February 22, 2016

Monday was a strong day in the markets with the S&P 500 up 1.4% and Toronto up 0.2%. Oil is at $32.93 having lost some of day’s gain in evening trading.

The reason Toronto was not higher was that Valiant Pharmaceuticals was down 11% to $104. It is apparently looking at restating earnings. It was down another 7% in after-hours trading in the U.S. I am sorry for anyone who bought at higher prices but I am happy that I called this out as a Sell and as a company that I had trouble trusting back on July 30, at $331.

Most of the stocks on our list were up today. This included Bombardier, up 8.8%. A terrible company of course, but perhaps has some life left in it.

AutoCanada was down 0.6% to $17.67. I stopped in at what is probably their largest dealership today. This is Crosstown Motors in Edmonton which has been owned by AutoCanada or its founders since about 1990. On a Monday afternoon this dealership looked busy. They admitted sales are down but in no way did this look like a scene of gloom and doom. Perhaps they are putting on a brave face, but it did look busy and staff seemed upbeat. I think AutoCanada will be a good or perhaps very good investment at this price. It does not report Q4 earnings until mid March.