Two Cheap Stocks on The Buy List

Just a short post one what transpired on the markets and how I saw the day.

Yesterday markets all made new highs. Did you sell out? Why would you, right? Pot stocks, silver, gold, most junior metals and crypto all roared higher.

Eaanings from some of the banks were good, earning more, revenues up, dividend increases at Royal and BNS and probably more to come on Thursday. The big banks are all doing well, along with the railroads. I own them all for retirement income.

The US/Mexico trade deal got done and now we wait here to see if Canada can get on board and get one signed. It sure would help steady the markets and relieve some stress before the next crisis begins. 

Things got a little weird Tuesday with most everything selling off again. Investors fave Pot stock, Canopy Growth (WEED) lost $4. Yesterday was a good time to treat yourself and sell the stock. I would expect more extreme volatility in the pot space in the months to come.

Blockchain stocks held there ground as the price of BTC seems to have stabilized. Everything that exploded higher yesterday, pulled back today. It's enough to make you nuts if you trade these things.

You just have to look for stocks well off their highs for the year, look at the chart and jump in if you want. This is how I construct my gambling portfolio.

Gambling Portfolio

Two stocks that fit that mould are Trevali Mining (TV) and Linamar (LNR).
I like TV because it closed today at 80 cents but has been as high as $1.75 and trades at 9 times forward cash flow and it's starting to rise off the bottom. I believe this represents a great entry point.

LNR closed today at $57.66 and has been as high as $80.58. Great upside potential and trades at a ridiculously cheap 6 times p/e. ROE of 18% Cheap and makes money. Why so cheap? Market thinks all the growth has been sucked out of the auto sector since all this NAFTA talk blew up.

I'm betting it's all going to be fine and LNR should benefit from all the uncertainty. These two stocks represent great short to medium trading opportunities and most of the risk is to the upside. The charts are looking good.

So there you have it. Two completely different stocks. One is a junior zinc stock and the other a mid cap auto parts manufacturer. Is this what they call diversification?

Now holding CGX, OTEX, TV and LNR in this account.

That's what I found on the markets today. We'll see what happens tomorrow.

I NEVER USE MY RETIREMENT MONEY TO TRADE IN AND OUT OF 

STOCKS!

Looking for Saving Ideas so You Can Invest? 

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If you are having trouble getting your financial house in order and organized then you need to read Worry Free Money. 

If you are further looking for portfolio ideas then you might find my review of The 6-Pack Portfolio a way for you to get started on your investing journey. All of our retirement money is invested in this manner. We just hold more than 6 positions.

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