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Number Cruncher: Eight telecom and utility stocks

What are we looking for?
 
Looking at all the stocks on the TSX, we want to screen for the highest-ranking telecom and utilities names, two popular sectors for dividend-hungry investors. Rankings are determined by the INK Edge V.I.P. criteria (valuations, insider commitment and price momentum). This is the same approach we apply across the broad market to determine membership for the INK Canadian insider index, which is used by the Horizons Canadian Insider Index ETF (HII).

Insiders continue to favour a reflating global economy

As we expected, we have seen a modest bounce in the Utilities SPDR ETF (XLU*US) which has advanced about 0.7% since our report last week. Concerns about Greece and slowing industrial production helped the long-bond sensitive group to move off its recent lows. As has often been the case throughout the economic recovery, the data has provided investors with a mixed picture. Industrial production numbers disappointed on Monday, but retail sales generally came in better than expected last Thursday. 

The persistence of some data that surprises on the downside will likely encourage the Federal Reserve to take a go-slow approach on interest rate increases.

American insiders confirming the Canadian reflation bias

Every week we provide an American insider overview for our subscribers at INKResearch.com and TD Direct investing. Below I have incorporated the commentary from this morning's INK Research American insider article which appeared before the open. Today's commentary is particularly relevant for investors in the Canadian market as insiders south of the border appear to be confirming the tilt towards growth-oriented stocks we are seeing in Canada.

Will a FOMC rate rise have to wait for a greenback correction?

Last week, we summarized the case made by Richmond Fed President Jeffrey Lacker for a June rate rise. His key assumption was that inflation was heading back to 2% which is widely viewed as the Fed's objective. Yesterday, we heard what amounted to a counter argument from newbie Federal Reserve Governor Lael Brainard. According to a Reuters article, the governor indicated that headwinds still confront the economy. Those headwinds include the recent rally in the U.S. dollar.
 
The Fed governor's comments are noteworthy because she is a permanent member of the Fed's Open Market Committee which decides the direction of monetary policy.

McLeod stocks up on Sabina shares

When mining engineer Bruce McLeod took the helm at Nunavut gold play Sabina Gold and Silver (SBB) in mid-February, he promptly bought 36,500 shares in the public market at 39 cents.

Like many junior gold stocks, Sabina has been pummelled on the Toronto Stock Exchange, falling from highs above $7 in 2011. Unlike most, Sabina has a resource estimate exceeding 5 million ounces of high-grade gold in the measured and indicated categories.

Our BNN pro-cyclical theme holding up despite a disappointing data day

Earlier this week we wrote "Here comes the changing of the guard" reflecting our sense that insiders are favouring cyclical over defensive names. That theme is being put to the test in light of today's negative GDP numbers in both Canada and the U.S. As of mid-day, cyclical and reflation-oriented stocks are holding up rather well. On a combined basis, the Materials Select Sector SPDR (XLB*US) and Energy Select Sector SPDR (XLE*US) ETFs are outperforming the broad market SPDR S&P 500 Trust (SPY*US) ETF.

Number Cruncher: Canadian REIT stocks outlook: Clouds on the horizon

What are we looking for?

Looking at all the stocks on the TSX, we want to screen for the highest ranking REITs. Rankings are determined by the INK Edge V.I.P. criteria (valuations, insider commitment and price momentum). This is the same approach we apply across the broad market to determine membership for the INK Canadian insider index, which is used by the Horizons Canadian Insider Index ETF (HII-TSX).

Here comes the changing of the guard

As we head towards summer, tourists to Ottawa can look forward to the daily red coat changing of the guard ceremony on Parliament Hill. For Canadians, it is a must see. We give our nation's capital a nod this morning, not to recognize the pre-election vote-buying in Parliament by both the government (seniors-focused giveaways) and the opposition (millennial-focused giveaways). Instead, we would be remiss not to acknowledge another milestone achieved by Ottawa-based entrepreneurs, this time at Shopify (SH).

Gold royalty collector Roosen adds iron (ore) man to his resume

Sean Roosen wasted no time establishing a gold royalty powerhouse, Osisko Gold Royalties (OR), last year after selling his Osisko Mining and its Malartic gold mine in Quebec to a Yamana Gold (YRI)/Agnico Eagle (AEM) consortium for $3.9 billion.

The Osisko Gold Royalties chairman and CEO added another prize royalty with the friendly takeover of Quebec-focused Virginia Mines. That deal gave Osisko a 2-3.5% NSR on Goldcorp's Eleonore mine in Quebec, which recently went into commercial production.

Is a May Stock Rally on the Way?

In our last piece, we shared our bullish view on the stock market and highlighted the iShares Russell Microcap (IWC*US) chart. Since that time the index has shaken out investors and bullishly powered back above its 50 day moving average. The microcap index finds itself again trading near all time highs. What’s impressive about this move is it's happened with the pessimistic investor sentiment rolling across Wall Street and Twitter like a smoldering tumbleweed in a post-apocalyptic Mad Max movie.

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