Stocks picks: Cenovus Energy and Rogers Communication

The Canadian Core Buy list returns 1.1%, beating the benchmark by over 50 basis points.

Ashley Redmond 18 February, 2014 | 2:00PM Carr Lanphier
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Ashley Redmond: I'm Ashley Redmond for Morningstar.ca, and I am here with Associate Analyst, Carr Lanphier.

Carr, thanks so much for joining me.

Carr Lanphier: Thanks for having me.

Redmond: So every month, you put together two great lists for Canadian investors, the Canadian Income Buy list and the Canadian Income Core list. Let's start with the Core list, how did it perform this month?

Lanphier: It did pretty well. It returned 1.1% this past month, which beat the benchmark; the benchmark only returned 50 basis points, so another good month for the Core list.

Redmond: Okay. What stocks did you add to the Core list this month?

Lanphier: We added the Canadian Imperial Bank of Commerce and National Bank of Canada.

Redmond: Okay. And you said earlier that one stock that stood out to you was Cenovus Energy.

Lanphier: Yes. Cenovus is an interesting company. It's trading at about a 25% discount to our fair value, and it's one of our favourite picks because it has some interesting exposure to the oil sands. If the Keystone Pipeline gets approved, it could see a three-fold potential increase in its production, but even right now it's doing really nicely. So, we think that's a nice hedged bet.

Redmond: What stocks fell off the list this month?

Lanphier: We had Cameco and Telus fall off this month. We can only have about eight stocks on the buy list, so perhaps we'll see them in the near future.

Redmond: Okay. And let's switch gears to the income list, how did it perform this month?

Lanphier: It didn’t perform as well, unfortunately. It lost about 1.8%, and again that's compared to the 50 basis points from the benchmark.

Redmond: And I know you added a few different stocks to that list this month, including AGF and Rogers, and one stock that stood-out to you was Rogers Communications.

Lanphier: Yes, we really like Rogers because it's a very well-positioned. It's got a great network around Canada. It’s one of the largest communication networks and it's been adding to its dividend recently. We think that it offers an attractive value and that it's well positioned to continue to grow.

Redmond: So, what's stock fell off the list other than Power Financial Corp.?

Lanphier: We had Bank of Nova Scotia and Telus fall off the list.

Redmond: Okay, great. Thanks so much, Carr.

Lanphier: Thanks for having me.

Redmond: To check out the list, go to Stocks page of Morningstar.ca.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Cameco Corp64.16 CAD-1.34
Canadian Imperial Bank of Commerce68.88 CAD0.66Rating
Cenovus Energy Inc28.10 CAD0.11
National Bank of Canada111.90 CAD0.37Rating
Rogers Communications Inc55.00 CAD0.00
TELUS Corp21.86 CAD0.92Rating

About Author

Ashley Redmond

Ashley Redmond  Ashley Redmond is a Vancouver-based freelance writer.

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