Back in March I decided to move a portion of my portfolio to cash. The summer has indeed been rocky for stocks. But now it’s time to prepare my shopping list for the fall. I want to be in best of breed stocks in each of the following sectors:
- Canadian Banks
- Canadian Insurers (I own Power Corp)
- Canadian Utilities (I own TransAlta)
- Canadian Energy (I own Canadian Oil Sands)
- Canadian Telco (I own Telus)
- US Information Technology (I own Apple and have ordered MicroSoft and Intel)
After analyzing the bank stocks I think that CIBC (CM.TO) looks the best.
- BUY CM.TO @ $70.00
This, together with my orders for Intel (INTC) and MicroSoft (MSFT), make up my shopping list. I have placed an order below the current price and will wait for a dip.
Today, 9th August, I updated my order:
- BUY CM.TO @ 71.40
Today, 28th August, CIBC is at $76 with no sign of falling. Seems I picked the right stock but was greedy with my bid. I took the opportunity to re-evaluate the Canadian banks. I judge that BMO is now the best value, especially since it upped its dividend today to a touch under 5%. I cancelled the CIBC order and placed an order for BMO.
- BUY BMO.TO @ $57.00
Today, 4th September, my BMO buy order was executed at $57.
Today, 4th October, this trade looks like a good call. BMO closed at $59.06 today, up 3.6% in a month.