Did you know that for the past several years, blue-chip Canadian stocks have outperformed the S&P 500 by a wide margin, aided by the rapid rise of the Canadian dollar which appreciated almost 17% against the U.S. dollar in 2007 alone?
The Canada Report provides expert insight into the best investment opportunities available in America’s northern neighbor. It is designed for U.S investors who seek international diversification and wish to add Canadian securities to their portfolios. Our contributing editors, all of whom are based in Canada, include some of the country’s leading money managers, financial commentators, and business people.
More and more Americans are investing money in Canada, for several reasons. They include:
 Huge energy reserves. The vast Alberta Oil Sands make Canada second only to Saudi Arabia in terms of proved and probable reserves. And all that oil is right on America’s doorstep, not half a world away.
A strong economy. For several years, Canada has led the G7 countries in economic growth. Unlike the U.S., the country enjoys a perpetual trade surplus.
A powerhouse currency. Since 2002, the Canadian dollar has appreciated more than 60% against the U.S. dollar.
Sound fiscal policy. Canada’s federal government has run a budgetary surplus every year for the past decade, paying down the national debt in the process.
Political stability. Canada is a stable Parliamentary democracy, with deep-seated traditions of human rights and tolerance.
A strong banking system. Canada’s big five banks are among the strongest financial institutions in the world, and were relatively unscathed by the subprime mortgage crisis.
Great profit potential. Canada offers a wide range of investment opportunities, including some of the world’s leading gold, uranium, coal, base metal, and potash producers as well as high-tech giants like Research in Motion.
The Canada Report has been created for conservative investors who are looking for high-quality securities with above-average profit potential. We believe that Canada is in a unique position to provide these opportunities and our mandate is to deliver that information to you in practical, down-to-earth terms, month after month.
Our focus is on blue-chip stocks, many of which are listed on the NYSE and other U.S. exchanges. We are not a penny stock letter. If hot tips on junior mines are what you’re looking for, don’t subscribe to The Canada Report. But if your goal is to diversify your portfolio internationally with sound companies in a strong economy, this is the letter for you!
Following are examples of how some leading Canadian stocks performed in U.S. dollar terms in 2007. All these companies are listed on U.S. exchanges. The profit figure includes the currency exchange gain, which was unusually high in 2007. For reference purposes, the S&P 500 finished 2007 with a gain of just 3.5%.
Potash Corp. of Saskatchewan (NYSE: POT). This is one of world’s leading producers of potash, a key ingredient in fertilizer. 2007 gain: +202%.
Research in Motion (NDQ: RIMM). Almost everyone has heard of the Blackberry. But did you know that the company that makes them is based in Waterloo, Ontario? 2007 gain: +166%.
Agrium Inc. (NYSE: AGU). Calgary-based Agrium is a major player in the world agricultural products industry. 2007 gain: +130%.
Fording Coal Trust (NYSE: FDG). This income trust is Canada’s number one coal miner. 2007 gain: +86%.
Kinross Gold Corp. (NYSE: KGC). Toronto-based Kinross is an international gold mining company with operations in Canada, the U.S. Russia, and South America. 2007 gain: +55%.
Rogers Communications (NYSE: RCI). This company is Ontario’s leading provider of cable TV services. It also owns several television stations and the Toronto Blue Jays baseball team. 2007 gain: +53%.
EnCana Corp. (NYSE: ECA). EnCana is one of Canada’s largest oil and gas producers. 2007 gain: +50%.
Suncor Energy (NYSE: SU). Suncor was one of the pioneers of Alberta Oil Sands development and is now one of the leading oil producers in the region. 2007 gain: +38%.
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