Francis Chou (Trades, Portfolio)’s RRSP fund mainly invests in equity and debt of Canadian businesses, though it sometimes ventures into U.S. investments.
According to the website:
“The investment process followed in selecting equity investments for the Funds is a value-oriented approach to investing. This involves a detailed analysis of the strengths of individual companies, with much less emphasis on short-term market factors. Far greater importance is placed upon an assessment of a company's balance sheet, cash flow characteristics, profitability, industry position, special strengths, future growth potential and management ability.”
Chou makes scant new purchases because his holding period is for the long term. In the second quarter, he bought no new stocks, but added to two positions and sold out of one.
Increases
Reitmans (Canada) Ltd. (TSX:RET.A, Financial)
Chou increased his holding of Reitmans (Canada) Ltd. A-shares by 200.25%, bringing his total holding to 367,200. This represents 2.7% of his portfolio. The stock cost $6 per share on average in the second quarter.
Reitmans (Canada) Ltd. is a ladies' wear specialty apparel retailer conducting its retail and e-commerce activities under various trade names through six banners. Reitmans (Canada) Ltd. has a market cap of $384.933 million; its shares were traded at around $5.96 with and P/S ratio of 0.41. The dividend yield of Reitmans (Canada) Ltd. stocks is 5.87%.
Reitmans (Canada) Ltd. (TSX:RET, Financial)
Chou picked up 98,600 shares of Reitman (Canada) Ltd. shares, representing a 1095.56% increase from his existing holding. He holds 107,600 in total at second quarter-end, a 0.78% portfolio holding. The shares cost $6 per share on average during the quarter.
Reitmans (Canada) Ltd. is a ladies' wear specialty apparel retailer conducting its retail and e-commerce activities under various trade names through six banners. Reitmans (Canada) Ltd. has a market cap of $377.182 million; its shares were traded at around $5.84 with and P/S ratio of 0.41. The dividend yield of Reitmans (Canada) Ltd. stocks is 5.99%.
Sells
MEGA Brands Inc. (TSX:MB, Financial)
Chou sold his entire position in MEGA Brands, consisting of 626,411 shares. He bought the stock in the second quarter of 2011 around $10 per share, and sold out in the second quarter when the price averaged $18.
MEGA Brands Inc. designs, manufactures and markets toys, stationery and activity products in North America. MEGA Brands Inc. has a market cap of $407.489 million; its shares were traded at around $17.75 with a P/E ratio of 28.50 and P/S ratio of 1.06.
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