Wednesday, February 10, 2010

first trades of 2010 - chips & heavy oil

So I made my first few trades of 2010 today:

Bought Intel (INTC) for my wife's RRSP.
- trading at just 12x 2010 forecasted earnings
- yield is over 3% and dividend was just raised recently
- good dividend growth history
- dominate their industry in an oligopoly
- turn over should increase with Microsoft's Windows 7 looking good
- we are light in the tech. sector in all of our portfolios
- financially sound company with low debt and loads of cash

Bought Canadian Oil Sands Trust (COS.UN) for our non-registered portfolio
- looking to increase exposure to resources in this portfolio
- good way to get paid on the fate of oil with large potential capital appreciation in the future
- distributions (interest income) will become dividends next year and they have large tax pools to offset some tax
- well positioned company in a politically sound country
- I believe oil prices will be strong for the next 20 years, China will be a good customer
- Potential buyers should crop up over the years
- Will add to position from time to time when it looks attractive for the long term

5 comments:

tsxcommentary said...

SU is a better buy at the moment than COS.UN

Intrinsic Value Estimate: $30.50 (w/ Oil at $80USD/bbl)
http://www.tsxcommentary.com/category/canadian-oil-sands-trust/

you can get cheaper oil if you buy suncor
Intrinsic Value Estimate: $45.00 (Oil at $80/bbl)
http://www.tsxcommentary.com/2010/suncor-energy-inc

MG (moneygardener) said...

Suncor pays a paltry dividend and the stock will likely be dead money as they digest Petro Canada. Suncor will probably do well long term as well as COS though.

Think Dividends said...

I agree MG. I am holding Suncor now and I am considering switching into COS or Crescent Point.

MG (moneygardener) said...

I looked at CPG as well but I just couldn't get over the 'too good to be true' factor. The stock and earnings just rose too far too fast it is seems to be the current sector darling. I never want to buy the sector darling.

Think Dividends said...
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