After looking at several options, I have decided to add Parkland Fuels (PKI) to the self-directed stock portfolio. Parkland is a supplier and marketer of fuel and petroleum products and operates convenience stores in Canada, the United States and in the Caribbean. To learn more about the company, please feel free to check out their website.
The stock currently trades for around $43.80 and I will be purchasing 300 shares, which will take the portfolio back up to 69% invested. Ideally I would like to get up to 85% invested but I want to watch how the market behaves over the next ten days, so I can get a better sense of whether I need to add more defensive positions or whether I can go with something more traditional like a financial sector stock, for example.
In addition to this company being in a strong long-term trend, I like the fact that PKI earns $2.18 per share, pays a small dividend of 2.74% and has positive growth expectations.
Looking at the weekly chart we can see that price reversed off of the 50 week moving average (wma) two weeks ago and then had good follow-through last week. The stochastics have also turned up and crossed over, which is considered a buy signal under some technical systems. The only drawback on this chart is that the 50 wma is flattening out a little but I expect that to recover if it pushes above the July 2019 high in the coming weeks. For now I will set the stop at the 50 wma (~$40), which makes this a very low risk entry. Another positive for PKI is that the monthly chart looks even stronger.
The monthly chart shows that this company has been trending positive since 2011 and is up close to 500% during its run. The change in the portfolio will be updated on the Stock Portfolio page of website later today.