Canadian stocks offer a wealth of opportunities for investors now. For starters, the Canadian economy is heavily based on commodities like oil, minerals and natural gas. As the U.S. dollar slumps, commodities naturally benefit since most of the world’s commodities are traded in U.S. dollars.
One of my favorite commodity stocks is Canada-based GoldCorp (GG), which is one of the largest precious-metal mining companies in the world. This is great stock to own to ride the all-time high in the price of gold.
GoldCorp produces more than 2.3 million ounces of gold annually and has about 45 million ounces in proved and probable reserves.
But don’t be fooled by the name. GoldCorp also owns 1.2 billion ounces of proved and probable silver reserves and 1.4 billion pounds of copper reserves. Silver and copper prices have been on a tear lately, and the diverse mining operations of GoldCorp make it a great investment right now.
Two other Canadian metals stocks I like right now are Yamana Gold (AUY) and Iamgold (IAG).
But Canada has more to offer American investors than just commodity stocks. I’ve been particularly impressed by the Ontario-based pharmaceutical company Biovail (BVF) which is the largest pharmaceutical company in Canada.
BVF is already up over 50% this year and I think it can add another 10% to 20% before the year is up.
Biovail is due to report earnings again in early November, and I’m expecting more solid results. The analyst community expects earnings of 44 cents a share, which is a 22% jump over last year’s third quarter. That’s very good growth, but the best part is that Biovail is currently going for less than 10 times next year’s earnings estimate. That’s an excellent value.
Biovail is a strong buy.
Finally, investors should also admire Canada’s buoyant tech sector. Consumers around the world are familiar with the blackberry from Ontario’s Research In Motion (RIMM). That stock has come under a lot of pressure recently, and I currently rate it a Hold.
However, one tech stock I like is Montreal’s CGI Group (GIB). CGI stands for “Conseillers en Gestion et Informatique,” or “Information Systems and Management Consultants.” I like that the company has a well-diversified business model that’s done well during the recession.
Cash generated from continuing operations was up 61% last quarter. And the party’s not over for CGI; their order backlog currently stands at an impressive $11.8 billion. That’s a great indicator of future growth and part of the reason why I rate CGI a Strong Buy.
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