comox

3 Quality Stocks Yielding 8%+, Now Selling at Last Year's Price

Another Canadian power trust worth considering is Macquarie Power and Infrastructure (MPT.UN). Had a good thing going with them distributing $1.05/yr on current share price of $5.89, however they are reducing this to $.66/yr in Jan 2010. Still an 11% return. This gets their payout ratio down below 100% to 75%. Net margin in 2008 was 44%, Debt/Equity 80%, Market Cap 300 million.
Good stable contracts, assets paying out in Canadian dollars so no issues with exchange rates. They are planning to convert to dividend corporation in 2010, so I'm not sure how this will impact their share price. Wait and see??

Gold: What Professional Futures Traders Think

I agree that one can make money trading gold stocks. I was watching Goldcorp (TSX: G) closely as is fluctuated in the $30's this past year. You could regularly buy at $30-33 and then sell at $36-38 to make quick, tidy profits. However, I lost the chance to buy again when it took off recently (now $43.99). It still remains very volatile (rising and falling sharply on the slightest news or change in market sentiment) and if you can establish your lows and highs, you can proably still do some profitable trades in it.


On Sep 19 04:30 AM coldcall wrote:

> Twittee says all there is to say about gold - the dollar.
>
> If you think the dollar will remain weak then gold will remain strong.
> They are inverse, its that simple. Trying to analyse speculators
> and traders, or the supply and demand factors for gold is just looking
> in the wrong place for answers.
>
> Im bullish gold only because i cant see how the dollar will climb
> out of its hole - unless we had another market panic attack.
>
> And hell trading gold mining stocks is fun because of their almost
> insane volatility!

It's Time to Sell Equities and Look to These 3 Areas

Regarding foreign currencies, I would recommend the CANADIAN DOLLAR. It has been rising versus the US dollar recently (due to commodities rising), currently at 93.5 cents, and is projected to reach parity with the USD by the end of the year.
Canada is coming out of the recession nicely and has a stable, smaller-deficit federal govt. It has a strong banking system and is rich in commodities, which are only real assets in times like these.
I see no reason for anyone to be holding US dollars when the US govt is so intent on devaluing them with their money printing policies. The USD is a sinking ship and everyone should be heading for the lifeboats!!


On Sep 18 06:07 PM sst381106 wrote:

> I am a believer that coherent strategy is key to successful long
> term investments. Moderate inflation correlated with expected GDP
> growth is necessity for long term growth and job creation. By moderate,
> I mean 2-3% for developed economies as they are expected to grow
> 2-4% annually and as high 8-10% for emerging markets. Danger of deflation
> are well know to Federal Reserve, Mr. Bernanke being a student of
> Great Depression and it was consistently increasing liquidity in
> the system to avoid deflation at all costs. I won't recommend Treasuries
> at these prices, because at the first sign of even POTENTIAL return
> to long term normal inflation levels of 2-3%, Treasuries will go
> down. Very likely, that markets at certain point in the future will
> start pricing a possibility of mid term inflation levels above long
> term normal which will put further down pressure on Treasuries.
>
>
> Gold is just volatile commodity and nothing else. It was correctly
> mentioned that gold correlation to inflation have been quite low
> over last 100 years, mostly because gold and platium has multiple
> uses in real economy and gold (platinum) prices in addition to inflation
> are influenced by real supply/demand situation. Gold is fairly priced
> at this point and possible upside will not compensate for implied
> risk.
>
> ALL world currencies have it flaws and it will wrong to single out
> US dollar as the most flawed. Euro zone economical situation is not
> any better then US and some European countries are in much worth.
> I would like specifically single out Baltic states, Ireland, Spain
> and Poland. European Central Bank is in the very difficult situation.
> On on hand, it wants to maintain conservative monetary policy because
> Germany, France, Italy, Greece are getting out of recession, but
> one the other hand Eastern European countries need a loose monetary
> policy for as long possible. Its really unclear what route will be
> taken over next 12-24 month, which will impact EUR value.
>
> Japan has significant structural problems in its economy and is in
> desperate need of reforms. I won't consider yen as safe heaven currency
> until these reforms are over which may never happen.
>
> As much as I agree with reasons presented for US dollar demise, I
> don't see viable alternative.
>
> The article was called "It's Time to Sell Equities and Look to These
> 3 Areas". I strongly disagree with all 3 recommendations. I will
> not sell equities at this point in long term diversified portfolio.
> I will not but Treasuries at least until yield on 30 year bond will
> rise to 6%. I recommend to stay out of gold at these price levels
> and I will stick with US dollar long term due to absence of any viable
> alternatives.

Canada's Top Insurers Feud over the Size of Their Respective Dividends

I am very leery of Insurance companies, given that they could have a huge exposure to losses in the event of a global pandemic (H1N1, Avian Flus) killing thousands or millions of people. Why take the risk??

Clint Cox: Digging for Opportunities in Rare Earths

Jack Lifton has 2 good articles on this subject that it explain it well:

seekingalpha.com/insta...

seekingalpha.com/insta...

