On Wednesday, the S&P 500 was down 0.75% and Toronto was down 0.5%.
Apple was up 4.9%.
Constellation Software was up 2.1%. After the close it announced Q1 earnings with a revenue increase but a decrease of 11% in adjusted earnings per share. It also announced after the close a reduction in its hurdle rate regarding large acquisitions. This means it will pay more for a large acquisition. The company said this will make it more price competitive in securing these acquisitions. Constellation is extremely well managed and I would trust that it is doing the right thing here.
FedEx was down 2.0%. Linamar was also down 2.0%.
CRH Medical reported Q1 earnings after the close. Its accounting is complex and requires adjustments to the GAAP figures to arrive at a figure that better represents its true economic earnings. I thought the results were reasonably good and showed progress. But it is always hard to know how analysts will view the results.
Statistics Canada released 2018 real GDP growth figures by Province. With all the gloom in Alberta it is surprising to see they report a 2.8% growth for Alberta.
“Among the provinces, the strongest growth occurred in Prince Edward Island (+2.6%), followed by Quebec (+2.5%), British Columbia (+2.4%), Alberta (+2.3%) and Ontario (+2.2%). Growth was below the national average in Saskatchewan (+1.6%), Manitoba (+1.3%) and Nova Scotia (+1.2%). New Brunswick real GDP edged up 0.1%.”
April light vehicle sales figures were released and it was yet another weak month with unit sales down 3.5%. Fiat Chrysler was again very weak with a decline of 9.8%. I had occasion to be in some dealers over the past few weeks and things appeared to fairly busy. I just noticed today the local Chrysler dealer in my area is relocating to a new (and presumably larger and costly) location. Car dealers are still generally a profitable business as long as they are not saddled with too much debt.
A newer Canadian Western Bank preferred share CWB.PR.D that I have mentioned in the past closed today at $25.65. It pays 6.0% on $25 and so yields 5.8% and will not reset for almost five years. I had bought some when it was issued but was allocated less than I asked for. I bought more today at $25.76. This was in an RRPS where I want to generate a cash yield. 5.8% is not an exciting return but it can merit a place in a portfolio.