Investing

What did you buy? What might you buy??

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  • Dec 10th, 2018 1:03 pm
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Deal Guru
Jun 26, 2011
11427 posts
1738 upvotes
Markham
Chance7652 wrote:
Jul 6th, 2018 1:52 pm
Anyone know what is going on with TSX:ITP? Its down 3% today and 21% for the year.
Bought today. Dividend over 4% now (though quarterly so need to wait) but P/E has dropped significantly, refinanced credit facility recently which they may utilize for buybacks if it makes sense. I think this one should recover nicely will just take some patience. It's been on my watch list for quite some time.
Deal Addict
Aug 17, 2008
1614 posts
813 upvotes
Left this morning for some R&R so catching up now.

IFC via The Globe;

After Intact Financial Corp. (IFC-T) pre-announced after the close of markets on Thursday that its catastrophe (CAT) losses for the second quarter would be about $104-million after tax, or about 75 cents per share, Desjardins Financial lowered its second quarter operating earning estimates. It cut them to $1.24 per share from $1.61 per share.

“The CAT losses were driven by three storms involving ice, rain and wind in central Canada in April/May. Two-thirds of the losses were concentrated in personal property and most of the remainder was in the commercial lines. We had forecast $62.5-million pre-tax, or $46.5-million after-tax ($0.33/share), of CAT losses in 2Q18. The delta versus our estimate adds up to about $0.42/share,” said analyst Doug Young.

“While we were not surprised by the higher CAT losses given the tougher weather conditions and management’s comments at the first quarter 2018 conference call, the impact was higher than we had anticipated,” he said.

“Our $100 target price and ‘sell’ rating are unchanged.” The median target price is $110, according to Zack’s Investment Research.

“Our investment thesis is unchanged. Our main concerns are: (1) headwinds in the Canadian personal auto market; (2) risks with the OB acquisition; and (3) valuation – IFC trades at 2.0x BV (book value) (ex. AOCI) (accumulated other comprehensive income). That said, IFC has a strong management team, low correlation with equity markets and a successful acquisition track record. We are maintaining our Sell rating,” he said.

CIBC kept its “neutral” rating on the stock and its $103 price target and cut its second quarter operating EPS estimate to $1.21 from $1.54. “Another quarter of below run rate earnings is not going to help the stock break out from the current sideways pattern,” said analyst Paul Holden.
Deal Addict
Nov 9, 2013
2535 posts
1194 upvotes
Edmonton, AB
MrMom wrote:
Jul 7th, 2018 12:46 am
Left this morning for some R&R so catching up now.

IFC via The Globe;

After Intact Financial Corp. (IFC-T) pre-announced after the close of markets on Thursday that its catastrophe (CAT) losses for the second quarter would be about $104-million after tax, or about 75 cents per share, Desjardins Financial lowered its second quarter operating earning estimates. It cut them to $1.24 per share from $1.61 per share.

“The CAT losses were driven by three storms involving ice, rain and wind in central Canada in April/May. Two-thirds of the losses were concentrated in personal property and most of the remainder was in the commercial lines. We had forecast $62.5-million pre-tax, or $46.5-million after-tax ($0.33/share), of CAT losses in 2Q18. The delta versus our estimate adds up to about $0.42/share,” said analyst Doug Young.

“While we were not surprised by the higher CAT losses given the tougher weather conditions and management’s comments at the first quarter 2018 conference call, the impact was higher than we had anticipated,” he said.

“Our $100 target price and ‘sell’ rating are unchanged.” The median target price is $110, according to Zack’s Investment Research.

“Our investment thesis is unchanged. Our main concerns are: (1) headwinds in the Canadian personal auto market; (2) risks with the OB acquisition; and (3) valuation – IFC trades at 2.0x BV (book value) (ex. AOCI) (accumulated other comprehensive income). That said, IFC has a strong management team, low correlation with equity markets and a successful acquisition track record. We are maintaining our Sell rating,” he said.

