I am thinking about getting a chunk of rci.b. Good idea?
Do the markets seem frothy?
Would you suggest your top 5 stocks for share price increase in the short term...and with next to no chance of permanent loss of capital in the long term?
Cheers,
David
We can't really answer the second question. Any equity has a chance of loss of capital. Even good companies can go bankrupt under the wrong conditions. When overlain with the goal of 'share price increases' the 'no chance' point becomes impossibe to meet. Here are five more conservative stocks that we like, that still have good upside potential, in our view: BN, CSU, TRI, WSP, IFC.
Markets are 'bouyant' but we would not say 'frothy'. If we ex-out the big mega cap stocks valuations become more interesting. Small and mid caps remain cheap. Corporate earnings have been strong and interest rates are moving lower. We would see RCI.B, as OK, but would be more interested in it for income. The whole sector has struggled, and the company has a LOT of debt and a relatively low expected growth rate. This is offset a bit by a low valuation of only 10X earnings.