ECONOMIC INVESTMENT TRUST $59.64 (Toronto symbol EVT) holds a well-diversified portfolio of high-quality Canadian, U.S. and foreign stocks.

The $378-million fund’s largest holdings include E-L Financial, Algoma Central Railway, Chevron, Nissan Motor, Royal Dutch Shell, BNP Paribas, Pfizer, ConocoPhillips, Allianz SE, BASF SE, ING Group and Vodafone Group plc.

The fund holds 55.4% of its portfolio in Canada, followed by the U.S. …read more »

One of the most common investment platitudes you’ll ever hear is that investors should “have a plan (or system) and stick to it.”

This is good advice if your alternative is to invest without any sort of plan. However, unlike the time-tested value investing approach, many of today’s investment plans are not worth sticking with.

Value investing: Look beyond financial …read more »

CANADIAN GENERAL INVESTMENT TRUST $12.25 (Toronto symbol: CGI) mainly invests in shares of Canadian companies. Its discount to its net asset value now stands at 22%. The trust now holds a high 16.3% of its assets in cash, up from just 0.5% a year ago.

THIRD CANADIAN GENERAL INVESTMENT TRUST $22 (Toronto symbol: THD) holds 68% of its assets in units …read more »

Some investment observations are so basic and indisputable that in my opinion they deserve to be referred to as “laws”. One good example is what I call “McKeough’s Law on New Issue Timing,” which is this: New issues come to market when it’s a good time for the company and/or its insiders to sell, but that’s not necessarily a good …read more »

The Successful Investor value investing approach follows the basic model set by the old-fashioned Graham/Dodd approach. Basically, it tries to identify well-financed companies that are well-established in their businesses and have a history of earnings and dividends. They are likely to survive any economic setback that comes along, and thrive anew when prosperity returns, as it inevitably does.
When we recommend …read more »

ACCORD FINANCIAL CORP. $6.19 (Toronto symbol ACD; SI Rating: Speculative) (416-961-0007; www.accordfinancial.com; Shares outstanding: 9.4 million; Market cap: $58.2 million) is in the factoring business in Canada and the U.S. Factoring is the purchase of a company’s accounts receivable at a discount. Accord profits by collecting these, though it also assumes the risk. Accord can also handle a company’s credit-checking, …read more »

CANADIAN PACIFIC RAILWAY LTD. $36 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 167.7 million; Market cap: $6 billion; Price-to-sales ratio: 1.2; SI Rating: Above Average) ships freight over a 25,000-kilometre rail network between Montreal and Vancouver. In the United States, its subsidiaries connect its Canadian lines to major hubs in the midwest and northeast. Alliances …read more »

CP’s shares soared to a high of $90 in July 2007. They have since fallen 60%, to $36. The stock was probably overpriced at $90 and 21 times earnings. But it now trades at 9.1 times this year’s forecast earnings, and it yields 2.8%.

This well-established company is a mainstay of the Canadian economy. It’s a rare low-risk treat to be …read more »

TEMPLETON EMERGING MARKETS FUND $7.87 (New York symbol EMF; CWA Fund Rating: Speculative) is a closed-end fund that invests in equities from emerging economies. Franklin Templeton manages the fund.

Templeton Emerging Market Fund’s holdings are spread around the world. Although volatile, the fund gives investors access to countries like Brazil, China, India and others that still have strong growth prospects.

The $187.6-million …read more »

NEW GERMANY FUND $5.90 (New York symbol GF; CWA Fund Rating: Speculative) is a closed-end fund that invests mostly in small and mid-cap German equities. The fund’s manager is Deutsche Asset Management.

The $198-million fund’s 52 holdings operate in Germany (91%) and the Netherlands (9%).

The New Germany Fund’s top holdings are Fresenius (health care equipment & supplies), 6.8%; European Aeronautical Defense …read more »