As you will no-doubt be aware, Monday was a poor day in the markets. And our stock picks certainly got hit. Most notably Canadian Tire was down 3.1%. I don’t see the justification for that. I have read their Q1 report from last week and they appear be firing on all cylinders. It seems the threat of Target coming into Canada is holding back the stock price. Also I did see that certain expenses were up in Q1 more than perhaps they should have been. Some of these may have been temporary. But there was also some indication of facing higher rents at the former Forzani Group locations as leases expire. But overall the Q1 report seemed very positive. With this company trading at 12.5 times earnings and still growing, I am tempted to add to my position. If I did not own own it I would definitely consider buying.
Much is being made of the trading loss at J.P. Morgan. I have no real basis to have an opinion on that stock but I know Buffett owns it personally and I suspect this swoon is a buying opportunity. It seems like a far-fetched exaggeration to suggest that this loss to this giant company is really indicative of risks to taxpayers.
I would also consider Bank of America now at $7.35