Yearly Archives: 2011

no-cover
April 24, 2011
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Low Volatility Strategies

Richard Croft

One option strategy that works well of you are in the “sell in May and go away” camp, is calendar or time spreads. It is also a good strategy in a low volatility environment. With the MX Volatility Index (VIXC) at 13.21 and below its 200 day moving average, we can say with clarity that volatility is low. The calendar spread...

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13 years ago
no-cover
April 17, 2011
Other

Sell in May?

Richard Croft

If you have been in the market long enough, you have probably heard about seasonal patterns. Rooted in market conditions such as expectations versus reality during earnings season, quarter-end portfolio tweaking (i.e. window dressing) by fund managers and high profile index re-balancing. Not to mention external factors like tax...

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13 years ago
no-cover
April 03, 2011
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Prescription for Takeover Fever

Richard Croft

Canadian-based Valeant Pharmaceuticals International Inc. (TSX: VRX, Friday’s close $51.37) last week made a hostile US$5.7 billion (US$73 per share) bid for US drug-maker Cephalon Inc., (NASDAQ: CEPH) a 24.5% premium to Cephalon’s recent price of US $58.75 per share. The transaction would be financed by additional debt,...

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13 years ago
no-cover
March 26, 2011
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RIM Shot

Richard Croft

Canada’s Waterloo, Ontario-based Research in Motion Ltd. (TSX: RIM; $55.78) is experiencing a spot of bother. While the company announced on-consensus fourth-quarter earnings, its guidance for weaker future performance got the sell tickets flying. Shares dropped $6.71, or more than 10%, from Thursday’s post-market...

1944
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13 years ago
no-cover
March 23, 2011
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Old Standbys Find New Life in No-Nukes Frenzy

Richard Croft

Canada’s reputation as the safest of safe havens was burnished even more last week, as the markets’ giant weighing apparatus decided that Canada’s vast natural resource hinterlands are likely to be worth even more in the future. And the future is always what it’s about in the marketplace. Far from stifling the commodity...

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13 years ago
no-cover
March 14, 2011
Other

Turnaround Candidates?

Richard Croft

Options traders willing to place contrarian bets on companies facing short-term headwinds might consider a couple of Canadian industrials that have seen their share prices slide on what seems simply to be short-term negative sentiment. SNC-Lavalin Group Inc. (TSX: SNC, Recent price $54.98), the Montréal-based global...

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14 years ago
no-cover
March 06, 2011
Other

Canadian Banks – More Upside?

Richard Croft

Canadian Imperial Bank of Commerce (TSX: CM) was one of the hardest hit of the Canadian banks in the financial crisis. But it seems to have pulled itself up by its bootstraps, with share price doubling from a bargain-basement low near $40 in February 2009 to a recent $82.60. The bank reported first-quarter earnings of $1.92 per...

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14 years ago
no-cover
February 27, 2011
Other

Oilsands Opportunities?

Richard Croft

Despite the anxieties besetting the crude oil market, Canada’s energy sector, like its banks, appears to be doing just fine, thanks. Over the past month, the S&P/TSX Capped Energy Index is ahead about 7%, joining financials (ahead 6% in the past month) on the upswing, and helping keep the broader Composite buoyed nicely...

1817
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14 years ago
no-cover
February 21, 2011
Other

Banker’s Acceptance

Richard Croft

The financial sector has taken off in February, advancing about 6% so far this month, after being range-bound since last October. Economic growth, an improving earnings picture, growing business confidence, and increasing lending activity are contributing to renewed interest in the Canadian financial sector. Not to mention the...

1797
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14 years ago
no-cover
February 17, 2011
Other

Technical Analysis and Options

Jason Ayres

Many investors use fundamental analysis to determine whether shares in a particular company are worth buying or selling. Fundamental analysis is simply the study of financial statements, management, competitive advantages, competitors and industry potential. While this information can be powerful in determining the potential...

1975
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14 years ago
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