I wanted to buy another one half position in ENERPLUS RESOURCES (ERF.UN-T OR ERF-N). However it doesn’t want to get down to my buy price.  So, I’m looking at another stock.  Yes I’m deviating from ETFs but one has to hit opportunities where they happen to be.

Right now I’m looking to add a position in PFIZER (PFE-N) one of the largest Pharmaceutical companies in the world.  I bought PFE before at $23.00 and sold it at $27.00 but now it has sold off because they will lose their LIPITOR patent next year.  Already the vultures are in a feeding frenzy to produce and sell this product.  It will mean a significant loss of revenue to PFIZER but it will not be life threatening.  Another product is already adding to profits and a number of additional prospects are in the pipeline.

PFE pays a $0.72 dividend which is well covered by earnings per share of $1.36 and at the current stock price of $17.00 the yield is a respectable 4.18%.  I can live with that, knowing that Pfizer has been around for a long time and will prevail for a long time to come.  The P/E ratio is a decent 12.7 and the company last year earned 50 billion dollars. 

So, as long as I can buy it at less than US$17.25 I’ll grab some.

That’s it for today.  You’ll notice that when I said my twittering would be irregular I wasn’t kidding.

TL

We may see a little weakness in the markets or at least our securities but it should not be too painful.  i60 (XIC-T) is bumping up against it’s upper trend line  and may back up a little from here.  i Energy (XEG-T) should be OK and keep rising with the rising price of oil.  i Materials (XMA-T) is closely tied to gold and other commodity prices and should do well over the next few months also. 

My most recent purchase, Enerplus Resources (ERF-T) is acting well. I’ve only owned it 5 days and already it’s up 5% and meanwhile it pays a monthly $0.18 dividend.  At today’s stock price that amounts to a 9.25% dividend yield. If Natural Gas  prices would only go up Enerplus will do very well. I would like to add to my position and will do so if there is any pullback in the share price.

Another security I am following (also, like Enerplus, NOT an ETF) is Yellow Pages Income Trust (YLO-T) which is a very strong and well diversified publishing company.  The share price right now is about CAD$6.00 and it pays a 13.2% dividend.  Yea, you saw that right. Hard to pass up.  It also pays on a monthly basis so it’s a nice source of income. However there is a fly in the ointment.  Like other Trusts it will revert from a trust back to a regular corporation later this year.  However, the company has stated that it expects to continue paying the same dividend amount.  We’ll see.

That’s all for now.

Ted Lagerway