STOCKS IM BUYING THIS WEEK

11 févr. 2018

I think last week's pullback in equity markets was a good thing. The market got overheated and it gave us a reminder that stocks don't always rise. Memories and patience are short in the finance industry especially with some recent trends (blockchain) skewing people's perception that building wealth gets built overnight. Not the case, in the past 50 years of the SP500's history, it has NEVER had a stretch of over a year without a 5% correction or more. So relax, this is not doomsday, it is the ebbs and flows of Mr. Market playing his tricks.

Here is the list of stocks I'm buying or adding a position too.

- Icahn Enterprises (see earlier post)
- Scott's Miracle Grow (post coming this week)
- Bank of Nova Scotia
- Bank of Montreal
- Citigroup
- Home Capital Group (post coming next week)
- Canadian Imperial Bank of Commerce
- Valeant Pharmaceuticals
- Equifax

BNS, BMO, CM are banks I own in a fund and will simply be buying more of the fund (FIE.TO), but BNS and BMO are the two banks I would buy, if you go back one year and look at the worst performing Canadian bank, it's a pretty safe bet that the next year will be better. As well: theglobeandmail.com/globe-investor/inside-the-market/why-i-love-down-on-their-luck-bank-stocks/article36801343/
I apply this same rationale to Citigroup , one of the less fortunate American banks from last year.

EFX was a stock I bought down around $90 when it sold off following a security breach announcement. I think the firm, fundamentally, is strong and will continue to regain ground. VRX is also one of those contrarian stock picks, after some allegations a couple of years ago for fraud and insider trading, I think they've found their bottom. They've also started to pay off debt which is never a bad thing for a recovering company.

I'm in the process of putting a valuation on HCG and SMG and will make a post in the coming week, this will be a buy and hold value-pick. I'm liking what I'm seeing so far.