2018)

Post by Thegipper » 12 Feb 2018 19:30

Peculiar_Investor wrote:
12 Feb 2018 17:29
JaydoubleU wrote:
12 Feb 2018 13:32
Good entry points in either FTS or EMA right now.
Can you expand on how and why you've determined the 'good entry points' right now? Is it based on specific fundamentals or some aspect of technical analysis?
It's my understanding that by long term historical standards utilities are very expensive.

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Re: What did you Buy? What might you buy? (2018)

Post by slim » 12 Feb 2018 21:17

what would be the reasoning behind that?

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Re: What did you Buy? What might you buy? (2018)

Post by Thegipper » 13 Feb 2018 09:40

slim wrote:
12 Feb 2018 21:17
what would be the reasoning behind that?
I remember when utilities traded a single digit PEs. They were considered as defensive stocks. Today major utility stocks are trading in excess of 20 times earnings . It seems that in search of yield valuations have been driven into tech territory values. I believe the forward PE of the S&P500 is something like 16.5 whereas almost every utility is in the 20 plus region. I am just saying this is what it is. Does it mean there will be a big correction? I haven't got a clue. I just checked the valuations of some of the utilities and it looks like the recent correction has brought then into the 16 to 18 PE range. It is still high for this sector. CM for example is trading at 10.

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Re: What did you Buy? What might you buy? (2018)

Post by jay » 13 Feb 2018 09:58

Thegipper wrote:
13 Feb 2018 09:40
slim wrote:
12 Feb 2018 21:17
what would be the reasoning behind that?
I remember when utilities traded a single digit PEs. They were considered as defensive stocks. Today major utility stocks are trading in excess of 20 times earnings . It seems that in search of yield valuations have been driven into tech territory values. I believe the forward PE of the S&P500 is something like 16.5 whereas almost every utility is in the 20 plus region. I am just saying this is what it is. Does it mean there will be a big correction? I haven't got a clue. I just checked the valuations of some of the utilities and it looks like the recent correction has brought then into the 16 to 18 PE range. It is still high for this sector. CM for example is trading at 10.
According to morningstar.ca, EMA and FTS having fwd PEs of 15 and 15.8, respectively.

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Re: What did you Buy? What might you buy? (2018)

Post by adrian2 » 13 Feb 2018 10:09

jay wrote:
13 Feb 2018 09:58
Thegipper wrote:
13 Feb 2018 09:40
slim wrote:
12 Feb 2018 21:17
what would be the reasoning behind that?
I remember when utilities traded a single digit PEs. They were considered as defensive stocks. Today major utility stocks are trading in excess of 20 times earnings . It seems that in search of yield valuations have been driven into tech territory values. I believe the forward PE of the S&P500 is something like 16.5 whereas almost every utility is in the 20 plus region. I am just saying this is what it is. Does it mean there will be a big correction? I haven't got a clue. I just checked the valuations of some of the utilities and it looks like the recent correction has brought then into the 16 to 18 PE range. It is still high for this sector. CM for example is trading at 10.
According to morningstar.ca, EMA and FTS having fwd PEs of 15 and 15.8, respectively.
I never understood the use of forward P/E. Assuming no accounting shenanigans, the past is written in stone, while the future is uncertain.
Why look ahead one year (and hope the predictions will come true) and not look forwards 10 years, or 100 for that matter? The 100 years forward P/E looks so attractive! :twisted:
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Thegipper
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Re: What did you Buy? What might you buy? (2018)

Post by Thegipper » 13 Feb 2018 10:29

jay wrote:
13 Feb 2018 09:58
Thegipper wrote:
13 Feb 2018 09:40
slim wrote:
12 Feb 2018 21:17
what would be the reasoning behind that?
I remember when utilities traded a single digit PEs. They were considered as defensive stocks. Today major utility stocks are trading in excess of 20 times earnings . It seems that in search of yield valuations have been driven into tech territory values. I believe the forward PE of the S&P500 is something like 16.5 whereas almost every utility is in the 20 plus region. I am just saying this is what it is. Does it mean there will be a big correction? I haven't got a clue. I just checked the valuations of some of the utilities and it looks like the recent correction has brought then into the 16 to 18 PE range. It is still high for this sector. CM for example is trading at 10.
According to morningstar.ca, EMA and FTS having fwd PEs of 15 and 15.8, respectively.
still quite high for stocks that used to be considered defensive value plays. Apple is trading at 12 , CM is trading at 9.8 with a 4.6% dividend. FTS I am guessing is paying 3.5 on it 's dividend. Most of the Canadian banks have better dividends.

