Yearly Archives: 2013

no-cover
September 30, 2013
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Calendar Spreads Through October

Richard Croft

Calendar spreads allow traders to take advantage of time value decay; the only mathematical certainty in the options market. Options have a limited life and the premium that one pays to buy or receives when selling is made up 1) time value and 2) intrinsic value. Intrinsic value represents the in-the-money amount of the...

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6 years ago
no-cover
September 23, 2013
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A Fed Full of Surprises

Richard Croft

Last week we saw something that we haven’t seen in some time: a market that completely misread the actions of the Federal Reserve (Fed)! This is particularly noteworthy in that Fed Chairman Bernanke has been a proponent of transparency, preferring to telegraph his intent to the market long before action is taken. That changed...

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no-cover
September 16, 2013
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Covered Calls on Gold Miners

Richard Croft

Most investors think October is the worst month for stocks. Not so! In reality, September inflicts the most pain on portfolios, although this year… not so much! Even lagging Canadian stocks posted a 0.98% gain in September, although that was but a third of the September return south of the border. So far traders have been...

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6 years ago
no-cover
September 11, 2013
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An Option on the Future of Alternative Energy

Jason Ayres

Adapting to an alternative source of power can be quite cost prohibitive to both businesses and the average household in an economy where every dollar counts. After all, it’s all about returns when it comes to making any investment and making the transition from mainstream energy sources to an alternative is an investment to...

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6 years ago
no-cover
September 09, 2013
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A Blackberry End Game!

Richard Croft

There is little doubt that Blackberry (TMX: BB, Friday’s Close $11.29) is in palliative care. Management has set up a committee and hired two advisory firms to seek “strategic alternatives,” including the possible sale of the company. There is also a sense of urgency as all signs point to a November time line for an end...

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6 years ago
no-cover
September 03, 2013
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A Sweet Spot for Canadian Banks

Richard Croft

Last week the six major Canadian banks all reported better than expected quarterly earnings. The numbers were as follows; Earnings Per Share l Underlying Banks Estimate Actual Price P/E Dividend Yield Bank of Montreal $ 1.68 $ 1.53 $ 66.11 10.61 $ 2.96 4.48% ScotiaBank $ 1.31 $ 1.39 $ 58.50 11.54 $ 2.68 4.58% CIBC $ 2.13 $ 2.29...

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6 years ago
no-cover
August 26, 2013
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The Impact of Changing Demographics

Richard Croft

Over the past couple of weeks, North American retailers have been reporting second quarter earnings. The numbers were not pretty! There was a marked slowdown in retail spending on both sides of the border, particularly in the numbers that came out of giant discount retailers like Wal-Mart and Macys, which reported their numbers...

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6 years ago
no-cover
August 19, 2013
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Why I Like Banks

Richard Croft

Before getting started with this weeks’ blog I need to correct something reported last week. In discussions about US interest rates I talked about the US 10 year Treasury yield and mentioned resistance at 2.5%. That was a misprint, it should have read 2.7%. My apologies. The reason I wanted to raise this – besides wanting...

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6 years ago
no-cover
August 14, 2013
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Will Gold Begin to Glitter Again?

Patrick Ceresna

Gold has been in a material bear market for over 2 years. We have now seen some capitulation selling that has seen gold print below $1200.00 in late June. Since the low, gold has been retracing back to its 50 day moving average, which has been resistance for its entire decline during 2013. After such a prolonged bear market, it...

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6 years ago
no-cover
August 12, 2013
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A Return To Macro Events

Richard Croft

As earnings season winds down, focus will shift away from company specifics onto Fed nuances, tapering timelines and interest rate fears; noise that typically triggers sentiment shifts with an attendant spike in volatility. Not surprisingly, we are seeing signs that the US economy is not as robust as some might have thought....

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6 years ago