Hot Canadian Stocks To Own For 2014


As you probably recall, toward the end of February China’s oil giant CNOOC (NYSE: CEO  ) closed on its largest purchase ever, a $15.1 billion takeover of Canadian oil and gas company Nexen. With that acquisition, CNOOC has now expanded its presence in Canada and the U.S. — both onshore and in the Gulf of Mexico — to go along with operations in the South and East China seas, Indonesia, Iraq, Australia, Africa, South America, and the North Sea.

Should we be concerned about the company’s movement into many of the world’s major producing areas? After all, while many look to China as the primary engine of global economic growth, there are those who view the giant country as a hotbed of corruption and fraud.


CAT’s catastrophe
The powers that be at heavy-equipment manufacturer Caterpillar (NYSE: CAT  ) would probably vote for the later label. The company acquired a Chinese mine safety equipment manufacturer last summer, only to discover before year’s end the presence of “deliberate multi-year, coordinated accounting misconduct.” The uncovered shenanigans necessitated a write-off of most of the value of the $653.4 million deal and forced a paring away of about half of the Caterpillar’s expected earnings for the fourth quarter.

Hot Canadian Stocks To Own For 2014: Potash Corporation of Saskatchewan Inc.(POT)


Potash Corporation of Saskatchewan Inc. produces and sells fertilizers and related industrial and feed products primarily in the United States and Canada. The company mines and produces potash, which is used as fertilizer. It also offers solid and liquid phosphate fertilizers; animal feed supplements; and industrial acids that are used in food products and industrial processes. In addition, the company produces nitrogen fertilizers, as well as nitrogen feed and industrial products, including ammonia, urea, nitrogen solutions, ammonium nitrate, and nitric acid. Further, it holds the right to mine 785,759 acres of land in Saskatchewan; and 58,263 acres of land in New Brunswick in Canada. The company sells its fertilizers primarily to retailers, dealers, co-operatives, distributors, and other fertilizer producers; industrial products primarily to chemical product manufacturers; and purified phosphoric acid directly to consumers of the product. Potash Corporation was founded i n 1953 and is based in Saskatoon, Canada.


Advisors’ Opinion:

  • [By Fabian]

    Potash Corp. of Saskatchewan (POT) produces fertilizers, agricultural
    chemicals and feed products — primarily its namesake “potash,” or potassium carbonate mixed with other nutrients. Though this company is down dramatically from its highs in 2008, I think POT has bottomed out and now investor sentiment is turning around.

    For instance, Potash’s moved 1.1 million tons of crop nutrients in the fourth quarter, which was down compared to the previous quarter, but the 23% slide was a dramatic improvement over the 65% decline for the full year. Potash has been struggling to find a right production target, and I feel like the company is close to an effective target.


    What’s more, potash prices could be on the rise globally after leading exporter Belarussian Potash Co. boosted prices by more than 6% in Brazil and Asia. That means companies like POT can also command a higher price — and deliver bigger profits going forward.

  • [By Roberto Pedone]

    Potash Corp. of Saskatchewan (POT) is an integrated fertilizer and related industrial and feed products company. This stock closed up 3.4% to $30.97 in Monday’s trading session.

    Monday’s Volume: 24.23 million


    Three-Month Average Volume: 10.53 million

    Volume % Change: 162%

    From a technical perspective, POT bounced higher here right off some near-term support at $30 with heavy upside volume. This move is quickly pushing shares of POT within range of triggering a major breakout trade. That trade will hit if POT manages to take out some near-term overhead resistance at $31.29 and then once it clears its gap down day high from a few weeks ago at $31.89 with high volume.

    Traders should now look for long-biased trades in POT as long as it’s trending above some near-term support at $30 or above more support at $29 and then once it sustains a move or close above those breakout levels with volume that hits near or above 10.53 million shares. If that breakout triggers soon, then POT will set up to re-fill some of its previous gap down zone that started at $38.09. Some possible upside targets if POT gets into that gap with volume are $34 to $35.

Hot Canadian Stocks To Own For 2014: Sun Life Financial Inc.(SLF)


Sun Life Financial Inc., together with its subsidiaries, provides various life and health insurance, savings, investment management, retirement, and pension products and services to individuals and corporate customers. It offers individual life insurance policies, including individual term life, universal life, critical illness, disability, accident, and accidental death and dismemberment insurance policies; and group life insurance policies. The company also provides individual health insurance, long-term care insurance, group health benefits, dental benefits, and group insurance; and various individual and group annuity, retirement, and investment income products and services, such as mutual and pooled funds, variable and fixed annuities, savings, retirement and pension plans, and education savings. In addition, it offers asset management services for corporate retirement plans, separate accounts, public or government funds, and insurance company assets to institutional clients; and advisory services to individual investors. Further, the company provides run-off reinsurance services. Sun Life Financial Inc. distributes its products through direct sales agents, independent and managing general agents, financial intermediaries, broker-dealers, banks, pension and benefit consultants, and other third-party marketing organizations. The company operates primarily in Bermuda, Canada, China, Hong Kong, India, Indonesia, Ireland, the Philippines, the United States, and the United Kingdom. Sun Life Financial Inc. was founded in 1999 and is based in Toronto, Canada.

Hot Stocks To Buy Right Now: North American Energy Partners Inc. (NOA)


North American Energy Partners Inc. provides heavy construction and mining, piling, and pipeline installation services to customers in the Canadian oil sands, industrial construction, commercial and public construction, and pipeline construction markets. The company operates in three segments: Heavy Construction and Mining, Piling, and Pipeline. The Heavy Construction and Mining segment focuses on providing surface mining support services for oil sands and other natural resources. Its activities include land clearing, stripping, muskeg removal, and overburden removal to expose the mining area; the supply of labor and equipment to supplement customers