Roger Biduk writes:
The Toronto stock market rose nearly 500 points Tuesday, offsetting a good chunk of the record-setting loss that followed the failure of a US$700-billion bailout for the U.S. financial industry.
Higher oil prices contributed to Tuesday's gains, as well as cautious optimism over the possibility that a compromise financial-sector bailout can be reached in the United States.
But the Canadian dollar took a beating, falling 1.82 cents to 93.97 cents US amid concerns about economic fallout from the political and financial upheaval in the United States.
The S&P/TSX composite index added 467.83 points to close at 11,752.9, after plunging close to 850 points Monday. The TSX Venture Exchange gained 32.97 points to 1,415.
Oil gained $4.27 to US$100.64 following Monday's plunge of US$10.52 amid worries that the U.S. financial crisis will ravage the global economy and cut energy consumption.
The TSX had its steepest-ever point drop Monday, losing 840.93 points, totaling 7.5 per cent or approximately $100 billion of its market value. The previous record one-day drop on Canada's largest stock market was 840.26 points on Oct. 25, 2000.
The Bank of Canada said Tuesday it will auction $4 billion worth of 28-day purchase and resale agreements on Wednesday and is selling $4 billion of its holdings of treasury bills as it works to lubricate seized-up credit markets.
In Canada, government data showed the national economy grew 0.7 per cent in July - well ahead of the 0.2 per cent increase projected by private-sector economists.
The Toronto financial sector was up 5.4 per cent in Tuesday trading. Royal Bank (TSX: RY.TO), TD Bank (TSX: TD.TO) and Bank of Montreal (TSX: BMO.TO) have been cited as possible shoppers for assets amidst the turmoil that has engulfed U.S. banks. Royal shares were up $3 to $50.50, while BMO gained $3.95 to $45.95, a jump of more than nine per cent.
The TSX energy sector rose 5.8 per cent. Sector heavyweight EnCana (TSX: ECA.TO) was up $2.96 to $67.96 while Canadian Natural Resources (TSX: CNQ.TO) gained $7.73, or 11.5 per cent, to $73.
The metals sector jumped 7.6 per cent after declining 12.8 per cent Monday. Teck Cominco (TSX: TCK-B.TO) added $1.30 to $30.22 after losing close to 14 per cent of its value Monday.
The gold sector lost 0.8 per cent as the December bullion contract on the New York Mercantile Exchange fell $13.60 to US$880.80 per ounce. Goldcorp (TSX: G.TO) lost 93 cents to $33.47 while Barrick Gold (TSX: ABX.TO) fell $1.47 to $38.97.
In other corporate news, Fording Canadian Coal Trust (TSX: FDG-UN.TO) was up $8.15, or more than 10 per cent, to $87.27 as Teck Cominco Ltd. (TSX: TCK-B.TO) received the final stamp of approval on $10 billion in financing needed for its takeover of Fording.
Canadian Pacific Railway (TSX: CP.TO) shares were up $1 to $57.07 after it received U.S. regulatory approval for its US$1.48-billion acquisition of Dakota, Minnesota & Eastern Railroad.
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Tuesday, September 30, 2008
Monday, September 29, 2008
Roger Biduk - Bay Street Down on Oil & Bailout Bill
Roger Biduk writes:
The Toronto stock market had its biggest point-drop in history on Monday, as investors reacted to a major defeat for the Bush administration's US$700-billion bailout of the U.S. financial industry.
The Canadian dollar also took a hit, falling $1.03 to 95.79 cents US, amid concerns about the economic fallout that will be felt from the political and financial upheaval being felt in the United States.
Toronto's S&P/TSX index fell 840.93 points Monday to close at 11,285.07, a loss of approximately $100 billion. The previous biggest one-day point drop on Canada's largest stock market was 840.26-points, on Oct. 25, 2000. At one point, the Toronto market's main index was down as much as 955 points. The TSX Venture Exchange fell 133.61 points to 1,382.03.
Crude prices also fell, sending the TSX lower as the November crude contract in New York declined $10.52 to US$96.37 a barrel. Crude has now fallen 34 per cent since surging to an all-time record of $147.27 on July 11.
Investors appeared to find little reassurance in a move by the U.S. Federal Reserve, the Bank of Canada and other central banks to pump money into the world's credit markets. The Bank of Canada said Monday that it and the Federal Reserve have agreed to expand their reciprocal currency arrangement to US$30 billion, up from the US$10 billion announced Sept. 18.
Also, the Canadian government announced Monday it had a slightly smaller budgetary surplus in the 2007-08 than originally estimated. It was $9.6 billion, down from the previous estimate of $10.2 billion. And Scotiabank economists said Monday the prices of Canada's commodity exports tumbled 8.9 per cent last month after seven consecutive record highs, and are continuing to slide.
The news from the U.S. sent the Toronto financial sector down 5.8 per cent. Royal Bank (TSX:RY), TD Bank (TSX:TD) and Bank of Montreal (TSX:BMO) have been cited as possible shoppers for assets amidst the turmoil that has engulfed U.S. banks. Royal shares were down $3.42 to $47.50, while BMO lost $4.30 to $42.
The TSX energy sector fell 10.6 per cent as energy heavyweight EnCana (TSX:ECA) was down $6.22 to $65 while Suncor (TSX:SU) lost $5.43 to $41.12.
The metals sector plunged 12.8 per cent as Teck Cominco (TSX:TCK.B) gave up $4.65, or close to 14 per cent of its value, to $28.92 even as it announced it has secured financing for its $14-billion takeover of Fording Canadian Coal Trust (TSX:FDG.UN).
The gold sector gave up 0.4 per cent even as the December bullion contract on the New York Mercantile Exchange rose $5.90 to US$894.40 per ounce.
European stock markets tumbled as Dutch-Belgian banking and insurance operator Fortis NV got an 11.2-billion-euro bailout from the governments of Belgium, the Netherlands and Luxembourg. Meanwhile, the British government announced it's nationalizing troubled mortgage lender Bradford & Bingley.
The FTSE 100 index closed down per 5.3 per cent in London, while the German DAX fell 4.2 per cent and the French CAC 40 surrendered five per cent.
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The Toronto stock market had its biggest point-drop in history on Monday, as investors reacted to a major defeat for the Bush administration's US$700-billion bailout of the U.S. financial industry.
The Canadian dollar also took a hit, falling $1.03 to 95.79 cents US, amid concerns about the economic fallout that will be felt from the political and financial upheaval being felt in the United States.
Toronto's S&P/TSX index fell 840.93 points Monday to close at 11,285.07, a loss of approximately $100 billion. The previous biggest one-day point drop on Canada's largest stock market was 840.26-points, on Oct. 25, 2000. At one point, the Toronto market's main index was down as much as 955 points. The TSX Venture Exchange fell 133.61 points to 1,382.03.
Crude prices also fell, sending the TSX lower as the November crude contract in New York declined $10.52 to US$96.37 a barrel. Crude has now fallen 34 per cent since surging to an all-time record of $147.27 on July 11.
Investors appeared to find little reassurance in a move by the U.S. Federal Reserve, the Bank of Canada and other central banks to pump money into the world's credit markets. The Bank of Canada said Monday that it and the Federal Reserve have agreed to expand their reciprocal currency arrangement to US$30 billion, up from the US$10 billion announced Sept. 18.
Also, the Canadian government announced Monday it had a slightly smaller budgetary surplus in the 2007-08 than originally estimated. It was $9.6 billion, down from the previous estimate of $10.2 billion. And Scotiabank economists said Monday the prices of Canada's commodity exports tumbled 8.9 per cent last month after seven consecutive record highs, and are continuing to slide.
The news from the U.S. sent the Toronto financial sector down 5.8 per cent. Royal Bank (TSX:RY), TD Bank (TSX:TD) and Bank of Montreal (TSX:BMO) have been cited as possible shoppers for assets amidst the turmoil that has engulfed U.S. banks. Royal shares were down $3.42 to $47.50, while BMO lost $4.30 to $42.
The TSX energy sector fell 10.6 per cent as energy heavyweight EnCana (TSX:ECA) was down $6.22 to $65 while Suncor (TSX:SU) lost $5.43 to $41.12.
The metals sector plunged 12.8 per cent as Teck Cominco (TSX:TCK.B) gave up $4.65, or close to 14 per cent of its value, to $28.92 even as it announced it has secured financing for its $14-billion takeover of Fording Canadian Coal Trust (TSX:FDG.UN).
The gold sector gave up 0.4 per cent even as the December bullion contract on the New York Mercantile Exchange rose $5.90 to US$894.40 per ounce.
European stock markets tumbled as Dutch-Belgian banking and insurance operator Fortis NV got an 11.2-billion-euro bailout from the governments of Belgium, the Netherlands and Luxembourg. Meanwhile, the British government announced it's nationalizing troubled mortgage lender Bradford & Bingley.
The FTSE 100 index closed down per 5.3 per cent in London, while the German DAX fell 4.2 per cent and the French CAC 40 surrendered five per cent.
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Saturday, September 27, 2008
Roger Biduk - TSX Drops almost 800 points for the Week
Roger Biduk writes:
The Toronto stock market has tumbled more than 400 points or about three per cent at the end of a punishing week.
The TSX was hit with a triple whammy - uncertainty over an American financial system rescue plan punished bank stocks, BlackBerry maker Research In Motion (TSX:RIM) shares took a huge drop and lower oil prices sent energy stocks down.
The S&P/TSX composite index finished the day well off its 518-point low of the day, down 420.51 points to 12,126 for a loss of 787 points or 6.1 per cent this week.
Normally, a 400-plus point drop is big news, but this is only the fourth-largest drop in the month so far. The index also soared almost 850 points in one day a week ago.
Research in Motion's disappointing quarterly earnings torpedoed its stock, dropping more than 25% to $75.45 in the opening minutes, a $24.49 change. RIM showed no signs of recovery at the close, finishing the day at $72.57, a $28.43-per-share drop, or 28.15%, to lead a widespread fall-off across all the major sectors on the exchange.
Meanwhile EnCana Corp. and Suncor Energy stocks were both hit hard. EnCana closed at $71.22, down $3.40 or 4.56% while Suncor settled at $46.55 a 4.67% drop for $2.28 per share.
The two largest energy companies on the exchange contributed to a 28.34% slump in the sector as world markets worried disappearing U.S. credit would strangle global growth and lessen demand in crude oil and other resources.
The Canadian dollar closed up 0.14 cent at 96.82 cents US.
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
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The Toronto stock market has tumbled more than 400 points or about three per cent at the end of a punishing week.
The TSX was hit with a triple whammy - uncertainty over an American financial system rescue plan punished bank stocks, BlackBerry maker Research In Motion (TSX:RIM) shares took a huge drop and lower oil prices sent energy stocks down.
The S&P/TSX composite index finished the day well off its 518-point low of the day, down 420.51 points to 12,126 for a loss of 787 points or 6.1 per cent this week.
Normally, a 400-plus point drop is big news, but this is only the fourth-largest drop in the month so far. The index also soared almost 850 points in one day a week ago.
Research in Motion's disappointing quarterly earnings torpedoed its stock, dropping more than 25% to $75.45 in the opening minutes, a $24.49 change. RIM showed no signs of recovery at the close, finishing the day at $72.57, a $28.43-per-share drop, or 28.15%, to lead a widespread fall-off across all the major sectors on the exchange.
Meanwhile EnCana Corp. and Suncor Energy stocks were both hit hard. EnCana closed at $71.22, down $3.40 or 4.56% while Suncor settled at $46.55 a 4.67% drop for $2.28 per share.
