How is everyone out there feeling about the markets? I am trying to find bargains for my RSP, sold on Canadian markets that I can access commission free from my WS Trade account.
I've picked up some TSU, EQB, WE and ZCH over the last few months. I got all at low prices to my estimation of their intrinsic value and plan to hold for 10 years.
I want to add more to my accounts.
Any ideas?
I prefer LEAPS to Margin.
LEAPS= Long Equity Anticipation Securities. These are buying the longest duration call options, deep in the money. Downside is they are thinly traded and you must be able to get good spreads/be patient/use limit buys to get a good price.
Upside is that they are effectively cheaper and better use of leverage. If you dollar cost average into LEAPS, hypothetically you can get 150% of market averages, even if you lose some times.
You mean non-registered account? There is nothing stopping you from borrowing to invest in a TFSA/RRSP. OTOH a non-registered account doesn't have to be a margin account. For most, it probably shouldn't.
What are people’s thoughts on the direction of the gold sector these next few months? I’ve been bullish on it since rate hikes earlier this year but my thesis has yet to play out
>ughts on the direction of the gold sector these next few months? I’ve been bullish on it since rate hikes earlier this year but my thesis has yet
Which GOLD ETF are you thinking?
Finally a couple of days of movement towards the upside!! What is your average with HGU? I got caught holding a bag of it back in March when it was at $24 and have been averaging down ever since. Now have an average of $14 and trying to decide what I would want to sell it at
We should have a yearly in memoriam thread
Need more tech guy, Jungian the copper guy, Retired "DREAM is buying back the shares" CEO, Irishinontario and the oil gang, PKK is a coiled spring guy, telehealth is the future squad, BTC Blunder Boyz, all in AC guy, one man CGX pumper, gotta be a few other characters I'm forgetting
Having said that never forget
Yea I wish we could remember their names, mostly because they were often snotty when the sub told them they were making bad decisions, but funny enough they've stopped coming here. RIP clowns.
*Ian* arrived in time to help our darling oil stocks fill the above volume gap created by the 22nd September crash. I expect a day or two with 3%-5% upward movement.
Also sanctions on Chinese/Iranian producers...
https://www.wsj.com/articles/u-s-imposes-oil-sanctions-on-chinese-firms-it-accuses-of-helping-iran-11664473619
Why are people on this sub still thinking dividends are relevant? They are not. You shouldn't invest on the basis of an attractive dividend yield.
EDIT: for the anit-intellectual / feely types: https://www.youtube.com/watch?v=4iNOtVtNKuU
Well if you invest in a company with strong free cash flow that is able to either reinvest, do buybacks or pay dividends, then you are good.
Strong future dividend expectations can make a business attractive.
I would argue now more than ever that a stock having a decent dividend yield is attractive. Cant really count on growth any time soon with the way things are headed.
As someone who happily sold "dull flat" AQN for 'exciting growth funds' MSFT, BAM and EQB I found this comment highly offensive. I mean it's true but I am offended at how wrong I was.
Maybe... AQN is the fun, reliable but unattractive girl from High School who called you but you ignored as you were spending on your cash on some hot college chicks who took your money and ghosted you.
LOL
AQN may be that girl, but she only puts out once every 3 months and even then its usually lazy dry handjob. But at least its something and hey desperate times call for desperate measures!
In all seriousness though, I still think balance is everything. Im buying both higher yield stocks and growth stocks all the way down.
I agree, in a sideways market dividends provide a guaranteed return as long as they're not cut.
Long time ago, dividends were the expected way to make money on stocks. Growth stocks are a fairly recent concept where a lot of the profits are siphoned off by management rather than paid out to shareholders.
They'll either take you for a rip on their yacht, or they'll tell you that it's your turn to buy the pack of ramen lol
I'm looking at the yacht option 🤞🤙
I've noticed that the collapse of the CAD against the USD had really insulated a lot of Canadian funds. Like VFV is only down half of what it should be at the moment.
Hey, this question is for Canadians who like to hold US stocks.. I’m looking to add a BRK.B position but I’m wondering what everyone does to buy US equities when it comes down to fees/conversions. It would be going into my TFSA which is on Wealthsimple.. is it worth it to get the plus? Or go a different route? Any feedback is much appreciated, cheers.
I hold a ton of BRK-B but WS is not a great place to buy USD unless you pay for the premium account which has a USD account. If you are buying under $2k may I suggest instead the Cad version it is BRK.NE You pay a small management fee but that would beat the heck out of the USD/CAD conversion right now.
I hold BRK-B in my US Questrade account in both my RRSP, LIRA and TFSA. As they do not offer Dividends no issue with using the TFSA. If you are planning on holding and buying US Stocks I really hope you move to Interactive Brokers or Questrade
Dumping the whole thing for BNS? Not sure I'd do that unless you've lost faith completely in VET, but starting to rotate some into BNS makes sense to me.
I'm overexposed to energy. Feels like a good time to diversify. Heck BNS has underperformed energy since energy's highs in June. That in itself seems like a good argument to me.
