* THE BUY LIST GUIDE

 

The Canadian Buy List (updated monthly) is a selection of Canadian stocks of good quality I believe are suitable for  purchase.

Prices in the 'Chart Support Level' column are an estimate  (from my own chart analysis) of the level to which the stock may fall during temporary weakness; and thus, an advantageous purchase opportunity occurs near this level.

* Analyst Target Estimate is determined by Thomson Reuters Corporation and reported as consensus of analysts surveyed on "Thomson ONE" quotation service.. Targets for Exchange Traded Funds are established by my interpretation of their individual price chart objective.

The ‘Stock Style’ column is to differentiate for you the character of the security being recommended as to its suitability to your own investment style and risk profile. Please refer to my notes below for comment on each style. You may gain a fuller understanding of differences in styles  by accessing my WEB Site at: www.tomrogers.net/variety.htm                  

The Selections have Style

Cycle: There are a number of sectors within the overall economy that respond successfully at different times during an economic cycle. Companies within these sectors tend to do very well when it’s their sector’s turn. In particular, resource industries such as oil, mining and paper are most notable. The price appreciation of companies within these groups can be quite dramatic while their products are seen to be increasing in demand and value. Conversely, when demand for their output is seen to be waning their stock prices most often decline and in many cases eventually retreat right back to whence they began. The strategy with investing in cyclicals is to purchase once the appreciation has begun and to subsequently take profits by vacating them until the next cycle.

 

Income: When one thinks of income investments, consideration usually begins with guaranteed instruments such as GICs and Government Bonds. From there the income returns in relative terms increase step by step in relation to term to maturity and the perception of relative risk. Similarly, the price volatility of the income selection reflects changing impressions of current risk and potential for income variability. Income Trusts are representative of this latter observation and those within cyclical industries are the most volatile. In the long run with sound management the price swings tend to range about a level point which may increase as growth opportunities are realised. Selections thought to have good growth prospects are designated: Income G.

 

Long T: Stocks noted as ‘Long T’ are those believed to be most suitable for the very long term investor. Stocks in this area are large well capitalized issues with a long and successful history over several economic cycles. Most have a reliable dividend history and often present an attractive income yield as well. The share price of these senior companies are not without their vulnerability to weak financial markets but do tend to recover to new and often impressive new highs during the unfolding of each successive economic cycle.

 

Inter T: Selections chosen here are those that in my opinion are ready to undergo a strong advance within the context of the next major upswing by the market in general. My reasoning varies with each selection. One may be of sound fundamental value and have recently undergone a significant price correction, another may have been quietly moving sideways while its corporate evolution has been strengthening without market recognition as of yet; or, another may be particularly sensitive to market moves and tend to respond more strongly that the market itself.

 

Trader: Stocks in this category are recognized as being unusually volatile capable of making very worthwhile moves in percentage terms in a very short time span - often in a matter of several days or in a few weeks. They may be trading within a very wide range or be within a wide trend channel. While these stocks are widely followed and often undergoing rapid corporate change, when positioning or vacating,  the challenge is to interpret trading indicators correctly and to be very aware of the corporate developments likely to influence the next move.

 

Special: Noted as ‘Special’ are companies that may be smaller than most on the list, but have a growth capability well above that of more mature corporations. Alternatively, because of their relative size, they are likely to be structured to respond more quickly and profitably to positive developments within their industry. Indeed, they may even be rendering a product or service that is new and unique with an assured future.

 Alternatively, some recommended as Spec. T may be regarded as so-called “turn around or transitional situations” and as such may offer speculative appeal.

 

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All information contained herein has been collected and compiled by Thomas A. Rogers, CIM, FCSI, CFP, EPC (Rogers), an Investment Advisor with Beacon Securities Limited (Beacon), an independently owned and operated member of the IIROC. All facts and statistical data have been obtained or ascertained from sources which Rogers believes to be reliable, but are not warranted as accurate or complete. All projections and estimates are the expressed opinion of Rogers, and are subject to change without notice. Neither Beacon nor Rogers take any responsibility for any errors or omissions contained herein, and accept any legal responsibility from any losses resulting from investment decisions based on the content of this report. From time to time, Beacon and/or its directors or employees may hold positions in the securities mentioned, or provide advisory or underwriting services to the companies mentioned herein. Directors or employees of Beacon may serve as directors of any company mentioned herein, or any of their affiliates and subsidiaries. This report is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell securities discussed herein. Based on their volatility, income structure, or eligibility for sale, the securities mentioned herein may not be suitable or available for all investors in all countries.

The comments and opinions expressed in this report that are the result of work done by, Thomas A. Rogers, CIM, FCSI, CFP, EPC may differ from the opinion of Beacon Securities Limited; and, should not be considered as representative of Beacon's beliefs, opinions or recommendations.