How To Invest
In addition, Pat thinks then beginner investors should cultivate two important qualities: a healthy sense of skepticism and patience.
Investors should approach all investments with a healthy sense of skepticism. This can help keep you out of fraudulent stocks that masquerade as high-quality stocks. It will also keep you out of legally operated, but poorly managed, companies that promise more than they can possibly deliver.
If you are a new investor, you should also realize that losing patience can cause you to sell your best choices right before a big rise. All too often, investors buy a promising stock just as it enters a period of price stagnation. Even the best-performing stocks run into these unpredictable phases from time to time. They move mainly sideways in a wide range for months or years before their next big rise begins. (Stock brokers often refer to these stocks as “dead money.”)
If you lack patience, you run a big risk of selling your best choices in the midst of one of these phases, prior to the next big move upward. If you lose patience and sell, you are particularly likely to do so in the low end of the trading range, when stock prices have weakened and confidence in the stock has waned.
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PENN WEST PETROLEUM $11.38 (Toronto symbol PWT; Shares outstanding: 485.0 million; Market cap: $5.7 billion; TSINetwork Rating: Average; Dividend yield: 5.1%) is moving to shore up its finances and boost its value after it appointed Rick George as chairman and Allan Markin as vice-chairman.
George played a key role in building Suncor Energy, while Markin was important to the growth of Canadian Natural Resources.
Penn West already plans to cut its staff by 10% and reduce its quarterly dividend by 48.1%, to $0.14 from $0.27. The new rate will give it a 4.9% yield, based on today’s share price.
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George played a key role in building Suncor Energy, while Markin was important to the growth of Canadian Natural Resources.
Penn West already plans to cut its staff by 10% and reduce its quarterly dividend by 48.1%, to $0.14 from $0.27. The new rate will give it a 4.9% yield, based on today’s share price.
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ENERPLUS CORP. $15.55 (Toronto symbol ERF; Shares outstanding: 199.7 million; Market cap: $3.1 billion; TSINetwork Rating: Extra Risk; Dividend yield: 7.0%) produces an average of 87,183 barrels of oil equivalent per day (52% gas and 48% oil).
The company’s properties are mainly in Alberta, Saskatchewan, B.C., North Dakota and Montana, as well as the Marcellus Shale, which passes through Pennsylvania, New York, Ohio and West Virginia.
In the three months ended March 31, 2013 Enerplus’s cash flow per share rose 1.2%, to $0.87 from $0.86 a year earlier. Oil prices fell 8.6%, but that was offset by a 10.1% overall production increase and 36.5% higher gas prices.
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The company’s properties are mainly in Alberta, Saskatchewan, B.C., North Dakota and Montana, as well as the Marcellus Shale, which passes through Pennsylvania, New York, Ohio and West Virginia.
In the three months ended March 31, 2013 Enerplus’s cash flow per share rose 1.2%, to $0.87 from $0.86 a year earlier. Oil prices fell 8.6%, but that was offset by a 10.1% overall production increase and 36.5% higher gas prices.
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ARC RESOURCES $27.53 (Toronto symbol ARX; Shares outstanding: 311.1 million; Market cap: $8.8 billion; TSINetwork Rating: Speculative; Dividend yield: 4.4%; www.arcresources.com) produces oil and natural gas in western Canada. The company’s average daily output of 95,472 barrels of oil equivalent (including natural gas) is weighted 61% to gas and 39% to oil.
In the three months ended March 31, 2013, cash flow per share rose 4.8%, to $0.65 from $0.62. Production increased 2.1%, and a 22.2% rise in gas prices more than offset an 8.4% decline in oil prices.
ARC’s long-term debt is $762.0 million, or a low 8.7% of its market cap. It trades at 10.2 times its forecast 2012 cash flow of $2.70 a share.
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In the three months ended March 31, 2013, cash flow per share rose 4.8%, to $0.65 from $0.62. Production increased 2.1%, and a 22.2% rise in gas prices more than offset an 8.4% decline in oil prices.
ARC’s long-term debt is $762.0 million, or a low 8.7% of its market cap. It trades at 10.2 times its forecast 2012 cash flow of $2.70 a share.
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LOBLAW COMPANIES $47.66 (Toronto symbol L; Shares outstanding: 283.1 million; Market cap: $13.6 billion; TSINetwork Rating: Above Average; Dividend yield: 2.0%; www.loblaw.ca) is testing a new store format in Calgary that is much smaller than its other supermarkets.