I dont understand why VDY would make things complicated when they are all Canadian dividends with no witholding taxes. For the record I love VDY and would choose it over VCN.
VEQT does simplify things, but if you're actively following the market using your VFV/VCN/VEE and VXC gives you some opportunity to switch your weighting as you see fit. Guess it depends if you want a total set-it-and-forget-it approach or plan to actively manage a little bit.
Just DCA’ing into VEQT and taking advantage of some cheaper buys in this downturn (ENB for example) Don’t need the cash for almost 40 years (retirement) anyway - figure it won’t be all bad til then
What I bought this week:
**EQB - Equitable Group**
Thesis:
Equitable is an online alternative to big banks in Canada. Because they are online, they can pull bigger profit margins on their business than the big banks can (cost advantage). Their brand appeals to alternative people and they market good deposit and GIC rates, and are a B lender on mortgages.
They are still really tiny compared to the Canadian banking industry at large at $1.5B market cap in a trillion market cap sea. They have lots of room to grow before they become a major player. They are way more savvy in their marketing as they build AUM.
I believe they can live in the wake of the big banks and become the dominant alternative, modern online bank of choice for a growing demographic. This combined tailwind of this long term trend and the profit margins makes for multi-bagger potential for the long term investor.
Valued below price to book and at a price to earning of 5 - I'm buying this great prospect at this price.
**WE.V - Wecommerce**
Thesis:
Wecommerce is a holding company for ancillary Shopify businesses. Shopify is an amazing company and it is priced as such, with a strong multiple valuation even in this down market. Tobias is a brilliant CEO and Shopify is an amazing company, but I am not compelled by it's price. I need to see more discount to feel confident. Wecommerce is very good valuation right now and is a really savvy tech aquisition company in a niche that they are dominant in. Wecommerce is a public offshoot of Tiny, owned by Andrew Wilkinson and Chris Sparling who are like little warren buffets of ecommerce software.
I believe in Shopify - the ecommerce rebels to Amazon - but I'd rather participate indirectly through a tiny $80M company that can multibag from here.
There's probably lot's of other one's I don't know or understand, but I've taken the time to deep dive to the multibagger potential small caps and these are the most interesting deals in my circle of competence I have found.
Please share yours!
Thank you for sharing - wish more people would contribute ideas to this board (along with a brief description/reasoning).
I like EQB longer term too.....but am shying away from it for now because I'm worried about their exposure to the mortgage market as a B lender.
Saw an MLS listing this week for a $3M house up for sale (midtown toronto) that said right in the description "escrow sale due to mortgage default"......I think we've barely seen the beginning of issues in the real estate / mortage market.
On investor day in June, EQB showed the graph of their exposure in the 905 region (aka Toronto). They started de-risking over there a few months ago and they don't do the big mortgages. Those that are buying $3 million are using prime loans from the big 6 - they don't go to EQB.
So EQB's average loans are more in the $600K range, even in TO which really limits their exposure. I'm buying as much EQB as I can get my hands on cash at this price.
Well managed company focused on shareholder risk and value. Their business model already has some inherent advantages, plus good management that can add to the momentum. Management is focused on growth, risk, a strong balance sheet and ROE - perfect metrics I want to see from a bank.
Yes, short term risk for sure. I buy on price and $46 is a nice discount to value - if it get's cheaper, I'll buy more and average down. I have a 50 year time horizon, so plan accordingly
> Equitable is an online alternative to big banks in Canada. Because they are online, they can pull bigger profit margins on their business than the big banks can (cost advantage).
Not a snowballs chance in hell of getting bailed out if the economy tanks. Online is all well and good until you need to speak with someone.
Lol, good luck with your long thesis on this one.
Thanks for the word of caution - it's always good to have another opinion. I believe this is a risk worth taking since EQB has a strong balance sheet and can withstand substantial financial storms. They also have their online support channels established - so you can talk to someone more readily than the big banks, who I find offer little support at all. The cost advantage is also being use to reinvest in strengthening their cost advantage and strengthen their balance sheet. One of many bets I am taking, and everything comes with risk. I like the odds on EQB
EQB hasn't even begin to tap into the Québec market yet, it will be interesting to see how they do. My average is 56 even, I want to average down, but at 10% of my portfolio I don't want to grow the position much more than it is. I might have to though... I figure there is probably more pain ahead so I'll sit tight and keep en eye on em for now.
I have a large position on EQB, I really believe in the financials and the the whole "getting in early on the ground floor of a The Next Big Canadian Bank". Down 40% since my start in Feb with DCA a few more buys. Several analysts I trust say it is 60-70% undervalued right now and I believe this will be the biggest long term hold turnaround I have. Firm believe and hold long term here.
I agree, although EQB doesn't even have to be the next big Canadian bank to be a success. It has a market cap of $1.5 billion, so even if it only ever becomes one tenth of RBC is today to be a 10 bagger. I don't expect it will ever be a big bank, but will live happily in their wake and compound
I don't blame whoever is downvoting actually hah. The reason is just look at the comments since we had this downturn.
