Where to Invest Your Money Now

Let’s admit it, the economy still isn’t looking too good. The market meltdown has made some people unwilling to invest their hard-earned money into companies that might not survive the recession. But what if you want to invest – where do you look?

According to John Daly, a reporter for theReport on Business, there are solid Canadian businesses out there. They might not be as flashy as the green markets or even telecoms, but for the value investor these firms offer some security.Daly took a look at Canadian companies that had a price/earning ratio of well below 20 – which tends to be the average threshold for conservative investors. The share prices are not ridiculous – average folks can afford to buy shares in these businesses.

What was interesting was that many of these companies are located in the farming, fishing and oil sectors. Some of the companies include:

• Alliance Grain Traders
• Bonaterra Energy Corp
• High Liner Food
• Lassonde Industries

But what makes them so attractive to investors?

“Value investors, who tend to be conservative, are looking for something with a track record” said Daly. He also said that Canada is a resource-based economy with the ability to meet and keep up with demand from overseas trading partners.

What makes these companies stand out isn’t that they’re finding new sources of fish, oil or coal. They’re creating new processes that let them charge more for their product and get more out it. For example, Alliance Grain Traders, based out west, deals in lentils. However, they’ve developed new technologies that split, clean and polish each lentil with canola oil as well created new processes that de-stone and sort the legume.

If you want more information on where to put your money, the October issue of Report on Business is out now.