Markets were slightly negative on Thursday with the S&P 500 down 0.4% and Toronto down 0.15%.
Intact Financial was up 3.3%.
After the close, Costco reported May same-store sales figures which were up 15% after adjusting for volatile gasoline prices and for foreign exchange changes. (Before those adjustments the gain was 22%!). This is strong growth. Last May Costco same-store sales were up 10% as it was benefiting from some panic buying although it also faced some store closures and restrictions. The bottom line is that Costco continues to be a juggernaut. The shares were down very slightly in after-hours trading but that is often an unreliable indicator.
Also after the close, lululemon reported Q1 results which appear to be stellar. Similar to Costco, the shares were down slightly in after-hours trading.
Rate reset preferred shares rose slightly today. I sold my Canadian Western Bank preferred D shares. I mentioned these in more detail yesterday. They closed today at $26.95. Reset is three years away and it’s hard to say where interest rates will be by then. But at the moment these shares pay an above-market yield (which is why they trade at a premium) and therefore CWB may redeem them at $25 on April 30, 2024. They just redeemed an issue this week at $25 so clearly they are prepared to redeem above market shares when they get the chance. If in fact they are redeemed then they will pay out $4.50 between now and the redemption date. But the capital loss will be $1.95 at today’s price for a net of $2.55 over almost three years. Not a great return, but not horrible. And maybe they will stay well above $26 until sometime much closer to the possible redemption date. And maybe they won’t redeem. So I don’t consider these to be a screaming Sell but I decided to take my gain and add the proceeds to my cash which gives me more room to buy something else while still maintaining a strong cash position.