The two largest energy companies on the exchange contributed to a 28.34% slump in the sector as world markets worried disappearing U.S. credit would strangle global growth and lessen demand in crude oil and other resources.
The Canadian dollar closed up 0.14 cent at 96.82 cents US.
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
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Thursday, September 25, 2008
Roger Biduk - Bay Street Higher on Energy & Rescue Plan
Roger Biduk writes:
The Toronto stock market managed a slight gain Thursday as financial stocks improved on growing optimism a deal is close on a US$700-billion bailout of the U.S. financial industry and energy stocks benefited from a late-day jump in crude prices.
In Toronto the S&P/TSX composite index came back from a triple-digit slide to close up 33.15 points to 12,546.51, held back by falling gold and base metal stocks.
The TSX Venture Exchange slipped 9.96 points to 1,540.68 while the Canadian dollar was ahead 0.22 cent to 96.68 cents US.
Canada's top central banker waded into the debate Thursday and said the world's economies would be at serious risk without the bailout.
Bank of Canada governor Mark Carney said Thursday that other countries may need to follow the Americans' lead with similar government rescue packages to help out their domestic financial institutions. He also said Canada is in better shape than most to weather the storm, but will not be immune from the aftershocks.
The TSX energy sector was up 1.4 per cent as oil prices switched direction to move higher. The November crude contract on the New York Mercantile Exchange gained $2.29 to US$108.02. Suncor Inc. (TSX:SU) gained $1.30 to $48.83 and EnCana Corp. (TSX:ECA) moved ahead $1.82 to $74.62. Calgary-based Tanganyika Oil Co. (TSX:TYK) has struck a deal to be acquired by Sinopec International Petroleum Exploration and Production Corp. The Chinese oil major is offering $31.50 per share in cash, a total of $2 billion, for Tanganyika, which is active in Syria. Its shares jumped $3.15 or 12 per cent to $29.15.
The financial sector was up one per cent as TD Bank (TSX:TD) gained $1.60 to $64.50 and Scotiabank (TSX:BNS) advanced 57 cents to $49.42.
The TSX gold sector was down 4.3 per cent as the December gold contract in New York faded $13 to US$882. Goldcorp Inc. (TSX:G) declined $2.37 to $35.60 and Barrick Gold Corp. (TSX:ABX) fell $2.25 to $37.70.
Also, market heavyweight Potash Corp. (TSX:POT) gave back $4.66 to $163.33.
Elsewhere on the TSX, CryoCath Technologies Inc. (TSX:CYT) bumped up $4.06 or 91.44 per cent to $8.50 on news that Medtronic Inc. (NYSE:MDT) has agreed to pay $400 million to buy the Montreal developer of heart-surgery equipment.
MacDonald, Dettwiler and Associates Ltd. (TSX:MDA) tumbled $4.43 or 16 per cent to $23 after warning of weaker third-quarter earnings due to the housing and lending woes of the United Kingdom.
On the TSX, declines beat advances 852 to 696 with 215 unchanged as 446.7 million shares traded worth $7.7 billion.
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The Toronto stock market managed a slight gain Thursday as financial stocks improved on growing optimism a deal is close on a US$700-billion bailout of the U.S. financial industry and energy stocks benefited from a late-day jump in crude prices.
In Toronto the S&P/TSX composite index came back from a triple-digit slide to close up 33.15 points to 12,546.51, held back by falling gold and base metal stocks.
The TSX Venture Exchange slipped 9.96 points to 1,540.68 while the Canadian dollar was ahead 0.22 cent to 96.68 cents US.
Canada's top central banker waded into the debate Thursday and said the world's economies would be at serious risk without the bailout.
Bank of Canada governor Mark Carney said Thursday that other countries may need to follow the Americans' lead with similar government rescue packages to help out their domestic financial institutions. He also said Canada is in better shape than most to weather the storm, but will not be immune from the aftershocks.
The TSX energy sector was up 1.4 per cent as oil prices switched direction to move higher. The November crude contract on the New York Mercantile Exchange gained $2.29 to US$108.02. Suncor Inc. (TSX:SU) gained $1.30 to $48.83 and EnCana Corp. (TSX:ECA) moved ahead $1.82 to $74.62. Calgary-based Tanganyika Oil Co. (TSX:TYK) has struck a deal to be acquired by Sinopec International Petroleum Exploration and Production Corp. The Chinese oil major is offering $31.50 per share in cash, a total of $2 billion, for Tanganyika, which is active in Syria. Its shares jumped $3.15 or 12 per cent to $29.15.
The financial sector was up one per cent as TD Bank (TSX:TD) gained $1.60 to $64.50 and Scotiabank (TSX:BNS) advanced 57 cents to $49.42.
The TSX gold sector was down 4.3 per cent as the December gold contract in New York faded $13 to US$882. Goldcorp Inc. (TSX:G) declined $2.37 to $35.60 and Barrick Gold Corp. (TSX:ABX) fell $2.25 to $37.70.
Also, market heavyweight Potash Corp. (TSX:POT) gave back $4.66 to $163.33.
Elsewhere on the TSX, CryoCath Technologies Inc. (TSX:CYT) bumped up $4.06 or 91.44 per cent to $8.50 on news that Medtronic Inc. (NYSE:MDT) has agreed to pay $400 million to buy the Montreal developer of heart-surgery equipment.
MacDonald, Dettwiler and Associates Ltd. (TSX:MDA) tumbled $4.43 or 16 per cent to $23 after warning of weaker third-quarter earnings due to the housing and lending woes of the United Kingdom.
On the TSX, declines beat advances 852 to 696 with 215 unchanged as 446.7 million shares traded worth $7.7 billion.
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Wednesday, September 24, 2008
Roger Biduk - Bay Street Lower on U.S. Rescue Plan
Roger Biduk writes:
Stock markets drifted to a weak close Wednesday with nervous investors finding little reason to buy amid roadblocks to the Bush administration's US$700-billion rescue of the financial industry and Warren Buffett's investment in Goldman Sachs Group Inc.
Toronto's S&P/TSX composite index was off 19.27 points to 12,513.36, while the Dow Jones industrial average shed 29 points to 10,825.17.
The TSX Venture Exchange was up 12.04 points to 1,550.64, while the Canadian dollar dipped 0.04 of a cent to 96.46 cents US.
The Toronto financial sector was flat. Scotiabank (TSX:BNS) declined 53 cents to $48.85, while Royal Bank (TSX:RY) was ahead 76 cents to $51.25. The Royal promoted Doug McGregor to chairman and co-CEO of RBC Capital Markets and Mark Standish to president and co-CEO of the division. They succeed Chuck Winograd, retiring at age 60 as chairman and CEO of the investment banking arm of Canada's largest bank.
AGF Management Ltd. (TSX:AGF.B) was down four cents to $19.96 after lower taxes helped boost summer-quarter profit by 4.3 per cent to $41.1 million, while stock market volatility hurt revenues.
The TSX energy sector was off 0.4 per cent as the November crude oil contract on the New York Mercantile Exchange fell 88 cents to US$105.73 a barrel after earlier rising on data that showed an increase in American crude inventories last week.
EnCana Corp. (TSX:ECA) and partner ConocoPhillips said they are starting construction on a US$3.6-billion expansion at the Wood River refinery in Roxana, Ill. EnCana shares were 56 cents lower to $72.80.
Shares in Nexen Inc. (TSX:NXY) added 19 cents to $26.69 after it said full-year production will be "slightly" below previous guidance because of hurricane damage in the Gulf of Mexico.
The TSX gold sector rose 1.14 per cent as the December bullion contract in New York closed up $3.80 to US$895 an ounce. Barrick Gold Corp. (TSX:ABX) ran ahead $1.15 to $39.95.
The consumer discretionary sector was also a drag with shares of auto parts giant Magna International Inc. (TSX:MG.A) down $2.39 to $59.25.
The industrials sector was down two per cent. Bombardier Inc. (TSX:BBD.B) shares were down 31 cents to $6.08 while shares of Canadian National Railways gave up $1.34 to $51.90.
On the TSX, declines beat advances 837 to 692 with 219 unchanged as 365.2 million shares traded worth $5.77 billion.
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Stock markets drifted to a weak close Wednesday with nervous investors finding little reason to buy amid roadblocks to the Bush administration's US$700-billion rescue of the financial industry and Warren Buffett's investment in Goldman Sachs Group Inc.
Toronto's S&P/TSX composite index was off 19.27 points to 12,513.36, while the Dow Jones industrial average shed 29 points to 10,825.17.
The TSX Venture Exchange was up 12.04 points to 1,550.64, while the Canadian dollar dipped 0.04 of a cent to 96.46 cents US.
The Toronto financial sector was flat. Scotiabank (TSX:BNS) declined 53 cents to $48.85, while Royal Bank (TSX:RY) was ahead 76 cents to $51.25. The Royal promoted Doug McGregor to chairman and co-CEO of RBC Capital Markets and Mark Standish to president and co-CEO of the division. They succeed Chuck Winograd, retiring at age 60 as chairman and CEO of the investment banking arm of Canada's largest bank.
AGF Management Ltd. (TSX:AGF.B) was down four cents to $19.96 after lower taxes helped boost summer-quarter profit by 4.3 per cent to $41.1 million, while stock market volatility hurt revenues.
The TSX energy sector was off 0.4 per cent as the November crude oil contract on the New York Mercantile Exchange fell 88 cents to US$105.73 a barrel after earlier rising on data that showed an increase in American crude inventories last week.
EnCana Corp. (TSX:ECA) and partner ConocoPhillips said they are starting construction on a US$3.6-billion expansion at the Wood River refinery in Roxana, Ill. EnCana shares were 56 cents lower to $72.80.
Shares in Nexen Inc. (TSX:NXY) added 19 cents to $26.69 after it said full-year production will be "slightly" below previous guidance because of hurricane damage in the Gulf of Mexico.
The TSX gold sector rose 1.14 per cent as the December bullion contract in New York closed up $3.80 to US$895 an ounce. Barrick Gold Corp. (TSX:ABX) ran ahead $1.15 to $39.95.
The consumer discretionary sector was also a drag with shares of auto parts giant Magna International Inc. (TSX:MG.A) down $2.39 to $59.25.
The industrials sector was down two per cent. Bombardier Inc. (TSX:BBD.B) shares were down 31 cents to $6.08 while shares of Canadian National Railways gave up $1.34 to $51.90.
On the TSX, declines beat advances 837 to 692 with 219 unchanged as 365.2 million shares traded worth $5.77 billion.
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Roger Biduk - Bay Street Lower on Commodities
Roger Biduk writes:
Toronto's S&P/TSX composite index came closed down 105.44 points at 12,532.63, after commodity stocks deteriorated. The TSX Venture Exchange was down 37.39 points to 1,538.6.
The Canadian dollar was down 0.27 of a cent to 96.5 cents US as investors took in a higher than expected reading on inflation for August.
Statistics Canada said Tuesday the annual rate of inflation hit 3.5 per cent, primarily because of higher costs for gasoline and oil. Core inflation rose to 1.7 per cent in August, from 1.5 per cent in July.
However, the TSX financial sector were up two per cent with CIBC (TSX:CM) ahead $1.80 to $62.27 while Scotiabank (TSX:BNS) advanced $1.57 to $49.38.
Investors also closely watched oil prices after anxiety over the bailout and a short-covering rally powered crude to its biggest-ever one-day rise Monday.
The TSX energy sector was off two per cent as the November crude contract on the New York Mercantile Exchange receded $2.76 to US$106.61. Sector heavyweight EnCana (TSX:ECA) was down 84 cents to $73.36 while Suncor Energy Inc. (TSX:SWU) fell $1.35 to $48.05.
