February 2019 Stocks Consideration

So far the month of January of 2019 was the exact opposite of December 2018. This is a perfect “V” shape rebound. Anybody who does swing trading are laughing all the way to the bank. It’s certainly will be harder to pick good quality stocks after a recent bull run. Some stocks are up 10% or more within a month. Great deals go fast! 

Anyway, prior to market rebound, bank and energy stocks were trading at historically low valuations. I made a buy list of what I wanted to buy in 2019. The list is not big, but these are the companies that I still don’t have in my portfolio – TD, BNS, BMO, ENB, BIP.UN, and BEP.UN. 

All of those stocks are lot higher now.

Toronto Dominion Bank (TD) is up by 9% from $66 to $72 per share.

Bank of Nova Scotia (BNS) is up by 10.6% from $66 to $73 per share.

Bank of Montreal (BMO) is up by 11.6% from $86 to $96 per share.

Enbridge (ENB) is up by 17.5% from $40 to $47 per share.

Brookfield Infrastructure (BIP/UN) is up by 13.3% from $45 to $51 per share.

Brookfield Renewables (BEP/UB) is up by 8.8% from $34 to $37 per share.



Some stocks are still good deals but not great deals. Hopefully there will be a little correction in February to buy these stocks cheaper.


Meanwhile, looking at my portfolio, I identified a few lagging positions that did not appreciate as much. I have small positions in Freehold Royalties, Artis, and Cominar.

Freehold Royalties leases land to operators and collect royalties in return. It’s an interesting business because they earn money regardless of how the oil price is doing. There are less risk involved compared to drillers. I own 25 shares of FRU and my average cost is $14.21. Right now the shares are trading below $9 and it would be a great opportunity for me to average down on my cost basis. I can potentially reduce my average to $10. 

Artis REIT is another small position that I have. I have 70 shares and my cost average cost is $13.76 per share. These days, Artis is trading at around $10. I have a chance to double my position and lower my cost average to $12. 

Cominar is one of my favorite undervalued REIT. I only have 70 shares of Cominar and my average cost is $18.08 per share. I particularly favor the company for its industrial and retail properties. At the moment, Cominar is trading at $12 per share. I can double my investment in Cominar and reduce my cost average to $15 per share.



So these are the three potential companies that I can average down in February if bank and energy stocks don’t pull back.