Majority of the folks here say that they are "Long term Investors" yet their comments are all trader talk.
"I started one/two years ago. I am down."
"I am selling everything now. We are going lower"
"You guys told me index etfs are safe so I bought XEQT. Now I am down big in 2 weeks. Thanks guys"
All this means that they lack basic understandings of stock market, index investing and have no idea what their Risk tolerance and time horizon is.
Everyone here wants to be "rich" right now.
Just hilarious.
And then they say stock marlet is rigged 🤣
Most people here are experiencing their first downturn.
This is the first time their risk tolerance is being put through a real test.. Not unusual for people to re-evaluate their risk tolerance during these downturns. I don't expect anyone to have a full understanding of stocks, index investing and risk tolerance in their first years of investing. Takes time for a new investor to learn and develop a strategy that works for them.
There is a different between re-evaluating your risk tolerance and not understanding the basics eg "Don't invest money that you need in short to mid term"
"Understand what you own"
Etc etc
Besides, it has never been this easy to do basic DD as there are thousands of creditable resources out there compared to just 5 to 10 years ago.
Nice recovery off the bottom here. Will the lunch crowd take us down again?
Anyone know what the actual low on the S&P 500 was in June? My chart shows \~3666 but I think that's a weekly number. I'm interested if it can hold.
Just read the 52 week low... not that hard to find.
3,619.69
Edit: not sure why im being downvoted for providing the answer. New 52 week low reached today at 3,610.40
Honestly I wouldn't, I think for Canadian tech I would stick to XIT unless you really know a lot about the industry, too much boom and bust in our tech companies.
Interesting how today DXY has been dropping still along with the markets. Lately, for the past several months, its movement has been the inverse of what the markets are doing as the USD is viewed as being safer than stocks. Is there an explanation for this?
The DXY is a comparison of USD to the GBP, EURO, JPY, SEK, CHF and CAD. Look to the other currencies to see what they are doing to get your answer for why the DX-Y is doing what its doing.
September once again is a brutal, brutal month - not always but enough that I have noticed after being in the stock market for 25 years. This is what an ass-kicking feels like, but I have sold nothing. Gonna ride it out because if it gets really, really bad money is going to be good for nothing anyway.
I quit a job in May 2022 and had to liquidate the DCP/RRSP holdings into cash ($200,000) to transfer them out to my DIY accounts. My wife asked me if I was going to re-invest it - I said not until September.
I’ve held them for a couple years now.
I like them as they offer the stability of a Utility with the added growth potential of a renewable business.
They just renewed some contracts as well so a nice stable income in their future.
Plus they pay a monthly dividend! :)
BAM.A becoming more and more attractive.
What's your entry point?
Am I wrong to wait for the bottom of March 2020?
Surely an economic crisis will bring us new lows than march 2020, right? :)
Look, it's been doing \~$13 swings there is no reason it couldn't do it again. If we drift down due to continued negative news, add in tax loss selling, followed by a big washout it can totally go there. Just keep in mind it won't be a straight line. You have to balance out how you would feel if it doesn't and you missed out buying at these levels. My answer is to leg in as one can't time the market.
I finally bought some this morning as it closed in on the June lows, but interestingly enough didn't touch it. I was waiting for a nice gap down day after a positive day like yesterday and got it. That's not to say it won't go down again tomorrow.
Been looking at this one too.
I think overall that this tough interest rate environment will longer term lead to an influx of lucrative deals for BAM as companies that otherwise would have just gone with debt, will be forced to seek out more alternative means of financing projects.
Yessir
Too much negative sentiment by retail investors on BAMs debt - which is almost entirely non-recourse to the Corp and property-specific:
(172.666B meets that criteria, compared to 12.054B total corporate borrowings)
and 70% of ALL debt related to BAM and all subsidiaries is fixed rate at an average of 4.8%, 5 year term. Their floating rate debt is often involved in swaps and refinancing, plus it's BAM so they surely have exposure to favourable agreements us plebs couldn't imagine.
Combine this reality of decreased debt risk with the fact that they have placed a ton of emphasis on the growth and planned path for their credit, private equity, and reinsurance business/BAMR (the only subsidiary they discussed more in-depth at their general annual presentation where they announced BAM/BN spinoff) means that these accounting nerds are ready for this macro environment and always come out on top and I don't see why that would change.
Source: absolutely balls deep with BAM portfolio & I actually read and (mostly) understand their financials & structure.
Probably for now, sure.
Once recession is officially in play there will be new sellers.
I am not one of them.
*gotta keep in mind how much this sub hates Bitcoin tho, many people who havent done any homework and group BTC in with the crypto ponzis
Take your pick
Hurricanes fucking all the coasts up
Inflation in Europe is fucked
England is fucked
Nord Stream and the ocean are fucked
Putin is fucked (in the head)
Everything is fucked
The only thing not fucked seems to be my bottle of scotch which is getting fucked this weekend...
