Long term Buy opportunity presenting itself hereI re-bought at the $45 level. Made a pretty penny at the earnings report the last time I held. I was holding a smaller position at a much higher price than what I bought it for today.
Canada in general is approaching oversold territory. The markets are an absolute mess right now for CDN equities. I personally look at times like these for opportunities to do a few things:
1) If I currently hold a position in a company and I have the opportunity to add to my position at a discount, I'm a buyer. For CXR to drop 8.5% in one day to me smells like a rebound tomorrow. Investors will hopefully recognize that this is a sector correction of some sort (perhaps amplified by negative sentient towards CDN equities in general).
2) If I'm long and I like CDN health care, but want to avoid VRX, I'm a buyer at these levels as well. This stock has done well and has expressed the intent to pay down debt. A debt reduced CXR is better than a debt-filled CXR any day of the week. It's also going ex-div on the 13th which isn't the worst thing in the world either...you cover your commission and wait a little while while the SP climbs. If the stock swings back up, you make a quick buck that way too.
3) Read this as a major negative indicator and stay the hell away from the markets as we're preping for another crash (let's hope that isn't the case).
At this point, the TSX is trading around where it did 3-4 years ago. I'm using the 2012 lows as a major resistance point for the TSX. If it breaks lower than that, I'm getting out of dodge as the TSX could free-fall back to 2008 levels. We crossed the 125 Day SMA back in August (I prefer 125 vs. other SMA). The same happened in 2012 (which is why I'm using that chart as a technical model for what's happening today). What was happening in 2012? Oil was trading between $80-100 a barrel. So why did the TSX fall 3000+ points in 1.5 years? Beats me.
Ultimately, if you believe the markets will turn around with sentiment shifting from oil to other areas of investment like health care and consumer staples, this is a tempting time to buy. Buffet champions the "buy when others are fearful" mantra and that appears to be the case here. Don't put all of your eggs in one basket: Should the sky fall in the coming weeks, cost average down and wait for the market to recover. At least you'll get a small divvy to wait for that to happen.
Just my two cents, but I'm definitely a buyer at these levels. My hope is that this sector will become the new darling for 2016-2017. If not, at least I'm on record as having made a horrible investing descision.
GLTYA