February 22, 2015

On Friday, the S&P 500 was up 0.6% (to another new record high) while Toronto was down 0.1%.

Stocks (from our list) that were on the move included Melcor up 2.2% and the Bombardier Preferred share up 6.6%

The RioCan preferred A share report is updated with a rating of Buy at $20.70. One interesting aspect of the update is that previously insiders did not own any of these shares. On Thursday the CEO bought 10,000 at $21.20. Apparently he thinks these are under-valued at this point.

I was active buying preferred shares on Friday.

My order to buy 500 RioCan preferred A share was filled at $20.80.

As I suspected it might, the Bombardier preferred share Series 4 rose somewhat on the news that Bombardiers issue of B shares was well received in the market. Interestingly there was a delay and the preferred shares at first did not move. I got 200 shares at $16.60. It closed at $17.48. I should have grabbed more than 200 but was a bit stubborn in my offer price. That was not smart on a day when I expected the preferred share to rise in price. I suspect these will go a little higher on Monday. However, it may be that when Bombardier issues the debt that it is planning to issue these shares will then decline somewhat. The debt issue should already be “priced in” but often things that “should be” priced in are not.

Coincidently I saw an IPO for Fairfax Financial preferred shares at 4.75% and I placed a modest order for those as well.