Stocks on my Watchlist

Here is a quick summary of Canadian Stocks on my watchlist.  I may be buying or selling any one of these stocks from time to time. I will also provide a very quick opinion of each stock. Remember that this is not investment advice - it is only my opinion. Always consult with a financial professional before investing.

1. Aecon - Symbol is ARE on TSE. This stock is highlighted in another post. It is a construction company and therefore I understand what is going on. Over the years I have done well with this issue. Watch out for recessions - the stock can get hit hard.
2. SNC Lavalin - Symbol is SNC on the TSE. This company is one of the great performers over the last 25 years. Needless to say it has been hit hard in the last few years from scandal. Every time I look closely at this company it is too highly valued. Wait and see situation. Too highly valued and too risky.
3. Stantec - Symbol is STN on TSE. This stock is also highlighted elsewhere on this blog. It is a good steady performer. It has avoided the scandal stuff from SNC. In fact some money has probably come over. Great company and wonderful investment. One of the top performers on the TSE over the last 15 years. There is still growth left in my opinion.
4. Toronto Dominion Bank - Symbol is TD on TSE. Needs little introduction. Major Canadian bank in business since buffalo roamed the plains. I like what they are doing in the US and they pay a decent dividend. You do not get rich with banks since they are heavily regulated. On the other hand they are relatively safe.
5. Royal Bank - Symbol is RY on the TSE. Same comment as the TD bank. I have a slight preference for TD over RY but they are both good.
6. Tim Horton's - Symbol is THI on the TSE. Just walk out the door and you will run into a Timmy's sooner or later. Currently a bit expensive.  Expansion in the US has somewhat mixed results in my opinion. The Canadian market penetration is probably mature. Low volatility stock.
7. Computer Modelling Group - Symbol is CMG on TSE. Have not owned this one in a couple of years. It seems like a very well managed company. It used to be an excellent dividend yield until everybody crammed into this issue. They provide computer (simulation) modelling for the oil and gas industry. Obviously their success is also tied to that industry. Strong competitive position and good management.
8. Toromont - Symbol is TIH on the TSE. The stock is profiled elsewhere on this site. Good steady performer. Caterpillar dealership plus the CIMCO refrigeration business. Good dividend yield. I bought a few shares recently.
9. Alliance Grain Traders - Symbol is AGT on the TSE. AGT is one of the reasons I am very wary of businesses that depend on commodity pricing. The company is based in Sasketchewan but does business globally. They source and process beans, pulse foods and also pasta. I bought it a few years ago and luckily got out when the plunge happened. Nevertheless the company is well managed and the stock is probably as low as it will go. I am watching this one closely. It is a thin trader so be careful - use limit orders only.
10. Blackberry - Symbol is BB on the TSE (formerly Research in Motion). This stock needs little introduction. I bought it at the low 40's and got out in the mid 50's a few years ago. I have learned that when dealing with high tech stick with the dominant company if you can figure out who it is! I don't really have any intention to buy shares but it is still on my watchlist. One of the reasons that I stay away from high tech is that the long term propects are unknown. Currently I am with Apple but it is probably just a rental. Gadget companies are so finicky and fadish that it is hard to figure out where you stand. BB will probably survive but they are one product company now. Sell out to Microsoft I say.
11. Alimentation Couche Tard - Symbol is ATD on the TSE.  Great company in my opinion. I loaded up with this one a couple of years ago but down sized my position just before the move into Europe. I still did very well. A bit expensive right now - I am not in the stock. Quebec based business that provides convenience stores. Pretty much located all over the place including international. Almost a monopoly in Canada. I am watching for a pullback. Could be a long wait.
12. Metro, Inc - Symbol is MRU on the TSE.  I'm pretty sure I have never owned this one but it is on my watchlist. It is the kind of company that interests me. Food store operating under many brand names. Good return on equity. Very steady performer. The dividend yield is a bit low for my taste but I will wait and see.
13. Russell Metals Inc - Symbol is RUS on the TSE. It seems that Russell Metals has been around forever. When I was an engineer 20 years ago I picked up my steel from their distribution warehouses. It is basically a good company with a strong balance sheet. The business is relatively simple but they have a good competitive position. The business is long term vulnerable - especially if they get into trouble.The stock usually pays a very good dividend. The yield is currently over 5%. On a short term basis the stock might be weak. The steel business is not doing well. Wait and see.
14. Canadian Tire - Symbol is CTC on the TSE. I have never owned shares in CTC for some reason. Maybe the dual share structure worried me. They have a strong position in the rural cities but are vulnerable in the urban areas. The long term position is probably OK. Recently they are under position to divest holdings into a REIT structure. If it goes through it will give them some money. How they use the money is really the question (if it goes through). The company does provide a steady ROE and pays a small dividend (1.5%).
15. CAE - Symbol is CAE on the TSE.  This stock unfortunately is a rental only. They are a leading provider of aircraft simulation systems. CAE is a well managed company and has a strong competitive posiiton. Back in the 1980's I still remember making a nice chunk with the stock. It was one of my very first buys. One of the main problems with this stock is that the customers are the airlines. The airlines over the years has to be one of the worst performing sectors. The time to buy CAE is during a recession when (hopefully) the stock is well below $5.  

In closing the above are pretty much my current Canadian favorites. Very little speculation involved with most of these names. BB and AGT are probably the riskiest right now. I have many other stocks that I follow in Canada but the probablity of a buy is quite small for one reason or another. One day (post ) I will explain the stocks I dont like and the reasons why.

In the future I will also provide an American list of stocks that I watch. Much bigger list!