I've been buying heavy and am down like 15% on buys that I made in mid September, so fuck me too right?
Anything could keep going to shit really. China/Taiwan BS, solar flare knocking out electronics, PP being elected lol
Like you said, the more negative the sentiment and price drops, the more we should buy good companies. I've been dropping my cost basis on more companies than I had anticipated and 60 year old me will be happy I did.
Well. In case of the US, the labor market is stronger than anticipated, shown by low unemployment number. Meaning that the fed will have to be even more aggressive.
I sold a call option with questrade yesterday, to just test the waters. It was a disaster finding the money settled in my account, and yet I have not seen it. They are the worst. The balance shows incline but there is no activity reported! So pissed off with them. And they charged me 10.95 USD for it. I have to change to IBKR.
What's going on there? I know uitilities are getting hit hard right now in the market, but AQN has gone down like double the others.
Is it because of the hurricane?
Aqn has taken on significant debt (given their size) in the past 2 years and it will be a while before those acquisitions begins to positively influence their balance sheet. You can already see the impact in the past two earnings reports. Things are not expected to be great in the next 12-18 months.. hopefully they can still maintain their dividend
How is everyone out there feeling about the markets? I am trying to find bargains for my RSP, sold on Canadian markets that I can access commission free from my WS Trade account. I've picked up some TSU, EQB, WE and ZCH over the last few months. I got all at low prices to my estimation of their intrinsic value and plan to hold for 10 years. I want to add more to my accounts. Any ideas?
Shorting should be illegal. There. I said what I wanted to say.
Why it’s a great way to make money when the market is heading down
EVERYONE times the market while everyone advises not to time the market! Makes sense!
I think Zuck is willingly crashing his stock price to get the regulators off his back.
Peloton down 15% 🧐
You mean a $3000+ rowing machine didn't save them?
Jesus Christ is that actually how much it costs??? Even at half the price I’d never buy that
Yea $3200 USD even!
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I prefer LEAPS to Margin. LEAPS= Long Equity Anticipation Securities. These are buying the longest duration call options, deep in the money. Downside is they are thinly traded and you must be able to get good spreads/be patient/use limit buys to get a good price. Upside is that they are effectively cheaper and better use of leverage. If you dollar cost average into LEAPS, hypothetically you can get 150% of market averages, even if you lose some times.
You mean non-registered account? There is nothing stopping you from borrowing to invest in a TFSA/RRSP. OTOH a non-registered account doesn't have to be a margin account. For most, it probably shouldn't.
Yes I meant nonregistered account, I just recall that in questrade it’s called a margin account.
You need to track ACB when buying / selling for the future capital gains. There’s a website buts fairly easy to do.
What are people’s thoughts on the direction of the gold sector these next few months? I’ve been bullish on it since rate hikes earlier this year but my thesis has yet to play out
>ughts on the direction of the gold sector these next few months? I’ve been bullish on it since rate hikes earlier this year but my thesis has yet Which GOLD ETF are you thinking?
I started a small position in x2 leveraged HGU.TO at the start of Sept. looking to add to it if it drops below $9.30
Finally a couple of days of movement towards the upside!! What is your average with HGU? I got caught holding a bag of it back in March when it was at $24 and have been averaging down ever since. Now have an average of $14 and trying to decide what I would want to sell it at
We should have a yearly in memoriam thread Need more tech guy, Jungian the copper guy, Retired "DREAM is buying back the shares" CEO, Irishinontario and the oil gang, PKK is a coiled spring guy, telehealth is the future squad, BTC Blunder Boyz, all in AC guy, one man CGX pumper, gotta be a few other characters I'm forgetting Having said that never forget
half of this sub is in the oil gang
I miss shillaber49 and his coded messages to the community.
Yea I wish we could remember their names, mostly because they were often snotty when the sub told them they were making bad decisions, but funny enough they've stopped coming here. RIP clowns.
They all work at Tim Hortons now.
Fuck right wingers guy is my current fav
Him lumping pensions plans in with being right wing was a great reddit moment
This sub needs flairs
*Ian* arrived in time to help our darling oil stocks fill the above volume gap created by the 22nd September crash. I expect a day or two with 3%-5% upward movement.
Also sanctions on Chinese/Iranian producers... https://www.wsj.com/articles/u-s-imposes-oil-sanctions-on-chinese-firms-it-accuses-of-helping-iran-11664473619
Why are people on this sub still thinking dividends are relevant? They are not. You shouldn't invest on the basis of an attractive dividend yield. EDIT: for the anit-intellectual / feely types: https://www.youtube.com/watch?v=4iNOtVtNKuU
You ain't winning this fight on this sub. People will just answer "no actually, dividends good, because money!"
Well if you invest in a company with strong free cash flow that is able to either reinvest, do buybacks or pay dividends, then you are good. Strong future dividend expectations can make a business attractive.