This store, called The Box by No Frills, is just 10,000 square feet, compared to 25,000 square feet for its regular stores.
Smaller stores like this would help Loblaw expand in urban areas. They would also help it compete with non-traditional food sellers, such as drug stores and convenience stores. To boost traffic, the new stores will highlight $1 items in most aisles.
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This store, called The Box by No Frills, is just 10,000 square feet, compared to 25,000 square feet for its regular stores.
Smaller stores like this would help Loblaw expand in urban areas. They would also help it compete with non-traditional food sellers, such as drug stores and convenience stores. To boost traffic, the new stores will highlight $1 items in most aisles.
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MARKET VECTORS VIETNAM ETF $18.89 (New York symbol VNM; buy or sell through brokers) holds shares of Vietnamese companies or foreign firms that get a significant amount of their revenue from Vietnam.
The ETF’s top 10 holdings are Pha Lai Thermal Power, 8.2%; Bank for Foreign Trade of Vietnam, 7.2%; Baoviet Holdings (finance and insurance), 7.1%; PetroVietnam Fertilizer and Chemical, 6.9%; Vincom Corp. (real estate), 6.8%; Saigon Thuong Tin Commercial Bank, 5.3%; Gamuda Bhd (a Malaysiabased construction group), 5.2%; Minor International (a Thailand-based firm with hotels and fast-food restaurants in Vietnam), 4.4%; Vietnam Construction and Import-Export, 4.3%; and Oil & Natural Gas Corp. (an India-based oil and gas company), 4.2%.
Market Vectors Vietnam ETF’s industry breakdown is as follows: Financials, 36.2%; Energy, 19.9%; Industrials, 14.5%; Materials, 10.0%; Utilities, 8.2%; Consumer Discretionary, 5.3%; and Consumer Staples, 3.7%. Its expense ratio is 0.76%.
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The ETF’s top 10 holdings are Pha Lai Thermal Power, 8.2%; Bank for Foreign Trade of Vietnam, 7.2%; Baoviet Holdings (finance and insurance), 7.1%; PetroVietnam Fertilizer and Chemical, 6.9%; Vincom Corp. (real estate), 6.8%; Saigon Thuong Tin Commercial Bank, 5.3%; Gamuda Bhd (a Malaysiabased construction group), 5.2%; Minor International (a Thailand-based firm with hotels and fast-food restaurants in Vietnam), 4.4%; Vietnam Construction and Import-Export, 4.3%; and Oil & Natural Gas Corp. (an India-based oil and gas company), 4.2%.
Market Vectors Vietnam ETF’s industry breakdown is as follows: Financials, 36.2%; Energy, 19.9%; Industrials, 14.5%; Materials, 10.0%; Utilities, 8.2%; Consumer Discretionary, 5.3%; and Consumer Staples, 3.7%. Its expense ratio is 0.76%.
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ISHARES FTSE/XINHUA CHINA 25 INDEX FUND $31.73 (New York symbol FXI; buy or sell through brokers) is an ETF that aims to track the FTSE/Xinhua China 25 Index, which is made up of the 25 largest and most liquid Chinese stocks. All of the stocks in the index trade on the Hong Kong exchange. Some also trade as American Depositary Receipts (ADRs) on the New York exchange.
The fund’s top holdings are China Mobile, 10.5%; China Construction Bank, 8.7%; Industrial & Commercial Bank, 7.4%; Tencent Holdings, 6.8%, Bank of China, 5.9%; PetroChina, 4.0%, CNOOC, 4.0%; China Shenhua Energy, 3.9%; China Life Insurance, 3.9%, and Ping An Insurance, 3.9%.
The fund’s holdings give it the following industry breakdown: Financials, 52.1%; Telecommunications, 16.7%; Oil and Gas, 11.8%; Technology, 6.8%, Basic Materials, 5.0%; and Consumer Goods, 3.2%. Its expense ratio is 0.73%.
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The fund’s top holdings are China Mobile, 10.5%; China Construction Bank, 8.7%; Industrial & Commercial Bank, 7.4%; Tencent Holdings, 6.8%, Bank of China, 5.9%; PetroChina, 4.0%, CNOOC, 4.0%; China Shenhua Energy, 3.9%; China Life Insurance, 3.9%, and Ping An Insurance, 3.9%.
