On Tuesday, the S&P ended the day down 0.1% after recovering from somewhat deeper losses earlier in the day. Toronto was about unchanged.
Toll Brothers was up 3.5% to $36.58 after RBC Capital markets raised its outlook for the share price. Toll Brother’s stock price has had a very long and volatile recovery after the housing price crash in the U.S. that occurred about ten years ago. The stocks has generally looked under-valued to us. The volatility has provided additional opportunities to pick up the stock at bargain prices.
Bombardier was up 6.8% after reports that it was talking to Siemens about merging the two companies train-related operations. I would take that to mean Bombardier would sell its rail operations. The stock could rise further on this news. I would take this to be a very positive development since it would take the train operations out of the hands of a very poorly managed company and put the assets into the hands of better managers. This could also be very good news for the Bombardier preferred shares on our list. However, any such deal faces significant regulatory hurdles.
The report for Alimentation Couche-Tard is updated and it remains rated Buy now at $60.83. Acquisitions that it has made and that it will soon close on will likely lead to a strong increase in earnings per share over the next year or two.
Canadian Western Bank announced a partnership with a payments technology company. I continue to like CWB as an investment.