The TSX gold sector moved down 3.5 per cent as the December bullion contract in New York backed off $17.80 to US$891.20 an ounce. Goldcorp Inc. (TSX:G) gave back 78 cents to $37.11 while Barrick Gold Corp. (TSX:ABX) declined 81 cents to $38.80.
The base metals sector, which along with the energy sector has enjoyed some sharp recent gains on U.S. dollar weakness and a move into so-called hard assets, was also down 3.5 per cent with Teck Cominco Ltd. (TSX:TCK.B) losing $1.23 to $35.52 and HudBay Minerals (TSX:HBM) off 12 cents to $6.69.
Also dragging the TSX lower was Potash Corp. (TSX:POT), down $18.03 or 9.7 per cent to $167.80.
The Brookfield Residential Property Services division of Brookfield Asset Management Inc. (TSX:BAM.A) has agreed to buy GMAC Home Services, a U.S. provider of home financing, real estate brokerage and relocation services. The price was not disclosed and Brookfield Asset shares were off eight cents to $27.84.
On the TSX, declines beat advances 973 to 561 with 219 unchanged as 404.4 million shares traded worth $7.05 billion.
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Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
Toronto's S&P/TSX composite index came closed down 105.44 points at 12,532.63, after commodity stocks deteriorated. The TSX Venture Exchange was down 37.39 points to 1,538.6.
The Canadian dollar was down 0.27 of a cent to 96.5 cents US as investors took in a higher than expected reading on inflation for August.
Statistics Canada said Tuesday the annual rate of inflation hit 3.5 per cent, primarily because of higher costs for gasoline and oil. Core inflation rose to 1.7 per cent in August, from 1.5 per cent in July.
However, the TSX financial sector were up two per cent with CIBC (TSX:CM) ahead $1.80 to $62.27 while Scotiabank (TSX:BNS) advanced $1.57 to $49.38.
Investors also closely watched oil prices after anxiety over the bailout and a short-covering rally powered crude to its biggest-ever one-day rise Monday.
The TSX energy sector was off two per cent as the November crude contract on the New York Mercantile Exchange receded $2.76 to US$106.61. Sector heavyweight EnCana (TSX:ECA) was down 84 cents to $73.36 while Suncor Energy Inc. (TSX:SWU) fell $1.35 to $48.05.
The TSX gold sector moved down 3.5 per cent as the December bullion contract in New York backed off $17.80 to US$891.20 an ounce. Goldcorp Inc. (TSX:G) gave back 78 cents to $37.11 while Barrick Gold Corp. (TSX:ABX) declined 81 cents to $38.80.
The base metals sector, which along with the energy sector has enjoyed some sharp recent gains on U.S. dollar weakness and a move into so-called hard assets, was also down 3.5 per cent with Teck Cominco Ltd. (TSX:TCK.B) losing $1.23 to $35.52 and HudBay Minerals (TSX:HBM) off 12 cents to $6.69.
Also dragging the TSX lower was Potash Corp. (TSX:POT), down $18.03 or 9.7 per cent to $167.80.
The Brookfield Residential Property Services division of Brookfield Asset Management Inc. (TSX:BAM.A) has agreed to buy GMAC Home Services, a U.S. provider of home financing, real estate brokerage and relocation services. The price was not disclosed and Brookfield Asset shares were off eight cents to $27.84.
On the TSX, declines beat advances 973 to 561 with 219 unchanged as 404.4 million shares traded worth $7.05 billion.
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Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
Monday, September 22, 2008
Roger Biduk - Bay Street Lower on Financials
Roger Biduk writes:
A selloff in bank and insurance stocks helped push the Toronto stock market down sharply Monday while energy stocks failed to respond to a huge jump in crude prices.
The Toronto market was also buffeted by declines in industrial, tech and telecom stocks.
Toronto's S&P/TSX composite index fell 274.92 points to 12,638.07 keeping most of a 848-point surge on Friday. New York's Dow Jones industrial average lost 372.75 points to 11,015.69 after charging ahead 369 points Friday.
The energy sector lost 1.75 per cent even as the October crude contract on the New York Mercantile Exchange surged $16.37 to US$120.92 a barrel, after going as high as US$130 on its final day of trading. The November crude oil contract was up only $6.62to US$109.37.
The jump in oil came amid a weakening U.S. dollar as investors mulled over the final cost of the plan announced Friday by Treasury Secretary Henry Paulson to buy US$700 billion of toxic mortgage debt.
The TSX Venture Exchange moved up 26.77 points to 1,575.99 and the Canadian dollar was up 1.53 cent at 96.77 cents US as the American dollar moved lower against most major currencies amid worries about the inflationary impact of the financial-sector rescue.
In Toronto, the financial sector fell three per cent after big gains Friday. Royal Bank (TSX:RY) gave back $1.43 to $50 and Scotiabank (TSX:BNS) declined $2.19 to $47.81. Manulife Financial (TSX:MFC) moved down 87 cents to $36 following a report it is set to bid for parts of AIG. Fairfax Financial Holdings Ltd. (TSX:FFH) jumped $25 to $320 after it disclosed Monday that it has US$2.1 billion in realized and unrealized gains on credit default swaps.
The gold sector ran ahead 6.7 per cent as the December bullion contract in New York gained $44.30 to US$909 an ounce. Barrick Gold jumped $3.11 to $39.61 and Goldcorp Inc. (TSX:G) advanced $3.39 to $37.89.
Energy sector losers included Canadian Natural Resources (TSX:CNQ), down $2.84 to US$84.47 while EnCana Corp. (TSX:ECA) gave back $1.55 to $74.20. Tanganyika Oil (TSX:TYK) surged $6.30 or 36 per cent to $23.80 after it said it has entered into talks to sell the company.
Research In Motion Ltd. (TSX:RIM) was a drag on the TSX, losing $8.11 to $101.39.
The telecom sector was also down as Telus Corp. (TSX:T) shed $1.58 to $38.47.
The Toronto income trust sector closed lower, down 1.1 per cent, after the Liberals said they would roll back a looming tax on such trusts introduced by the Tories nearly two years ago.
Elsewhere, Angiotech Pharmaceuticals Inc. (TSX:ANP) shares were down 38 cents or 28per cent to 98 cents after it announced it is moving to cut costs and "further focus its business efforts," while disclosing that a previously announced capital injection of up to $300 million is in doubt.
On the TSX, declines beat advances 879 to 742 with 166 unchanged as 457 million shares traded worth $8.02 billion.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
A selloff in bank and insurance stocks helped push the Toronto stock market down sharply Monday while energy stocks failed to respond to a huge jump in crude prices.
The Toronto market was also buffeted by declines in industrial, tech and telecom stocks.
Toronto's S&P/TSX composite index fell 274.92 points to 12,638.07 keeping most of a 848-point surge on Friday. New York's Dow Jones industrial average lost 372.75 points to 11,015.69 after charging ahead 369 points Friday.
The energy sector lost 1.75 per cent even as the October crude contract on the New York Mercantile Exchange surged $16.37 to US$120.92 a barrel, after going as high as US$130 on its final day of trading. The November crude oil contract was up only $6.62to US$109.37.
The jump in oil came amid a weakening U.S. dollar as investors mulled over the final cost of the plan announced Friday by Treasury Secretary Henry Paulson to buy US$700 billion of toxic mortgage debt.
The TSX Venture Exchange moved up 26.77 points to 1,575.99 and the Canadian dollar was up 1.53 cent at 96.77 cents US as the American dollar moved lower against most major currencies amid worries about the inflationary impact of the financial-sector rescue.
In Toronto, the financial sector fell three per cent after big gains Friday. Royal Bank (TSX:RY) gave back $1.43 to $50 and Scotiabank (TSX:BNS) declined $2.19 to $47.81. Manulife Financial (TSX:MFC) moved down 87 cents to $36 following a report it is set to bid for parts of AIG. Fairfax Financial Holdings Ltd. (TSX:FFH) jumped $25 to $320 after it disclosed Monday that it has US$2.1 billion in realized and unrealized gains on credit default swaps.
The gold sector ran ahead 6.7 per cent as the December bullion contract in New York gained $44.30 to US$909 an ounce. Barrick Gold jumped $3.11 to $39.61 and Goldcorp Inc. (TSX:G) advanced $3.39 to $37.89.
Energy sector losers included Canadian Natural Resources (TSX:CNQ), down $2.84 to US$84.47 while EnCana Corp. (TSX:ECA) gave back $1.55 to $74.20. Tanganyika Oil (TSX:TYK) surged $6.30 or 36 per cent to $23.80 after it said it has entered into talks to sell the company.
Research In Motion Ltd. (TSX:RIM) was a drag on the TSX, losing $8.11 to $101.39.
The telecom sector was also down as Telus Corp. (TSX:T) shed $1.58 to $38.47.
The Toronto income trust sector closed lower, down 1.1 per cent, after the Liberals said they would roll back a looming tax on such trusts introduced by the Tories nearly two years ago.
Elsewhere, Angiotech Pharmaceuticals Inc. (TSX:ANP) shares were down 38 cents or 28per cent to 98 cents after it announced it is moving to cut costs and "further focus its business efforts," while disclosing that a previously announced capital injection of up to $300 million is in doubt.
On the TSX, declines beat advances 879 to 742 with 166 unchanged as 457 million shares traded worth $8.02 billion.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
Sunday, September 21, 2008
Roger Biduk - There's Many Reasons to Have More Nuclear Plants
Roger Biduk writes:
There are many reasons to lower the dependency on oil and build more nuclear plants.
Just look at France. Nuclear plants produce 79% of their electricity. Plus, unlike the U.S., they reprocess their fuel. Even so, the radioactivity in the used fuel rod drops 99.9% in 40 years.
There was one, and only one nuclear accident in which there was loss of life, Chernobyl. But this type of accident wouldn't occur today. If they had a containment structure like the plants in the U.S. must have, no one would have died and no radiation would have escaped. This type of reactor design would never be licensed in the U.S.
Plus, the mistakes made by the engineers and other workers that led to the accident were unbelievable.
The incident at Three Mile Island has always been exaggerated. No one died and the damaged fuel was contained.
Because of Three Mile Island, safety regulations were changed to make sure that this would never happen again.
There's lots of uranium around, with lots of it in Canada. Estimates have the planet's known resources at around 100 years. And if you include the amount that could be collected from ocean water, the resource is limitless.
If the price of uranium were to rise, there would be more exploration and more found. Plus a substitute called thorium could be used and there's three times more of it around than uranium.
There's actually a new technology that's been developed that uses no net uranium. It's called the breeder reactor, but at the moment the price of uranium is too low for this technology to be competitive.
But there's many roadblocks when it comes to building new plants. Finding the money, insuring the plants, politics, activists and escalating construction costs are only a few.
It seems that the pros and cons are endless.....
Roger Biduk's website
Roger Biduk's Investment Blog on the U.S. Market
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
There are many reasons to lower the dependency on oil and build more nuclear plants.
Just look at France. Nuclear plants produce 79% of their electricity. Plus, unlike the U.S., they reprocess their fuel. Even so, the radioactivity in the used fuel rod drops 99.9% in 40 years.
There was one, and only one nuclear accident in which there was loss of life, Chernobyl. But this type of accident wouldn't occur today. If they had a containment structure like the plants in the U.S. must have, no one would have died and no radiation would have escaped. This type of reactor design would never be licensed in the U.S.
Plus, the mistakes made by the engineers and other workers that led to the accident were unbelievable.
The incident at Three Mile Island has always been exaggerated. No one died and the damaged fuel was contained.
Because of Three Mile Island, safety regulations were changed to make sure that this would never happen again.
