Investment Ideas

Imperial Oil (IMO) has turned up. This company has little debt, with a debt/equity ratio of just 7%. With a P/E of 12.7, the shares appear attractively priced. In 2008, the shares peaked just over $60, and they recovered as far as $50 in 2011 before falling back to around $37. The shares have moved a little over $40 and are a good buy if they are headed up to $50 or even $60. This assumes that the price of oil continues to provide profits for the foreseeable future and the economy continues to recover; neither of which are sure bets.

Sun Life (SLF) shows a little less momentum, but enough to make it interesting. From 2009 to 2011, the share price has moved between $25 and $33. It has now moved up over $26.55 and provide a good opportunity for profit if they continue up to $33. Before 2008, they went as high as $55, but the economy has changed since then, and it isn’t reasonable to expect a near-term recovery to that level.

Assuming that the outlook for the economy recovers and brings the stock market with it, each of these investment ideas could produce approximately 25% increase over a relatively short period of time. That assumes, of course, that the investor has cash available and the stomach to commit it at this time.

N.B. “Current” prices as of Oct 14, 2011.

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