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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Canada’s real estate investment trusts (REITs) were the only category of trusts exempted from the federal government’s income trust tax. This has helped them remain popular with investors seeking both income and capital gains. Today we look at a major Canadian REIT that continues to add to its shopping centre empire, in the U.S. as well as Canada. RIOCAN REAL ESTATE INVESTMENT TRUST (Toronto symbol REI.UN; 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....
GLOBAL X COPPER MINERS ETF $11.31 (New York symbol COPX; buy or sell through brokers; www.globalxfunds.com) tracks the Solactive Global Copper Miners Index, which includes between 20 and 40 international companies that mine, refine or explore for copper. Germany-based Structured Solutions AG created this index.
Canadian companies make up 38.1% of the fund’s holdings. It also includes companies based in the U.S. (11.2%), Australia (8.8%) and Mexico (5.7%), Global X Copper Miners ETF’s MER is 0.65%.
Its top 10 holdings are Southern Copper Corporation at 5.9%, Lundin Mining, 5.8%; KGHM Polska Miedz, 5.7%, Antofagasta plc, 5.6%; Grupo Mexico, 5.6%; Freeport Copper, 5.5%; Jiangxi Copper Company, 5.2%; First Quantum Minerals, 5.2%; Xstrata, 4.8%; and Capstone Mining, 4.7%.
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Canadian companies make up 38.1% of the fund’s holdings. It also includes companies based in the U.S. (11.2%), Australia (8.8%) and Mexico (5.7%), Global X Copper Miners ETF’s MER is 0.65%.
Its top 10 holdings are Southern Copper Corporation at 5.9%, Lundin Mining, 5.8%; KGHM Polska Miedz, 5.7%, Antofagasta plc, 5.6%; Grupo Mexico, 5.6%; Freeport Copper, 5.5%; Jiangxi Copper Company, 5.2%; First Quantum Minerals, 5.2%; Xstrata, 4.8%; and Capstone Mining, 4.7%.
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GLOBAL X SILVER MINERS ETF $21.80 (New York symbol SIL; buy or sell through brokers; www.globalxfunds.com) tracks the Solactive Global Silver Miners Index.
This index includes between 20 and 40 international companies that mine, refine or explore for silver. Germany-based Structured Solutions AG developed
this index.
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This index includes between 20 and 40 international companies that mine, refine or explore for silver. Germany-based Structured Solutions AG developed
this index.
...
ISHARES S&P/TSX GLOBAL GOLD INDEX FUND $19.69 (Toronto symbol XGD; buy or sell through brokers; ca.ishares.com) aims to mirror the performance of the S&P/TSX Global Gold Index.
This index is made up of 58 gold stocks from Canada and around the world. The fund’s MER is 0.55%. iShares S&P/TSX Global Gold Index Fund began trading on March 23, 2001.
The fund’s top 10 holdings are Barrick Gold at 16.0%; Goldcorp., 13.8%; Newmont Mining, 10.5%; Yamana Gold, 5.3%; AngloGold Ashanti (ADR), 5.1%; Kinross, 4.2%; Eldorado Gold, 3.9%; Randgold Resources, 3.9% Gold Fields (ADR), 3.7%; and Agnico-Eagle Mines, 3.4%.
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This index is made up of 58 gold stocks from Canada and around the world. The fund’s MER is 0.55%. iShares S&P/TSX Global Gold Index Fund began trading on March 23, 2001.
The fund’s top 10 holdings are Barrick Gold at 16.0%; Goldcorp., 13.8%; Newmont Mining, 10.5%; Yamana Gold, 5.3%; AngloGold Ashanti (ADR), 5.1%; Kinross, 4.2%; Eldorado Gold, 3.9%; Randgold Resources, 3.9% Gold Fields (ADR), 3.7%; and Agnico-Eagle Mines, 3.4%.
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ENBRIDGE INC. $38.65 (Toronto symbol ENB; Shares outstanding: 796.9 million; Market cap: $30.8 billion; TSINetwork Rating: Above Average; Dividend yield: 2.9%; www.enbridge.com) recently finished repairing its leaking oil pipeline in Wisconsin.
