Falconbridge
Toronto symbol FAL, is a major producer of metals, including nickel, copper and aluminum. The company was acquired by Xstrata in August 2006.
TECK COMINCO LTD. $83 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 215.8 million; Market cap: $17.9 billion; SI Rating: Average) is the world’s largest producer of zinc, which helps prevent steel from rusting. Zinc accounts for a third of Teck’s revenue. The company is also a major producer of copper and gold.
Thanks to the huge jump in …read more »
This past year brought richly rewarding takeovers of several of our long-time favourites including Falconbridge, Inco, Fairmont and Sleeman. As a result, you may face a substantial capital-gains tax bill.
Before yielding to the year-end tax-loss selling urge, keep in mind that it’s always a mistake to sell good stocks at this time of year. Tax-loss selling sometimes drives share prices …read more »
Falconbridge Ltd. (formerly Noranda Inc.) will be a hard stock to replace. We first recommended it in our April, 1995 issue. The Resources sector was depressed at the time, but we liked the stock for its high-quality reserves, steady cash flow and secure 5% dividend yield. We repeatedly recommended it and advised investors to stick with it for the low-risk …read more »
Our focus on high-quality stocks attracts an above average number of takeover offers. Besides Falconbridge, two more of our long-time favourites are now the target of buyout offers:
INCO LTD. $85.50 (Toronto symbol N; Conservative Growth Portfolio; Resources sector; SI Rating: Average) is the world’s largest producer of nickel. It recently dropped a plan to merge with U.S.-based copper producer Phelps …read more »
CIBC CORE CANADIAN EQUITY FUND $23.21 (CWA Rating: Conservative) (CIBC Securities, 5140 Yonge Street, Suite 900, Toronto, Ontario M2N 6X7. 1-800-631-7008; Website: www.cibc.com. No load — deal directly with the company.) uses a “bottom-up” approach (using fundamentals such as earnings, cash flow and low debt) to identify companies that trade at reasonable valuations and yet have growth potential.
The $627.6 million …read more »
TD CANADIAN EQUITY FUND $30.99 (CWA Rating: Conservative) (TD Asset Management, P.O. Box 7500, Station A, Toronto, Ontario. M5W 1P9. 1-800-463-3863; Web site: www.tdcanadatrust.ca. No load — deal directly with the bank) uses a “bottom-up” approach (using fundamentals such as earnings, cash flow and low debt) to identify undervalued companies with strong growth potential.
TD Canadian Equity Fund’s 10 largest holdings …read more »
Here are five large funds run by each of Canada’s big-five banks. Each holds the kind of conservative, well-balanced portfolios of high quality stocks we like. All five have a high weighting in Financial services and Energy stocks. However, they stick with high-quality issues with sound fundamentals, so these concentrations don’t add a lot of risk. Each has its quirks, …read more »
HARBOUR FUND $19.90 (CWA Rating: Conservative)(C.I. Mutual Funds, 151 Yonge St., 7th Floor, Toronto, ON M5C 2W7. 1-800-268-9374; Web site: www.cifunds.com. Load fund — available from brokers) invests in only 25 to 40 high-quality Canadian stocks, and it may hold stocks for four or five years to realize their value.
The $4.2 billion Harbour Fund’s top holdings include Royal Bank, Bank …read more »
As you probably know, our Successful Investor business model has two parts. We publish investment advice through The Successful Investor Inc., and we manage investor portfolios through Successful Investor Wealth Management Inc. (These two companies are affiliated by common ownership; I own both but keep them separate for regulatory purposes.)
This two-business model has advantages for our subscribers. The problems we …read more »
Some of our biggest gainers in the past few years have been in stocks from the Resources sector. Investors need to keep the risk and volatility of this sector in mind.
TECK COMINCO LTD. $75 (Toronto symbol TEK.SV.B; Conservative Growth Portfolio, Resources sector; SI Rating: Average) is the world’s biggest supplier of zinc, a metal that prevents steel from rusting. The …read more »
