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.
[text_ad use_category="18"]
Read More
Close
Pat McKeough responds to many requests from members of his Inner Circle for specific advice on buying stocks as well as questions on investment strategy and the economy. 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 members of Pat’s Inner Circle....
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 advice on how you to find the best investments for your portfolio. Each Investor Toolkit update gives you a fundamental piece of investment strategy, and shows you how you can put it into practice right away. Tip of the week: “While insider trading can sometimes be a useful indicator for investors, there are also occasions when it can be misleading.”...
Pat McKeough responds to many requests from members of his Inner Circle for specific advice and stock tips as well as questions on investment strategy and the economy. 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 members of Pat’s Inner Circle....
POWER CORP. $29.88 (Toronto symbol POW; Shares outstanding: 411.4 million; Market cap: $12.2 billion; TSINetwork Rating: Above Average; Div. yield: 3.9%; www.powercorporation.com) is a diversified holding company. It holds its financial assets through 65.8%-owned Power Financial.
These financial assets include 68.1% of Great- West Lifeco, one of Canada’s largest life insurers (see column on page 9), and 58.7% of IGM Financial, a leading Canadian mutual fund provider.
Power Financial also owns 50% of holding company Parjointco, which holds 55.6% of Switzerland- listed Pargesa Holdings SA. Pargesa has 95% of its assets in five large European companies: Imerys (minerals), Total SA (oil), Pernod Ricard (wine and spirits), Suez Environnement (energy, water and waste services) and Lafarge (cement and building materials). Power Corp. also has investments in Asia.
...
These financial assets include 68.1% of Great- West Lifeco, one of Canada’s largest life insurers (see column on page 9), and 58.7% of IGM Financial, a leading Canadian mutual fund provider.
Power Financial also owns 50% of holding company Parjointco, which holds 55.6% of Switzerland- listed Pargesa Holdings SA. Pargesa has 95% of its assets in five large European companies: Imerys (minerals), Total SA (oil), Pernod Ricard (wine and spirits), Suez Environnement (energy, water and waste services) and Lafarge (cement and building materials). Power Corp. also has investments in Asia.
...
GLOBAL X COPPER MINERS ETF $8.80 (New York symbol COPX; buy or sell through brokers; www.globalxfunds.com) tracks the Solactive Global Copper Miners Index, which includes 20 to 40 international companies that mine, refine or explore for copper. Germany-based Structured Solutions AG created this index.
Canadian firms make up 41.9% of the fund’s holdings. It also includes companies based in Australia (14.2%), Poland (4.7%), Peru (4.9%) and Mexico (5.0%). Global X Copper Miners ETF’s MER is 0.65%.
Its top holdings are Imperial Metals at 6.5%; Turquoise Hill Resources, 5.7%; Grupo Mexico, 5.1%; Lundin Mining, 5.1%; Glencore International, 5.1%; First Quantum Minerals, 5.1%; Hudbay Minerals, 5.0%; Capstone Mining, 5.0%; Antofagasta plc, 5.0%; and Southern Copper, 5.0%.
...
Canadian firms make up 41.9% of the fund’s holdings. It also includes companies based in Australia (14.2%), Poland (4.7%), Peru (4.9%) and Mexico (5.0%). Global X Copper Miners ETF’s MER is 0.65%.
Its top holdings are Imperial Metals at 6.5%; Turquoise Hill Resources, 5.7%; Grupo Mexico, 5.1%; Lundin Mining, 5.1%; Glencore International, 5.1%; First Quantum Minerals, 5.1%; Hudbay Minerals, 5.0%; Capstone Mining, 5.0%; Antofagasta plc, 5.0%; and Southern Copper, 5.0%.
...
GLOBAL X SILVER MINERS ETF $12.20 (New York symbol SIL; buy or sell through brokers; www.globalxfunds.com) tracks the Solactive Global Silver Miners Index.
This index includes 30 international companies that mine, refine or explore for silver. Germany-based Structured Solutions AG developed the Global X Silver Miners Index.
...
ISHARES S&P/TSX GLOBAL GOLD INDEX FUND $11.19 (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 37 gold stocks from Canada and around the world. The iShares S&P/TSX Global Gold Index Fund’s MER is 0.60%. It began trading on March 23, 2001.