The company has faced criticism over leaks like this. That could hurt its proposed $5.5- billion Northern Gateway project, which would pump oil from Edmonton to Kitimat, B.C.
However, Enbridge still has a strong safety record, and it has pledged to spend an extra $500 million on safety for Northern Gateway. This investment includes thicker steel at river crossings, 50% more inspections and aroundthe- clock staffing at remote pumping stations.
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The company has faced criticism over leaks like this. That could hurt its proposed $5.5- billion Northern Gateway project, which would pump oil from Edmonton to Kitimat, B.C.
However, Enbridge still has a strong safety record, and it has pledged to spend an extra $500 million on safety for Northern Gateway. This investment includes thicker steel at river crossings, 50% more inspections and aroundthe- clock staffing at remote pumping stations.
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CENOVUS ENERGY $31.99 (Toronto symbol CVE; Shares outstanding: 754.7 million; Market cap: $24.1 billion; TSINetwork Rating: Extra Risk; Dividend yield: 2.8%; www.cenovus.com) operates three oil sands projects in Alberta and one in Saskatchewan. The company ships the heavy bitumen from these assets to refineries in Illinois and Texas. ConocoPhillips (New York symbol COP) owns 50% of these refineries and 50% of Cenovus’s two main oil sands projects. Cenovus also owns conventional oil and natural gas properties.
In the three months ended June 30, 2012, Cenovus’s cash flow per share fell 1.6%, to $1.22 from $1.24 a year earlier. Lower oil prices offset a 27.8% increase in production, to 155,566 barrels of oil per day from 121,762 barrels.
Cenovus has started producing oil at the fourth phase of its Christina Lake oil sands project in Alberta. The startup is three months ahead of schedule and within budget. ConocoPhillips owns 50% of Christina Lake.
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In the three months ended June 30, 2012, Cenovus’s cash flow per share fell 1.6%, to $1.22 from $1.24 a year earlier. Lower oil prices offset a 27.8% increase in production, to 155,566 barrels of oil per day from 121,762 barrels.
Cenovus has started producing oil at the fourth phase of its Christina Lake oil sands project in Alberta. The startup is three months ahead of schedule and within budget. ConocoPhillips owns 50% of Christina Lake.
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ENCANA CORP $21.36 (Toronto symbol ECA; Shares outstanding: 736.3 million; Market cap: $15.7 billion; TSINetwork Rating: Average; Dividend yield: 3.9%; www.encana.com) is one of North America’s largest natural gas producers. Its reserves should last over 11 years.
Encana’s cash flow was $1.08 a share in the three months ended June 30, 2012 (all amounts except share price and market cap in U.S. dollars). That’s down 27.0% from $1.48 a share, a year earlier.
Natural gas accounts for 95% of Encana’s production. In response to falling gas prices, the company lowered its output during the quarter; this was the main reason for the lower cash flow.
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Encana’s cash flow was $1.08 a share in the three months ended June 30, 2012 (all amounts except share price and market cap in U.S. dollars). That’s down 27.0% from $1.48 a share, a year earlier.
Natural gas accounts for 95% of Encana’s production. In response to falling gas prices, the company lowered its output during the quarter; this was the main reason for the lower cash flow.
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LOBLAW CO. $34.12 (Toronto symbol L; Shares outstanding: 281.4 million; Market cap: $9.6 billion; TSINetwork Rating: Above Average; Dividend yield: 2.5%; www.loblaw.ca) continues to invest in new computers as part of a far-reaching plan to improve its efficiency and avoid product shortages in its stores.
In the three months ended June 16, 2012, the company spent $20 million on these initiatives. That’s the main reason why its earnings fell 19.3% in the quarter, to $159 million, or $0.57 a share, from $197 million, or $0.70 a share, a year earlier.
Sales rose 1.3%, to $7.4 billion from $7.3 billion. Overall sales at its supermarkets rose 1.1%, while same-store sales rose 0.2%. Revenue from its financial-services division, which mainly issues credit cards, rose 14.9%.