I did some amateur legwork on this Rare Earth market more than a month ago before the Dines Newsletter created a runup, and found these possibilities:

Great Western Minerals Group (TSX Venture: GWG)
They produce powders and manufactured items, as well as explore, so they have some advantages over pure explorers. With Molycorp looking for an interest in them, they may be a takeover target, and that may be the best way to capitalize.
I bought them at .09 in May, they went as high as .18 and have fallen back down to .11 (which represents a good entry point again). As every penny is 9% at this point, I am toying with buying at .11, selling at .13 for a quick 18%.

Neo Material Technologies Inc. TSX:NEM. Currently $2.19 www.amr-ltd.com/

Just fended off a takeover by Pala (May 12), which started at $1.40 and escalated to $1.70. Offer rejected as financially inadequate. So Pala, or someone else, may be back soon at a higher price.

Had disappointing 1Q09 results, due to the reduced global demand. Lost $4 million, but has lots of cash to wait out downturn ($49 million). Were very profitable in 2008, up until last quarter downturn.
Shareholder Equity $173 million over 115 million shares = $1.50/share.
Cash $49 million, Current Assets $114 million.
No long term debt.
Analysts recently put "Buy" rating on it, with target of $2.50, $3.75.
Recent price range of $1.00 - $5.08.

Avalon Rare Metals (TSX: AVL)
I hate waiting for explorers to do their drilling and develop their deposits and production plants. The best play here is to await a takeover. AVL has already run up and fallen back a bit, so don't know how much more upside there is.

'The Fourth Turning': Why This Crisis Was Inevitable

If new people are born every day and every year, there will always be generations at different ages and stages. I don't see how you could expect to predict a cycle that the whole world will adhere to??

Gold Stocks Are Undervalued

Thanks for the info, but the sales plug for your newsletter is tawdry.

Time to Buy China, Copper, the Canadian Dollar and Oil

Jay- thanks for taking the time to reply. I'm invested in Canadian resources now, impatiently waiting for the coming commodity resurgence, and still taking some downward hammering. Of course that all hinges on this China/US recovery discussion.
Conventional investment advice did nothing for us leading up to this meltdown, and in general the commentators and advisors missed this completely (including some very smart people: Eric Sprott of Sprott Funds, Tom Stanley of Resolute Performance Fund, etc.). I'm feeling completely let down and skeptical of the investment community. I do like to follow Peter Schiff, Jim Rogers as their ideas make sense to me.

Someone made money: shorting oil and commodities, long on US dollar, shorting DJIA and TSX, etc. in last 6 months. I'd like to get some professional advice that makes me one of those making that money by making smart aggressive bets (not for the major part of portfolio of course)!
PS- read Nicholas Taleb's "Black Swan" and found it very heavy going. I was hoping for some specifics of how he exposes himself to the huge winning opportunities (and the majority of his portfolio is very safe he says)- the book never contained any specifics. Does anyone know what he invests in?


On Mar 06 02:10 PM Jay Currie wrote:

> Comox, I can't help you on an investment adviser in Vancouver but
> you should be doing your own due diligence in this market. No better
> place to do it than www.stockresearchporta...
>
>
> Buying good Canadian resource companies can make a lot of sense for
> a couple of reasons: first, the TSX and TSX-V were hammered beginning
> in September. Good companies are still selling for market caps at
> or below their cash in the bank positions. Second, that hammering
> reflected the decline in commodity prices - if and when they start
> to go up the Canadian resource sector will lead the bull charge.
>
>
> There is also the Canadian dollar to consider. It may well be a resource
> currency; but it is a currency which has been significantly sold.
> The Canadian government has the lowest debt to GDP ratio in the G7
> and this years budget is the first in a decade to go into deficit.
> A deficit which Canada can afford. Canada does not only have sound
> banks, it has <u>profitable<... banks. And, finally, Canada has a
> Conservative government and an Opposition Leader who is demanding
> that there be a close accounting of where stimulus money is being
> spend. Political risk is very, very low.
>
> The loonie is likely to emerge from the present crisis as sound as
> the Swiss franc was in the 1960's.

Gold: Entering an Accelerated Trend Channel

Goldcorp Stock (TSX: G) is an interesting stock to watch. It surges on the good news for gold and then gets hammered back down. It fluctuates inordinately with the sentiment of the market. I've made some money buying it at $28-35 and then selling over forty. It has tremendous cash flow and good prospects. It will probably be snapping up minor companies in near future as it has a strong acquisition background.

Time to Buy China, Copper, the Canadian Dollar and Oil

Vancouver investment advisors??- I am a private investor looking for some new ideas from a professional investment firm in Vancouver, BC. Someone is making money through all this turbulence and it isn't me. I already have some conventional advice; what I will be looking for is unconventional advice: shorts, currency plays, offshore stocks, etc. I don't have enough expertise to make these trades myself and need to start my search for alternate professional advice for a portion of my portfolio. Picking through the yellow pages won't do it, so I'm asking for the recommendations of you posters.
PS: one fund that I hold and love is Macquarie Power and Infrastructure (MPT.UN), distributing $1.05/yr. on $4.55 (as I write) = 23% yield, with prospects for 2009 looking stable- see their website. Thanks.