The fund’s top holdings are Barrick Gold at 17.9%; Goldcorp, 16.1%; Newmont Mining, 8.6%; Franco Nevada, 5.7%; Yamana Gold, 5.6%; Randgold Resources (ADR), 5.1%; AngloGold Ashanti (ADR), 4.7%; Agnico-Eagle Mines, 4.3%; Kinross, 4.2%; Eldorado Gold, 3.6%; Royal Gold, 2.9%; New Gold, 2.3%, Gold Fields (ADR), 2.1% and Osisko Mining, 2.1%.
...
This index is made up of 37 gold stocks from Canada and around the world. The iShares S&P/TSX Global Gold Index Fund’s MER is 0.60%. It began trading on March 23, 2001.
The fund’s top holdings are Barrick Gold at 17.9%; Goldcorp, 16.1%; Newmont Mining, 8.6%; Franco Nevada, 5.7%; Yamana Gold, 5.6%; Randgold Resources (ADR), 5.1%; AngloGold Ashanti (ADR), 4.7%; Agnico-Eagle Mines, 4.3%; Kinross, 4.2%; Eldorado Gold, 3.6%; Royal Gold, 2.9%; New Gold, 2.3%, Gold Fields (ADR), 2.1% and Osisko Mining, 2.1%.
...
TRANSCANADA CORP. $47.82 (Toronto symbol TRP; Shares outstanding: 707.0 million; Market cap: $33.7 billion; TSINetwork Rating: Above Average; Dividend yield: 3.9%; www.transcanada.com) has agreed to sell its Cancarb business to Japan’s Tokai Carbon Co.
Alberta-based Cancarb makes thermal carbon black from natural gas. It sells this product to carmakers and other industrial users, who use it as an ingredient in high-grade rubber and ceramics. Cancarb also uses waste heat from its manufacturing operations to generate electricity, which its sells to the local power grid.xzc Tokai will pay TransCanada $190 million when the deal closes in the next few weeks. That’s equal to 43% of the $447 million it earned in the quarter ended September 30, 2013.
TransCanada is a buy....
Alberta-based Cancarb makes thermal carbon black from natural gas. It sells this product to carmakers and other industrial users, who use it as an ingredient in high-grade rubber and ceramics. Cancarb also uses waste heat from its manufacturing operations to generate electricity, which its sells to the local power grid.xzc Tokai will pay TransCanada $190 million when the deal closes in the next few weeks. That’s equal to 43% of the $447 million it earned in the quarter ended September 30, 2013.
TransCanada is a buy....
Algonquin Power & Utilities is still a buy. INNERGEX RENEWABLE ENERGY $10.04 (Toronto symbol INE; Shares outstanding: 95.7 million; Market cap: $961.3 million; TSINetwork Rating: Extra Risk; Dividend yield 5.8%; www.innergex.com) operates 23 hydroelectric facilities, five wind farms and one solar power plant in Quebec, Ontario, B.C. and Idaho. Innergex gets 73% of its power from hydroelectric facilities. Wind farms supply 26% and solar generates 1%.
In contrast to Algonquin, Innergex is growing slowly, mostly by building its own hydroelectric and wind plants, rather than through acquisitions. Right now, it is developing or building eight projects.
...
ALGONQUIN POWER & UTILITIES CORP. $7.24 (Toronto symbol AQN; Shares outstanding: 206.3 million; Market cap: $1.5 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.7%; www.algonquinpower.com) has nearly tripled in size over the last two years through acquisitions.
Algonquin bought four companies in 2012 and another five in 2013. These moves included a $140.7-million U.S. deal for a natural gas distributor in Georgia with 64,000 clients.
The company’s regulated utility businesses now provide water, electricity and natural gas to over 470,000 customers, up sharply from 120,000 a year ago. In addition, Algonquin’s hydroelectric, thermal energy and wind facilities generate 1,100 megawatts of power, up from 460.
...
Algonquin bought four companies in 2012 and another five in 2013. These moves included a $140.7-million U.S. deal for a natural gas distributor in Georgia with 64,000 clients.
The company’s regulated utility businesses now provide water, electricity and natural gas to over 470,000 customers, up sharply from 120,000 a year ago. In addition, Algonquin’s hydroelectric, thermal energy and wind facilities generate 1,100 megawatts of power, up from 460.
...