Tuesday, February 10, 2009

Stephen Gadsden and Canadian 6 Pak

It has been reported that financial author and commentator Stephen Gadsden has recommended 6 Canadian dividend paying stock. He feels that it is a great time to load up on some cheap Canadian Dividend Paying stocks. The stocks he is recommending are BMO (TSX-BMO); BCE (TSX-BCE); TransAlta Corp (TSX-TA); Enbridge Inc (TSX-ENB); TD Bank (TSX-TD) and Power Corp (TSX-POW). Since I follow all these stocks and own most of them, I thought I would review them today and talk about what others are saying about these stocks. The one I do not own is Power Corp, but this is because I own Power Financial (TSX-PWF).

The first one of BMO (TSX- BMO) that I looked at shows that there is net selling by insiders. However, this involves options. The bright point is that the CFO of this bank has increased the number of shares he holds. Looking at other analysts, the ratings on this stock run the full gamete from Strong Buy to Sell and everything in between. I have had this stock since the 70’s, but have only tracked it on quicken since the first of 1988. Since that time, I have made a return of 15% per year on this stock. Earnings are expected to improve over the next two years. I have updated my spreadsheet for this stock. See my spreadsheet at www.spbrunner.com/stocks/bmo.htm.

The next stock to discuss is BCE (TSX-BCE) and here there is modest insider buying and no insider selling. Looking at the ratings from analyst, this stock is rated from a Strong Buy to a Hold, with a mean rating of Hold. This is the first stock I bought. It is difficult to tell exactly what return I have had on this stock because of the divestiture of Nortel and the fact that I held some Nortel stock. I sold some Nortel at $90 a share and sold some at $2.50 a share. Taking BCE and Nortel together, Quicken says I have made an overage return of 9.8% return per year since 1988. It would seem every one expects earnings for 2008 to be half that of 2007 and then start to improve. I have updated my spreadsheet for this stock. See my spreadsheet at www.spbrunner.com/stocks/bce.htm.

The next stock to discuss today is TransAlta Corp (TSX-TA). There has been recent insider buying on this stock and very little insider selling. The management of this stock seems to have faith in it as they have raised the dividends in 2008 and already for 2009. Looking at ratings from analyst, there are lots of Holds on this stock, and a few buys. The mean Rating would be Hold. I bought this stock in 1987 and since that time, I have made a return of 8% per year. Earnings for 2008 are expected to be lower than for 2007 and then some improvements in 2009. I have updated my spreadsheet for this stock. See my spreadsheet at www.spbrunner.com/stocks/ta.htm.

See my site for information on analyst ratings. Tomorrow, I will talk about the last 3 stocks of this 6 Pak.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.

No comments:

Post a Comment