The Canadian Core Buy list outperformed the S&P/TSX 60 Index during the month of October, posting a total return that came in at 4.8% compared to the benchmark's 1.6%. The top performers for the period were Enbridge ENB and IGM Financial IGM with total returns of 12.8% and11.6%, respectively. The lowest monthly return came from Canadian Pacific Railway CP at -4.1%.
The Core Buy list retains its cumulative outperformance against the benchmark with a total return since inception of 155.8% versus 90% for the benchmark S&P/TSX 60 Index, a difference of 65.8 percentage points.
Our model recommended several changes to November's Core Pick list. Tourmaline Oil TOU was newly added to the list this month, while Valeant Pharmaceuticals International VRX, Potash Corp of Saskatchewan POT, National Bank of Canada NA, Cameco CCO and Restaurant Brands International QSR were raised to the Core Buy list from the Core Hold list. As a result, Enbridge, IGM Financial, Pembina Pipeline PPL, Imperial Oil IMO, Canadian National Railway CNR and BCE BCE were transferred from the Core Buy list to the Core Hold list.
A recap of stocks on this month's Consider Buy List
Cameco Corp. was added to the list this month. The stock trades at a 22.8% discount to our fair value estimate of $24.
Canadian National Railway Co. remains on the list from last month. The stock trades at a 13.7% discount to our fair value estimate of $213.
CI Financial Corp. remains on the list from last month. The stock trades at a 17.9% discount to our fair value estimate of $38.
National Bank of Canada was added to the list this month. The stock trades at a 32.3% discount to our fair value estimate of $64.
Potash Corp. of Saskatchewan Inc. was added to the list this month. The stock trades at a 37% discount to our fair value estimate of $42.
Restaurant Brands International Inc. was added to the list this month. The stock trades at a 4.6% discount to our fair value estimate of $55.
Tourmaline Oil Corp. was newly added to the list this month. The stock trades at a 6.2% discount to our fair value estimate of $29.
Valeant Pharmaceuticals International Inc. was added to the list this month. The stock trades at a 41.9% discount to our fair value estimate of $210.
The Canadian Income Buy list outperformed the S&P/TSX 60 Index during the month of October, posting a total return of 4% compared to the benchmark's 1.6%. The outperformance of the Buy list was primarily driven by Rogers Communications RCI.B and IGM Financial IGM with total returns of 13.2% and 11.6%, respectively. Peyto Exploration and Development PEY posted the weakest result from the Income Buy list for the month of October, with a total return of -2.3%.
The Income Buy list has generated a cumulative return since inception of 150%, while the S&P/TSX 60 benchmark returned 90% over the same period, a difference of 60 percentage points.
Our model recommended several changes to our Income Pick list for the month of November. TransCanada Corp. TRP was moved from the Income Buy list to the Income Hold list, and Rogers Communications was moved from the Income Buy list to the Income Sell list. These names were replaced on the Income Buy list by Ritchie Bros Auctioneers RBA and Cameco Corp. CCO from last month's Income Hold list.
A recap of stocks on this month's Consider Buy List
AGF Management Limited remains on the list from last month. The stock offers a dividend yield of 5.9% and trades at a 22.4% discount to our fair value estimate of $7.
Cameco Corp. was added to the list this month. The stock offers a dividend yield of 2.2% and trades at a 22.8% discount to our fair value estimate of $24.
IGM Financial Inc. remains on the list from last month. The stock offers a dividend yield of 6% and trades at a 10% discount to our fair value estimate of $42.
National Bank of Canada remains on the list from last month. The stock offers a dividend yield of 4.8% and trades at a 32.3% discount to our fair value estimate of $64.
Pembina Pipeline Corp. remains on the list from last month. The stock offers a dividend yield of 5.6% and trades at a 3.3% discount to our fair value estimate of $34.
Peyto Exploration & Development Corp remains on the list from last month. The stock offers a dividend yield of 4.9% and trades at a 15.6% discount to our fair value estimate of $32.
Potash Corp. of Saskatchewan Inc. remains on the list from last month. The stock offers a dividend yield of 7.5% and trades at a 37% discount to our fair value estimate of $42.
Ritchie Bros. Auctioneers Inc. was added to the list this month. The stock offers a dividend yield of 2.5% and trades at a 13% discount to our fair value estimate of $39.
