lundi 27 mars 2023

RCH has rarely been this cheap


Most investors are looking for the new big thing. Few are looking at Metro (MRU.TO), Canadian National (CNR.TO) or Richelieu Hardware (RCH.TO). 

Nobody will get rich in two years with these stocks, but nobody will lose everything or see a new company coming out of the blue and stealing a lot of consumers. 

Not so long ago, I would have said that these companies weren't aggressive enough for me. But now, after seeing some problems related to a whole sector (banking, techno), I think that it's very wise to own some good players from other industries, like MRU, CNR and RCH. 

And among them, Richelieu has rarely been this cheap. The current PE is about 15 (that graph says it's 12.4 but I think it's more about 15). Anyway, that's a cheap price to pay for a company with a very small debt, a dominant position and a very good track record.  

Growth has been disappointing in the recent years, but I believe in the strenght of this company. It could easily buy another company or be bought by a bigger company. And meanwhile, you'll get about 2% of your investment as a dividend. 

Of course, I wouldn't put 10% of my portfolio on Richelieu. But, to me, it's an obvious 2-3% with one of the best players in the renovation sector. 

vendredi 17 mars 2023

Bad reasons to be satisfied with Meta

Meta/Facebook did pretty good on the market recently. How come?

First, Tik Tok has been banned by a lot of enterprises/governments. Everybody already knew that this chinese company could be a threat, just like all other chinese companies (but I guess that some people will soon say that a new chinese company is "different" and deserves our attention). 

Anyway, about Tik Tok, all of a sudden, a lot of people woke up. Like 5 years later. I don't know what happened but it was positive for Meta/Facebook.

Then, Facebook announced that tens of thousands of employees would be fired. Which would reduce the spendings of the company.

So, as much as you may love Meta, do you really consider it positive that your not-growing-anymore-stock is doing well because a competitor has problems or because it sacked thousands of people?