Stock tips (Canada)

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Folks, now is the time to buy equities. Investors are nervous. Daily news reports from Europe tell us the sky is about to fall. The fact is, good solid companies are not going anywhere and when investors gain confidence again and move money into equity markets, which stocks do you think they are going to buy? That's right, the strong, well-capitalized, well-managed companies who are leaders in their markets. My current favourite stocks on the TSX are Manulife (MFC) and Bombardier (BBD.B). Full disclosure: I own these stocks because I think they are so cheap that there will be huge capital gains over the next few years. They each pay a dividend as well so you get paid to wait! As of 9 December 2011 here are the facts: MFC price: $11.32 Annual dividend / yield: $0.52 / 4.6% Manulife sells life insurance and wealth management product to individuals and group customers primarily in Canada, the United States, and in Asia. Catalysts for a boost to the stock price will be a rise in interest rates; general stock market gains; and growth in Asian markets for life insurance products. BBD.B price: $3.67 (class B shares) Annual dividend / yield: $0.10 / 2.7% Bombardier operates in two segments. The Aerospace segment designs, manufactures and sells commercial and business aircraft including turboprops, regional jets, single-aisle mainline jets and specialized aircraft. Maintenance, training, fractional ownership, and aircraft management services are also offered. Bombardier's C-Series narrow body single aisle jet is under development and the first models are expected to be delivered in 2013. This new jet series will be available in configurations haveing from 100 to 145-seats in two base models (the C110 and C130). The C-Series jet offers a 15% reduction in cash operating costs vs. comparable jet aircraft available today. List prices on these aircraft are about $50 million each. Now don't forget about Bombardier's leading Transportation segment which designs, manufactures and sells rail equipment and systems such as locomotives, high-speed trains (think the TGV in France), subway trains, tramways, light rail vehicles and people-moving systems (think the Las Vegas Monorail). Leading analysts have a $7.00 one-year price target on this stock. Get in now since the current price is very, very cheap! Let me know what Canadian stocks you have your eye on and give me your views of MFC and BBD.B. Happy investing. VH