Aggressive Stocks – 4 Buys & 1 Hold

Article Excerpt

We feel most investors should hold the bulk of their investment portfolios in securities from wellestablished companies. However, you may also want to hold some aggressive stocks. Most of our aggressive recommendations have a strong hold on niche markets. This approach cuts your risk by zeroing in on companies like these five, whose strong long-term prospects will help them overcome the inevitable downturns. However, we see only four of them as buys at this time. ARBOR MEMORIAL SERVICES INC. $30 (Toronto symbol ABO.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 10.6 million; Market cap: $318.0 million; SI Rating: Average) owns 41 cemeteries, 27 crematoria, three reception centres located on cemetery premises and 93 funeral homes in eight provinces. Arbor gets most of its revenue from advance sales of cemetery plots and memorial services. It holds this cash in trust until it performs a service. Meanwhile, it earns interest income from this cash. Interest income typically accounts for just under 10% of Arbor’s total…

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