Investment Newsletter Review: Canadian Edge
As I mentioned in my CanRoy post, I recently purchased a one year on-line subscription to Roger Conrad's Canadian Edge investment newsletter. The subscription cost $399 and it has a 'no questions asked' money back guarantee. The guarantee satisfies both my first & second newsletter rules...
Newsletter Rule #1: Low risk purchase
Newsletter Rule #2: Publisher must stand behind the quality of the newsletterI ran across Mr. Conrad as I was desperately trying to research CanRoys. Canadian Edge only covers CanRoys and I have to say that Conrad's understanding of this market-space is surprisingly comprehensive. Conrad also publishes (both on-line and via mail) the Utility Forecaster newsletter which focuses on... you guessed it... utilities. He's been publishing Utility Forecaster for quite a while and is a recognized expert on the industry. This satisfies rule #3...
Newsletter Rule #3: Author must have unique knowledge or skill that cannot easily found in the market
Canadian Edge tracks about 100 CanRoys on a regular basis. The 'How They Rate' page of the newsletter is where I spend most of my time. This page has...
- each CanRoy's name
- Canadian stock symbol
- US stock symbol
- the up to date price in US$
- current yield %
- annual dividend in US$
- dividend frequency (monthly or quarterly) and timing (day of the month)
- payout % - this is the portion of the CanRoy's income that is paid to trust holders. The lower the number, the 'safer' the yield.
- share growth - this represents how many new shares have been issued as a percent of total shares. This dilution is the only way the trusts can raise additional capital but it can cause yield erosion if the trust's management does not invest wisely.
- Canadian Edge Safety Rating - this is Roger's opinion of the risk associated with each CanRoy. It's a rating of 1 to 5... where 1's & 2's are suitable for widows and orphans and 4's & 5's need to be closely watched and are only suitable for diversified portfolios.
- comments - a few phrases about trends / concerns for each trust
- advice - buy / sell / hold recommendations with price limits
This data is fantastic and satisfies my 4th rule...
Newsletter rule #4: Newsletter must provide timely and actionable informationI purchased two oil & gas Canroy's from Rogers 'buy' list and we'll see how they perform. Once I have a few months of actual performance in my portfolio, I'll be able to determine if Canadian Edge satisfies my last rule...
Newsletter Rule #5: The newsletter must produce uniquely good results for me.
This is key... the newsletter may offer great advice and have a great track record, but if, for whatever reason, I don't make money with their picks that I actually feel comfortable enough to buy, I won't continue reading and paying for the newsletter. I firmly believe each investor has their own style and risk / loss tolerance. If you deviate from your style (assuming you have been successful), you may become uneasy and make bad decisions. I'm, by nature, a value investor. I love dividends and long-term capital gains.
I'll keep everyone up-to-date with my CanRoy's performance and let you know when and if I can rate Canadian Edge a 'BUY'.