Long and Short Investment Ideas, with follow up on prior shorts

Here are some new ideas, with information as of October 21, 2011.

Buy Husky Oil (HSE) at about half of its peak price of a little over $50 in mid 2008. Since then, the price has hovered between $25 and $27, sometimes reaching as high as $30 before falling back. Over the last three weeks, the price has fallen to a new low of $21 and jumped back up to $25, a 20% gain. The momentum is impressive, and the fundamentals are sound (P/E of 12, debt-to-equity of 21%). All I worry about is that $21 was the lowest price the stock has reached since 2005.

Buy Metro (MRU.A) near a new high. The all-time high price is $49.15 and the stock now trades at $47.75, not much of a discount. However, the earnings are good because the P/E is only 12; the debt-to-equity ratio is a little more worrisome, but manageable, at 40%. The momentum isn’t great, but it’s positive, which is better than many other stocks.

Sell short Agnico-Eagle (AEM). This is not certain by any means. It already fell 25% over the last week. I haven’t looked at the news. It’s likely to recover all at once, but it’s hard to say whether it would drift up or down.

The last time I shared short sale ideas was October 7th. Here’s how they have fared since. For reference, the TSX has climbed from 11,588.36 to 11,949.49 over the same period.

 Company  Price Oct 7, 2011  Price Oct 21, 2011
 Bombardier (BBD.B)  $3.96  $3.99
 First Quantum (FM)  $15.70  $15.99
 Inmet Mining (IMN)  $49.21  $50.61
 Research in Motion (RIM)  $24.30  $23.00
 Teck Resources (TCK.B)  $33.65  $34.80
 Yellow Media (YLO)  $0.22  $0.26
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