Getting out of Shaw and into BMO

When I identified my core positions recently I identified that Shaw was not one of them.  I decided to sell Shaw and buy a bank.  Bank of Montreal (BMO.TO) has a stung IRR and a great yield (over 5%).

  • SELL Shaw @ $19.50 (filled)
  • BUY BMO @ $52.50 (order did not fill, expired)

POSTMORTEM

Writing today, 6th July, this looks like a so-so trade.  Shaw closed today at $19.57.  During the past month to stock was down as much as 50c (2.5%) but it has recovered recently.  I still don’t like Shaw’s business (the cable content business is dead, making them a pipe-owning utility).  I’m declaring this a good call.

My BMO order expired.  Today BMO is at $57 mostly on improved confident the Europe is getting its act together to solve its bank and sovereign debt problems.

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