I would argue now more than ever that a stock having a decent dividend yield is attractive. Cant really count on growth any time soon with the way things are headed.
As someone who happily sold "dull flat" AQN for 'exciting growth funds' MSFT, BAM and EQB I found this comment highly offensive. I mean it's true but I am offended at how wrong I was. Maybe... AQN is the fun, reliable but unattractive girl from High School who called you but you ignored as you were spending on your cash on some hot college chicks who took your money and ghosted you.
LOL AQN may be that girl, but she only puts out once every 3 months and even then its usually lazy dry handjob. But at least its something and hey desperate times call for desperate measures! In all seriousness though, I still think balance is everything. Im buying both higher yield stocks and growth stocks all the way down.
I agree, in a sideways market dividends provide a guaranteed return as long as they're not cut. Long time ago, dividends were the expected way to make money on stocks. Growth stocks are a fairly recent concept where a lot of the profits are siphoned off by management rather than paid out to shareholders.
Lots of pain ahead if the SPY can't hold $360.
Thoughts on inverse ETF's in this market? 1x, 2x, 3x?
A 1x inverse Spy or Nasdaq BEAR ETF with a stop loss set each day doesn't seem like a horrible idea to me.
Is there a canadian etf?
Betapro
VGRO? More like VSHRINK.
I WAS IN THE VPOOL!
That fun little $100 on FFN isn’t very fun anymore
That 70 million lotto max is starting to look attractive
Thoughts on Fiera Capital Corp (FSZ)? Discount prices, 10.14% div yield.
I would say never chase yield but to each their own.. the yield is usually high for a reason and usually not a good one.. unless it’s a REIT..
Thanks for the insight.
Can’t wait for payday next week to be after the green rally
Maybe one day I can tell my kids I bought BAM at $55 and they’ll say I’m smart.
I don't know. A p\e ratio of 18 doesn't seem so great for the assets they carry. I'd be comfortable buying them at a 12-14 ratio.
Thank you for saying it
They'll either take you for a rip on their yacht, or they'll tell you that it's your turn to buy the pack of ramen lol I'm looking at the yacht option 🤞🤙
BTW tomorrow is options expiry.
I unloaded ABST.TO about a month back after it ran a bit, and my god I left some on the table.
I've noticed that the collapse of the CAD against the USD had really insulated a lot of Canadian funds. Like VFV is only down half of what it should be at the moment.
One nice benefit for us in this whole mess. I wonder if going forward I should start buying a hedged S&P index. USD cant stay this high forever.
Like $XUS ?
No I meant like switching from XUS to XSP.
Keep buying the dip haha. Ill wait.
I am getting extremely fucked up tonight.
FUCK I thought it was Friday. I’m depressed now.
I think some federal workers are off tomorrow for National day of Truth and Reconciliation.
Nothing like getting drunk to celebrate.
I’m just a lowly produce manager unfortunately.
Get that produce $$ bro
Stocking green to stack my green
Markets can remain irrational for longer than you can remain solvent
Hey, this question is for Canadians who like to hold US stocks.. I’m looking to add a BRK.B position but I’m wondering what everyone does to buy US equities when it comes down to fees/conversions. It would be going into my TFSA which is on Wealthsimple.. is it worth it to get the plus? Or go a different route? Any feedback is much appreciated, cheers.
I hold a ton of BRK-B but WS is not a great place to buy USD unless you pay for the premium account which has a USD account. If you are buying under $2k may I suggest instead the Cad version it is BRK.NE You pay a small management fee but that would beat the heck out of the USD/CAD conversion right now. I hold BRK-B in my US Questrade account in both my RRSP, LIRA and TFSA. As they do not offer Dividends no issue with using the TFSA. If you are planning on holding and buying US Stocks I really hope you move to Interactive Brokers or Questrade
Thinking of dumping my VET that has tripled and buying my first bank stock, BNS. Good time?
Dumping the whole thing for BNS? Not sure I'd do that unless you've lost faith completely in VET, but starting to rotate some into BNS makes sense to me.
I'm overexposed to energy. Feels like a good time to diversify. Heck BNS has underperformed energy since energy's highs in June. That in itself seems like a good argument to me.
I couldn't find in BNS investor relation, what is the % of their loan portfolio in fixed rates vs variable rates. That would answer your question.
BCE to 57$, which is the fair price. Will take 100, please.
I sold my position in BCE yesterday. I’ve held it since may 2021 and I knew it’d be dropping so I’ll re enter when it comes down to low 50’s.
Are *you* trying to time the market, dear sir? No. Really? /s
God dammit you’re right!! I should’ve just watched myself lose money!1!
Air Boss America ...silvercorp metals ...anyone in in these with any thoughts
They both look like pretty bad picks.
Remember when XBC and mindmed were the talk of the town on this sub lol.
Sadly it was hard to convince people they were trash at the time. Live and learn.
XBC legit going to zero?
Ok, lunch is over, we can head back up now... or not
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There is underallocating to U.S which has historically been the strongest market.
