When I adopted the Beating the TSX system for my equities, I did not have sufficient funds to buy all ten of the stocks in the system. The stocks in the system that I do not own are:
- Telus (T.TO)
- BCE (BCE.TO)
- Husky (HSE.TO)
- CIBC (CM.TO)
I now have some additional cash to contribute to my portfolio. I don’t really like Husky too much as a stock. Future earnings estimates are declining, and I already have two oil companies in the portfolio. Nor do I want to add CIBC. I already own BMO and two insurance companies, which I think is sufficient financial services exposure during the continuing European debt crisis. So, I’d like to use it to add the two telecommunications stocks.
- BUY Telus @ $56.38
- BUY BCE @ $40.25
The stocks in my portfolio now look like this.
|Company||PE Ratio||PEG Ratio||Dividend Yield|
|Canadian Oil Sands||10.57||2.5||4.81%|
One month after these trades they look OK. Telus is up 2% and BCE is flat: that’s an average gain of 1% in a month.