If you’ve been a member with us for longer than a year, you likely know we tend to clean up our Bull Lists at the start of the year and remove companies in order to maintain a shortlist of stocks we feel are the best opportunities.
One of the main issues that many people coming to us from major competitors have is the fact their lists are rarely ever updated. This leads to an overwhelming amount of options, and often indecision. So, we take the alternate route and keep our lists as short as possible.
And as always, we’d like to reiterate that although these stocks are being removed, this is by no means us suggesting members sell them.
In fact, if we look back to all Stocktrades Premium highlights from 2018 and 2019, despite all of them being removed from the Bull List at one point, 71% of them are currently outperforming the TSX since our highlight of them.
If our attitude changed towards a company to the point we suggest selling, we’d let members know.
In 2021, the Dividend Bull List had much more success than the Growth Bull List. So, it does make sense that there are very few companies being removed from the Growth end of things and more from the Dividend.
Starting with the growth end, we’ve decided to remove Calian (CGY) from the Bull List. It is a stock I (Dan) own and will continue to own, as it is relatively cheap on a price to earnings and cash flow basis based on its growth. However, for many Premium members, it has become somewhat of an issue to acquire in the past as it has been periodically unavailable on platforms like Wealthsimple Trade due to low volumes.
On the dividend end, we’ve decided to first remove the Bank of Montreal (BMO). The bank has been featured prominently on the list during the pandemic era and is actually one that I (Dan) added to during the peak of shutdowns. It had an explosive 2021, returning nearly 50% including dividends. We’ve typically reserved our Dividend Bull List for the most attractive-looking Canadian bank moving forward. In 2022 we believe that to be TD Bank (TD). So, it will remain on the list while BMO is removed. Of note, both Mat and I own BMO with zero intentions to sell.
We have also decided to remove Exchange Income Corp (EIF). Over the duration of the pandemic, the stock remained on the Bull List as a heavy value play in the midst of a panic selloff. And since then it has posted exceptional returns of 186%. That value gap looks to have closed with the company trading at a slight premium to historical averages, and as such it makes complete sense to remove it.
Two of our real estate plays in Minto Apartment REIT (MI.UN) and CT REIT (CRT.UN) we have also decided to remove. We felt the list was getting crowded with REITs, so we decided to reduce it down to the one we feel provides the best opportunity at the current time, and that is Killam REIT. Again, both Minto and CT REIT remain strong long-term holds.
Upcoming here at Premium & positions taken
We’re putting the final touches on our Canadian Foundational Stocks set to be released this Sunday. And next week not only do we have a fresh Bull List stock, but we’re finally launching our fully functional REIT screener!
I (Dan) have also taken positions in the following US Foundational Stocks:
Blackrock
Disney
Starbucks
Alphabet
Home Depot
Amazon
As always, the Discord channels of removed stocks remain open for questions, and the Q and A is always open as well!
