Yearly Archives: 2012
Slowing Growth, Higher Returns?
Richard Croft
Another institution has cut its growth outlook for the Asia Pacific basin. In this case the World Bank which believes that China may be headed for a protracted period of slower growth. Although one should put that into perspective as 7% per annum GDP growth is considered slow for China. The concern is that China is feeling the...
Noise and the Naked Put
Richard Croft
Like the naked city, there are a thousand horror stories about the naked put. Some traders will tell you that selling put options is the worst strategy to use. Regaling countless stories about investors who have been wiped out because of adverse moves in the market. Too bad really! Naked put writing can be a powerful tool that...
Buying on a Pullback?
Richard Croft
Your psyche is torn… Central banks have a plan, and they seem to be implementing it. The ECB is willing to purchase unlimited amounts of sovereign debt to prevent a default / re-structuring / bailout / or insert nomenclature here, which effectively keeps the EU intact. Not to be undone, the US Federal Reserve is providing...
Shifting Sentiment?
Richard Croft
Sentiment is fickle. It can change with the wind and it can dramatically impact financial markets in the short term. It can cause panic selling or panic buying. Often with information that taken in context would have very little long-term impact. It is the time of season for sentiment shifts. Aside from the volatility that...
The Synthetic Convertible Security
Richard Croft
Consensus wisdom puts forward the position that traders who buy options are speculating. But that is far too general a statement. Long only strategies the synthetic convertible – i.e. the combination of long calls and a fixed income instrument – can actually reduce risk. Traditional convertible debentures or convertible...
Fertilizer Wars!
Richard Croft
Are the sum of the parts worth more than the whole? When it comes to Agrium Inc. (AGU, Friday’s close $98.86) the company’s Board and its major shareholder (Jana Partners LLC, an activist hedge fund domiciled in New York which owns 4% of Agrium’s outstanding shares) find themselves at polar ends of a valuation spectrum....
A RIM Do Over?
Richard Croft
The shares of Research in Motion (TSX: RIM, Friday’s close $8.22) have moved higher in the last few days with the biggest spike in price occurring last Wednesday. You may recall my post on June 30th where I talked about a RIM death spiral and to my mind I see no change in the fundamentals of the company that would alter my...
A Preferred Share Alternative
Richard Croft
Despite the lack of guarantees normally associated with fixed income securities, individual investors generally consider preferred shares a reasonable alternative to bonds. Probably the result of the favorable tax treatment that the Canadian government accrues to dividends. To that latter point, the after tax return on...
Playing a European Renaissance
Richard Croft
Mario Draghi, head of the European Central Bank (ECB), pledged to do whatever is necessary to save the euro and the eurozone. Promising to deliver “enough” as long as it falls within the ECB’s mandate. Like any well oiled propaganda machine the most influential European politicians lined up behind Draghi and stoked the...
Is the Bear Calling?
Richard Croft
One can make the case that global markets have turned over and are now entrenched in a bear market phase. Global growth is slowing – particularly in China – and the eurozone collapsing under the weight of recession and political apathy. And while the US markets may be the best house in a bad neighborhood I see nothing that...
The information provided on this website, including financial and economic data, quotes and any analysis or interpretation thereof, is provided solely for information purposes and shall not be construed in any jurisdiction as providing any advice or recommendation with respect to the purchase or sale of any derivative instrument, underlying security or any other financial instrument or as providing legal, accounting, tax, financial or investment advice. Bourse de Montréal Inc. recommends that you consult your own advisors in accordance with your needs before making decision to take into account your particular investment objectives, financial situation and individual needs.
All references on this website to specifications, rules and obligations concerning a product are subject to the rules, policies and procedures of Bourse de Montréal Inc. and its clearinghouse, the Canadian Derivatives Clearing Corporation, which prevail over the content of this website. Although care has been taken in the preparation of the documents published on this website, Bourse de Montréal Inc. and/or its affiliates do not guarantee the accuracy or completeness of the information published on this website and reserve the right to amend or review, at any time and without prior notice, the content of these documents. Neither Bourse de Montréal Inc. nor any of its affiliates, directors, officers, employees or agents shall be liable for any damages, losses or costs incurred as a result of any errors or omissions on this website or of the use of or reliance upon any information appearing on this website.
BAX®, CADC®, CGB®, CGF®, CGZ®, LGB®, MX®, OBX®, OGB®, OIS-MX®, ONX®, SCF®, SXA®, SXB®, SXF®, SXH®, SXM®, SXO®, SXY®, and USX® are registered trademarks of the Bourse. OBW™, OBY™, OBZ™, SXK™, SXJ™, SXU™, SXV™, Montréal Exchange and the Montréal Exchange logo are trademarks of the Bourse. All other trademarks used are the property of their respective owners.
© 2024 Bourse de Montréal Inc. All Rights Reserved.