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Re: What did you Buy? What might you buy? (2018)

Post by Shakespeare » 13 Feb 2018 12:38

Just added another 100 EMA. Bargain time.
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Re: What did you Buy? What might you buy? (2018)

Post by jay » 13 Feb 2018 13:27

Just added to EMA and BCE. Both yielding above 5%. I haven't seen the yield this high for quite some time and that usually has been a good entry point.

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Re: What did you Buy? What might you buy? (2018)

Post by AltaRed » 13 Feb 2018 15:14

Shakespeare wrote:
13 Feb 2018 12:38
Just added another 100 EMA. Bargain time.
If EMA continues to slide, I just might have to jump in too, for ultimately what would need to be a quick trade, or dump CU to back off over exposure from this sector. The 2 year chart is quite astounding with the cliff over the past month.
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JaydoubleU
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Re: What did you Buy? What might you buy? (2018)

Post by JaydoubleU » 13 Feb 2018 16:45

Can you expand on how and why you've determined the 'good entry points' right now? Is it based on specific fundamentals or some aspect of technical analysis?
Dividend analysis: the current yield on Emera of 5.66% is higher than its historical average, and close to its historical high. It's also at a 52-week low and down 15% YTD, which tells me it is oversold. Now if we can trust the data on globeinvestor, EMA also trades at a P/E of 14.9 and a P/B of 1.43, which, compared to 25.40 and 1.44 for Algonquin, seems pretty reasonably valued. Throw in a projected 8% annual growth target for that dividend, and I'd say EMA is looking sweet.

I may add tomorrow if it's still down.

PS when Shakespeare buys, you know it's a good entry point :wink:

JaydoubleU
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Re: What did you Buy? What might you buy? (2018)

Post by JaydoubleU » 13 Feb 2018 17:46

John Heinzl agrees:
Why I’m buying more of these two dividend dynamos Subscriber content
Emera and A&W Revenue Royalties both have yields that are too attractive to pass up
https://www.theglobeandmail.com/investing/

sorry, behind a wall, but you get the point.

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Re: What did you Buy? What might you buy? (2018)

Post by 2 yen » 13 Feb 2018 19:39

I have trouble finding a solid reason for not owning lots of EMA and FTS. Both have excellent management. Disclosure: EMA is my largest position by far.

2 yen

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Re: What did you Buy? What might you buy? (2018)

Post by Thegipper » 13 Feb 2018 21:38

2 yen wrote:
13 Feb 2018 19:39
I have trouble finding a solid reason for not owning lots of EMA and FTS. Both have excellent management. Disclosure: EMA is my largest position by far.

2 yen
Might be a good time? They have been taking on the chin for the last 2 months unless the interest rate concerns drive them down more.

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Re: What did you Buy? What might you buy? (2018)

Post by Peculiar_Investor » 13 Feb 2018 22:47

Some good discussion here, but perhaps we should move further detailed discussions to one of the following topics: There is also a much older topic on Emera, see Emera (Symbol-EMA) Tanks that contains some useful thoughts from some of the FWF elders.
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Re: What did you Buy? What might you buy? (2018)

Post by Shakespeare » 13 Feb 2018 23:03

The current EMA isn't much like the company in the old link viewtopic.php?f=33&t=1068 .
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Re: What did you Buy? What might you buy? (2018)

Post by JaydoubleU » 14 Feb 2018 10:04

100 EMA @ 39.18

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Re: What did you Buy? What might you buy? (2018)

Post by schmuck » 14 Feb 2018 11:28

Holy crap. Got an order filled for EMA at 39.13 that must have been close this morning's low. It was already a core holding, but a 5.78% yield on a mature utility company was too hard to pass up.

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Re: What did you Buy? What might you buy? (2018)

Post by newin96 » 14 Feb 2018 11:34

It just missed my next trigger price @39
So no additional for me yet.

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