This month I continued to take advantage of the strong Canadian dollar versus the US dollar and add to some of my existing positions.
Added to position in Cheesecake Factory (Ticker: CAKE)
The stock continued to fall and was down in the $42 level so I decided to buy more shares to lower my cost position down to $44.96 US. If the stock continues to fall and the fundamentals of the business stay intact then I may buy more stock (UPDATE: The stock since this writing has fallen to under $40 and I was debating whether to buy more). My intentions are usually to slowly build up the position and use opportunities where the stock is down for no significant reason to pull the trigger on those purchases.
Added to position in Costco (Ticker: COST)
One of the risk elements that Costco faces and what other retailers are facing is the Amazon effect. In my post, mind-map video, and podcast where I walk through my rationale for buying Coscto, I think through the threat that Amazon could pose, especially with the recent move by Amazon to buy Whole Foods. I think the threat is there but I also think the value proposition Costco offers is strong enough to repel it. In addition I think Costco's perceived weakness in online sales is something I think can be easily addressed, especially if they partner up (not buy or get taken over) like Walmart did with Google. Maybe an Apple or Facebook? The stock pulled back from the $158 level to the $150 level. Again with the stronger Canadian dollar, I thought it would be a good moment to buy some more shares.
Added to position in General Electric (Ticker: GE)
Stock continues to go down and again the combination of the stronger Canadian dollar and lower price made me decide to buy some more stock to further lower my cost base. It hasn’t been a good performer so far. It’s pretty out of favour by the market right now. I think Josh Brown of Reformed Broker fame summed it up best in a tweet:
GE just doesn't get much love, but year in and year out it creates a ton of tangible wealth. It’s getting penalized because of their oil equipment exposure. The reality is the company is still a best in breed in a variety of industrial sectors. The company has sold off its financial divisions to so it is a pure play industrial company now. They have a new CEO which will starting from a low base so the financial comparables going forward may be more positive. I bought the stock for my sons RESP with the intention of holding it long term so for now I will continue to do so.