This week we decided to take a more thorough look at some investments with a pro/con/etc analysis. These are some investments from our friend's portfolio. This project will probably take a while, since we aren't likely to spend hours and hours doing this in one day, especially due to the fact that we get off topic pretty easily.
Fund/Stock
|
Pros
|
Cons
|
Good/Bad?
|
BCE
*Communication
services in Canada
|
5.4% Dividend Yield
Low beta (0.41),
which means it, is less volatile than the market.
Fairly
far below the 200 DMA.
Canadian—you
may recall when the US market collapsed Canada was more stable.
|
Communications
stock (our portfolio is heavy in this sector).
Québécois
|
It is
an unusual frontier for our investment. Canada is geographically very close
to us, however they do things a bit differently than here in the US.
|
CEO
*International
oil exploration, development, productions, and sales. Based primarily in East
Asia
|
Decent
dividend yield (2.9%)
|
It’s
an oil company
(i.e.
planet vampire)
|
More
volatile than the market (Beta 1.48)
|
When we
took a look at these two, CEO is definitely not something that fits into our
current investment strategy and interest. That means that we can rule it out,
and move on to comparing other stocks. We were going to take a look at COP
(Conoco Phillips) but it is really similar to CEO, so we can eliminate it
without going too much further. Also there’s CPL (a Brazilian electric
company), which by its very of nature of being Brazilian is a no go, because
EWZ has burned us so very much. No more Lusitanian stocks. Perhaps by doing
this sort of analysis we will become more adept at choosing the sort of
investments that work for us right now. Although this is a slow process, it
seems useful in the long term. At some point in time maybe we can pick
investments a little more quickly and confidently.
When we
were taking a look at the beta of each stock, we realized that a higher beta
might not necessarily be a bad thing. It just depends on what we are looking to
do. If we are looking for a dividend investment, we want the value of the stock
to stay pretty stable in comparison with the whole market. However, if we are
looking to make a profit based on stock price, too low a beta might not get us
anywhere.
For
next week, we will continue looking at some more investment opportunities:
EXC
FTR
GE
GILD
GSK
TDC
TD
VMC
AWF
MCLOX
FIF
HFQCX
LFMCX
LCSCX
UTG
SPY
TSDOX
IGTCX
Profit!
No comments:
Post a Comment