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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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 investment advice. Each Investor Toolkit update gives you a fundamental piece of investing strategy, and shows you how you can put it into practice right away. Today’s tip: “Starting out your investing career the wrong way could force you into years of catching up.”...
STANLEY BLACK & DECKER INC. (New York symbol SWK; www.stanleyblackanddecker.com) is one of the world’s largest makers of hand and power tools for consumers. Its top-selling brands include Stanley, Black & Decker, FatMax and Powerlock. This business supplied 51% of Stanley’s 2011 sales and 46% of its earnings. The company’s building-security division makes locks, automatic doors and gates. It also monitors properties for its clients, typically through closed-circuit audio and TV systems. This division accounts for 25% of Stanley’s sales and 27% of its earnings....
Pat McKeough responds to many personal questions on 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. This past week, an Inner Circle member asked us about a company that clearly benefits when the global economy is doing well. This American heavy-equipment manufacturer already makes the majority of its sales outside the U.S. and it’s looking to developing economies to fuel even more growth....
H&R REAL ESTATE INVESTMENT TRUST $24.16 (Toronto symbol HR.UN; Units outstanding: 181.0 million; Market cap: $4.4 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.8%; www.hr-reit.com) and Dundee REIT (Toronto symbol D.UN) have agreed to buy Scotia Plaza, a 68-storey office building in downtown Toronto, from Bank of Nova Scotia (see page 41) for $1.3 billion.
Dundee REIT will own two-thirds of the property, and H&R will own the remaining third.
Scotia Plaza contains about 2 million square feet of office and retail space across four connected buildings. Scotiabank will remain as the anchor tenant.
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Dundee REIT will own two-thirds of the property, and H&R will own the remaining third.
Scotia Plaza contains about 2 million square feet of office and retail space across four connected buildings. Scotiabank will remain as the anchor tenant.
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PRIMARIS RETAIL REAL ESTATE INVESTMENT TRUST $22.79 (Toronto symbol PMZ.UN; Units outstanding: 87.8 million; Market cap: $2.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 5.4%; 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., 14%; Quebec, 14%; Saskatchewan, 9%; Manitoba, 3% and New Brunswick, 1%. Primaris has a 96.7% occupancy rate.
In the quarter ended March 31, 2012, acquisitions pushed up Primaris’s revenue by 22.6%, to $100.4 million from $81.9 million a year earlier. Cash flow rose 30.8%, to $32.7 million from $25.0 million. Cash flow per unit rose 8.3%, to $0.393 from $0.363, on more units outstanding. The trust yields 5.4%.
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Primaris has 43% of its properties in Ontario, followed by Alberta, 16%; B.C., 14%; Quebec, 14%; Saskatchewan, 9%; Manitoba, 3% and New Brunswick, 1%. Primaris has a 96.7% occupancy rate.
In the quarter ended March 31, 2012, acquisitions pushed up Primaris’s revenue by 22.6%, to $100.4 million from $81.9 million a year earlier. Cash flow rose 30.8%, to $32.7 million from $25.0 million. Cash flow per unit rose 8.3%, to $0.393 from $0.363, on more units outstanding. The trust yields 5.4%.
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RIOCAN REAL ESTATE INVESTMENT TRUST $26.57 (Toronto symbol REI.UN; Units outstanding: 285.0 million; Market cap: $7.6 billion; TSINetwork Rating: Average; Dividend yield: 5.2%; www.riocan.com) is Canada’s largest REIT. It has interests in 333 shopping malls in Canada, including 10 under development. These properties contain over 91 million square feet of leasable area.
RioCan also owns stakes in 46 malls in the U.S. through joint ventures. In addition, it owns 14% of Cedar Shopping Centers, a U.S. REIT whose malls are mainly in the northeastern U.S.
In the quarter ended March 31, 2012, RioCan’s revenue rose 15.6%, to $274 million from $237 million a year earlier. Cash flow per unit rose 5.7%, to $0.37 from $0.35. The units yield 5.2%.
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RioCan also owns stakes in 46 malls in the U.S. through joint ventures. In addition, it owns 14% of Cedar Shopping Centers, a U.S. REIT whose malls are mainly in the northeastern U.S.
