[celishave]

For about the last six months I have been slowing my stock purchases as I see fewer and fewer deals out there. There have been a few pullbacks that didn't materialize into anything after things looked scary for a few days. I was hoping for a meaningful correction so that I could deploy my cash.

Bonds are out of the question as they will drop in value as rates rise.

Real estate is incredibly over-priced.

I keep accumulating cash and have about 5 years expenses at the moment and am getting more and more frustrated. I feel like investing heavily into the market now is not the right move but I am losing $ with my cash sitting there doing nothing.

 

[mogul777]

I feel like investing heavily into the market now is not the right move but I am losing $ with my cash sitting there doing nothing.

So are you planning to invest based on emotion? Does that sound like a wise move to you? And "losing $" is relatively speaking... you may lose more, less, the same. And technically all you are losing is inflation which is squat right now anyway.

 

[Jungle]

That's why I am just going to pay the mortgage off for now. We didn't get the best rate a couple years ago but the extra payments make a huge difference.

 

[Dr_V]

For about the last six months I have been slowing my stock purchases as I see fewer and fewer deals out there. There have been a few pullbacks that didn't materialize into anything after things looked scary for a few days. I was hoping for a meaningful correction so that I could deploy my cash.

I'm in roughly the same boat. My purchases are few and far between. In the past six months, I've made one acquisition (Uni-Select, UNS). I've had my eye on Precision Drilling Trust, which was really tempting me when it was hovering around $6 a few days ago, but it has since rebounded to over $7.50.



K.

 

[brad]

Companies that manufacture equipment to prevent offshore oil spills would probably be a good investment right now; they'll probably be really busy for the next decade.

 

[Bullseye]

Really? I think you need to look harder! I expected to stall my buying by this point of the cycle, but am still finding some great deals.

 

[Dr_V]

Really? I think you need to look harder! I expected to stall my buying by this point of the cycle, but am still finding some great deals.

Care to provide some examples?

 

[Dr_V]

Really? I think you need to look harder! I expected to stall my buying by this point of the cycle, but am still finding some great deals.

haha!

 

[Bullseye]

Care to provide some examples?

How about PGF.UN (Penn Growth)? A solid company, not too far off it's 52 week lows.

TRP and FTS are still a steal at current prices, imo. Been loading up.

Also on my deal radar - Shaw, CML Healthcare, Yellow Pages, Manulife, Husky. To name just a few!

 

[Dr_V]

How about PGF.UN (Penn Growth)? A solid company, not too far off it's 52 week lows.

I recall looking at PGF.UN not too long ago, but excluded it at the time, though I don't recall why ... I will have to check up on that one again. (I suspect that I had concerns over a cut in the dividend when it converts to a corporation.) It's a good suggestion, though -- thanks.

TRP and FTS are still a steal at current prices, imo. Been loading up.

TRP has too much debt for my tastes (and is trading at multiples of its book value which are a bit higher than I like). FTS also has too much debt for my tastes.

For reference, here are the main stocks on my deal radar -- they aren't quite at my buy points yet (typically 8 to 20% higher than I want), and they include:

HLF (High Liner)
ALA.UN (AltaGas)
MRD (Melcor Developments)
AQN (Algonquin Power)
Enerplus (ERF.UN)
Marathon (MRO)


K.

 

[HaroldCrump]

Bonds are out of the question as they will drop in value as rates rise.

I wouldn't write them off as easily, esp. if you don't mind corporate debt.
Unless you want to trade bonds actively, the rise in interest rates is less of a concern if you wanna hold till maturity.
In that case, you have to look at the YTM and the payout risk (rating, reliability of the company, etc.).
Even today, you can get corporate bonds rated BBB+ or higher yielding in the low-to-mid 5% for a 4 to 5 year TTM.

 

[Doug Out West]

Been buying some CS - Credit Suisse
MIR Mirant in the 11s
Premium Brands in the 12s
was in Slate street too early but was 10% from where I was watching it
AG growth
Trican
Foremost

orders in for :
ALA
CLL
VLN
ARE
S had sold long time ago at 7 would buy again at 6

 

[Dr_V]

VLN

I'm assuming "Velan". It keeps popping up on my stock screens, and I love manufacturers (since they're generally simple to understand & evaluate), but the issue that I have with Velan is that they've done such a historically poor job of creating value for shareholders.

Their historical RoE fluctuates, but has been only a few % in each of the past 7 years. This suggests either an incompetent or not a shareholder-focused management. I've stayed away as a result.