Stocks with Little or No Debt

Debt was a curse for many companies in 2008... so I thought I'd share with you a few stocks I watch weekly that have little or no debt.  These stocks cover a variety of sectors, so I'm sure you'll find something you like.  Nevertheless, like yesterday, it's worth pointing out my advisory:

You agree that the use of www.investinthemarkets.com is at your own risk. Doctor Stock makes no representations, and specifically disclaims all warranties, expressed, implied, or statutory, regarding the accuracy or completeness of any material contained in this site.
This information is subject to error; therefore, please do your homework and consult a financial planner of your choosing before making any financial decisions. You assume the entire cost and risk of any investing and/or trading you choose to undertake.
I do not receive reimbursement from any vendor for any services.

OK... so here's a few to consider:

• Paladin Labs (PLB.TO) - A health care sector play showing consistent growth.
• Westshore Terminals (WTE.UN.TO) - It's like a toll... the more activity, the more money they make.
• Richelieu Hardware (RCH.TO) - A manufacturer rather than a retailer.
• Imperial Oil (IMO.TO) - An oil play with expanding gas stations and refineries.  
• Leon's Furniture (LNF.TO) - This company has a history of "special dividends."

I'll let you do your own research... I hope this helps you in your quest for good quality companies with little or no debt!  

Remember, if you ever want a Stock Screen done, just use the contact button to let me know or leave a comment!

Cheers!

Canadian Small Cap Stock Ideas

Someone recently wrote in asking for some small cap stock ideas...  and I thought, "Sure, why not?"  So, I'm going to share several small cap stocks I watch on a weekly basis... but before I do, let me point to you the advisory on the bottom right of this website:

You agree that the use of www.investinthemarkets.com is at your own risk. Doctor Stock makes no representations, and specifically disclaims all warranties, expressed, implied, or statutory, regarding the accuracy or completeness of any material contained in this site.
This information is subject to error; therefore, please do your homework and consult a financial planner of your choosing before making any financial decisions. You assume the entire cost and risk of any investing and/or trading you choose to undertake.
I do not receive reimbursement from any vendor for any services.

OK... so here's a few Canadian to consider:

• Avalon Ventures (AVL.V) - mining minerals used in the development of hybrid vehicles.
• Antares Minerals (ANM.V) - great numbers with significant exploration potential.
• Brett Resources (BBR.V) - outstanding numbers with over 2 years of cash in the pocket.
• Exeter Resources (XRC.TO) - a recent addition to the TSX - and a prime takeout target.
• Virginia Mines (VGO.V) - a base metal play with high grade results.

I'll let you do your own research... I hope this helps you in your quest for good quality Canadian Small Cap Stocks!  

Remember, if you ever want a Stock Screen done, just use the contact button to let me know or leave a comment!

Cheers!

Developing an Investment Strategy

What's your investment strategy?

Well, of course it is to make money... but how do you plan on investing to ensure you actually make money on the markets every morning?  Here's a few things I do, and you can do, before investing hard earned money:

1. Pay attention to Market Momentum - I can't overemphasize the importance of overall Market Momentum.  As I've mentioned before (i.e. this series), it is a perilous position to constantly be investing against the overall Market Momentum.  Yes, I'm a contrarian at times, but those moments are very selective and well informed.  That's why I provide investors a quick snapshot of the overall Market Momentum every day at the top right of this website.
2. Write down your Objectives - Sure, some people say, I want to earn 10% this year... but that's not really what I had in mind.  I could do that with one fortunate trade....  What I'm referring to are practices that will result in reducing your risk and increasing your potential returns.  For example, I aim to make money on 90% or greater of my trades this year (so far, I'm at 96% for 2010).  Furthermore, I aim to lose no more than 2.5% on any trade that does go down.  These simple objectives help me remain objective in my decision making, limiting my risk and maximizing my returns.
3. Test your Strategies before Implementing your Strategies - Whenever I get a new trading idea, which I get quite often, I test it for weeks and even months.  I use a computer spreadsheet to track my trades and I refuse to cheat... after all, when you begin using real money, the markets won't let you cheat.  I also go back several months and then years to test my trading strategies.  This data is predetermined and will show me during good times and difficult times, as well as in the short term and in the long term, the results of my trading strategy.  

I'm not a full-time investor... I have a day job.  And, like many of you, I have limited time to do research, follow stock picks, etc. which is why I've designed a strategy that works for the weekend investor.  In fact, it has been a tremendous frustration for me as I attempt to educate myself in 2010 on options trading.

Certainly, those of you who are more active can make money by following the Trade Alerts; however, for the weekend investor who doesn't have more than a couple minutes every day to look at your portfolio, you'll find this website will provide you with several tools to help you become a more successful investor.

Please feel free to ask questions... you can post them here or use the contact button if you prefer to remain private.  I'll provide you an opinion... it will be yours to test and consider.

Investment Tips

Let's keep this simple... 

Investing should not be difficult; however, many investors find making money in the markets every morning nearly impossible.  Sure, we all hit some out of the ball park, but more often than not, we swing, hit, and watch those stock positions go foul.  So, how do we correct our swing to ensure we hit more in bounds and have less foul ball trades?  Here's just a few practices I use to minimize my risk and maximize my potential returns:

1. I time my purchases and sales.  I get a chuckle just writing this first one because I know, you've heard it time and time again, you can't time the market.  Well, if you're referring to picking bottoms and tops, you're likely right.  I rarely catch the absolute bottom or top.  However, I do watch momentum and, yes, I time my purchases and sales accordingly.  I use various technical indicators so that my trading doesn't become emotionally driven.  Is this really possible?  Yes, just look at my performance this year... the proof is in the numbers.
2. I don't double down.  If a stock is at $50 a share when an investor buys it, many investors are tempted to buy more (sometimes doubling their position) when it drops to, let's say, $40.  But when it's at $30 and then $20... you could be very sorry you went along for the ride.  Beware of chasing losers.
3. I don't buy and hold (in the traditional sense).  For years, "professional" advisors claimed they weren't worried about major corrections in the markets or individual stocks, claiming, "I buy and hold.  Just wait, it will come back."  I see two major problems with this practice.  First, stock prices don't always recover.  Perhaps you've held some of those stocks (i.e. Nortel) that was once a star and quickly fell and burnt out completely.  Second, why would you want your money to do nothing for you for a couple years while you watch it fall and then rise when you could have sold it when the momentum turned negative and reinvested it in a rising stock?  I work hard for my money and I expect it to work hard for me in return!

Practice investing using these simple tips and you'll see your risk go down significantly and your returns rise in 2010.

Small Cap Stock Ideas and More...

I have a friend who is a "weekend investor."  He is learning, reading, and investing... When we talk about stocks, I love the fact that he almost always has new ideas... stocks to review, trading strategies to evaluate, etc.

This week, I'm going to throw out some ideas... I look forward to the contributions you'll make to this investment community.  We'll look at four topics:

1. Investment Tips
2. Developing an Investment Strategy
3. Canadian Small Cap Stock Ideas
4. Stocks with Little or No Debt

I hope you'll join in with your own thoughts on these topics... I'd love the synergy.