Canadian VS US market

I'm seriously thinking about changing the name of this blog. Jason Donville seems to have vanished. I'm constantly writing non-Donville related stuff and I feel more and more uncomfortable about it. It looks like he commited hara-kiri, ashamed by his poor performance.

I could say that this fucking Directcash Payment (DCI.TO) is being bought by a company that's probably going straight into a wall, because that fucking industry of cash machines is going nowhere. If you had buy that shitty DCI 5 years ago, your purchase price would have been the same as the actual price of the stock. Lucky you, you would have got a great dividend to forget all the emotions you've been through with that shitty stock.

OK, let's forget that name forever now and let's talk about the canadian market. 

I've read an interesting article today on double-v, double-v, double-v point les affaires point com saying that the canadian market was expensive and it was probably a better idea to look south of the border.

I know that some people disagree with me but I'm still thinking that Linamar is pretty cheap. Some might say that the auto industry is reaching the end of it's cycle. Well, the results of the company seem to show that everything is doing well. Too, the balance sheet is great. And even if the cycle is going to an end, Linamar looks mucho better to me than Carmax, a darling of many investors, on every metric. At 6-7 times earnings, that stock is selling at the price of a stock losing money or going bankrupt. I can't sell LNR even if the market is not excited at all about it.

Stella Jones looks good too. Not exactly cheap, but the last results were great and this stock had an amazing performance over the last years. The beta is very very low, which is a great indicator of a stable business if you ask me. This industry is so boring that it's probably very safe to invest in it. It's like Mohawk. Leaders of a boring industry about which nobody gives a fuck. Google likes to try a lot of things not related to their core business but they probably won't start making carpets and poles.

Hardwood Distribution is not too pricey and their last results were great. It's another lumber stock like Stella Jones and probably that some investors are worried about lumber discussions between Canada and USA. Well, if everything looked well on every aspect, the PE ratio of SJ and HWD would be much higher and I wouldn't be writing about them right now.

Home Capital Group is very very cheap on an historical basis. You won't get a lot of growth here, but that stock is a great candidate to be bought by a big bank. I know, people have been talking about that speculative buying for many many years and nothing happened. Well, don't forget that very average stocks like Rona, Directcash Payments and Cabela's (today) have been bought by larger companies. A good business like Home Capital Group is superior to these three names.

Alimentation Couche-Tard is expensive, but it's one of the few stocks I'd always be confident about, whatever the price is, to a reasonable extent. That stock is probably a buy.

Except for that, I'd probably look to the States. A lot of great stocks are not too expensive there. Big biotechs like Biogen, Gilead, Jazz Pharma, United Therapeutics. Novo Nordisk (a danish stock listed in the US) had an important correction recently. The stock is still a bit pricey, but what a fantastic company on every aspect.

Mohawk, Bank of the Ozarks, Disney (Giverny Capital stocks) are all attractive. But they're just OK ROE stocks (ROE = between 15 and 18). Berkshire Hathaway is not that expensive. Dollar Tree had a big correction too and with their merger with Family Dollar, I believe this stock is a great addition to any portfolio. And Apple hasn't been expensive for many many years.

There's some banks too like Bank of America, Wells Fargo or the insurer AIG. All cheap names.

So, yeah, even when the market looks pricey, there's some good stocks to buy out there.