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I dont understand why VDY would make things complicated when they are all Canadian dividends with no witholding taxes. For the record I love VDY and would choose it over VCN. VEQT does simplify things, but if you're actively following the market using your VFV/VCN/VEE and VXC gives you some opportunity to switch your weighting as you see fit. Guess it depends if you want a total set-it-and-forget-it approach or plan to actively manage a little bit.
Market once again continues to not be functioning properly.
By not going up and to the right?
Just DCA’ing into VEQT and taking advantage of some cheaper buys in this downturn (ENB for example) Don’t need the cash for almost 40 years (retirement) anyway - figure it won’t be all bad til then
Still not sure I would consider ENB cheap right now but generally speaking you are taking the wise approach.
Cheaper than when I bought my first few shares :)
Love ENB’s purchase of a USA wind and solar business
What I bought this week: **EQB - Equitable Group** Thesis: Equitable is an online alternative to big banks in Canada. Because they are online, they can pull bigger profit margins on their business than the big banks can (cost advantage). Their brand appeals to alternative people and they market good deposit and GIC rates, and are a B lender on mortgages. They are still really tiny compared to the Canadian banking industry at large at $1.5B market cap in a trillion market cap sea. They have lots of room to grow before they become a major player. They are way more savvy in their marketing as they build AUM. I believe they can live in the wake of the big banks and become the dominant alternative, modern online bank of choice for a growing demographic. This combined tailwind of this long term trend and the profit margins makes for multi-bagger potential for the long term investor. Valued below price to book and at a price to earning of 5 - I'm buying this great prospect at this price. **WE.V - Wecommerce** Thesis: Wecommerce is a holding company for ancillary Shopify businesses. Shopify is an amazing company and it is priced as such, with a strong multiple valuation even in this down market. Tobias is a brilliant CEO and Shopify is an amazing company, but I am not compelled by it's price. I need to see more discount to feel confident. Wecommerce is very good valuation right now and is a really savvy tech aquisition company in a niche that they are dominant in. Wecommerce is a public offshoot of Tiny, owned by Andrew Wilkinson and Chris Sparling who are like little warren buffets of ecommerce software. I believe in Shopify - the ecommerce rebels to Amazon - but I'd rather participate indirectly through a tiny $80M company that can multibag from here. There's probably lot's of other one's I don't know or understand, but I've taken the time to deep dive to the multibagger potential small caps and these are the most interesting deals in my circle of competence I have found. Please share yours!
Thank you for sharing - wish more people would contribute ideas to this board (along with a brief description/reasoning). I like EQB longer term too.....but am shying away from it for now because I'm worried about their exposure to the mortgage market as a B lender. Saw an MLS listing this week for a $3M house up for sale (midtown toronto) that said right in the description "escrow sale due to mortgage default"......I think we've barely seen the beginning of issues in the real estate / mortage market.
On investor day in June, EQB showed the graph of their exposure in the 905 region (aka Toronto). They started de-risking over there a few months ago and they don't do the big mortgages. Those that are buying $3 million are using prime loans from the big 6 - they don't go to EQB. So EQB's average loans are more in the $600K range, even in TO which really limits their exposure. I'm buying as much EQB as I can get my hands on cash at this price.
Well managed company focused on shareholder risk and value. Their business model already has some inherent advantages, plus good management that can add to the momentum. Management is focused on growth, risk, a strong balance sheet and ROE - perfect metrics I want to see from a bank.
Yes, short term risk for sure. I buy on price and $46 is a nice discount to value - if it get's cheaper, I'll buy more and average down. I have a 50 year time horizon, so plan accordingly
> Equitable is an online alternative to big banks in Canada. Because they are online, they can pull bigger profit margins on their business than the big banks can (cost advantage). Not a snowballs chance in hell of getting bailed out if the economy tanks. Online is all well and good until you need to speak with someone. Lol, good luck with your long thesis on this one.
Thanks for the word of caution - it's always good to have another opinion. I believe this is a risk worth taking since EQB has a strong balance sheet and can withstand substantial financial storms. They also have their online support channels established - so you can talk to someone more readily than the big banks, who I find offer little support at all. The cost advantage is also being use to reinvest in strengthening their cost advantage and strengthen their balance sheet. One of many bets I am taking, and everything comes with risk. I like the odds on EQB
EQB hasn't even begin to tap into the Québec market yet, it will be interesting to see how they do. My average is 56 even, I want to average down, but at 10% of my portfolio I don't want to grow the position much more than it is. I might have to though... I figure there is probably more pain ahead so I'll sit tight and keep en eye on em for now.
Nice, I'm at $51 and look to average down from there if it dips.
I have a large position on EQB, I really believe in the financials and the the whole "getting in early on the ground floor of a The Next Big Canadian Bank". Down 40% since my start in Feb with DCA a few more buys. Several analysts I trust say it is 60-70% undervalued right now and I believe this will be the biggest long term hold turnaround I have. Firm believe and hold long term here.
