February 11, 2016

Agrium is updated and rated Speculative buy at Canadian $114 and U.S. $81.25. It’s a tough company to predict since its product prices tend to be quite volatile as are some of its input costs. On top of that the volumes that it sells are dependent on weather and farm crop economics from year to year. It’s a well managed company that looks reasonably priced even though it is projecting a weaker year in 2016. I don’t own it and have no immediate plans to buy.

Thursday was another poor day on the markets with the S&P 500 down 1.2% and Toronto down 0.8%.

Element Financial was down 6.3% as the market perhaps doubts its ability to grow and worries about bad debts.

Bank of America was down 6.8% and appears to represent increasingly good value.

TransForce reported earnings after the close that appear to be relatively good. Also it announced a substantial stock repurchase in the form of a Dutch auction with offers accepted at prices from $19 to $22. All offerings at less than or under the final price will receive the same price. Assuming it enough shares offered, TransForce will be buying back 10 million shares which is 10% of its shares. Given that TransForce is an acquisitive company that normally would like to hang onto its capital, I believe this indicates that management certainly believes that the shares are significantly undervalued. I suspect the shares will rise somewhat on this news.