There's lots of uranium around, with lots of it in Canada. Estimates have the planet's known resources at around 100 years. And if you include the amount that could be collected from ocean water, the resource is limitless.
If the price of uranium were to rise, there would be more exploration and more found. Plus a substitute called thorium could be used and there's three times more of it around than uranium.
There's actually a new technology that's been developed that uses no net uranium. It's called the breeder reactor, but at the moment the price of uranium is too low for this technology to be competitive.
But there's many roadblocks when it comes to building new plants. Finding the money, insuring the plants, politics, activists and escalating construction costs are only a few.
It seems that the pros and cons are endless.....
Roger Biduk's website
Roger Biduk's Investment Blog on the U.S. Market
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
Roger Biduk - U.S. Oil Production Peaked Years Ago - So What?
Roger Biduk writes:
Oil production in the U.S. peaked in 1970, which was accurately predicted by geologist M. King Hubbert in the 1950s. But it's not running out of oil.
I've read that there's one trillion barrels of oil left out of two trillion that the planet started with.
Source: http://en.wikipedia.org/wiki/Peak_oil
Source: http://www.eia.doe.gov/emeu/ipsr/t44.xls (Excel spreadsheet).
The world is not finding enough new crude to replace the known declines, not to mention increasing production levels.
What happens with the shortfall in production? Crude prices rise. Frantic, nearly (previously) insane searches begin… tar sands; shale oil; deep, deep sea drilling; ANWR. Sound familiar?
And as a tidbit to fend off the prattle… the best estimate (shaky as all untested estimates are) for ANWR is 10 billion barrels of crude resources. On the same shaky basis, U.S. offshore… 20 billion barrels. Together… 30 billion barrels.
But that’s not the worst of it. Neither can begin producing for about 10 years. And either will require 20 years for full production. The bottom line is, at full bore production, both included, we’d get output starting in 2018 and have 1.5 billion barrels/year until 2037. The U.S. uses 21 million barrels per day, 7.67 billion barrels per year. That’s ignoring demand growth. Not exactly crude oil freedom at 20% of our 2007 demand.
Peak oil is here. Accept it. Do your own research. Bring me facts, and then let’s debate.
Nuclear power
Having finally accepted the fact that we aren’t going to have fossil fuels for transportation forever (and probably not at an acceptable cost within 10 years), what can we do?
Let’s start with reviewing the world’s energy use. Click here to get educated. And here.
And finally here, to which I’ll refer. This is a terrific resource. Don’t fail to read this. It’s the single best summary I’ve ever seen for the world’s energy use.
And this for the U.S.
World use (2004)
I’ll turn these numbers into percentages (2004 numbers):
Our discussion here is about transportation… cars, trucks, trains, and planes. They run on crude oil derivatives. Now let’s suppose that crude oil derivatives get too expensive to use (peak oil). Worst case… not available or affordable for transportation. Now look at the table above.
A full 40% of our energy supply would be gone. Let’s eliminate the presently unrealistic or non-cost-effective transportation sources… coal, hydro, nuclear (in the vehicle), renewable (in the vehicle). Hydrogen fuel cells will never work. Google it.
We are left with natural gas or electricity (however generated). Unfortunately, natural gas is widely used to heat homes and factories. And natural gas is a feedstock for many critical industrial processes… fabric, glass, steel, paint, and plastics and, of utmost importance, fertilizer. (More info here and here.)
Running vehicles on natural gas is not only possible, but is being pursued. Unfortunately, its value in other areas makes its use for transportation a very dicey proposition. Our grandkids would say in horror… “You burned it up!!??”
It’s not our best choice.
So we are left with electricity, however generated. Look at the table above and mentally add 40% to each source of electricity that is left.
Coal 23%==>63%.
Nuclear 8.1%==>48.1%
Renewables 3.3%==>43.3%
Which is most technically feasible to scale? Coal? Carbon emissions… cap and trade… coal cleanup costs… coal is an unlikely source of electricity to nearly triple. And, coal has important uses in the manufacture of metals and metal products.
Renewables? If only! But scaling up by a factor of 13 is a formidable challenge. Not in the next twenty years. Not even in the next 50 years.
Nuclear? The U.S. has 104 operating nuclear power plants. Scaling up by a factor of six would require 624 plants, or 520 new ones to replace crude oil totally. They cost about $4 billion to $5 billion each. For this, we would pay $2.34 trillion. We import 10 million barrels of crude every day. We send out of the U.S. $438 billion annually for purchased crude oil.
We’d pay off the nukes in five years and four months, and then we are ahead more than $1,430 per year for every citizen in America.
Of course it’s not quite so simple… I know that. It’s way oversimplified. But it does place a yardstick on the economics if we could make electric cars (I want a Tesla) powered by nuclear power plants sending electricity into every garage. Click here for the Michigan University case for nuclear power. It’s a good summary.
Oil production in the U.S. peaked in 1970, which was accurately predicted by geologist M. King Hubbert in the 1950s. But it's not running out of oil.
I've read that there's one trillion barrels of oil left out of two trillion that the planet started with.
Source: http://en.wikipedia.org/wiki/Peak_oil
Source: http://www.eia.doe.gov/emeu/ipsr/t44.xls (Excel spreadsheet).
The world is not finding enough new crude to replace the known declines, not to mention increasing production levels.
What happens with the shortfall in production? Crude prices rise. Frantic, nearly (previously) insane searches begin… tar sands; shale oil; deep, deep sea drilling; ANWR. Sound familiar?
And as a tidbit to fend off the prattle… the best estimate (shaky as all untested estimates are) for ANWR is 10 billion barrels of crude resources. On the same shaky basis, U.S. offshore… 20 billion barrels. Together… 30 billion barrels.
But that’s not the worst of it. Neither can begin producing for about 10 years. And either will require 20 years for full production. The bottom line is, at full bore production, both included, we’d get output starting in 2018 and have 1.5 billion barrels/year until 2037. The U.S. uses 21 million barrels per day, 7.67 billion barrels per year. That’s ignoring demand growth. Not exactly crude oil freedom at 20% of our 2007 demand.
Peak oil is here. Accept it. Do your own research. Bring me facts, and then let’s debate.
Nuclear power
Having finally accepted the fact that we aren’t going to have fossil fuels for transportation forever (and probably not at an acceptable cost within 10 years), what can we do?
Let’s start with reviewing the world’s energy use. Click here to get educated. And here.
And finally here, to which I’ll refer. This is a terrific resource. Don’t fail to read this. It’s the single best summary I’ve ever seen for the world’s energy use.
And this for the U.S.
World use (2004)
I’ll turn these numbers into percentages (2004 numbers):
Our discussion here is about transportation… cars, trucks, trains, and planes. They run on crude oil derivatives. Now let’s suppose that crude oil derivatives get too expensive to use (peak oil). Worst case… not available or affordable for transportation. Now look at the table above.
A full 40% of our energy supply would be gone. Let’s eliminate the presently unrealistic or non-cost-effective transportation sources… coal, hydro, nuclear (in the vehicle), renewable (in the vehicle). Hydrogen fuel cells will never work. Google it.
We are left with natural gas or electricity (however generated). Unfortunately, natural gas is widely used to heat homes and factories. And natural gas is a feedstock for many critical industrial processes… fabric, glass, steel, paint, and plastics and, of utmost importance, fertilizer. (More info here and here.)
Running vehicles on natural gas is not only possible, but is being pursued. Unfortunately, its value in other areas makes its use for transportation a very dicey proposition. Our grandkids would say in horror… “You burned it up!!??”
It’s not our best choice.
So we are left with electricity, however generated. Look at the table above and mentally add 40% to each source of electricity that is left.
Coal 23%==>63%.
Nuclear 8.1%==>48.1%
Renewables 3.3%==>43.3%
Which is most technically feasible to scale? Coal? Carbon emissions… cap and trade… coal cleanup costs… coal is an unlikely source of electricity to nearly triple. And, coal has important uses in the manufacture of metals and metal products.
Renewables? If only! But scaling up by a factor of 13 is a formidable challenge. Not in the next twenty years. Not even in the next 50 years.
Nuclear? The U.S. has 104 operating nuclear power plants. Scaling up by a factor of six would require 624 plants, or 520 new ones to replace crude oil totally. They cost about $4 billion to $5 billion each. For this, we would pay $2.34 trillion. We import 10 million barrels of crude every day. We send out of the U.S. $438 billion annually for purchased crude oil.
We’d pay off the nukes in five years and four months, and then we are ahead more than $1,430 per year for every citizen in America.
Of course it’s not quite so simple… I know that. It’s way oversimplified. But it does place a yardstick on the economics if we could make electric cars (I want a Tesla) powered by nuclear power plants sending electricity into every garage. Click here for the Michigan University case for nuclear power. It’s a good summary.
Roger Biduk - The Week in Cdn. Small & Mid-Cap Stocks
Roger Biduk writes:
On Monday, Kent Exploration (TSX: V.KEX) shares climbed as much as 13% before closing up 6% to 8.5 cents after the micro-cap explorer reported assay results from 12 rock samples taken from its 100% optioned Silver Hill property in south-eastern British Columbia, which included 5.238kilograms per tonne (kg/t) silver, 9.47% copper, 10.69% lead, and 3.25% zinc.
Discovery Air (TSX: T.DA.A), meanwhile, reported the termination of David Taylor as the President and Chief Executive Officer of the corporation and the appointment of David Jennings as interim President and Chief Executive Officer. Mr. Jennings is a Co-Chief Executive Officer of Top Aces, one of Discovery Air's wholly-owned subsidiaries. Discovery Air stock jumped 11% to 49 cents.
In Tuesday trading, Birch Mountain Resources (TSX: T.BMD) said the Muskeg Valley Quarry recently set a new daily record for limestone aggregates shipped. The new daily record of 23,100 tonnes exceeds the previous record of 20,000 tonnes set in Q2 2007 with a quarry workforce of more than 50 people - a peak productivity gain per worker of more than 250%. Birch Mountain stock popped 63% to 13 cents.
This as VMS Ventures (TSX: V.VMS) reported assay results from its Reed Lake Discovery Zone near Snow Lake, Manitoba, which included 53.19 metres of 3.08% copper. Its shares surged 15% to 42 cents.
Wednesday’s market action saw shares of Global Hunter (TSX: V.BOB) shoot up 39% to 12.5 cents after the micro-cap explorer announced results from its Rabbit South project near Kamloops, British Columbia, which averaged 0.07% molybdenum and 0.13 grams per tonne (g/t) rhenium over 91.8 metres.
As well, International Barytex Resources (TSX: V.IBX) shares powered 67%higher to 50 cents after the junior miner reported recommendations of a feasibility study on the Shituru Copper Project in the Democratic Republic of the Congo, which proposes developing an open pit, ore processing and electrowinning facility with an annual production capacity of 38,000 tonnes of LME grade cathode copper.
On Thursday, Wescan Goldfields (TSX: V.WGF) shares gained 24% to 31 cents after the micro cap miner said it has received an additional 146 coal permit certificates from the Saskatchewan Ministry of Energy and Resources. A total of 229 coal permits have now been issued to the company to date, comprising a total area of 161,777 hectares in the Hudson Bay region.
In addition, Osisko Mining (TSX: T.OSK) shares powered 16% higher to $2.95 after the miner reported new results from the definition drill program currently under way at South Barnat, a separate gold mineralized zone located about 1200 metres northeast of the center of the Canadian Malartic deposit in Quebec. Results include 2.13 grams per tonne (g/t) gold over 258.5 metres.
