On Friday the S&P 500 was down 0.4% and Toronto was down 0.1%. Our stock picks on average were down a bit more than that.
I reviewed the Canadian Tire earnings release and everything seems to be in order. While the valuation is not as compelling as previously, I am still comfortable holding these shares. The last rating was (higher) Buy at about $84. Now at about $90 the rating would likely be Buy. I don’t particularly give any extra value for the idea that they will seek a financial partner for the credit card portfolio but it is probably a positive factor. Both the REIT initiative and this finance initiative will not happen for some n=month yet. And so possibly the share price could retreat a little just for that reason as the market’s enthusiasm could want due to the wait. I would likely be looking to add to my position is the share price fell to about $83. That’s not to say I think it will go to $83 or should go there. I simply own a lot of shares as it is and would not likely buy back unless there were a pull-back to the $83 level.
I have updated the composition of my own portfolio. I am now at 41% cash and 59% equities. In many ways I would rather have less cash. But as stocks rose I have taken profits and so my cash has risen. Also I sold the Canadian Western Bank shares just to wait and see what happens with any insurance losses due to the Alberta floods and other weather events.