Good to know that I'm not alone in looking at high yields as a great diversifier and a good alternative to the challenged fixed income sector. As mentioned upthread, I picked JNK for my RIF mostly for it's liquidity, and a bit of XHY for my TFSA. My only regret is that I didn't buy them at the first hint of rates trending higher in the US.scomac wrote:For something a bit different in my taxable account I have initiated a position in SHYG-N iShares 0-5 Year High Yield Corporate Bond ETF. I had thought about adding something like this to my RRSP, but prefer the MER savings of the US version and eliminating any Fx vig by holding it in a taxable USD acct.
It is well off the bottom of about a year ago, but still selling below it's IPO price of $50 from 3 years ago. Assuming there is going to be some measure of protectionism as a result of the Trump Presidency, that should be good for the smaller US firms that typically would be high yield borrowers. MER is quite low for this type of product at .30%. 0-5 year term of the notes reduces credit risk and the laddered nature of the fund will immunize against interest rate increase going forward. Pretty solid cash flow if you're looking for an income product that pays in USD with an 8-10% return potential going forward. Not a big piece of the puzzle, but another diversifier none-the-less.
What did you Buy? What might you buy? (2017)
Re: What did you Buy? What might you buy? (2017)
Re: What did you Buy? What might you buy? (2017)
With cash approaching 12% and needing to top up positions I have added to RNW & BIP.UN
This leaves me with just under 10% cash remaining which I'm comfortable with as I hear there is some old man with crazy hair in Washington telling everyone he's the President of the USA
This leaves me with just under 10% cash remaining which I'm comfortable with as I hear there is some old man with crazy hair in Washington telling everyone he's the President of the USA
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Re: What did you Buy? What might you buy? (2017)
I trimmed my position in GBX after I was up ~40%. I used the proceeds to buy TEVA today. It probably will go down a bit further but It'll come around and I'll keep my 4% dividend.
Re: What did you Buy? What might you buy? (2017)
Started a play position in Champion Iron CIA at 0.96, a little bit of play money. Visited the site a few years back and experienced first hand the spending spree Cliff initiated there. Last interim 2016 financial results seems undervalued on the equipment asset side as they have quite a bit expensive gear, some of it brand new. The market cap might be high for a company without operations, but they also have quite a few claims in some high grade areas. I have been reading you guys keeping away from exploration and resources but I've also heard investing in something you know might play out (have been involved in mining for 6+years).
Re: What did you Buy? What might you buy? (2017)
Started a position with CPX, one week ago, as part of my 2017 shopping list.
Reasons: Good valuation, phasing out of their coal burning plant (they will receive a compensation for that), good divi and cash flow, even if this one will see fluctuations do to plant's change but it is a long position anyway.
Reasons: Good valuation, phasing out of their coal burning plant (they will receive a compensation for that), good divi and cash flow, even if this one will see fluctuations do to plant's change but it is a long position anyway.
Re: What did you Buy? What might you buy? (2017)
Added to Fairfax Financial Holdings (TSE:FFH) at $617. My main interest in it is that 1) it is relatively cheap, and 2) has very low correlation with the rest of my holdings. I am not sure if the the low correlation will continue, but for now it is doing the job.
Re: What did you Buy? What might you buy? (2017)
Added another 5k to my FB position. They report tomorrow.
Re: What did you Buy? What might you buy? (2017)
Added to Canadian Utilities (TSE:CU) at $36.37 tempted by ~4% yield which is relatively high.
Re: What did you Buy? What might you buy? (2017)
Keeping a close eye on Cameco. Stock dropped almost 20% since yesterday on news of contract termination with Tokyo Electric Power Company. This translates to a revenue loss of roughly 5% per year for the next 10 years. I have a full position (last add was at $13.85) but will consider adding if the stock falls close to last year's lows.
Also watching BCE after the small EPS miss this morning and lower 2017 EPS guidance ($3.42-$3.52 vs. $3.63). Hoping to buy it around $55 which puts it around a 16X multiple.
Also watching BCE after the small EPS miss this morning and lower 2017 EPS guidance ($3.42-$3.52 vs. $3.63). Hoping to buy it around $55 which puts it around a 16X multiple.
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Re: What did you Buy? What might you buy? (2017)
CPG, BTE, and SGY.
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Re: What did you Buy? What might you buy? (2017)
Would you mind providing a little rationale behind your decisions? Otherwise, the post is not very useful or interesting.CPG, BTE, and SGY.