And, in Friday trading, Bolero Resources (TSX: V.BRU) shares soared 50% to six cents after the micro cap explorer and partner Alix Resources (TSX: V.AIX, Stock Forum) late Thursday announced drill results from the Arcadia Bay project in Nunavut, which included 6.70 grams per tonne (g/t) gold over 6.85 metres.
Finally, shares of Intrinsyc Software International (TSX: T.ICS) shot up 30% to 26 cents as the wireless software solutions provider said it has signed a software license agreement with a leading mobile phone and consumer device manufacturer to deliver its Destinator navigation software for use on a new series of personal navigation devices.
Roger Biduk's website
Roger Biduk's Investment Blog on the U.S. Market
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
On Monday, Kent Exploration (TSX: V.KEX) shares climbed as much as 13% before closing up 6% to 8.5 cents after the micro-cap explorer reported assay results from 12 rock samples taken from its 100% optioned Silver Hill property in south-eastern British Columbia, which included 5.238kilograms per tonne (kg/t) silver, 9.47% copper, 10.69% lead, and 3.25% zinc.
Discovery Air (TSX: T.DA.A), meanwhile, reported the termination of David Taylor as the President and Chief Executive Officer of the corporation and the appointment of David Jennings as interim President and Chief Executive Officer. Mr. Jennings is a Co-Chief Executive Officer of Top Aces, one of Discovery Air's wholly-owned subsidiaries. Discovery Air stock jumped 11% to 49 cents.
In Tuesday trading, Birch Mountain Resources (TSX: T.BMD) said the Muskeg Valley Quarry recently set a new daily record for limestone aggregates shipped. The new daily record of 23,100 tonnes exceeds the previous record of 20,000 tonnes set in Q2 2007 with a quarry workforce of more than 50 people - a peak productivity gain per worker of more than 250%. Birch Mountain stock popped 63% to 13 cents.
This as VMS Ventures (TSX: V.VMS) reported assay results from its Reed Lake Discovery Zone near Snow Lake, Manitoba, which included 53.19 metres of 3.08% copper. Its shares surged 15% to 42 cents.
Wednesday’s market action saw shares of Global Hunter (TSX: V.BOB) shoot up 39% to 12.5 cents after the micro-cap explorer announced results from its Rabbit South project near Kamloops, British Columbia, which averaged 0.07% molybdenum and 0.13 grams per tonne (g/t) rhenium over 91.8 metres.
As well, International Barytex Resources (TSX: V.IBX) shares powered 67%higher to 50 cents after the junior miner reported recommendations of a feasibility study on the Shituru Copper Project in the Democratic Republic of the Congo, which proposes developing an open pit, ore processing and electrowinning facility with an annual production capacity of 38,000 tonnes of LME grade cathode copper.
On Thursday, Wescan Goldfields (TSX: V.WGF) shares gained 24% to 31 cents after the micro cap miner said it has received an additional 146 coal permit certificates from the Saskatchewan Ministry of Energy and Resources. A total of 229 coal permits have now been issued to the company to date, comprising a total area of 161,777 hectares in the Hudson Bay region.
In addition, Osisko Mining (TSX: T.OSK) shares powered 16% higher to $2.95 after the miner reported new results from the definition drill program currently under way at South Barnat, a separate gold mineralized zone located about 1200 metres northeast of the center of the Canadian Malartic deposit in Quebec. Results include 2.13 grams per tonne (g/t) gold over 258.5 metres.
And, in Friday trading, Bolero Resources (TSX: V.BRU) shares soared 50% to six cents after the micro cap explorer and partner Alix Resources (TSX: V.AIX, Stock Forum) late Thursday announced drill results from the Arcadia Bay project in Nunavut, which included 6.70 grams per tonne (g/t) gold over 6.85 metres.
Finally, shares of Intrinsyc Software International (TSX: T.ICS) shot up 30% to 26 cents as the wireless software solutions provider said it has signed a software license agreement with a leading mobile phone and consumer device manufacturer to deliver its Destinator navigation software for use on a new series of personal navigation devices.
Roger Biduk's website
Roger Biduk's Investment Blog on the U.S. Market
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
Saturday, September 20, 2008
Roger Biduk writes:
Dramatic moves to rescue the U.S. financial sector sent the Toronto stock market soaring more than 800 points Friday in one of the biggest one-day advances in its history.
The S&P/TSX composite index charged ahead 848.42 points or seven per cent to 12,912.99, the largest one-day percentage gain since Oct. 21, 1987, when the markets gained nine per cent two days after an 11 per cent plunge.
The market was helped along by solid advances in bank and insurance stocks as investor confidence in the financial system returned following a plan to rescue U.S. financial companies from billions of dollars in bad debt.
The TSX also benefited from advancing oil prices, which sent energy shares higher.
It was a huge turnaround from just two days ago when pessimism drove the TSX to its lowest level in two years, following the weekend bankruptcy of investment bank Lehman Brothers and the subsequent government rescue of insurance giant AIG.
The TSX actually ended the week with a gain of 142 points or one per cent from the close on Sept. 12 but the Toronto market is still down almost 15 per cent from its most recent high in mid-June.
The TSX also benefited from advancing oil prices, which sent energy shares higher.
The TSX Venture Exchange improved by 71.34 points to 1,549.22 while the Canadian dollar was up 1.06 cents to 95.24 cents US.
In Toronto, the financial sector was up 5.14 per cent with TD Bank (TSX:TD) ahead $5.69 to $64.94 and Royal Bank(TSX:RY) jumping $3.44 to $51.43.
The TSX energy sector improved 8.14 per cent as the October crude contract on the New York Mercantile Exchange rose $6.67 to US$104.55 a barrel, after closing at barely US$91 on Tuesday,despite recent data showing demand for energy will likely remain weak as global economies slow down.
EnCana Corp. (TSX:ECA) gained $4.03 to $75.75 and Canadian Natural Resources advanced $9.31 to $87.31.
The base metals sector ran ahead 10.4 per cent with Teck Cominco Ltd. (TSX:TCK.B) gaining $2.62 to $38 and Inmet Mining Corp. (TSX:IMN) up $5.56 to $59.56.
Gold slumped Friday after big gains earlier in the week as investors sought a safe-haven from the turmoil on stock and bond markets. The near-month bullion contract was down $32.30 to US$864.70. But the TSX gold sector rose five per cent and Goldcorp Inc. (TSX:G) moved ahead $3.89 to $34.50.
Other big Toronto stocks contributing to the Friday rally included Research In Motion (TSX:RIM), ahead $13 or 13.47 per cent to $109.50, Bombardier Inc. (TSX:BBD.B) 52 cents to $6.62 and Potash Corp. (TSX:POT) up $15.98 or 9.5 per cent to $182.98.
On the TSX, advances beat declines 1,214 to 409 with 175 unchanged as 814.1 million shares traded worth $17.7 billion.
Roger Biduk's website
Roger Biduk's Investment Blog on the U.S. Market
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
Dramatic moves to rescue the U.S. financial sector sent the Toronto stock market soaring more than 800 points Friday in one of the biggest one-day advances in its history.
The S&P/TSX composite index charged ahead 848.42 points or seven per cent to 12,912.99, the largest one-day percentage gain since Oct. 21, 1987, when the markets gained nine per cent two days after an 11 per cent plunge.
The market was helped along by solid advances in bank and insurance stocks as investor confidence in the financial system returned following a plan to rescue U.S. financial companies from billions of dollars in bad debt.
The TSX also benefited from advancing oil prices, which sent energy shares higher.
It was a huge turnaround from just two days ago when pessimism drove the TSX to its lowest level in two years, following the weekend bankruptcy of investment bank Lehman Brothers and the subsequent government rescue of insurance giant AIG.
The TSX actually ended the week with a gain of 142 points or one per cent from the close on Sept. 12 but the Toronto market is still down almost 15 per cent from its most recent high in mid-June.
The TSX also benefited from advancing oil prices, which sent energy shares higher.
The TSX Venture Exchange improved by 71.34 points to 1,549.22 while the Canadian dollar was up 1.06 cents to 95.24 cents US.
In Toronto, the financial sector was up 5.14 per cent with TD Bank (TSX:TD) ahead $5.69 to $64.94 and Royal Bank(TSX:RY) jumping $3.44 to $51.43.
The TSX energy sector improved 8.14 per cent as the October crude contract on the New York Mercantile Exchange rose $6.67 to US$104.55 a barrel, after closing at barely US$91 on Tuesday,despite recent data showing demand for energy will likely remain weak as global economies slow down.
EnCana Corp. (TSX:ECA) gained $4.03 to $75.75 and Canadian Natural Resources advanced $9.31 to $87.31.
The base metals sector ran ahead 10.4 per cent with Teck Cominco Ltd. (TSX:TCK.B) gaining $2.62 to $38 and Inmet Mining Corp. (TSX:IMN) up $5.56 to $59.56.
Gold slumped Friday after big gains earlier in the week as investors sought a safe-haven from the turmoil on stock and bond markets. The near-month bullion contract was down $32.30 to US$864.70. But the TSX gold sector rose five per cent and Goldcorp Inc. (TSX:G) moved ahead $3.89 to $34.50.
Other big Toronto stocks contributing to the Friday rally included Research In Motion (TSX:RIM), ahead $13 or 13.47 per cent to $109.50, Bombardier Inc. (TSX:BBD.B) 52 cents to $6.62 and Potash Corp. (TSX:POT) up $15.98 or 9.5 per cent to $182.98.
On the TSX, advances beat declines 1,214 to 409 with 175 unchanged as 814.1 million shares traded worth $17.7 billion.
Roger Biduk's website
Roger Biduk's Investment Blog on the U.S. Market
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
Friday, September 19, 2008
Roger Biduk - Bay Street Soars Over 600 Points
Roger Biduk writes:
The Toronto Stock Exchange's main index was up more than 5 percent at midday Friday, as investors cheered a series of moves by central banks and governments to restore confidence in the global financial system.
The big bounce came on news the U.S. government was crafting a sweeping multibillion-dollar plan to rescue the country's battered financial sector and placing a temporary halt on short-selling.
By around noon, the S&P/TSX composite index was up 675.02 points, or 5.5 percent, at 12,739.59, with all of its 10 main groups higher.
The jump at the open - echoing surges on New York and other global markets -- also reflects the "great unwinding" in the United States, said Bill Harris, portfolio manager at Avenue Investment Management.
Prime Minister Stephen Harper said the Canadian government is not considering a bailout plan for the country's banks, which are in good shape despite the financial crisis in the United States.
Nor was there an announcement by Canadian regulators to curb short-selling. The practice of borrowing a stock on a bet that its price will fall, is seen as contributing to sharp declines in equity markets since the credit crunch began in the U.S. mortgage market last year.
The rise on Friday came after a 1.6 percent rally the previous session after the world's top central banks injected billions of dollars into the financial system to ease seized-up money markets.
The heavily weighted financial services sector rose 5.2 percent with Royal Bank of Canada up 4 percent to C$49.90, while Canadian Imperial Bank of Commerce climbed 4.7 percent to C$62.46.
The heavyweight energy sector jumped 5.9 percent as oil rose to around $100 a barrel on expectations the U.S. government rescue plan would help shore up confidence in battered financial markets.
In the oil patch, Canadian Natural Resources soared 8.9 percent to C$84.84.
The materials group added 7.7 percent. Among the gainers in the sector, First Quantum Mineral surged 13.9 percent percent to C$49.87 and Potash Corp of Saskatchewan Inc climbed 11.4 percent to C$186.03.
Roger’s website
Roger’s Investment Blog on the U.S. Market
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
The Toronto Stock Exchange's main index was up more than 5 percent at midday Friday, as investors cheered a series of moves by central banks and governments to restore confidence in the global financial system.
