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Best plans for stock market flushed away

Ron Walter shares his 2023 stock market picks.
Bizworld by Ron Walter

The famous American author Mark Twain once said the best plans of mice and men go astray.       

That's precisely what happened to stock markets during 2022. The year started out with near highs then the invasion of Ukraine and resulting inflated prices for grains, some metals and oil caused by the war sent markets tumbling.

Even after late fall recoveries, the main benchmark indexes fell, The Toronto Stock Exchange by 8.8 per cent, the Dow 30 by 8.5 per cent, the S&P index by 20 per cent and the technology-laden Nasdaq by 31 per cent.

Last year's five favourite stocks in Bizworld were no exception, falling by an average of 32 per cent.

Falling most was the Bank of Montreal, down 66.8 per cent after a 4.2 per cent dividend yield to $122.66. BMO's outlook remains strong with the pending approval for acquisition of California-based Bank of the West.

Rent-a-Centre, a leasor of consumer goods, dropped 51 per cent to $22.55US as the Covid relief cheques stopped and issues surfaced in an acquired competitor.

HudBay Mining fell 24.9 per cent to $6.84 as copper prices fluctuated. HBM remains a long-term hold for increased copper/gold production.

New Found Gold continued to find the highest and most consistent gold grades that Yours Truly has seen in over 50 years and has a great long-term future. With this, much drilling New Found should have an initial estimate of resources to design the mine, but keeps on finding new zones. It lost 34 per cent to $5.45.

Pet Valu, the retailer was flat, gaining 11 cents to $39.37 as it kept on opening new stores.

The five favourites for this year are Alamos Gold, Enbridge, Superior Plus, Savaria Corp. and Bank of Montreal.

This year's bets take uncertainty into more account by choosing dividend payers. Average dividend yield is a healthy five per cent. The yields compare favourably wth current GIC rates of four per cent.

Yields are Alamos, one per cent; Enbridge, 6.7 per cent; Superior Plus, 6.4 per cent; Savaria, 3.7 per cent; AltaGas, 4.4 per cent.

Alamos, $13.69, will expand production of gold mines during 2023 with a large mine starting in Northern Ontario.

Pipeline operator Enbridge, $52.92, continues to expand in pipelines and storage as well as renewable energy.

Propane distributor Superior Plus, $11.23, which has acquired $1.9 billion in distributors over the last year just added a green energy developer Certarus that should boost profits.

Savaria Corp., $3.99, the maker and distributor of seniors' mobility devices from stairlifts to elevators to customized vehicles for handicapped drivers in America and Europes, should continue growth.

AltaGas, owner of a utility and midstream petroleum processing units, priced at $23.88 has growth from existing facility expansions and new projects.

All prices are from December 31, 2022.

CAUTION: Remember when investing, consult your adviser and do your homework before buying any security. Bizworld does not recommend investments.

Ron Walter can be reached at     

The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication. 


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