December 15, 2016

On Thursday, the S&P 500 was up 0.4% and Toronto was up 0.1%.

AutoCanada was up 2.6%. TransForce was up 2.5%. Bank of America was up 2.2%.

Most of the rate reset preferred shares that are trading well below $25 rose about 2% as the Bank of Canada fie year rate rose.

A Home Builder confidence index came in at 70, 7 points higher than the expected 63. On that news Toll Brothers at first gained about 2%. But it ended the day down 0.6%. It seems to me that the consensus opinion is that the prices and demand for new houses will be dampened by the higher interest rates. The home builders however are showing their confidence that this will not happen.

Statistics Canada reported weak manufacturing results for October 

I have removed a few companies from the list on the Subscriber Home page because they were out of date and are not companies that I intend to update for the start of 2017. All of these will be still be tracked as to their return in 2016 and included in the 2016 performance figures. Of course, no company is ever removed from the performance figures for any year in which it was present on our list at January 1.

The removed companies are:

Element Financial  РHas split into two companies and also I had some concerns about their reporting.

Agrium – Has a massive acquisition pending that complicates matters and is a commodity company and I have somewhat lost interest in it. But I may bring this one back in future.

Onex – Is more of an investment fund than a “normal” company and is very complex and I have lost interest

Liquor Stores N.A. I have lost faith that it can compete and it seems over-prices and also was last rated Sell.

Liquor Stores N.A. Debenture – Same reason as above.

Wells Fargo Preferred – Less interesting in a rising rate environment and not of interest to Canadian investors. (Also was rated Sell some time ago)

Removing these companies will allow more time for new additions.

 

 

 

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