In the quarter ended March 31, 2012, RioCan’s revenue rose 15.6%, to $274 million from $237 million a year earlier. Cash flow per unit rose 5.7%, to $0.37 from $0.35. The units yield 5.2%.
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BELL ALIANT INC. $26 (Toronto symbol BA; Shares outstanding: 227.8 million; Market cap: $5.9 billion; TSINetwork Rating: Above Average; Dividend yield: 7.3%; www.aliant.ca) earned $0.45 a share in the three months ended March 31, 2012. That’s up 2.3% from $0.44 a year earlier. Revenue was unchanged at $682.0 million.
Strong demand for high-speed Internet and TV services offset lower revenue from traditional phone (or land line) subscribers and long-distance calls.
Bell Aliant’s high-speed fibre optic systems now reach 516,000 homes. It plans to expand this to 650,000 homes by the end of 2012.
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Strong demand for high-speed Internet and TV services offset lower revenue from traditional phone (or land line) subscribers and long-distance calls.
Bell Aliant’s high-speed fibre optic systems now reach 516,000 homes. It plans to expand this to 650,000 homes by the end of 2012.
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BCE INC. $41.54 (Toronto symbol BCE; Shares outstanding: 773.6 million; Market cap: $32.1 billion; TSINetwork Rating: Above Average; Dividend yield: 5.2%; www.bce.ca) is teaming up with a group of other investors, including the Ontario Teachers’ Pension Plan, to buy privately held Q9 networks Inc.
Toronto-based Q9 provides data-storage and web-hosting services to businesses across Canada. It has 11 data centres in Ontario, Alberta and B.C.
This investment will help BCE take advantage of growing demand from business clients for reliable cloud-computing services (the general term for shifting software and data off of users’ machines and onto service providers’ machines via the Internet). The company already operates six data centres. It will open a seventh later this year.
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Toronto-based Q9 provides data-storage and web-hosting services to businesses across Canada. It has 11 data centres in Ontario, Alberta and B.C.
This investment will help BCE take advantage of growing demand from business clients for reliable cloud-computing services (the general term for shifting software and data off of users’ machines and onto service providers’ machines via the Internet). The company already operates six data centres. It will open a seventh later this year.
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POWERSHARES QQQ ETF $62.52 (Nasdaq symbol QQQQ; buy or sell through brokers; www.invescopowershares.com), formerly called Nasdaq 100 Trust Shares, holds the stocks that represent the Nasdaq 100 Index. That index is made up of the 100 largest shares on the Nasdaq exchange, based on market cap.
The Nasdaq 100 Index contains shares of companies in a number of major industries, including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain financial companies. The fund’s expenses are about 0.20% of its assets.
The index’s highest-weighted stocks are Apple, Microsoft, Qualcomm, Google, Cisco Systems, Intel, Amazon.com, Oracle Corp., Comcast Corp. and Amgen Inc.
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The Nasdaq 100 Index contains shares of companies in a number of major industries, including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain financial companies. The fund’s expenses are about 0.20% of its assets.
The index’s highest-weighted stocks are Apple, Microsoft, Qualcomm, Google, Cisco Systems, Intel, Amazon.com, Oracle Corp., Comcast Corp. and Amgen Inc.
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SPDR DOW JONES INDUSTRIAL AVERAGE ETF $123.93 (New York symbol DIA; buy or sell through brokers; www.spdrs.com) holds the 30 stocks that make up the Dow Jones Industrial Average.
The fund’s top holdings are IBM, ExxonMobil, Chevron Corp., 3M, Wal-Mart Stores, McDonald’s Corp., Coca-Cola Co., Caterpillar Inc., United Technologies and Boeing. The fund’s expenses are about 0.18% of its assets.
SPDR Dow Jones ETF is a buy.
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The fund’s top holdings are IBM, ExxonMobil, Chevron Corp., 3M, Wal-Mart Stores, McDonald’s Corp., Coca-Cola Co., Caterpillar Inc., United Technologies and Boeing. The fund’s expenses are about 0.18% of its assets.
SPDR Dow Jones ETF is a buy.
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