February 26, 2014 Comments

Markets were about flat today. But Toll Brothers was up 1.7% to $38.90. I had sold about 15% of my Toll shares last week at $38.00. I still have a lot of shares and given normal volatility, I may get a chance to buy these back at $34. If it continues up, fine. If it declines I can buy back, so fine as well.

Element Financial issued five year reset preferred shares today at 6.5%. This compares to 4.4% for Canadian Western Bank, reflecting higher risk. I would have bought some but the issue closed by the time I saw it. Element common shares rose 4.3% to $13.99 on the news. I think it would still rate Speculative Buy at this price.

Target announced, among other things, that it has lost almost one billion dollars in Canada since it arrived. I take some satisfaction in this since I said from the start that they appeared to over-pay for the Zellers leases and that they would not be a low cost operation. (Search my 2012 comments if interested). Some things are more predictable than others.

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