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Have We Seen the Market Bottom?
Patrick Ceresna
The last two weeks have seen material volatility as we had a serious market decline and substantial rebound in stocks. Much of the blame has been pointed toward China, but there is no denying the material declines in all global markets. The VIXC, which is the Canadian measure of implied volatility on the Canadian markets spiked...
Seeking Income
Richard Croft
Individuals invest for many reasons. Investing being the key word in that sentence. Investing is about making medium to long term commitments with a specific goal in mind. And it is more than simply saying I want to make money! In fact setting an objective can be the hardest decision individuals make. I should know I have spent...
Oil Woes
Richard Croft
Despite the noise surrounding the recent price action in oil, nothing much has changed. Note our blog published January 23, 2015 (Has Oil Bottomed?) I posited that oil would likely remain in a trading range between US $40 and US $60 per barrel for 2015. So far that is exactly as it has played out. Make no mistake this is a...
Managing a Collared Position
Richard Croft
Managing a Collared Position DEFINITION OF ‘COLLAR’ 1. The purchase of an out-of-the money put option is what protects the underlying shares from a large downward move and locks in the profit. The price paid to buy the puts is lowered by amount of premium that is collect by selling the out of the money call. The...
Interested in a potential 50% Return on Teck Resources?
Patrick Ceresna
Before we get into the juicy numbers of the options trade, it is important to put some perspective on Teck Resources and where it is at. Teck Resources is one of Canada’s premier basic material stocks. The company has global operations in copper, coal, zinc, lead, molybdenum, gold, silver and various chemicals/fertilizers....
CANADA – Recession Worries!
Richard Croft
Probably the most noteworthy event in the first half of 2015 was the surprise rate cut issued by the Bank of Canada (BoC) in the first quarter. It was designed to provide “insurance against a downturn” in light of the sharp decline in oil prices. The BoC was right to be concerned. Unfortunately policymakers underestimated...
Capitalizing on a Valeant Effort in a Mundane Market
Jason Ayres
I apologize for the title but I couldn’t resist. Valeant Pharmaceuticals International (TSE:VRX) continues to defy broader market complacency. The diversified pharmaceutical company has barely wavered in its price advance since August of 2014. While this trend may be getting a little long in the tooth,...
The Time Horizon Chasm
Richard Croft
For the first half of 2015 global financial markets have been obsessed with short term noise. We have witnessed a succession of exacerbated reactions to on again off again negotiations with Greece, waste of time debates on the timing of a Fed rate hike or endless dissections of monthly jobs data where 20% revisions are more the...
A Synthetic Long Stock Strategy For Canadian Banks
Jason Ayres
Canadian bank stocks have been somewhat unfavorable this year. Concerns about the Canadian economy, the impact of low oil prices and the pressure on lending margins from lower interest rates have had many investors questioning just how much more upside can be expected. The chart below is a snap shot of the weekly price action...
Playing the Weak Loonie
Richard Croft
The Canadian dollar has fallen on hard times. The Canadian dollar tends to follow West Texas Crude so it’s not surprising to see our Loonie trading close to 80 cents US. With lower Canadian interest rates and a US rate hike all but assured the Loonie may week stay in its current range for some time. If you buy into that...
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