On Wednesday the S&P 500 was down 0.2% and Toronto was down 0.1%.
The markets are waiting now to see how the BREXIT vote goes. It will be known on Friday morning.
Boston Pizza was up 0.6% to climb back above $19.00 for the first time since August of last year. With a distribution of $1.38 per year it is still yielding 7.2%. I view that $1.38 as unlikely to be cut and likely to grow slowly (say 2%) with food price inflation. If that is the case then this will prove to continue to be a strong long term investment. I don’t see why the price can’t rise to about $23.00 where it would still yield 6.0% which seems attractive in today’s interest rate environment. Obviously, there are risks as investors can always get nervous and push down the unit price. Boston Pizza could certainly report a bad quarter or a year with declining sales. But overall, the risk reward trade-off here appears to be good.
Fedex was down 4.5% today apparently linked in part to a loss recognised in relation to pension obligations. I will update Fedex in the next few days.
AutoCanada was down 3.4% giving back most of large gain it made a few days ago. It will be interesting to see if there is a bit of a surge in auto sales in Alberta this month or next to replace vehicles lost in the Fort McMurray fires.