Getting back into equities

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.

UPDATE

Today, 9th August, I updated my order:

  • BUY CM.TO @ 71.40

UPDATE

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

UPDATE

Today, 4th September, my BMO buy order was executed at $57.

POSTMORTEM

Today, 4th October, this trade looks like a good call.  BMO closed at $59.06 today, up 3.6% in a month.

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