Growth and yield:
The Globe and Mail reports in its Friday (Jan. 4) edition that professional investors are buying Canexus ($8.71). The Globe's Shirley Won writes in the Number Cruncher column that checking out their top holdings can be a way to get stock ideas or do research on a fund. Ms. Won looked at what the folks at Dynamic Dividend Advantage Fund have been buying. The $302.1-million Canadian dividend and income equity fund has been managed by Cecilia Mo at CGIC since 2011. Canexus offers a 6.5-per-cent dividend yield. Canexus is a low-cost chemical producer serving the pulp and paper market. Its shares gained 31.3 per cent in the 12 months to Jan. 2. Ms. Won says its stock is attractive because of the stable cash flow from its base business, but the growth opportunity comes from the development of its rail-car terminal in Northern Alberta to ship crude oil, Ms. Mo said. Her target is $11.50 a share by 2014. Ms. Mo looks for undervalued securities with at least a 2-per-cent yield. Ms. Won was bullish on Canexus in the Number Cruncher column on March 1, 2012. The shares could then be had for $8. The Globe's Ian McGugan said the outlook was bright for Canexus on April 3, 2012, when it could be had for $7.95.