Shares in Uranium Participation Corp are trading at a discount
February 20, 2020
Bullish Outlook

Shares in Uranium Participation Corp are trading at a discount

Uranium Participation Corporation (Symbol U on the TSX exchange) is a company that invests in uranium. Uranium presents an attractive investment opportunity at this time. The commodity itself is currently trading at below the cost of production for most miners, a situation that cannot continue indefinitely. Eventually companies...

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1 month ago
Currency Options University — Part 7
February 18, 2020
Concepts

Currency Options University — Part 7

Currency Hedging for US Dollar Investors For the past decade, Canadian investors of US dollar-based assets have had it good. No, they have had it great. Not only have American financial assets been the best performing assets in the major markets, but over that same period the value of the Canadian dollar has fallen...

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2 months ago
Currency Options University — Part 6
February 04, 2020
Concepts

Currency Options University — Part 6

Currency Hedging for Exporters In the previous post we examined the role that USX currency options can play in hedging a company’s import costs. In this instalment of Currency Options University, we will explore using Montréal Exchange USX currency options to mitigate the risk that Canadian exporters face when selling goods...

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2 months ago
Currency Options University – Part 5
February 04, 2020
Concepts

Currency Options University – Part 5

Currency Hedging for Importers Although USX currency options are often used by speculators interested in expressing a directional view on the USD/CAD exchange rate, they also offer an interesting opportunity for corporations that conduct business in both currencies and are interested in mitigating the exchange rate risk...

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2 months ago
Year-End Opportunity in Cannabis Stocks?
January 07, 2020
Bullish Outlook

Year-End Opportunity in Cannabis Stocks?

Through 2018 and into the first quarter of 2019, Canadian marijuana companies represented one of the hottest sectors in the equities market.  However, since its March 19, 2019 high of $23.87, the Horizons Marijuana Life Science ETF (HMMJ) has been on a steady decline, and by November 19, 2019 it was down to $8.34, having lost...

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3 months ago
Currency Options University – Part 4
November 22, 2019
Concepts

Currency Options University – Part 4

Directional Trading with USX Currency Options Our focus in Part 4 of the series is to demonstrate how USX currency options can be used for directional trading through the direct purchase of a call or put option. Options offer investors a way to buy a long position with a defined risk (limited to the cost of the option), while...

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4 months ago
Currency Options University – Part 3
September 03, 2019
Concepts

Currency Options University – Part 3

Part 3: Specifications of USX Options To summarize, in Part 1 we reviewed the macro drivers that influence a currency’s value, and in Part 2 we focused on the impact of those changes in the currency’s value on investors. The focus in Part 3 will be on understanding the specifications of Canadian USX options and how to size...

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7 months ago
Currency Options University – Part 2
August 04, 2019
Other

Currency Options University – Part 2

Part 2: Impact of U.S. Dollar Fluctuation on Canadian Returns I had the opportunity, early in my career, to work at a full-service brokerage at a Tier 1 Canadian bank. I remember back in the day overhearing an investment advisor having an argument with a client about the client’s performance. The client was questioning the...

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8 months ago
Currency Options University – Part 1
June 20, 2019
Concepts

Currency Options University – Part 1

Part 1: Welcome to the world of currencies It is very common for Canadian investors to invest in American stocks. Yet, it is surprising how few retail investors understand the impact currency fluctuations have on their returns. More often than not, investors look at the price fluctuation of an asset price assuming a constant...

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10 months ago
Renting the Upside of the Canadian Markets
April 12, 2019
Bullish Outlook

Renting the Upside of the Canadian Markets

The uncertainty for Canadian investors has everything to do with the confusing crosscurrents of a rising stock market but simultaneously a weakening Canadian economy. The outlook for the weakening economy comes right from the top, where the Bank of Canada came out with its rate statement on March 6. The BoC took a dovish...

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12 months ago