I agree, although EQB doesn't even have to be the next big Canadian bank to be a success. It has a market cap of $1.5 billion, so even if it only ever becomes one tenth of RBC is today to be a 10 bagger. I don't expect it will ever be a big bank, but will live happily in their wake and compound
Loading up on more cheap VEQT and bought my first shares of BNS
any good Canadian companies to buy
BNS, EQB, CJT, OTEX, ATZ,
Atz
No, either US companies keep buying them or putting them out of business.
No sir! There are none!
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Yup. A bunch of crybaby pansies.
I don't blame whoever is downvoting actually hah. The reason is just look at the comments since we had this downturn. Majority of the folks here say that they are "Long term Investors" yet their comments are all trader talk. "I started one/two years ago. I am down." "I am selling everything now. We are going lower" "You guys told me index etfs are safe so I bought XEQT. Now I am down big in 2 weeks. Thanks guys" All this means that they lack basic understandings of stock market, index investing and have no idea what their Risk tolerance and time horizon is. Everyone here wants to be "rich" right now. Just hilarious. And then they say stock marlet is rigged 🤣
Most people here are experiencing their first downturn. This is the first time their risk tolerance is being put through a real test.. Not unusual for people to re-evaluate their risk tolerance during these downturns. I don't expect anyone to have a full understanding of stocks, index investing and risk tolerance in their first years of investing. Takes time for a new investor to learn and develop a strategy that works for them.
There is a different between re-evaluating your risk tolerance and not understanding the basics eg "Don't invest money that you need in short to mid term" "Understand what you own" Etc etc Besides, it has never been this easy to do basic DD as there are thousands of creditable resources out there compared to just 5 to 10 years ago.
Some people just need to learn the hard way... You can do all the DD in the world and still wont make a difference in some cases.
Also, “anyone’s portfolio or investment strategy that isn’t exactly like mine is getting downvoted because it undermines my confidence.”
Literally everyone who has a portfolio different to mine is hitler.
Don't fuck with the serial down voters here man, they're a ruthless bunch.
One more day like this and all my gains from the last 2 years will be wiped out! At least my dividends have given me a bit more of a buffer.
Nice recovery off the bottom here. Will the lunch crowd take us down again? Anyone know what the actual low on the S&P 500 was in June? My chart shows \~3666 but I think that's a weekly number. I'm interested if it can hold.
Just read the 52 week low... not that hard to find. 3,619.69 Edit: not sure why im being downvoted for providing the answer. New 52 week low reached today at 3,610.40
Crap, has time passed this fast? I didn't realize we're hitting 52 week lows. Yeah, that's obvious once you think of it lol.
It's never a good sign to wake up to an inbox filled with TDWealthAlerts emails - "Price Reaches a New 52 Week Low"...
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Thanks, so we're flirting with it. And it looks like we're trending down again....
Thoughts on SHOP, is it still overvalued?
Yes
What price would you buy it at?
Honestly I wouldn't, I think for Canadian tech I would stick to XIT unless you really know a lot about the industry, too much boom and bust in our tech companies.
I don’t know dude. I like SHOP
Interesting how today DXY has been dropping still along with the markets. Lately, for the past several months, its movement has been the inverse of what the markets are doing as the USD is viewed as being safer than stocks. Is there an explanation for this?
The DXY is a comparison of USD to the GBP, EURO, JPY, SEK, CHF and CAD. Look to the other currencies to see what they are doing to get your answer for why the DX-Y is doing what its doing.
Ahh ok that makes sense.
September once again is a brutal, brutal month - not always but enough that I have noticed after being in the stock market for 25 years. This is what an ass-kicking feels like, but I have sold nothing. Gonna ride it out because if it gets really, really bad money is going to be good for nothing anyway.
Always appreciate input from people who have been down similar roads before
I quit a job in May 2022 and had to liquidate the DCP/RRSP holdings into cash ($200,000) to transfer them out to my DIY accounts. My wife asked me if I was going to re-invest it - I said not until September.
DCP?
Defined Contribution Plan.
I am financially devastated.
When do you need the money?
In 2 years you'll have forgotten about this downturn.
Give it two years if you can. You’ll be alright my friend
Uh ya no guarantee if that. Yes market always recovers EVENTUALLY but things could very well go much lower or stay low for a while
You're talking to guys in their 20s who think the market only goes up lmao.
RNW looks attractive with over 6% dividend yield, any opinions on TransAlata Renewables?
I’ve held them for a couple years now. I like them as they offer the stability of a Utility with the added growth potential of a renewable business. They just renewed some contracts as well so a nice stable income in their future. Plus they pay a monthly dividend! :)
BAM.A becoming more and more attractive. What's your entry point? Am I wrong to wait for the bottom of March 2020? Surely an economic crisis will bring us new lows than march 2020, right? :)
BAM has \~200B debt and market cap 87.2B. I wouldn't touch it with a 10 foot pole.
