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No to Blackberry and three stock picks

Last day of the first half or end of the second quarter on the eve of Canada’s long weekend for Canada Day. Normally a quiet day. But today there will be Blackberry excitement as they sharply missed expectations.

I have long thought this technically excellent company missed the boat. Shares are trading down 23% premarket. There will be blood on the floor this morning. Stay away as only dead money plays here.

What do indexes and averages tell us? Many useful things but be aware they can also mislead. The Toronto Stock Exchange (TSX) like virtually all exchanges reports and provides data feeds on multiple indexes.

For example, today I expect the TSX technology index will show a huge drop. Why? It really is the BB index as all other companies that make up this index are relatively small players.

So the TSX technology index perfectly tracks Blackberry shares but tells you nothing about the state of the many small and medium sized technology companies listed there. That is certainly not an accurate picture of the Canadian technology scene.

Sure enough as I key this in shortly after this morning’s open BB trades down over 27%! Ouch! Hang up if this not so smartphone play tempts you.

Anyone playing indexes or invested in index tracking ETFs needs to be aware of just what they are investing in. Do your homework to know what you are getting into before buying ‘easy to use’ ETF index funds.

Well, my new friends at the Canadian Radio Television Commission (CRTC), Canada’s broadcasting regulator, approved with conditions the BCE plan to acquire Astral Media. This will be good for the stock today and better yet for even higher dividends in the future.

Here’s another picture that looks good and the market really likes it too! The Cineplex Inc. acquisition of 26 theatres in Atlantic Canada gives CGX a 78% market share and coast to coast coverage. This push of the dividend paying Canadian theater company to a new high extends a happy ride. A favorite of my dividend payers which I think still has room to run.

A smaller player, Wi-Lan Inc. also had a move on news the patent licensor nailed another deal. This time with ‘easy to use’ mobile phone world leader the Swedish, Doro AB. WIN has a ton of cash and pays a good dividend.

I have been in and out of WIN from the time they listed as a tiny Calgary startup. At times it looked grim but that has all changed as professional management moved it to Ottawa and has successfully turned it into a solid performer. It has been an exciting ride with, I think, significant upside from here.

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Have a prosperous day!

Bryan

White Top Investor
whitetop@WhiteTopInvestor.com
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