As for Jay, he bought some BCE. Following the dividend increase and the dip, BCE is yielding 5%, which to me is the sound of the phone ringing. The quarter was strong, and predictions of softening revenue for 2017 are not taking into account the imminent close of the MBT takeover, following which my buddy George says BCE will issue revised guidance. That will go straight to the top line. Besides, there aren't many blue-chips out there with BCE's high ROE, low volatility, and healthy free cash flow that aren't pushing up against 52-week or all-time highs.
Re: What did you Buy? What might you buy? (2017)
I am with you on this stock. I thought the BCE numbers were strong and the stock trades down. FB to me had blowout numbers and the stock trades down. Both are good examples of ignoring of ignoring the short term and looking at the long term.JaydoubleU wrote:Would you mind providing a little rationale behind your decisions? Otherwise, the post is not very useful or interesting.CPG, BTE, and SGY.
As for Jay, he bought some BCE. Following the dividend increase and the dip, BCE is yielding 5%, which to me is the sound of the phone ringing. The quarter was strong, and predictions of softening revenue for 2017 are not taking into account the imminent close of the MBT takeover, following which my buddy George says BCE will issue revised guidance. That will go straight to the top line. Besides, there aren't many blue-chips out there with BCE's high ROE, low volatility, and healthy free cash flow that aren't pushing up against 52-week or all-time highs.
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Re: What did you Buy? What might you buy? (2017)
Started position in General Electric (GE). I've been looking for another solid and diversified US based industrial to get into and GE fits the bill. Its huge, extremely diversified, it pays a good dividend that is well covered and rises regularly, and has been under-performing lately compared to the rest of the market. Growth prospects seem moderate, but I'm hopeful that GE will benefit from some of Trump's policies - infrastructure spending, O&G, and the to-be-seen reduction in corporate taxes.
Started a half position at just over $29, will add on any dips from here. I'd like to think something like GE would be a long term hold, will see.
Started a half position at just over $29, will add on any dips from here. I'd like to think something like GE would be a long term hold, will see.
Re: What did you Buy? What might you buy? (2017)
Hi,
GE: IMHO, good choice. Pricewise it has tailed off considerably.
In the fullness of time, you might also consider Emerson (dividend aristocrat probably), but it is a bit pricey right now. I have equal weightings of both.
GE: IMHO, good choice. Pricewise it has tailed off considerably.
In the fullness of time, you might also consider Emerson (dividend aristocrat probably), but it is a bit pricey right now. I have equal weightings of both.
Cheers
"A dividend being paid today is always a positive return." Josh Peters, Morningstar
"A dividend being paid today is always a positive return." Josh Peters, Morningstar
Re: What did you Buy? What might you buy? (2017)
Three others in this category would be United Technology, 3M and Honeywell. I like the range of products that UT is involved with.Sensei wrote:Hi,
GE: IMHO, good choice. Pricewise it has tailed off considerably.
In the fullness of time, you might also consider Emerson (dividend aristocrat probably), but it is a bit pricey right now. I have equal weightings of both.
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Re: What did you Buy? What might you buy? (2017)
The problem with finding a good industrial in Trump America is price, all the signals he gives point to this sector being a beneficiary of his policies leading to higher valuations. I looked at UT and Honeywell during my investigation but I deemed GE to be the better relative value. Similar to UTX, I liked the range of sectors that GE is involved in, which IMO provides its own hedge against a sudden downturn in any one industrial segment.
I didn't look at EMR, interestingly it didn't come up as a peer to GE during research on iTrade - but looking at it, it should have. I'm not married to GE yet, so will take a closer look.
I didn't look at EMR, interestingly it didn't come up as a peer to GE during research on iTrade - but looking at it, it should have. I'm not married to GE yet, so will take a closer look.
Re: What did you Buy? What might you buy? (2017)
Which one has the smallest presence in China and Mexico?westcoastfella wrote:The problem with finding a good industrial in Trump America is price, all the signals he gives point to this sector being a beneficiary of his policies leading to higher valuations. I looked at UT and Honeywell during my investigation but I deemed GE to be the better relative value. Similar to UTX, I liked the range of sectors that GE is involved in, which IMO provides its own hedge against a sudden downturn in any one industrial segment.
I didn't look at EMR, interestingly it didn't come up as a peer to GE during research on iTrade - but looking at it, it should have. I'm not married to GE yet, so will take a closer look.
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Re: What did you Buy? What might you buy? (2017)
You could use S&P 500 Industrials (Sector) chart, prices and performance - FT.com for an initial screening list for stocks in the Industrials Sector.
One investment thesis that has served me well over the years it look at the 2nd level beneficiaries of capital spending in a segment. I'm invested in Illinois Tool Works (ITW) and have FAST and GWW on my watch list.