The big bounce came on news the U.S. government was crafting a sweeping multibillion-dollar plan to rescue the country's battered financial sector and placing a temporary halt on short-selling.
By around noon, the S&P/TSX composite index was up 675.02 points, or 5.5 percent, at 12,739.59, with all of its 10 main groups higher.
The jump at the open - echoing surges on New York and other global markets -- also reflects the "great unwinding" in the United States, said Bill Harris, portfolio manager at Avenue Investment Management.
Prime Minister Stephen Harper said the Canadian government is not considering a bailout plan for the country's banks, which are in good shape despite the financial crisis in the United States.
Nor was there an announcement by Canadian regulators to curb short-selling. The practice of borrowing a stock on a bet that its price will fall, is seen as contributing to sharp declines in equity markets since the credit crunch began in the U.S. mortgage market last year.
The rise on Friday came after a 1.6 percent rally the previous session after the world's top central banks injected billions of dollars into the financial system to ease seized-up money markets.
The heavily weighted financial services sector rose 5.2 percent with Royal Bank of Canada up 4 percent to C$49.90, while Canadian Imperial Bank of Commerce climbed 4.7 percent to C$62.46.
The heavyweight energy sector jumped 5.9 percent as oil rose to around $100 a barrel on expectations the U.S. government rescue plan would help shore up confidence in battered financial markets.
In the oil patch, Canadian Natural Resources soared 8.9 percent to C$84.84.
The materials group added 7.7 percent. Among the gainers in the sector, First Quantum Mineral surged 13.9 percent percent to C$49.87 and Potash Corp of Saskatchewan Inc climbed 11.4 percent to C$186.03.
Roger’s website
Roger’s Investment Blog on the U.S. Market
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
Roger Biduk - Bay Street higher on Financials & Metals
Roger Biduk writes:
North American stock markets chalked up solid advances Thursday as investors reacted enthusiastically to moves by regulators in the United States and Britain to shore up the crisis ridden financial system.
Toronto's S&P/TSX composite index closed up 186.88 points to 12,064.57 at the end of a volatile session that saw the key index soar by as much as 503 points.
The move Thursday followed a 349-point tumble on Wednesday that took the main Canadian index to its lowest level in two years.
The TSX Venture Exchange moved 8.29 points higher to 1,477.88 while the Canadian dollar was up 0.62 cent to 94.18 cents US.
On the TSX, the financial sector rose 5.7 per cent and winners included Scotiabank (TSX:BNS), up $3.59 to $47.37, and Royal Bank (TSX:RY), ahead $3.24 to $47.99.
Great-West Lifeco Inc. (TSX:GWO) was up $1.58 to $32.02 after it said it holds C$448 million in investments related to Lehman Brothers and AIG.
The Toronto energy sector gained 1.2 per cent as the October crude contract on the New York Mercantile Exchange added 72 cents to US$97.88 a barrel, after going as high as US$102.24 earlier in the session.
EnCana Corp. (TSX:ECA) advanced $2.82 to $71.72 but Petro-Canada (TSX:PCA) fell $1.21 to $35.78.
The base metals sector advanced 3.6 per cent with Teck Cominco Ltd. (TSX:TCK.B) ahead $1.37 to $35.38.
Cameco Corp. (TSX:CCO) slipped $1.03 to $23.04 after it disclosed that its share of this year's uranium output from the McArthur River mine and Key Lake mill will be about six per cent lower than the previously expected 13.1 million pounds. Next year's production outlook is unchanged.
Gold continued a safe-haven surge which took bullion up by $70 an ounce Wednesday in its biggest-ever one-day gain in dollar terms. The near-month contract was up another $46.50 at US$897 an ounce on the New York Mercantile Exchange.
But the gold sector on the Toronto market lost four per cent. Shares in Goldcorp (TSX:G) fell $2.19 to $30.61.
On the TSX, declines beat advances 829 to 765 with 230 unchanged as 782 million shares traded worth $16.5 billion.
Roger's website
Roger's Investment Blog on the U.S. Market
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
North American stock markets chalked up solid advances Thursday as investors reacted enthusiastically to moves by regulators in the United States and Britain to shore up the crisis ridden financial system.
Toronto's S&P/TSX composite index closed up 186.88 points to 12,064.57 at the end of a volatile session that saw the key index soar by as much as 503 points.
The move Thursday followed a 349-point tumble on Wednesday that took the main Canadian index to its lowest level in two years.
The TSX Venture Exchange moved 8.29 points higher to 1,477.88 while the Canadian dollar was up 0.62 cent to 94.18 cents US.
On the TSX, the financial sector rose 5.7 per cent and winners included Scotiabank (TSX:BNS), up $3.59 to $47.37, and Royal Bank (TSX:RY), ahead $3.24 to $47.99.
Great-West Lifeco Inc. (TSX:GWO) was up $1.58 to $32.02 after it said it holds C$448 million in investments related to Lehman Brothers and AIG.
The Toronto energy sector gained 1.2 per cent as the October crude contract on the New York Mercantile Exchange added 72 cents to US$97.88 a barrel, after going as high as US$102.24 earlier in the session.
EnCana Corp. (TSX:ECA) advanced $2.82 to $71.72 but Petro-Canada (TSX:PCA) fell $1.21 to $35.78.
The base metals sector advanced 3.6 per cent with Teck Cominco Ltd. (TSX:TCK.B) ahead $1.37 to $35.38.
Cameco Corp. (TSX:CCO) slipped $1.03 to $23.04 after it disclosed that its share of this year's uranium output from the McArthur River mine and Key Lake mill will be about six per cent lower than the previously expected 13.1 million pounds. Next year's production outlook is unchanged.
Gold continued a safe-haven surge which took bullion up by $70 an ounce Wednesday in its biggest-ever one-day gain in dollar terms. The near-month contract was up another $46.50 at US$897 an ounce on the New York Mercantile Exchange.
But the gold sector on the Toronto market lost four per cent. Shares in Goldcorp (TSX:G) fell $2.19 to $30.61.
On the TSX, declines beat advances 829 to 765 with 230 unchanged as 782 million shares traded worth $16.5 billion.
Roger's website
Roger's Investment Blog on the U.S. Market
Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
Tuesday, September 16, 2008
Roger Biduk - TSX Bounces Back From 350 Point Decline
Roger Biduk writes:
The Toronto stock market closed little changed at the end of a volatile session with early steep losses largely erased as gold and technology stocks turned positive.
The S&P/TSX composite index came back from a 351-point deficit to close down just 27.04 points to 12,226.99 with the TSX weighed by a two per cent slide in the financial sector stocks and falling commodity stocks.
Combined with Monday's 516-point slide on declining oil prices and financial sector losses, the TSX is down about 20 per cent from its mid-June high - the common definition of a bear market.
The TSX Venture Exchange surrendered 75.77 points or 4.9 per cent to 1,459.04, while the CDN$ was off 0.14 cent to 93.5 cents US.
The AIG situation helped push the Toronto financial group down two per cent with Canadian insurance giant Manulife down $1 to $36 while Royal Bank (TSX:RY) lost $1.60 to $46.50 and Scotiabank (TSX:BNS) down 77 cents to $45.83.
Oil prices fell $4.56 to US$91.15 a barrel following a slide of more than $5.00 Monday, leaving the Toronto energy sector flat. EnCana Corp. (TSX:ECA) jumped $1.95 to $69.95 but http://finance.yahoo.com/q?s=SU.TO headed 62 cents lower to $45.63.
Investors hoped that gold stocks would be a good bet in volatile times and the gold sector was boosted nearly four per cent even as the December bullion contract on the New York Mercantile Exchange gave back $6.50 to US$780.50 an ounce.
Hopes that the technology sector could lead markets higher took a beating after computer maker Dell warned of "further softening" in global demand. But the TSX information technology sector finished up 1.75 per cent as Research In Motion Ltd. (TSX:RIM) advanced $3.03 to $107.63.
Garda World Security Corp. (TSX:GW) plummeted $4.80 or 54.24 per cent to $4.05 as it disclosed it has renegotiated its loans at higher interest rates and is exploring a sale of its cash logistics business after losing $1.1 million in the second quarter on a 5.5 per cent revenue decline to $301.1 million.
Allen-Vanguard Corp. (TSX:VRS), an Ottawa-based maker of high-tech security equipment, plunged 26.5 cents or 35.3 per cent to 48.5 cents after it failed to attract outside investment and said it may be unable to make a $10-million debt payment due on Sept. 30.
On the TSX, declines overwhelmed advances 1,193 to 423 with 179 unchanged as 596 million shares traded worth $10.7 billion.
Roger Biduk's Website
Roger Biduk's Investment Blog on the U.S. Markets
The Toronto stock market closed little changed at the end of a volatile session with early steep losses largely erased as gold and technology stocks turned positive.
The S&P/TSX composite index came back from a 351-point deficit to close down just 27.04 points to 12,226.99 with the TSX weighed by a two per cent slide in the financial sector stocks and falling commodity stocks.
Combined with Monday's 516-point slide on declining oil prices and financial sector losses, the TSX is down about 20 per cent from its mid-June high - the common definition of a bear market.
The TSX Venture Exchange surrendered 75.77 points or 4.9 per cent to 1,459.04, while the CDN$ was off 0.14 cent to 93.5 cents US.
The AIG situation helped push the Toronto financial group down two per cent with Canadian insurance giant Manulife down $1 to $36 while Royal Bank (TSX:RY) lost $1.60 to $46.50 and Scotiabank (TSX:BNS) down 77 cents to $45.83.
Oil prices fell $4.56 to US$91.15 a barrel following a slide of more than $5.00 Monday, leaving the Toronto energy sector flat. EnCana Corp. (TSX:ECA) jumped $1.95 to $69.95 but http://finance.yahoo.com/q?s=SU.TO headed 62 cents lower to $45.63.
Investors hoped that gold stocks would be a good bet in volatile times and the gold sector was boosted nearly four per cent even as the December bullion contract on the New York Mercantile Exchange gave back $6.50 to US$780.50 an ounce.
Hopes that the technology sector could lead markets higher took a beating after computer maker Dell warned of "further softening" in global demand. But the TSX information technology sector finished up 1.75 per cent as Research In Motion Ltd. (TSX:RIM) advanced $3.03 to $107.63.
Garda World Security Corp. (TSX:GW) plummeted $4.80 or 54.24 per cent to $4.05 as it disclosed it has renegotiated its loans at higher interest rates and is exploring a sale of its cash logistics business after losing $1.1 million in the second quarter on a 5.5 per cent revenue decline to $301.1 million.
Allen-Vanguard Corp. (TSX:VRS), an Ottawa-based maker of high-tech security equipment, plunged 26.5 cents or 35.3 per cent to 48.5 cents after it failed to attract outside investment and said it may be unable to make a $10-million debt payment due on Sept. 30.
On the TSX, declines overwhelmed advances 1,193 to 423 with 179 unchanged as 596 million shares traded worth $10.7 billion.
Roger Biduk's Website
Roger Biduk's Investment Blog on the U.S. Markets
Monday, September 15, 2008
Roger Biduk - Bay Street Lower on Energy & Financials
Roger Biduk writes:
The Toronto stock market plunged more than 500 points Monday, in large part because of tumbling energy stocks as oil prices closed below US$100 dollars US a barrel for the first time in six months.
The market was also hurt by financial stocks after two more big U.S. investment banks were overwhelmed by the collapse of the American housing sector and securities that financed the bubble.
Lehman Brothers (LEH) sought bankruptcy protection while Merrill Lynch agreed to be taken over by Bank of America.
