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no-cover
May 19, 2012
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A Moment of Sanity

Richard Croft

In what was the most hyped initial public offering (IPO) of all time, Facebook (NASDAQ: FB, Friday’s close US $38.23) hit the market walking. Trading was delayed by an imbalance of orders until finally, at 11:30 AM eastern standard time, the first trade crossed at US $42.05 which was 10.6% above the IPO price. After an...

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7 years ago
Déjà vu all over again?
May 14, 2012

Déjà vu all over again?

Richard Croft

Just when you thought the financial sector was stabilizing, we get news of a US$2 billion and counting trading loss at JP Morgan Chase (NYSE: Symbol JPM, Friday’s close US $36.96). More disturbing was the fact that the loss was related to a hedge presumably designed to offload some of the risks associated with the banks...

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7 years ago
no-cover
May 07, 2012
Other

The Risk in Covered Options

Richard Croft

When assessing the perils associated with covered and uncovered options, the financial industry has always acknowledged the risk reduction benefits of a covered position. You can see it in the risk levels as defined on option application forms where the industry designates uncovered options in the level 4 category (presumably...

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7 years ago
no-cover
April 30, 2012
Other

Gold Miners Tarnished

Richard Croft

The price of gold has slipped some 12% since its all-time high over US$1,900 per ounce at the end of last August. Canada’s S&P/TSX Global Gold Index, however, has plummeted 31% in about the same period. You’d think there would have to be a closer correlation between the price of gold and the fortunes of gold miners, but...

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7 years ago
no-cover
April 21, 2012
Other

RIM in Play?

Richard Croft

Having lost some 75% of its share value over the past year, could it be that Waterloo, Ontario-based Research-in-Motion Ltd. (TSX: RIM Fridays close $13.26) is at last in play? If so, it should not come as any major surprise as frankly, in the shark-infested waters of the high-tech world (worse, even, than the predatory world...

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8 years ago
no-cover
April 16, 2012
Other

SNC-Lavalin’s Faulty Structure

Richard Croft

Engineering and construction company SNC-Lavalin Group Inc. (TSX: SNC) has certainly hit some rough waters recently. Its murky dealings in Libya, recent departures of high-ranking executives, and last week’s police raid on its offices in Montreal are starting to make investors nervous. Share prices, already on the way down...

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8 years ago
no-cover
April 11, 2012
Other

Is the Shine off Gold?

Richard Croft

The gold bears are coming out of hibernation, at least for a little while. The price of gold slipped again last week, closing at around US$1,632 per ounce, down from a 2012 high of US$1,793 at the end of February – a loss of 9%, and down 11% from its all-time high of US$1,840 last September. The reason – at least, one...

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8 years ago
no-cover
April 02, 2012
Other

Pulp Fiction

Richard Croft

Moody’s Investor Services recently released an analysis of the global paper and forest products industry, and doesn’t like what it sees. It believes overall operating income for most players in the industry will decrease in the next year and a half as demand fades and prices weaken. If Moody’s outlook pans out, that could...

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8 years ago