Canadian Stocks

BlackBerry (BB) is a maker of electronic devices (that’s still around). It has a market cap of $6.6 billion. It has cash on its balance sheet, so it has a positive price/book of 1.79, but it is losing money (negative profit), so there’s no PE. It also has debt, with a debt/equity ratio of 43.4%.

Agrium (AGU) is a crop, seed and agronomics company with worldwide operations. It has a market cap of $16 billion, a PE of 20.5, price/book of 2.24 and debt/equity ratio of 71.5%. I sold Canadian Tire to buy Agrium this week.

US Stocks

Amgen (AMGN) is a biotechnology company that develops human therapeutics. It trades on the NASDAQ and presently has strong momentum. The stock came out of the recent correction really well. It has a market cap of $123 billion, a PE of 25.5, price/book of 4.81 and debt/equity of 130%.

VISA (V) is a well-known credit card and electronic payments company. It has good momentum, although it may have been just a recovery from the correction and it may go no further, but it has better momentum than other US large caps with the exception of Amgen. It’s larger, with a market cap of $154 billion, a PE of 35.2 (less room for price growth), price/book of 7.2 (same problem) and no debt (very good for stability).

General Dynamics (GD) is an aerospace and defence company. In short, they build missiles and I won’t invest in this type of company (but that’s my personal choice). Market cap of $46.77 billion (larger than most Canadian companies), a PE of 21, price/book of 3.57 and debt/equity of 30%. Based on these statistics, it looks more attractive than Amgen.

Texas Instruments (TXN) is the one that I’ve bought for this week (based on momentum). Its momentum put it ahead of Gilead, which I sold. Its market cap is $54.4 billion and its PE is 22.7 with price/book of 5.1. I calculated debt/equity ratio of 70%.

Investment Ideas

Leave a Reply

Your email address will not be published. Required fields are marked *