2 Speculative Issues

Recently I bought shares in 2 speculative issues. For me this represents a rather dramatic departure from my usual buys. Maybe writing this blog has encouraged me to diversify my interests.

They are:

1) Genworth Financial - The Symbol is GNW on NYSE. GNW is primarily involved with mortage insurance in the US, Canada and Australia. This stock is basically a turnaround story. With a new CEO the company is slowing making a comeback based on the turnaround in the US housing market. They reported solid profits in the latest quarter with good forward guidance. The forward earnings is about $1.40 per share for 2014 giving a forward P/E of 7.5. Yesterday the company announced cost cutting measures. Recently the rating agencies upgraded the company.

2) Essential Energy Services Ltd. The symbol is ESN on TSX. The company is an oilfield service company located in western Canada. I bought this stock based mainly for the financials. The dividend yield is a very nice 3.8%. Forward earnings for 2014 is $0.36 for a P/E of 7.2. Obviously, the company is vulnerable to the oil markets. Reviewing all the reports gives me the impression of a good management team. The stock trades less than $5 per share which is riskly by my standards.