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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PRIMARIS RETAIL REAL ESTATE INVESTMENT TRUST $24.14 (Toronto symbol PMZ.UN; Units outstanding: 92.8 million; Market cap: $2.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 5.1%; www.primarisreit.com) owns large malls in medium-sized Canadian cities and suburban areas. In all, it owns 33 properties that contain 13.7 million square feet of leasable area.
Primaris has 43% of its properties in Ontario, followed by Alberta, 16%; B.C., 15%; Quebec, 13%; Saskatchewan, 9%; Manitoba, 3% and New Brunswick, 1%. Primaris has a 97.4% occupancy rate.
In the quarter ended June 30, 2012, acquisitions increased Primaris’s revenue by 19.5%, to $98.9 million from $82.8 million a year ago. Cash flow rose 53.3%, to $33.4 million from $21.8 million. Cash flow per unit rose 26.7%, to $0.384 from $0.303, on more units outstanding. The trust yields 5.1%.
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Primaris has 43% of its properties in Ontario, followed by Alberta, 16%; B.C., 15%; Quebec, 13%; Saskatchewan, 9%; Manitoba, 3% and New Brunswick, 1%. Primaris has a 97.4% occupancy rate.
In the quarter ended June 30, 2012, acquisitions increased Primaris’s revenue by 19.5%, to $98.9 million from $82.8 million a year ago. Cash flow rose 53.3%, to $33.4 million from $21.8 million. Cash flow per unit rose 26.7%, to $0.384 from $0.303, on more units outstanding. The trust yields 5.1%.
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RIOCAN REAL ESTATE INVESTMENT TRUST $27.48 (Toronto symbol REI.UN; Units outstanding: 295.9 million; Market cap: $8.2 billion; TSINetwork Rating: Average; Dividend yield: 5.0%; www.riocan.com) is Canada’s largest real estate investment trust (REIT). It has interests in 278 shopping malls in Canada, including 10 under development. These properties contain over 59 million square feet of leasable area.
RioCan recently ended its joint venture with Cedar Shopping Centers in the U.S., so it now owns 100% of all of its 48 malls in that country. RioCan held 80% of this venture, which owned 22 shopping centres in the U.S. Under the deal, RioCan will buy Cedar’s 20% stake in 21 malls, while Cedar will buy RioCan’s 80% stake in another mall.
In the quarter ended June 30, 2012, RioCan’s revenue rose 13.5%, to $269 million from $237 million a year earlier. Cash flow per unit rose 2.8%, to $0.37 from $0.36. The units yield 5.0%.
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RioCan recently ended its joint venture with Cedar Shopping Centers in the U.S., so it now owns 100% of all of its 48 malls in that country. RioCan held 80% of this venture, which owned 22 shopping centres in the U.S. Under the deal, RioCan will buy Cedar’s 20% stake in 21 malls, while Cedar will buy RioCan’s 80% stake in another mall.
In the quarter ended June 30, 2012, RioCan’s revenue rose 13.5%, to $269 million from $237 million a year earlier. Cash flow per unit rose 2.8%, to $0.37 from $0.36. The units yield 5.0%.
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MANITOBA TELECOM SERVICES INC. $33.45 (Toronto symbol MBT; Shares outstanding: 66.7 million; Market cap: $2.2 billion; TSINetwork Rating: Average; Dividend yield: 5.1%; www.mts.ca) gets 55% of its revenue from its MTS division, which has over 1.3 million telephone and wireless customers in Manitoba.
The remaining 45% comes from its Allstream division, which sells voice and data communication services to Canadian companies.
Manitoba Tel is now conducting a strategic review of Allstream. This could lead to a sale of some or all of this business.
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The remaining 45% comes from its Allstream division, which sells voice and data communication services to Canadian companies.
Manitoba Tel is now conducting a strategic review of Allstream. This could lead to a sale of some or all of this business.
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BCE INC. $43.43 (Toronto symbol BCE; Shares outstanding: 773.9 million; Market cap: $33.6 billion; TSINetwork Rating: Above Average; Dividend yield: 5.2%; www.bce.ca) is Canada’s largest provider of telephone, Internet and wireless services. It also sells satellite TV services across the country. The company just bought Canadian radio and TV giant Astral Media for $3.4 billion.