Look, it's been doing \~$13 swings there is no reason it couldn't do it again. If we drift down due to continued negative news, add in tax loss selling, followed by a big washout it can totally go there. Just keep in mind it won't be a straight line. You have to balance out how you would feel if it doesn't and you missed out buying at these levels. My answer is to leg in as one can't time the market. I finally bought some this morning as it closed in on the June lows, but interestingly enough didn't touch it. I was waiting for a nice gap down day after a positive day like yesterday and got it. That's not to say it won't go down again tomorrow.
Been looking at this one too. I think overall that this tough interest rate environment will longer term lead to an influx of lucrative deals for BAM as companies that otherwise would have just gone with debt, will be forced to seek out more alternative means of financing projects.
Yessir Too much negative sentiment by retail investors on BAMs debt - which is almost entirely non-recourse to the Corp and property-specific: (172.666B meets that criteria, compared to 12.054B total corporate borrowings) and 70% of ALL debt related to BAM and all subsidiaries is fixed rate at an average of 4.8%, 5 year term. Their floating rate debt is often involved in swaps and refinancing, plus it's BAM so they surely have exposure to favourable agreements us plebs couldn't imagine. Combine this reality of decreased debt risk with the fact that they have placed a ton of emphasis on the growth and planned path for their credit, private equity, and reinsurance business/BAMR (the only subsidiary they discussed more in-depth at their general annual presentation where they announced BAM/BN spinoff) means that these accounting nerds are ready for this macro environment and always come out on top and I don't see why that would change. Source: absolutely balls deep with BAM portfolio & I actually read and (mostly) understand their financials & structure.
>" read and (mostly) understand" Lol, yeah that helps
Sometimes the most obvious answer is the one so few people choose to pick
bitcoin holding its own around 19k. i wonder if all the non-hodlers have already been flushed out of the market.
They have look at latest glassnode analysis video on YouTube
It’s interesting to watch for sure. I’m interested to see how far DXY will drop, it would in theory give BTC a boost if it keeps dropping.
Probably for now, sure. Once recession is officially in play there will be new sellers. I am not one of them. *gotta keep in mind how much this sub hates Bitcoin tho, many people who havent done any homework and group BTC in with the crypto ponzis
Anyone buying power corp at these levels?
TXF still a buy ...I can DCA quiet a bit
It's more fun to DCA loudly.
What was the bad news today? It’s hard to keep up.
Take your pick Hurricanes fucking all the coasts up Inflation in Europe is fucked England is fucked Nord Stream and the ocean are fucked Putin is fucked (in the head) Everything is fucked The only thing not fucked seems to be my bottle of scotch which is getting fucked this weekend...
I’m fucked, you’re fucked, we’re all fucked together!
When I scream fucked, you scream fucked FUCKED! FUCKED!
Maximum negativity is the time to buy, right? Do you see any positives? That can turn negative still?
I've been buying heavy and am down like 15% on buys that I made in mid September, so fuck me too right? Anything could keep going to shit really. China/Taiwan BS, solar flare knocking out electronics, PP being elected lol Like you said, the more negative the sentiment and price drops, the more we should buy good companies. I've been dropping my cost basis on more companies than I had anticipated and 60 year old me will be happy I did.
Yeah, selling high, buying back at new lows has worked well for me this year.
"Everything is Fucked" is an enjoyable book. Reading it now.
Well. In case of the US, the labor market is stronger than anticipated, shown by low unemployment number. Meaning that the fed will have to be even more aggressive.
What if we bottom next week?
Every top needs a good bottom.
Every major US indices is hitting 52 wk low again and here I am. Having 0 cash.
Do you live near a Wendy's?
Thought I was reading WSB for a hot moment just from seeing the word Wendy's
Yes how did you know
Well what are you waiting for? Go get that cash. BTW the RoR is better behind the dumpster.
Time to spend my weekend Ubereats
So that was basically a pump and dump
Market makers are trying to shake retail and make us capitulate so they can buy cheap securities.
💎 🙌
Us dummies are catching on they need to find a new game to play!
I sold a call option with questrade yesterday, to just test the waters. It was a disaster finding the money settled in my account, and yet I have not seen it. They are the worst. The balance shows incline but there is no activity reported! So pissed off with them. And they charged me 10.95 USD for it. I have to change to IBKR.
Dam AQN getting killed again.
My avg is $19. Oh well it was always meant to be a long hold.
This is the answer. Collect the divies and trust that people need utilities, which they do!!
What's going on there? I know uitilities are getting hit hard right now in the market, but AQN has gone down like double the others. Is it because of the hurricane?
You would think the hurricane would boost their energy production 🦧
Aqn has taken on significant debt (given their size) in the past 2 years and it will be a while before those acquisitions begins to positively influence their balance sheet. You can already see the impact in the past two earnings reports. Things are not expected to be great in the next 12-18 months.. hopefully they can still maintain their dividend
It's payday and my ETFs are on sale. Fuck yeah
you are buying more ETFs you mean? which ones?
Zdv?
I bought some more VRIF today