Canadian Dollars Blog

Petro Canada is now yielding above 3.5% dividend and trades a little over book value. I've added this one to my value screen. It's currently at 25.98. will look to add more on weakness

A private equity firm recently (a little over a month ago) decided to make an offer to purchase all outstanding shares of Connor Bros (CBF.UN.T) at the price of 8.50. As of the writing of this blog post, Connor Bros is trading at 7.99 which is effectively 8% below the closing price (expected sometime in November) I've been adding aggressively to my position in Connor Bros last month particularly when there was a lot of talk of the deal possibly collapsing. At one point it was irrationally selling below 7.00. Anyway, for those that are looking to make a quick buck (8%) with minimal risk, this one may be worth looking at. In addition to the 8% yield, the expected November distribution will be paid within 3 days of the closing of the deal. The big risk in all this is the fact that the deal could still fall through. Worst case if the deal doesn't go through the stock will likely tank below 7 but the distributions would continue. The silver lining in the clouds is that if the ...

A strong case can be made for ING which is one of the cream of the crop value stocks out there right now. Trading at a measley 1.8x P/E and trading below book value, this one looks like a potential long term winner. While they have recently cut their dividends for the upcoming year (this is prudent) and have asked for cash before as opposed to after any sort of blow up happens. Not that I'm expecting a blow up like other financial instutitions. The difference is that ING is very conservatively run and has no exposure to the subprime debt that has plagued other banks. As always do your due diligence. The trading price of ING makes it a very compelling long term hold. While there may be a bit of volatility in the short term, I believe they will weather out the storm and emerge stronger than ever in the coming years. Disclosure: I have a full position in ING. Initiated a purchase at $10.10