investment

RIOCAN REAL ESTATE INVESTMENT TRUST $24 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 320.4 million; Market cap: $7.7 billion; Price-to-sales ratio: 6.1; Dividend yield: 5.9%; TSINetwork Rating: Average; www.riocan.com) owns all or part of 305 shopping centres in Canada, including 16 under development. It also owns 49 malls in the U.S. RioCan has settled its dispute with U.S.-based retailer Target (New York symbol TGT). In April 2015, Target closed all 133 of its Canadian stores, including 26 in RioCan’s malls. So far, the trust has found new tenants for seven of these stores. It will have to remodel the other 19, but it expects to have them rented by the end of 2017....

Mining stocks Alcoa aims to unleash value for investors by spinning off its fast-growing business in engineered aluminium products.

The Shiller P/E ratio is an example of a single idea that is in fashion with investors, but out of tune with the current investment situation.

Today, we look at Goodyear Tire & Rubber Co., the largest tire maker in the world. Goodyear has recently seen its revenue fall as the strong U.S. dollar has cut into the value of its sales outside of the U.S. However, the company expects earnings to rise over the next year and beyond as cost cuts in Europe and lower costs for materials such as oil and rubber take effect. In addition, a new $550-million plant in Mexico that will make tires for the growing high-performance tire market will add revenue starting in 2017. With a price to earnings ratio of 11.2, Goodyear’s stock is inexpensive. We recommend Goodyear Tire & Rubber Co. as a value stock to buy.

GOODYEAR TIRE & RUBBER CO. (Nasdaq symbol GT; www.goodyear.com) is the world’s largest tire maker, with 50 plants in 22 countries.

In the three months ended September 30, 2015, Goodyear’s revenue fell 10.2%, to $4.18 billion from $4.66 billion a year earlier. The rising U.S. dollar cut the value of the company’s foreign sales (particularly in Europe and Brazil) by $430 million.

...

In the 18th century, pioneering economist Adam Smith said that the public tends to overvalue “speculative ventures”. We think this makes excellent investing advice for present day investors in speculative stocks.

When a speculative stock is losing money, it has a great deal of freedom to ponder on its future. With a little imagination, it can always show that anything’s possible, based on a logical series of events that it says will take place as it advances inevitably toward profitability. Meanwhile, it doesn’t need to worry that its price-to-earnings or p/e ratio is too high, since it doesn’t have one—it has no “e”.

...

Flow-through limited partnerships offer big tax breaks but may not be the best things for your portfolio.

With this short-term investing strategy, you may be missing out on long-term profits in favour of giving short term profits to your broker

SUNCOR ENERGY INC., $36.03, Toronto symbol SU, has extended its hostile all-stock takeover offer for Canadian Oil Sands (Toronto symbol COS) from December 4, 2015, to January 8, 2016. That’s because Alberta securities regulators upheld Canadian Oil Sands’ request for more time to look for another buyer. However, Suncor did not increase the size of its offer: Canadian Oil Sands investors would still receive 0.25 of a Suncor share for each share they own. The deal requires at least two-thirds of shareholders to tender their holdings. Canadian Oil Sands’ main asset is its 36.74% stake in the Syncrude oil sands development near Fort McMurray, Alberta. Suncor already owns 12.0% of Syncrude, so buying Canadian Oil Sands would give it effective control, with a 48.74% stake. The company feels its expertise running similar projects would help Syncrude improve its efficiency and profits....

CANADIAN REIT $41.74 (Toronto symbol REF.UN; Units outstanding: 72.9 million; Market cap: $3.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.3%; www.creit.ca) owns 198 properties, including retail, industrial and office buildings, across Canada and in Chicago. These holdings contain 24.9 million square feet of leasable area. The trust’s occupancy rate is 94.7%. In the three months ended September 30, 2015, Canadian REIT’s revenue rose 4.5%, to $109.5 million from $104.8 million a year earlier. Cash flow per unit gained 2.7%, to $0.76 from $0.74. The trust aims to grow mostly by developing its own properties rather than through large acquisitions. Over the next few years, it’s spending $660 million to add 3.1 million square feet of space. To cut its risk, Canadian REIT takes on partners to help carry out big projects....

RIOCAN REAL ESTATE INVESTMENT TRUST $24.99 (Toronto symbol REI.UN; Units outstanding: 319.9 million; Market cap: $8.2 billion; TSINetwork Rating: Average; Dividend yield: 5.5%; www.riocan.com) has settled its dispute with U.S.-based department store chain Target (New York symbol TGT). In April 2015, Target closed all 133 of its Canadian stores, including 26 in RioCan’s malls. So far, the trust has found new tenants for seven of these stores. It will have to remodel the other 19, but it expects to have them rented by the end of 2017. Target has now paid $132 million in compensation. Of that total, $92 million went to RioCan and $40 million went to its partners in some of these malls....