Tuesday was a positive day in the markets as the S&P 500 rose 0.3% and Toronto as up 0.5% despite a drop in oil prices as it played catch up due to the holiday on Monday.
Home Capital, which is not on our list but which has been mentioned from time to time, was up 4.3%. Once again it appears that predictions of gloom for Canadian lenders has proven false.
Shopify was up 4.0% as it continued to attract investor support despite nosebleed multiples.
Dollarama was up 3.7% after agreeing to buy the majority of a Latin American Dollar store chain that it has been working with for some years. This was not a surprise as Dollarama had an option to make that acquisition.
TFI International was up 2.3%.
FedEx was down 2.0%.
I have added lululemon to our list of rated stocks. It is a high margin retailer. Unfortunately, this stock is very richly priced at this time and so it is rated Weak Sell/ Hold at this time at U.S. $180.86. I would be interested in acquiring at least a few shares on any material pull back. It is a powerful brand and I continue to monitor it in the hopes that perhaps a better buying opportunity will emerge. This stock has generally looked expensive and I must admit that way back at its IPO I wrote that it was way over-valued. I was wrong on that.
We are now into the third quarter of the year and very soon the Q2 reports will start to come in. The U.S. banks will start to report by mid month while most Canadian companies will not report until some time in August.