Overall, the S&P/TSX composite index fell 515.55 points or over four per cent to 12,254.03. The market is down 18.7 per cent from its most recent high from June 18.
The Canadian dollar - pressured by sagging prices for oil and other resource exports - eased 0.6 cent to 93.64 cents U.S. even as the U.S. dollar slid against the euro.
The TSX Venture Exchange lost 72.72 points or 4.5 per cent to 1,534.81.
The Toronto energy sector pulled back almost six per cent as the October crude contract on the New York Mercantile Exchange fell $5.47 to US$95.71 a barrel, partly because hurricane Ike largely spared Gulf of Mexico energy infrastructure.
But analysts said investors feared that the upheaval in the financial sector could trigger another round of commodities liquidation - especially with Lehman likely to unwind its holdings. Other investors may also unload commodities, fearing that the deepening economic crisis will further reduce demand for energy and raw materials futures.
EnCana Corp. (TSX:ECA) lost $3.69 or five per cent to $68 and Suncor Energy (TSX:SU) retreated $3.95 or 7.9 per cent to $46.25.
The TSX metals and mining sector retreated by more than seven per cent as analysts said investors feared the upheaval in the financial sector could trigger another round of commodities liquidation - especially with Lehman likely to unwind its holdings.
Other investors may also unload commodities, fearing that the deepening economic crisis will further reduce demand for energy and raw materials futures.
Teck Cominco Ltd. (TSX:TCK.B) down $2.37 or six per cent to $36.64 and Fording Canadian Coal Trust (TSX:FDG.UN) fell $9.27 or 10 per cent to $81.83.
Market heavyweight Potash Corp. (TSX:POT) retreated $8.39 or 4.8 per cent to $163.83.
The gold sector was down 4.8 per cent even as investors bought bullion as a haven. The December gold contract on the Nymex rose US$22.50 to US$787 an ounce and Goldcorp Inc. (TSX:G) faded $2.85 or nine per cent to $28.51.
Anxiety about the financial sector prodded the Toronto financial group down by two per cent. Royal Bank declined $1.10 to $48.10 and CIBC (TSX:CM) lost $3.06 to $61.11, slightly off early low it said it doesn't have "large exposures" to Lehman.
On the TSX, declines beat advances 1,300 to 302 with 153 unchanged as 419 million shares traded worth $7.8 billion.
Roger is a investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
Roger's Website
Roger's Investment Blog on the U.S. Markets
The Toronto stock market plunged more than 500 points Monday, in large part because of tumbling energy stocks as oil prices closed below US$100 dollars US a barrel for the first time in six months.
The market was also hurt by financial stocks after two more big U.S. investment banks were overwhelmed by the collapse of the American housing sector and securities that financed the bubble.
Lehman Brothers (LEH) sought bankruptcy protection while Merrill Lynch agreed to be taken over by Bank of America.
Overall, the S&P/TSX composite index fell 515.55 points or over four per cent to 12,254.03. The market is down 18.7 per cent from its most recent high from June 18.
The Canadian dollar - pressured by sagging prices for oil and other resource exports - eased 0.6 cent to 93.64 cents U.S. even as the U.S. dollar slid against the euro.
The TSX Venture Exchange lost 72.72 points or 4.5 per cent to 1,534.81.
The Toronto energy sector pulled back almost six per cent as the October crude contract on the New York Mercantile Exchange fell $5.47 to US$95.71 a barrel, partly because hurricane Ike largely spared Gulf of Mexico energy infrastructure.
But analysts said investors feared that the upheaval in the financial sector could trigger another round of commodities liquidation - especially with Lehman likely to unwind its holdings. Other investors may also unload commodities, fearing that the deepening economic crisis will further reduce demand for energy and raw materials futures.
EnCana Corp. (TSX:ECA) lost $3.69 or five per cent to $68 and Suncor Energy (TSX:SU) retreated $3.95 or 7.9 per cent to $46.25.
The TSX metals and mining sector retreated by more than seven per cent as analysts said investors feared the upheaval in the financial sector could trigger another round of commodities liquidation - especially with Lehman likely to unwind its holdings.
Other investors may also unload commodities, fearing that the deepening economic crisis will further reduce demand for energy and raw materials futures.
Teck Cominco Ltd. (TSX:TCK.B) down $2.37 or six per cent to $36.64 and Fording Canadian Coal Trust (TSX:FDG.UN) fell $9.27 or 10 per cent to $81.83.
Market heavyweight Potash Corp. (TSX:POT) retreated $8.39 or 4.8 per cent to $163.83.
The gold sector was down 4.8 per cent even as investors bought bullion as a haven. The December gold contract on the Nymex rose US$22.50 to US$787 an ounce and Goldcorp Inc. (TSX:G) faded $2.85 or nine per cent to $28.51.
Anxiety about the financial sector prodded the Toronto financial group down by two per cent. Royal Bank declined $1.10 to $48.10 and CIBC (TSX:CM) lost $3.06 to $61.11, slightly off early low it said it doesn't have "large exposures" to Lehman.
On the TSX, declines beat advances 1,300 to 302 with 153 unchanged as 419 million shares traded worth $7.8 billion.
Roger is a investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
Roger's Website
Roger's Investment Blog on the U.S. Markets
Roger Biduk - TSX Lower on Financials & Oil.
Roger Biduk writes:
The Toronto Stock Exchange's main index was down almost 300 points Monday afternoon, rattled by the bankruptcy filing of Wall Street's Lehman Brothers Holdings Inc and worries over other big financial institutions.
The financial services sector, which accounts for about a quarter of the index's total weight, was down 1.2 percent - though up from earlier lows - with Canadian Imperial Bank of Commerce down 3.1 percent at C$62.19.
The Bank of Canada said on Monday it will provide liquidity as required to shore up financial markets spooked by the bankruptcy filing of Lehman and the sale of Merrill Lynch.
As well, Canada's banking regulator, the Office of the Superintendent of Financial Institutions, said the country's financial institutions are healthy and it has no plans for special measures to help banks cope with the world financial crisis.
By late Monday morning, the S&P/TSX composite index was down 293.02 points, or 2.288 percent, at 12,476.56, with nine of its 10 main groups lower. Earlier in the session the benchmark index had shed more than 3 percent.
The heavyweight energy sector dropped 3 percent as oil prices fell to around $97 a barrel on worries over lower U.S. demand and signs that Hurricane Ike had spared key U.S. energy infrastructure in the Gulf of Mexico. Canadian Natural Resources fell 4.5 percent to C$79.50.
The materials sector fell 1.3 percent as concerns over the fallout from the U.S. credit crisis overcame a rise in gold prices, which climbed on safe-haven buying.
Consumer staples was the only group in positive territory, managing to eke out a 0.2 percent gain.
Roger's Website
Roger's Investment Blog on the U.S. Markets
Roger services clients in Montreal, West Island, Hudson and the province of Ontario.
The Toronto Stock Exchange's main index was down almost 300 points Monday afternoon, rattled by the bankruptcy filing of Wall Street's Lehman Brothers Holdings Inc and worries over other big financial institutions.
The financial services sector, which accounts for about a quarter of the index's total weight, was down 1.2 percent - though up from earlier lows - with Canadian Imperial Bank of Commerce down 3.1 percent at C$62.19.
The Bank of Canada said on Monday it will provide liquidity as required to shore up financial markets spooked by the bankruptcy filing of Lehman and the sale of Merrill Lynch.
As well, Canada's banking regulator, the Office of the Superintendent of Financial Institutions, said the country's financial institutions are healthy and it has no plans for special measures to help banks cope with the world financial crisis.
By late Monday morning, the S&P/TSX composite index was down 293.02 points, or 2.288 percent, at 12,476.56, with nine of its 10 main groups lower. Earlier in the session the benchmark index had shed more than 3 percent.
The heavyweight energy sector dropped 3 percent as oil prices fell to around $97 a barrel on worries over lower U.S. demand and signs that Hurricane Ike had spared key U.S. energy infrastructure in the Gulf of Mexico. Canadian Natural Resources fell 4.5 percent to C$79.50.
The materials sector fell 1.3 percent as concerns over the fallout from the U.S. credit crisis overcame a rise in gold prices, which climbed on safe-haven buying.
Consumer staples was the only group in positive territory, managing to eke out a 0.2 percent gain.
Roger's Website
Roger's Investment Blog on the U.S. Markets
Roger services clients in Montreal, West Island, Hudson and the province of Ontario.
Sunday, September 14, 2008
Roger Biduk - BAC Buys MER, US$ Drops, Metals Rise
Roger Biduk writes:
One big news story tomorrow will be the purchase of Merrill Lynch (MER) by Bank of America BAC).
You can read more about it here on my U.S. blog.
Another will be the bankruptcy of Lehman Bros. (LEH) if that happens. It hasn't yet as there still might be some kind of last-minute deal before midnight but it doesn't look good.
Currently, gold is up $22.50 or 2.94 and silver is up 4%. That should bode well for the gold stocks I mentioned in last Thursday's blog that were all up huge on Friday.
If Lehman does go under the US$ should drop and there should be a nice rise in gold.
Oil is down 2%, breaking the $100 mark to $99.39.
Roger Biduk's website
Roger Biduk's blog on the U.S. markets
rogerbiduk@rogerbiduk.ca
One big news story tomorrow will be the purchase of Merrill Lynch (MER) by Bank of America BAC).
You can read more about it here on my U.S. blog.
Another will be the bankruptcy of Lehman Bros. (LEH) if that happens. It hasn't yet as there still might be some kind of last-minute deal before midnight but it doesn't look good.
Currently, gold is up $22.50 or 2.94 and silver is up 4%. That should bode well for the gold stocks I mentioned in last Thursday's blog that were all up huge on Friday.
If Lehman does go under the US$ should drop and there should be a nice rise in gold.
Oil is down 2%, breaking the $100 mark to $99.39.
Roger Biduk's website
Roger Biduk's blog on the U.S. markets
rogerbiduk@rogerbiduk.ca
Roger Biduk - Gold Stocks Mentioned in Thursday's Blog Soaring
Roger Biduk writes:
As I wrote in Thursday's blog (see below), gold stocks were due for a rally as the price of gold had a huge drop after nine days in a row of declines.
Well, the gold stocks I mentioned had huge one-day gains on Friday: G +14.49%, YRI + 10.97%, K +10.88%, ABX +9.73%, ELD +6.31%, HBU +6.06% and HMB +3.75.
You'll get this type of action (especially in the commodity markets) after there's been huge losses or gains over a sustained period of time.
The risk reward on the trades above were definitely favorable, even though there are people out there talking about $500 gold coming up.
Only several months ago, I heard $2000 being thrown about....where are these people now?
Roger's Website
Roger's Investing Blog on the American Markets
As I wrote in Thursday's blog (see below), gold stocks were due for a rally as the price of gold had a huge drop after nine days in a row of declines.
Well, the gold stocks I mentioned had huge one-day gains on Friday: G +14.49%, YRI + 10.97%, K +10.88%, ABX +9.73%, ELD +6.31%, HBU +6.06% and HMB +3.75.
You'll get this type of action (especially in the commodity markets) after there's been huge losses or gains over a sustained period of time.
The risk reward on the trades above were definitely favorable, even though there are people out there talking about $500 gold coming up.
Only several months ago, I heard $2000 being thrown about....where are these people now?
Roger's Website
Roger's Investing Blog on the American Markets
Friday, September 12, 2008
Roger Biduk - "After the Bell" - TSX Higher, Gold Glitters
Roger Biduk writes:
The Toronto Stock Exchange ended the day in positive territory Friday after a volatile week of trading on uncertain oil prices and jitters about the future of the U.S. financial industry.