In the three months ended June 30, 2012, BCE’s earnings per share rose 18.6%, to $1.02 from $0.86 a year earlier. Revenue fell 0.6%, to $4.9 billion from $5.0 billion. Revenue at the traditional telephone business, which supplies 57% of BCE’s overall revenue, fell 3.9%, partly due to strong competition from cable companies.
However, some of BCE’s land-line clients are switching to mobile phones, which are more profitable for the company. That helped fuel a 6.7% revenue increase at the wireless division (31% of total revenue). Revenue at BCE’s media division (12%) rose 0.9%.
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In the three months ended June 30, 2012, BCE’s earnings per share rose 18.6%, to $1.02 from $0.86 a year earlier. Revenue fell 0.6%, to $4.9 billion from $5.0 billion. Revenue at the traditional telephone business, which supplies 57% of BCE’s overall revenue, fell 3.9%, partly due to strong competition from cable companies.
However, some of BCE’s land-line clients are switching to mobile phones, which are more profitable for the company. That helped fuel a 6.7% revenue increase at the wireless division (31% of total revenue). Revenue at BCE’s media division (12%) rose 0.9%.
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Pat McKeough responds to many personal questions about stock investing and other investment topics from the members of his Inner Circle. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week, we offer you one of the highlights from these Q&A sessions. While we reserve our buy-hold-sell advice for Inner Circle members, these excerpts provide a great deal of information and analysis on stocks we’ve covered for the Inner Circle.
This week, we had a question from an Inner Circle on a U.S. company that operates a group of bakery-cafes. This stock has seen its share price rise substantially in the past year and Pat examines whether it can continue to maintain its strong niche in the face of intense competition among restaurant chains....
This week, we had a question from an Inner Circle on a U.S. company that operates a group of bakery-cafes. This stock has seen its share price rise substantially in the past year and Pat examines whether it can continue to maintain its strong niche in the face of intense competition among restaurant chains....
This is the time of year when many Canadians prepare to spend part or all of the coming winter in warmer weather down south. For some, this could raise the question of time-shares as an option for cheaper vacations. If you visit a resort this winter, you may receive an invitation to a party or other event whose object is to try to sell you and other guests time-shares. It could be worthwhile to attend, depending on what else you have to do. But our view is that investing your money in a time-share rarely provides you with any real advantage....
Pat McKeough responds to many personal questions about buying stocks and other investment topics from the members of his Inner Circle. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week, we offer you one of the highlights from these Q&A sessions. While we reserve our buy-hold-sell advice for Inner Circle members, these excerpts provide a great deal of information and analysis on stocks we’ve covered for the Inner Circle. This week, an Inner Circle member asked about one of the world’s biggest toy companies. Hasbro’s revenue and earnings fell off in the most recent quarter and Pat analyzes the company’s different divisions to see where future growth may come from....
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific stock trading tips and other investment advice that will help you develop a successful approach to investing. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put it into practice right away. Today’s tip: “Selling a poor performer may seem like an obvious way to improve your portfolio, but make sure you are not ditching a possible winner.”...
MOLSON COORS CANADA INC. (Toronto symbols TPX.A and TPX.B; www.molsoncoors.com) has completed its $3.4-billion purchase of StarBev LP, which owns nine breweries in Central and Eastern Europe (all amounts except share prices in U.S. dollars). In the three months ended June 30, 2012, this acquisition contributed $19.7 million to Molson Coors’s pre-tax earnings. That helped push up the company’s overall earnings by 8.0%, to $250.1 million from $231.6 million a year earlier. Earnings per share rose 12.2%, to $1.38 from $1.23, on fewer shares outstanding....
You’ll sometimes hear advisors or investors declare that they are contrarians. That means they believe it pays to go against the mood of the great mass of investors, as revealed to them by one or more of several indicators. These include discussions with friends and acquaintances, the positive or negative tone of media coverage, high or low levels of mutual fund cash holdings, the average sentiment of investor newsletters and so on....