Which are perfectly Priced Stocks to Buy in Present Downtrend

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Hi Mat,
Reading your comments to my other query, I’m curious to ask if I wanna buy some stocks, which 3-5 names you would recommend to observe which are well priced in present downturn if at all the downturn continues for next days as it was happening in last days.

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Asked on October 29, 2020 4:59 am
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HI Shail,

It is near impossible for us to provide individual recommendations. We don't know individual risk profiles, personal and financial statues, goals, portfolio holdings, etc. So many factors go into this.

However, a starting point would be to look at the Bull and Watch lists and see which stocks are perhaps nearing oversold (or are in oversold) status. We use this ourselves as a tool to help decide an entry point. Personally, I will also be looking at my internal holdings - some I only have small positions (as I chose to average into) and now may be the time to buy that second or third tranche if my investment thesis hasn't changed.

Another stock that we've been looking at closely which isn't on our watchlist or bull list at the moment is Enghouse Systems (ENGH). This has been one of the best tech companies in the country over the past decade and for the first time in years, it is nearing oversold territory (14-day RSI of 31). It is one that I am personally taking a look at here as part of my dividend growth portfolio. Although the yield is low, there are very few Canadian Dividend Aristocrats in the tech sector.

Mat

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Posted by Mathieu Litalien
Answered on October 29, 2020 5:20 am