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In the three months ended June 16, 2012, the company spent $20 million on these initiatives. That’s the main reason why its earnings fell 19.3% in the quarter, to $159 million, or $0.57 a share, from $197 million, or $0.70 a share, a year earlier.
Sales rose 1.3%, to $7.4 billion from $7.3 billion. Overall sales at its supermarkets rose 1.1%, while same-store sales rose 0.2%. Revenue from its financial-services division, which mainly issues credit cards, rose 14.9%.
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MARKET VECTORS VIETNAM ETF $16.84 (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 Vietin Commercial Bank, 8.1%; Vincom Corp. (real estate), 7.4%; PetroVietnam Fertilizer and Chemical, 7.2%; Talisman Energy (a Canadian producer with interests off Vietnam’s coast), 6.5%; JSC Bank, 5.9%; Premier Oil (a U.K.-based producer with a 53.1% stake in the huge Chim Sao oil project off southern Vietnam), 5.3%; Oil & Natural Gas Corp. (an India-based oil and gas company), 5.1%; Baoviet Holdings (finance and insurance), 4.7%; Gamuda Bhd (a Malaysiabased construction group), 4.6%; and Charoen Pokp-hand Foods (a Thailand-based food conglomerate),4.2%.
Market Vectors Vietnam ETF’s industry breakdown is as follows: Financials, 44.0%; Energy, 26.4%; Industrials, 11.2%; Materials, 7.9%; Consumer Discretionary, 4.3%; Consumer Staples, 4.1%; and Utilities, 2.2%. Its expense ratio is 0.76%.
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The ETF’s top 10 holdings are Vietin Commercial Bank, 8.1%; Vincom Corp. (real estate), 7.4%; PetroVietnam Fertilizer and Chemical, 7.2%; Talisman Energy (a Canadian producer with interests off Vietnam’s coast), 6.5%; JSC Bank, 5.9%; Premier Oil (a U.K.-based producer with a 53.1% stake in the huge Chim Sao oil project off southern Vietnam), 5.3%; Oil & Natural Gas Corp. (an India-based oil and gas company), 5.1%; Baoviet Holdings (finance and insurance), 4.7%; Gamuda Bhd (a Malaysiabased construction group), 4.6%; and Charoen Pokp-hand Foods (a Thailand-based food conglomerate),4.2%.
Market Vectors Vietnam ETF’s industry breakdown is as follows: Financials, 44.0%; Energy, 26.4%; Industrials, 11.2%; Materials, 7.9%; Consumer Discretionary, 4.3%; Consumer Staples, 4.1%; and Utilities, 2.2%. Its expense ratio is 0.76%.
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ISHARES FTSE/XINHUA CHINA 25 INDEX FUND $32.17 (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, 10.3%; China Construction Bank, 8.4%; Industrial & Commercial Bank, 7.6%; CNOOC, 7.0%; Bank of China, 5.9%; China Telecom, 4.8%; China Unicom (Hong Kong), 4.6%; China Life Insurance, 4.6%; China Shenhua, 4.3%; and China Petroleum and Chemical, 4.0%.
The fund’s holdings give it the following industry breakdown: Financials, 53.1%; Telecommunications, 19.7%; Oil and Gas, 14.6%; Basic Materials, 9.8%; and Industrials, 1.9%. Its expense ratio is 0.72%.
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The fund’s top holdings are China Mobile, 10.3%; China Construction Bank, 8.4%; Industrial & Commercial Bank, 7.6%; CNOOC, 7.0%; Bank of China, 5.9%; China Telecom, 4.8%; China Unicom (Hong Kong), 4.6%; China Life Insurance, 4.6%; China Shenhua, 4.3%; and China Petroleum and Chemical, 4.0%.
The fund’s holdings give it the following industry breakdown: Financials, 53.1%; Telecommunications, 19.7%; Oil and Gas, 14.6%; Basic Materials, 9.8%; and Industrials, 1.9%. Its expense ratio is 0.72%.
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