CIBC kept its “neutral” rating on the stock and its $103 price target and cut its second quarter operating EPS estimate to $1.21 from $1.54. “Another quarter of below run rate earnings is not going to help the stock break out from the current sideways pattern,” said analyst Paul Holden.
Thank you for sharing.
Penalty Box
Mar 28, 2007
2874 posts
358 upvotes
I've been adding Nintendo recently... Strong fundamentals yet the stock is nosediving after e3.
Positive Investing!
Penalty Box
Apr 27, 2015
1134 posts
162 upvotes
Planning to add to my KEG.UN position. it's practically at 52 weeks low and has pretty reasonable P/E, P/FCF, payout .... and juicy 6.5% dividend
NDP for Unions, PC for people. Only PC can save Ontario.
Deal Addict
Jun 3, 2009
4460 posts
677 upvotes
Montreal
Chance7652 wrote:
Jul 6th, 2018 1:52 pm
Anyone know what is going on with TSX:ITP? Its down 3% today and 21% for the year.
RolandCouch wrote:
Jul 6th, 2018 2:37 pm
Bought today. Dividend over 4% now (though quarterly so need to wait) but P/E has dropped significantly, refinanced credit facility recently which they may utilize for buybacks if it makes sense. I think this one should recover nicely will just take some patience. It's been on my watch list for quite some time.
ITP's US divy is very attractive and may allow you to make a quick buck flipping it but CCL.B looks like the long term winner IMHO.
Deal Addict
Jan 20, 2016
1822 posts
769 upvotes
Houston, TX
TD Direct Investing would like to inform you that the following New Issue has just been announced.

Morneau Shepell Inc. - Subscription Receipts

Short Description: Treasury Offering of Subscription Receipts via Bought Deal
Price: $26.55 CDN
Settlement: On or about July 27 2018.

Our "beloved" MoF ran out of money? lol

However, from pure investment prospective, especially after he ensured Morneau Shepell will benefit from his actions as MoF, this is a good buy or not?
Make the Trudeau drama teacher again!
Deal Addict
User avatar
Dec 8, 2010
2363 posts
819 upvotes
Took a small position in EIF, after selling out earlier this year.
Newbie
Dec 8, 2013
71 posts
23 upvotes
I had been selling a lot this month going up to 50% cash. Then had a big buy order on BRK.B filled at 187, I sleep well accumulating at ~1.3 book value. Their cash hoard is going to be very productive someday.
Newbie
Dec 8, 2013
71 posts
23 upvotes
deal_with_singh wrote:
Jul 1st, 2018 1:27 pm
Picked up some BABA shares $185 - Beat down by Trump talks, oversold IMO.
Any thoughts on buying AABA instead? Last time I looked there was a big discount to NAV.
Deal Expert
User avatar
Feb 11, 2009
16243 posts
2257 upvotes
Toronto
Flowerp wrote:
Jul 9th, 2018 3:39 pm
Added to Bombardier (BBD.B) .
LOL I actually sold Bombardier at $5.27. Initially thought it might run up. But now with Boeing buying Embraer, the competitive advantage of having an Airbus backing is pretty much gone.

Sold 50% of my stake. Been holding for a couple years right before my $3.XX shares tanked to < $1
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Deal Addict
User avatar
May 11, 2014
2396 posts
1429 upvotes
Iqaluit, NT
daverobev wrote:
Jul 9th, 2018 4:16 pm
Took a small position in EIF, after selling out earlier this year.
I also rebought EIF in my non-registered account, although I do hold it steady in my registered accounts.
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Deal Addict
Aug 17, 2008
1614 posts
813 upvotes
via WSJ

The $1 Trillion Cash Hoard
Private equity is among those with money to deploy if the market dIps

Private-equity firms have amassed a record stockpile of cash, a sign of how much money is available to scoop up cheap investments if a trade war or other unforeseen event upends markets again.

Such funds had $1.1 trillion globally in so-called dry powder at mid-year, according to data from Preqin. That hoard has grown sharply in the last half decade as they collected fresh money from investors.

Private-equity investors typically lock money in for a number of years, giving funds discretion to use it when they believe it's most profitable. In addition to the bread-and-butter business of buying out companies on the cheap and trying to turn them around, these firms are raising money to take other actions like making minority investments in companies or financing acquisitions, according to Credit Suisse.

The dry powder isn’t explicitly preparation for a trade war. In fact, much of Wall Street has long thought a trade war is unlikely. Plus, these funds are already spending on leveraged buyouts at the fastest pace since 2007, the Journal reported last month.

Instead, the dry powder shows that after years of rising asset prices, investors of all stripes have lots of money and relatively few attractive options for spending it. Major stock indexes sit near record highs, even after market turbulence during the first half of the year, and stocks are still at high levels relative to earnings. That means a market ruction due to trade worries or any other event could bring in the buyers.

Other types of investors are also holding cash. The average cash balance among fund managers was at 4.8% last month, down slightly from May but higher than the 4.5% average over the last decade, according to a survey by Bank of America Merrill Lynch.

The money stored in private equity is notable for another reason: It shows how the balance of power is moving from public markets available to all investors into private markets. Meantime, the number of publicly listed U.S. companies has fallen by a fifth over the last decade, and by half over the last 20 years, according to Credit Suisse.

As the private-equity industry keeps growing, it's worth paying attention to the market signals these investors are sending.

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