One investment thesis that has served me well over the years it look at the 2nd level beneficiaries of capital spending in a segment. I'm invested in Illinois Tool Works (ITW) and have FAST and GWW on my watch list.
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Re: What did you Buy? What might you buy? (2017)
Hi,
PI, that's a handy link there. Thanks.
I don't consider Emerson to be a competitor of GE, although it seems logical to say that they should be in the same list. After checking around a bit more, Emerson is significantly overvalued at this point, so I'd keep it on watch for a while.
IMHO, GE is the better choice at this point if only because they haven't been swept up in the Trump bump. In the last year or so they have just finished emerging from the GE Capital mess and that might explain the tepid share increase shown in the FT link. I owned GE pre-crash but sold when the dividend was cut. My main reason for jumping in again a few years ago was that they indicated they wanted to get back to their core competency, manufacturing. Also, another point is that GE is the most widely diversified and globally spread industrial I can imagine. It was once said that it is like a manufacturing mini-mutual fund.
PI, that's a handy link there. Thanks.
I don't consider Emerson to be a competitor of GE, although it seems logical to say that they should be in the same list. After checking around a bit more, Emerson is significantly overvalued at this point, so I'd keep it on watch for a while.
IMHO, GE is the better choice at this point if only because they haven't been swept up in the Trump bump. In the last year or so they have just finished emerging from the GE Capital mess and that might explain the tepid share increase shown in the FT link. I owned GE pre-crash but sold when the dividend was cut. My main reason for jumping in again a few years ago was that they indicated they wanted to get back to their core competency, manufacturing. Also, another point is that GE is the most widely diversified and globally spread industrial I can imagine. It was once said that it is like a manufacturing mini-mutual fund.
Cheers
"A dividend being paid today is always a positive return." Josh Peters, Morningstar
"A dividend being paid today is always a positive return." Josh Peters, Morningstar
Re: What did you Buy? What might you buy? (2017)
Add to both, CCO at $13.6 and BCE at $57.5. Cash came from sale of my National Bank shares.jay wrote:Keeping a close eye on Cameco. Stock dropped almost 20% since yesterday on news of contract termination with Tokyo Electric Power Company. This translates to a revenue loss of roughly 5% per year for the next 10 years. I have a full position (last add was at $13.85) but will consider adding if the stock falls close to last year's lows.
Also watching BCE after the small EPS miss this morning and lower 2017 EPS guidance ($3.42-$3.52 vs. $3.63). Hoping to buy it around $55 which puts it around a 16X multiple.
Re: What did you Buy? What might you buy? (2017)
I bought DUG and PHO on the Venture exchange in early January. They are up about 30% respectively. I doubled my position today. DUG does infrastructure work for the telcos and cable companies. It's revenue and profit growth has been quite impressive. PHO provided sensor technology for pipelines and other underground systems. It has shown solid growth as well. Both are quite small and have little coverage. The stocks an be quite volatile with a distinct upward trend.
Re: What did you Buy? What might you buy? (2017)
PHO as in Photon Control?Thegipper wrote:I bought DUG and PHO on the Venture exchange in early January. They are up about 30% respectively. I doubled my position today. DUG does infrastructure work for the telcos and cable companies. It's revenue and profit growth has been quite impressive. PHO provided sensor technology for pipelines and other underground systems. It has shown solid growth as well. Both are quite small and have little coverage. The stocks an be quite volatile with a distinct upward trend.
Re: What did you Buy? What might you buy? (2017)
Yes that is the stock. Do you know something more about this company?jsbarnby wrote:PHO as in Photon Control?Thegipper wrote:I bought DUG and PHO on the Venture exchange in early January. They are up about 30% respectively. I doubled my position today. DUG does infrastructure work for the telcos and cable companies. It's revenue and profit growth has been quite impressive. PHO provided sensor technology for pipelines and other underground systems. It has shown solid growth as well. Both are quite small and have little coverage. The stocks an be quite volatile with a distinct upward trend.
Re: What did you Buy? What might you buy? (2017)
My play on the industrial sector is to invest in the aerospace & defence sector. I bought some more of XAR on the NSE. I figure this will do well in the Trump era.
Re: What did you Buy? What might you buy? (2017)
Was sitting on 22k in my TFSA. Hard to find anything that I feel comfortable with. Ended up buying TD, Shop and Veresen. TD because of it's strong USA platform is my reason for choosing it. Veresen because of it's assets ,potential for growth and the 7% dividend.Shop has a great story and a lot more upside. It has 350k small business clients and the number keeps growing.