Hello Peter
Most of my speculative seasonal plays other than SUF have already appreciated since late December/January, so I am not sure you will want to buy now?
The only speculative plays, most of which have also moved up, but that both remain undervalued and have some risk built in are:
IAR
KLA
GMD
NAI
DML
CYP
ABZ is lower risk right now but has already had a nice move. While it still has plenty of upside, it is well above its lows. DMM.B is less likely to make any major short term moves, and has only had a modest move up, but its upside is also unexplored and certainly higher than it is right now.
I am intrigued by Goldtex and Rex Diamond, but I am waiting for a clearer picture and/or some risk factors to wash out.
There are also a couple of bigger names that are well off their highs like Barrick, Cameco, Talisman, Inco and Canadian Resources with key market positions or dominance, which I am playing for the longer term market corrections. I followed this tactic with Dylex, Magna, Air Canada and Cambridge, and I can't complain.
As far as I am concerned, anyone buying the banks, Ballard Power or any stock close to, or at its 52 week highs, is asking for disapointment, and I don't care what quality the company is. For blue chips, I prefer to pick up dominant players on market sell-offs like this past winter's, that are out of favour, but which have a likelyhood of recovery with market conditions. The down side is limited and the upside is usually double with little risk. It may take three or four years, but I can afford to wait.
As John Templeton said, no one ever made $$ buying high and selling low!
One last thought, I adopted a policy about five years ago of never taking a recommendation from a stockbroker or brokerage firm. I may have missed a few opportunities as a result of that policy, but I have never had cause to regret it. The way I see it, I am better off not winning than not losing. Preserve capital and live to fight another day seems to be a policy that is working for me so far.
Trust this was of some help?
Regards
Regards |
