Tuesday, January 23, 2007

More on the Wealth Building

As it turns out, more than one friend reading this blog is enthusiastic about my research and as it's also RRSP time, I'm going to list my most hopeful investments and recommendations. As always, do your own research and learn how to read the numbers and charts on finance.google.com before investing. Buy me some tequila if you make some money and go ahead and drink lots of tequila if you lose your shirt.

So here goes, here are my picks:

Global Santa Fe (GSF $55.99) - great growth, super profitable, undervalued
CVRD (RIO - $30.62) - Great mining company, I used to own Inco before CVRD bought them and made 75% return in 3 months
Goldman Sachs (GS - $212.97) - undervalued
Toyota (TM - $131.21) - serious growth spurt ahead, stalled/low-ish this week
Consolidated Edison (ED - $48.25) - Very safe electrical utility, 5% dividend + consistant stock growth. buy them on a cyclical dip
Helmerich and Payne (HP $25.02) - Contract drilling for oil, undervalued, profitable and growing
DIVX ($20.88) - I watched them go from 2 guys to a 750M valuation, great velocity, very risky, very rewarding
Digital River (DRIV $ 50.81)- eComm software sales, profitable and growing, buy them when they bottom out in 3-6 months. Medium risky.
American Apparel (EDA $10.70) - Wait until they go lower before buying, the acquisition company was funded at $7/share so $10.70 is pretty high considering nothing happened yet. However if you wait too long, you might miss the ride. Really risky as well.

With all of these stocks, it's much easier to know when to buy than to know when to sell. The only advice that I can give you is to not be greedy and get out when the going seems too good to be true. This doesn't apply as much to the really conservative stocks like ED, HP or TM.

Mutual funds
Excel India/China/Chindia
Vertex One - Vertex Fund

Trading Accounts (Canada)
eTrade - $20 trades or $10 if you keep $50K with them, no other fees, 4% interest on cash
Royal Bank - sucks $30+ trades, $10 if you had 30 trades in the last quarter, terrible exchange rates. User interface and rate updates like a bad site from 1996
BMO - Not bad if you are on the 5 star program (250K), use etrade otherwise

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