May 30, 2018

Markets bounced back on Wednesday with a 1.3% gain for the S&P 500 and 0.8% for Toronto.

With Kinder Morgan Canada down about 2% earlier today (finished down 0.9% at $15.95) I decided to double my small position. That is not based on my own analysis but rather on news that the purchase price amounts to about $12 per share after capital gains tax.

Toll Brothers was down 2.5%. While the stocks seems under-priced, there may be little reason for it to increase until it reports (as I expect it will) strong earnings growth in the next few quarters.

The Canadian dollar jumped about 0.8 cents today to 77.6 cents after the Bank of Canada’s latest report caused the market to perceive a higher likelihood of an interest rate hike in July. I had mentioned on Sunday that with the dollar around 77 cents it might be opportune for those looking to repatriate American currency to Canadian. I took my own advice on that and transferred a small amount of cash yesterday at about 76.8 cents. Mores specifically I was holding sa U.S. money market fund TDB166 in my TD Dierect RESP account. I placed a sell order on that yesterday before 3 pm eastern. Money market orders placed before 3 pm are sold using the exchange rate (plus the bank’s inevitable adder) at the end of that day. The trade showed up in my account only today and dated today. But it appears that, and TD tells me, I did get yesterday’s more favorable exchange rate.

The report for Canadian Tire is updated and rated (higher) Buy at $164.78. This company has been extremely well managed. The recent dip in the share price may prove to be a buying opportunity. I plan to buy a modest amount.