March 7, 2016

Monday was a strong day on the markets, particularly in Toronto which was up 1.3%  as oil rose about 5% to $37.90. The S&P 500 was up 0.1%.

Canadian Western Bank was up 3.8%, AutoCanada was up 5.2% and TransForce was up 5.4%.

AutoCanada has not yet released Q4 earnings, so the picture could change when it does. TransForce was hoping to buy back a significant quantity of its shares in a “dutch auction” for prices between $19 and $22. The offer closes on March 28. I am not sure what happens with that if the price stays above $22. It closed today at $22.35. Presumably, they won’t get much response to their offer if the price stays above $22. I don’t particularly think they would up the price. Perhaps they should have just tried to buy what they could in the market.

I added a small amount of Boston Pizza to the account of a family member. I still like it at $18.50, certainly. I don’t normally think in terms of target prices but I don’t see why this can’t trade up to the $23 range which would represent a 6% yield and which seems attractive in this low-interest rate world. However, various fears could certainly keep it from trading that high.