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(B)(N) Canada Days – The Magnificent Seven

November 5, 2017
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Canada Days

Drama. Canada has seven companies which have never returned less than 14% per “year” (every twelve months) no matter in what month or at what price we bought them in the last five years.

And their average annual return for the “do nothing” buy and hold portfolio has been 36% per year for the last five years for a total capital gain in excess of +500% and if they’re not lingering in your Canada Tax Favored Savings Plan (TFSA) or Registered Retirement Savings Plan (RRSP), that’s too bad.

Two of them (Algonquin Power & Utilities Corporation in Oakville, Ontario and Boralex in Kingsey Falls, Quebec) are into electrical power generation – unbelievable! considering the unpopularity of Ontario’s Hydro One and green energy projects – and two more are experts in world class packaging (CCL Industries Incorporated and Winpak) and there’s a bank (Laurentian Bank of Canada) – yet another surprise! – and a food producer (Maple Leaf Foods Incorporated), and one of Canada’s favorite retailers (Dollarama) in contrast to more elegant names such as Sears Canada which is going out of business at even lower prices.

Our (B)-Class trading rules (discovered and enforced arbitrage) and the Hurdle Rate (0%) connect these companies and we don’t know the future, but if they’ve done that for the last “sixty years” (as above), they’ll probably do it again this year and next; please see Exhibit 1 below for more details (and click on it and again to make it larger as required).

Exhibit 1 Canada Days - The Magnificent Seven

Exhibit 1: Canada Days – The Magnificent Seven

For more information on real “risk management” in modern times and additional references to the theory and how to read the charts and tables, please see our Post, The RiskWerk Company Glossary and “(P&I) Dividend Risk and Dividend Yield“, and our recent Posts “(P&I) The Profit Box” and “(P&I) The Process – In The Beginning“; and we’ve also profiled hundreds of companies in these Posts and the Search Box (upper right) might help you to find what you’re looking for, such as “(B)(N) TLM Talisman Energy Incorporated” or “(B)(N) ATHN AthenaHealth Incorporated” or “(B)(N) PETM PetSmart Incorporated“, to name just a few.

And for more applications of these concepts please see our Posts which rely on the Theory of the Firm developed by the author (Goetze 2006) which calibrates The Process to the units of the balance sheet and demonstrates the price of risk as the solution to a Nash Equilibrium between “risk-seeking” and “risk-averse” investors within the demonstrated societal norms of risk aversion and bargaining practice. And for more on The Process, please see our Posts The Food Chain and The Process End-Of-Process.

And for more on what risk averse investing has done for us this year, please see our recent Posts on “(P&I) The Easy (EC) Theory of the Capital Markets” or “(B)(N) The Easy (EC) Theory of the S&P 500“, and the past, The S&P TSX “Hangdog” Market or The Wall Street Put or specialty markets such as The Dow Transports & Utilities or (B)(N) The Woods Are Burning, or for the real class actionLa Dolce Vita – Let’s Do Prada! and It’s For You, Dear on the smartphone business.

And for more stocks at high prices, The World’s Most Talked About Stocks or Earnings Don’t Matter – NASDAQ 100. And for more on what’s Working in AmericaBig OilShopping in America or Banking in America, to name just a few.

Postscript

We are The RiskWerk Company and care not a jot for mutual funds, hedge funds, “alternative investments”, the “risk/reward equation” and every other unprovable artifact of investment lore. We have just one product

The Perpetual Bond
Alpha-smart with 100% Capital Safety and 100% Liquidity
Guaranteed
With No Fees and No Loads on Capital

For more information on RiskWerk, please follow the Tags or Categories attached to this Letter or simply enter Search for additional references to any term that we have used. Related data may be obtained from us for free in a machine readable format by request to RiskWerk@gmail.com.

Disclaimer

Investing in the bond and stock markets has become a highly regulated and litigious industry but despite that, there remains only one effective rule and that is caveat emptor or “buyer beware”. Nothing that we say should be construed by any person as advice or a recommendation to buy, sell, hold or avoid the common stock or bonds of any public company at any time for any purpose. That is the law and we fully support and respect that law and regulation in every jurisdiction without exception and without qualification to the best of our knowledge and ability. We can only tell you what we do and why we do it or have done it and we know nothing at all about the future or the future of stock prices of any company nor why they are what they are now. The author retains all copyrights to his works in this blog and on this website. The Perpetual Bond®™ is a registered trademark and patented technology of The RiskWerk Company and RiskWerk Limited (“Company”). The Canada Pension Bond®™, The Medina Bond®™, The Barometer®™, the Free Market Yield®™ and Extreme Economics®™ are registered trademarks or trademarks of the Company as are the words and phrases “Alpha-smart”, “100% Capital Safety”, “100% Liquidity”, ”price of risk”, “risk price”, and the symbols “(B)”, “(N)” and N*.

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