Stock Market Series

How Are My Picks On Stocks (Part 2)?

Sorry I have been away for a while because I had to work overtime at my office plus I had a party to go to last week.

But now I am back and let’s get back to it!

Click here if you need a Part 1 refresher!

 

BCE Incorporated (TSE:BCE)

BCE Incorporated is Canada’s largest communications company providing a comprehensive and ground-breaking suite of broadband communications and content services to consumer, residential, business, not-for-profit and government customers in Canada.  The company’s segments include Bell Wireless, Bell Wireline and Bell Media. Its Bell Wireless segment provides wireless voice and data communications products and services customers across Canada.  Furthermore, its Bell Wireline segment provides data, local telephone, long distance, and other communications services and products to its customers, primarily in Ontario, Quebec and the Atlantic provinces, while Satellite television (TV) service and connectivity to business customers are available nationally across Canada.  Lastly, its Bell Media segment provides conventional, specialty and pay television, digital media, and radio broadcasting services and out of home advertising services to customers across Canada.  Recently, BCE Inc. is offering to buy home security firm AlarmForce Industries Inc. for $166 million.

Here is the company’s financial statement analysis from 2013 to 2016 (click here if you need a refresher on accounting formulas):

Screen Shot 2017-11-07 at 9.20.24 PM

Unfortunately, I do not think I would invest in BCE Inc. because of the company’s negative retained earnings.  The company is constantly investing in order to grow their business and it is running low on cash.

Cogeco Incorporated (TSE:CGO)

Cogeco Incorporated is a Canadian diversified telecommunications and media company headquartered in Montreal, Quebec, which serves residential and commercial customers through various businesses.  Cogeco Communications provides its residential and business customers with video, Internet and telephony services through its two-way broadband fiber networks in Canada and the States.   Meanwhile, Cogeco Media owns and operates radio stations across Quebec.

Here is the company’s financial statement analysis from 2014 to 2017 (Cogeco’s fiscal year ended on August):

Screen Shot 2017-11-08 at 4.52.45 PM

Likewise, I would not invest in Cogeco Inc. at this time because of the company’s high in return on capital expenditure (means Cogeco is spending a lot of money on acquiring or maintaining fixed assets, such as land, buildings, and equipment) and high in gross profit used in selling, administrative and general expense.

Imperial Oil Limited (TSE:IMO)

Imperial Oil Limited is Canada’s second-largest integrated oil company that produces crude oil, diluted bitumen and natural gas significantly.  In addition, the company is Canada’s major petroleum refiner, a key petrochemical producer and a national marketer with coast-to-coast supply and retail networks.  Its retail operations include Esso-brand service stations and On the Run/Marché Express and Tiger Express-brand convenience stores.   Exxon Mobil Corporation, an American multinational oil and gas corporation, has a 69.6 percent ownership stake in the company as of December 31, 2012.

Here is the company’s financial statement analysis from 2013 to 2016:

Screen Shot 2017-11-08 at 5.28.55 PM

Although Imperial Oil spends quite a bit of money on depreciationI would invest in this company because of the company’s low interest expense, low debt and shareholders’ equity and decrease in return on capital expenditure.   

Imperial Oil is literally running its operation with its own cash and THIS IS A GOOD SIGN!

 

Furthermore, I was on Stockcharts to generate Bollinger Bands and 20-Period Simple Moving Average in order to determine whether now is the time to buy Imperial Oil stocks.

Screen Shot 2017-11-08 at 10.43.04 PM

Since Imperial Oil is currently trading on the 20-Period Simple Moving Average, therefore it is not a good time now to buy the company’s stock.  The perfect timing would be when the stock price is close to $38.31 (the lower Bollinger Band).

So here you are guys! I am exhausted right now because I am so lack of sleep!  Please feel free to leave comments below! Catch you on the flip side!

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