The fund’s holdings give it the following industry breakdown: Financials, 52.1%; Telecommunications, 16.7%; Oil and Gas, 11.8%; Technology, 6.8%, Basic Materials, 5.0%; and Consumer Goods, 3.2%. Its expense ratio is 0.73%.
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H&R REIT $21.95 (Toronto symbol HR.UN; Units outstanding: 261.7 million; Market cap: $16.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 6.2%; www.hr-reit.com) has bought the Peter Pond Mall in Fort McMurray, Alberta for $168.5 million.
The Peter Pond Mall is Fort McMurray’s only enclosed shopping centre. It serves the thriving oil sands industry in that area.
The average household income in Fort Mc- Murray is over $190,000 a year, and that prosperity gives the mall average sales of over $870 a square foot. That average ranks Peter Pond among the top 10 shopping centres in Canada.
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The Peter Pond Mall is Fort McMurray’s only enclosed shopping centre. It serves the thriving oil sands industry in that area.
The average household income in Fort Mc- Murray is over $190,000 a year, and that prosperity gives the mall average sales of over $870 a square foot. That average ranks Peter Pond among the top 10 shopping centres in Canada.
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ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $31.73 (Toronto symbol AP.UN; Units outstanding: 68.0 million; Market cap: $2.2 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.3%; www.alliedpropertiesreit.com) owns 126 office buildings, mostly in major Canadian cities. These mainly Class I properties contain over 9.5 million square feet of leasable area.
Class I refers to 19th- and early-20th-century light industrial buildings that have been converted to office and retail space. They usually feature exposed beams, interior brick and hardwood floors.
The trust bought $400 million worth of properties in 2012. In the first quarter of 2013, it added a further $146 million of acquisitions. Allied has a 92.8% occupancy rate.
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Class I refers to 19th- and early-20th-century light industrial buildings that have been converted to office and retail space. They usually feature exposed beams, interior brick and hardwood floors.
The trust bought $400 million worth of properties in 2012. In the first quarter of 2013, it added a further $146 million of acquisitions. Allied has a 92.8% occupancy rate.
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RIOCAN REAL ESTATE INVESTMENT TRUST $25.37 (Toronto symbol REI.UN; Units outstanding: 300.0 million; Market cap: $7.8 billion; TSINetwork Rating: Average; Dividend yield: 5.6%; www.riocan.com) is Canada’s largest real estate investment trust (REIT). It has interests in 344 shopping malls containing over 84 million square feet of leasable area. That total includes 50 U.S. malls containing over 13.7 million square feet.
RioCan recently ended its joint venture with Retail Properties of America (New York symbol RPAI). As a result, RioCan now holds 100% of eight highquality malls in Texas, including the dominant shopping centres in Austin and San Antonio.
In the quarter ended March 31, 2013, RioCan’s revenue rose 10.6%, to $281 million from $254 million a year earlier. Cash flow per unit rose 10.8%, to $0.41 from $0.37. The units yield 5.6%.
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RioCan recently ended its joint venture with Retail Properties of America (New York symbol RPAI). As a result, RioCan now holds 100% of eight highquality malls in Texas, including the dominant shopping centres in Austin and San Antonio.
In the quarter ended March 31, 2013, RioCan’s revenue rose 10.6%, to $281 million from $254 million a year earlier. Cash flow per unit rose 10.8%, to $0.41 from $0.37. The units yield 5.6%.
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SUN LIFE FINANCIAL $31.38 (Toronto symbol SLF; Shares outstanding: 603.0 million; Market cap: $18.9 billion; SI Rating: Above Average; Dividend yield: 4.6%; www.sunlife.ca) sells savings, retirement, pension and life insurance products to individuals and corporations.
The company mainly operates in Canada, the U.S. and the U.K., but has expanded into Asia, China and India. It has $570.7 billion of assets under management.
In the three months ended March 31, 2013, Sun Life’s earnings per share rose 1.4%, to $0.75 from $0.74. Revenue rose 3.1%, to $3.4 billion from $3.3 billion.
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The company mainly operates in Canada, the U.S. and the U.K., but has expanded into Asia, China and India. It has $570.7 billion of assets under management.
In the three months ended March 31, 2013, Sun Life’s earnings per share rose 1.4%, to $0.75 from $0.74. Revenue rose 3.1%, to $3.4 billion from $3.3 billion.
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