Canadian stocks rated by Iain Fraser

Canadian oil stocks rated by value

We have a list of the stocks of major oil producers based on value (mainly estimated book value and estimated cash flow).

We have also rated these stocks from the technical point of view.

There is a substantial difference in the rating of these stocks; if you would like to see this list just email us at: fraserratings@yahoo.ca    

Citigroup - what a bargain !

Citigroup ($44.94) is selling at the same price today as it was six years ago despite the fact the earnings have doubled and the dividend has quadrupled! This stock could sell at $68.00 and still be undervalued. If you would like to see our Reports on Citigroup, and six more U.S. stocks that are bargains, just send us an email at fraserratings@yahoo.ca

Correction over ?

Almost. As this is written the S&P/TSX Composite is at 9444 and is only 44 points away from the bottom line of an uptrend channel.

As we pointed out earlier this month the TSX , since last August, had been trading in a clearly defined uptrend channel but in the first week of March, led by the oils, the TSX went well above the top line and quickly fell apart. 

Now we are close to the bottom (support) line. If you would like to see an up-to-date chart of the TSX with the trend lines drawn in just email us at fraserratings@yahoo.ca

Canadian oil stocks-overvalued

On our post of March 8/05 we said that for the first time since November 2002 most Canadian oil stocks are not under-valued.

We have a list of most of the major oil stocks in this country and many of them are now overvalued.

Our largest oil company, Imperial Oil ($89.05), is not just overvalued but is substantially overvalued and gets a #5 rating - which is our worst.

If you would like our list of major Canadian oil stocks just email us at: fraserratings@yahoo.ca

29 undervalued stocks

In the past 28 months the TSE has had a great run; the S&P/TSX 60 Index is up almost 50%! For most of those investors who are holding Canadian stocks it really is a case of happy days are here again.

It is therefore surprising that of the 60 stocks in the Index, despite this marvelous upsurge, 29 of them are still undervalued.

We have a list of these, stocks and, for example, Alcan ($48.12) has moved up and is now 13th; Inco ($49.04) is 24th and still undervalued; CNR ($75.28) is 26th and is undervalued; Sunlife ($38.75) is in 2nd place and is substantially undervalued.

If you would like a list of these 29 undervalued stocks just email us at fraserratings@yahoo.ca.

Wal-Mart Stores

We have only kind things to say about Wal-Mart. But a comparison with Canadian Tire makes interesting reading.

In terms of earnings Tire is the clear winner; for last year, this year, and next year earnings growth for Tire is 17% per annum; for Wal-Mart it is, a very respectable but not as good, 13.8%.

As far as the stock performance is concerned WMT stock is down 3.5% in the past 2 years whereas the Wonder of the North is up a mere 84.5%

Finally, our rating for WMT is 1.19 and for Tire it is 0.82.

Bravo, Canadian Tire!

Canadian Tire

Canadian Tire is one of Canada's biggest and best retail stores. They have close to 455 stores across Canada. They specialize in automotive parts, accessories and repairs; they also have their own finance company and Mark's Work Warehouse.

It is remarkable that despite continuing to grow earnings at almost 17% per annum  the stock sells at only 14 times earnings and remains undervalued.

In our rating system there are five stocks that have a rating in the mid to low 0.80's. These are our most undervalued stocks and of the five Canadian Tire has the best rating of the five, but just by a smidgeon. If you would like a list of our top five topicks just send an email to: fraserratings@yahoo.ca

Noranda-encore

Noranda ($25.40) has gone up again and since our Top Ten List was published less than 10 days ago Noranda is up more than 10%!

If you would like to see our March 10, 2005 Top Ten List (Noranda was 8th on the list) just email us at fraserratings@yahoo.ca. Your address will not be given to any third parties.

Noranda

It is almost certain that Noranda will be a more attractive company and stock when, and if, it gets 100% of Falconbridge. On the chart there are previous tops around $30-$33 and with the stock being substantially undervalued before the Falconbridge deal there is not much to stop it going back to $30.

And it would still be undervalued!

Correction Time

Since last August the S&P/TSX Composite Index has been trading in a reasonably well defined uptrend channel. During the 1st week of this month the market not only got to the top line of this pattern but it went above it. Almost on cue a correction set in.

So far the decline has been minor; it would take another 3% to 4% for the TSX to get down to the bottom (support) line.