Toronto's S&P/TSX composite index rose 156.82 points to 12,769.58.
The Canadian dollar closed at 94.24 cents US Friday, up 1.35 cents, after hitting a 13-month low on Thursday.
On the New York Mercantile Exchange, light, sweet crude for October delivery rose 31 cents to settle at $101.18 a barrel, after briefly sinking to $99.99 as refineries in the Gulf of Mexico battened down the hatches over concern about the impact of hurricane Ike.
Crude oil on the futures market briefly sank below the psychologically important US$100-a-barrel mark for the first time since April 2 - showing that investors believe a worsening global economy will continue to drive down demand for some time in the United States and elsewhere.
In the past weeks, falling crude prices have driven down Canada's main stock index, which is heavily weighted to oil, gas and commodity companies, as higher prices contribute to demand destruction.
Shares in EnCana Corp. (TSX:ECA) rose 87 cents to $71.69 as the energy sector ended the day up two per cent Friday.
The TSX Venture Exchange was up 43.71 points at 1,607.53.
On the TSX, the financial and information technology sectors created the biggest drag, each falling more than one per cent.
TD Bank (TSX:TD) stock was off by 56 cents to $62.29 while Research in Motion (TSX:RIM) was down 4.7 per cent at $112.36.
The gold sector rose more than nine per cent as the December bullion contract on the Nymex rose $19 to US$764.50 an ounce and Goldcorp (TSX:G) rose 14.5 per cent to $31.36.
In other news, Prime Minister Stephen Harper said a re-elected Conservative government would make it easier for foreign companies to buy parts of Canadian firms.
The Tories would also increase the allowed level of foreign investment in airlines to 49 per cent from the current 25, and allow foreign companies to own Canadian uranium mines.
Shares in Cameco (TSX:CCO) were up 38 cents to $27.25.
Boralex Power Income Fund (TSX:BPT.UN), a Montreal-based electricity generator, said its decision to temporarily halt its wood-residue thermal power stations at Senneterre and Dolbeau in Quebec won't affect its current rate of distributions at 70 cents per year. Its stock closed at $4.18, up three per cent.
www.rogerbiduk.ca
rogerbiduk@rogerbiduk.ca
www.rogerbiduk.wordpress.com
The Toronto Stock Exchange ended the day in positive territory Friday after a volatile week of trading on uncertain oil prices and jitters about the future of the U.S. financial industry.
Toronto's S&P/TSX composite index rose 156.82 points to 12,769.58.
The Canadian dollar closed at 94.24 cents US Friday, up 1.35 cents, after hitting a 13-month low on Thursday.
On the New York Mercantile Exchange, light, sweet crude for October delivery rose 31 cents to settle at $101.18 a barrel, after briefly sinking to $99.99 as refineries in the Gulf of Mexico battened down the hatches over concern about the impact of hurricane Ike.
Crude oil on the futures market briefly sank below the psychologically important US$100-a-barrel mark for the first time since April 2 - showing that investors believe a worsening global economy will continue to drive down demand for some time in the United States and elsewhere.
In the past weeks, falling crude prices have driven down Canada's main stock index, which is heavily weighted to oil, gas and commodity companies, as higher prices contribute to demand destruction.
Shares in EnCana Corp. (TSX:ECA) rose 87 cents to $71.69 as the energy sector ended the day up two per cent Friday.
The TSX Venture Exchange was up 43.71 points at 1,607.53.
On the TSX, the financial and information technology sectors created the biggest drag, each falling more than one per cent.
TD Bank (TSX:TD) stock was off by 56 cents to $62.29 while Research in Motion (TSX:RIM) was down 4.7 per cent at $112.36.
The gold sector rose more than nine per cent as the December bullion contract on the Nymex rose $19 to US$764.50 an ounce and Goldcorp (TSX:G) rose 14.5 per cent to $31.36.
In other news, Prime Minister Stephen Harper said a re-elected Conservative government would make it easier for foreign companies to buy parts of Canadian firms.
The Tories would also increase the allowed level of foreign investment in airlines to 49 per cent from the current 25, and allow foreign companies to own Canadian uranium mines.
Shares in Cameco (TSX:CCO) were up 38 cents to $27.25.
Boralex Power Income Fund (TSX:BPT.UN), a Montreal-based electricity generator, said its decision to temporarily halt its wood-residue thermal power stations at Senneterre and Dolbeau in Quebec won't affect its current rate of distributions at 70 cents per year. Its stock closed at $4.18, up three per cent.
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Roger Biduk - "Before the Bell" - Futures Pointing to a Lower Open on Wall Street
Roger Biduk writes:
FUTURES POINTING TO A LOWER OPEN ON WALL STREET
U.S. stock futures pointed to a weaker start Friday after an unexpected drop in retail sales, with markets on edge over the fate of Lehman Brothers Holdings, the brokerage believed to be in its last hours of independence.
December-dated S&P 500 futures fell 7.6 points to 1,244.40 and Nasdaq 100 futures dropped 6.5 points to 1,775.25. Dow industrial futures fell 63 points.
U.S. stocks saw a manic Thursday, with steep early losses ending in a sizeable advance as speculation that Lehman Brothers wouldn't survive was countered by talk that the investment bank is in talks for a federal government-chaperoned buyout. The Dow Jones Industrial Average rose 164 points, the S&P 500 added 17 points and the Nasdaq Composite rose 29 points.
U.S. retail sales unexpected fell in August, pushed lower by plunging gasoline prices, according to Commerce Department data released Friday. Seasonally adjusted retail sales fell 0.3% in August, much worse than the 0.4% gain expected by economists. Sales in June and July were also revised lower by a total of 0.6 percentage points.
Also, U.S. producer prices fell a steeper than expected 0.9% in August, the Labor Department reported Friday, helped by lower energy costs. The decline follows on the heels of a sharp 1.2% gain in July. Excluding food and energy, "core" producer prices rose 0.2% last month.
University of Michigan consumer sentiment data for September is due out shortly after the open of trade.
The US$ still rose against the British pound and the euro with currency market attention more on Lehman Brothers. Oil futures added 64 cents to $101.51 a barrel.
Attention on Friday turns to which firm is likely to end up with Lehman (LEH)
assets. Bank of America (BAC) was Lehman's "best hope," according to an article in The Wall Street Journal. Britain's Barclays (BCS), which like Lehman is active in debt-market financing, has also been named as a possible suitor.
In pre-open deals, Lehman shares dropped 12.8%.
Merrill Lynch (MER) fell 16% on Thursday on fears that it will be the next domino to fall. Merrill shares lost a further 6% in pre-market trade.
Meanwhile, Washington Mutual (WM) late on Thursday gave a financial update, saying it's well capitalized and that provision for loan losses will drop to roughly $4.5 billion from $5.9 in the second quarter. Retail deposits were "essentially unchanged" at the end of August from year-earlier levels.
Goldman Sachs upgraded Washington Mutual to neutral from sell, saying the lender's capital is absorbing pain, but Moody's Investors Service cut its credit rating to below investment grade.
Chipotle Mexican Grill (CMG) shares lost 12% on a warning over third-quarter earnings, which it now expects to fall.
Overseas markets were generally stronger, with the FTSE 100 up 0.9% in London and the Nikkei 225 up 0.9% in Tokyo.
www.rogerbiduk.ca
www.rogerbiduk@rogerbiduk.ca
Visit my Investment Blog on the Canadian Markets at www.rogerbiduk.wordpress.com
FUTURES POINTING TO A LOWER OPEN ON WALL STREET
U.S. stock futures pointed to a weaker start Friday after an unexpected drop in retail sales, with markets on edge over the fate of Lehman Brothers Holdings, the brokerage believed to be in its last hours of independence.
December-dated S&P 500 futures fell 7.6 points to 1,244.40 and Nasdaq 100 futures dropped 6.5 points to 1,775.25. Dow industrial futures fell 63 points.
U.S. stocks saw a manic Thursday, with steep early losses ending in a sizeable advance as speculation that Lehman Brothers wouldn't survive was countered by talk that the investment bank is in talks for a federal government-chaperoned buyout. The Dow Jones Industrial Average rose 164 points, the S&P 500 added 17 points and the Nasdaq Composite rose 29 points.
U.S. retail sales unexpected fell in August, pushed lower by plunging gasoline prices, according to Commerce Department data released Friday. Seasonally adjusted retail sales fell 0.3% in August, much worse than the 0.4% gain expected by economists. Sales in June and July were also revised lower by a total of 0.6 percentage points.
Also, U.S. producer prices fell a steeper than expected 0.9% in August, the Labor Department reported Friday, helped by lower energy costs. The decline follows on the heels of a sharp 1.2% gain in July. Excluding food and energy, "core" producer prices rose 0.2% last month.
University of Michigan consumer sentiment data for September is due out shortly after the open of trade.
The US$ still rose against the British pound and the euro with currency market attention more on Lehman Brothers. Oil futures added 64 cents to $101.51 a barrel.
Attention on Friday turns to which firm is likely to end up with Lehman (LEH)
assets. Bank of America (BAC) was Lehman's "best hope," according to an article in The Wall Street Journal. Britain's Barclays (BCS), which like Lehman is active in debt-market financing, has also been named as a possible suitor.
In pre-open deals, Lehman shares dropped 12.8%.
Merrill Lynch (MER) fell 16% on Thursday on fears that it will be the next domino to fall. Merrill shares lost a further 6% in pre-market trade.
Meanwhile, Washington Mutual (WM) late on Thursday gave a financial update, saying it's well capitalized and that provision for loan losses will drop to roughly $4.5 billion from $5.9 in the second quarter. Retail deposits were "essentially unchanged" at the end of August from year-earlier levels.
Goldman Sachs upgraded Washington Mutual to neutral from sell, saying the lender's capital is absorbing pain, but Moody's Investors Service cut its credit rating to below investment grade.
Chipotle Mexican Grill (CMG) shares lost 12% on a warning over third-quarter earnings, which it now expects to fall.
Overseas markets were generally stronger, with the FTSE 100 up 0.9% in London and the Nikkei 225 up 0.9% in Tokyo.
www.rogerbiduk.ca
www.rogerbiduk@rogerbiduk.ca
Visit my Investment Blog on the Canadian Markets at www.rogerbiduk.wordpress.com
Thursday, September 11, 2008
Roger Biduk - TSX Higher, Gold Tanks Again
Roger Biduk writes:
Goldbugs I've been speaking to are getting kind on antsy....gold's down 10 days in a row.
Time for me to look a few gold stocks for a short trade. HBU, YRI, K, G, ELD, ABX & HBM are the ones I'll look at.
The Toronto stock market ended the day higher after launching a fervent battle against deeper losses tied to uncertain oil prices, lower gold and a beaten down U.S. financial sector.
Toronto's S&P/TSX composite index closed up 115.61 points to 12,612.76 on Thursday after losing as much as 121 points earlier in the day.
The CDN$ was at 92.89 cents US, down 0.59 of a cent.
Falling crude prices have been a significant factor in driving down Canada's major stock market, which is heavily weighted to oil, gas and commodity companies.
The energy sector rose 1.5 per cent as oil prices slipped lower despite hurricane Ike's march toward oil platforms in the Gulf of Mexico.
The October futures contract for light, sweet crude slid $1.71 to end at US$100.87 a barrel on the Nymex, its lowest close since April.
Fears of a global economic slowdown have been offsetting concerns about whether hurricane Ike could harm refinery operations in the Gulf of Mexico, falling U.S. crude inventories and an OPEC decision to cut production by 500,000 barrels a day.
Ike, coming on the heels of last week's hurricane Gustav, was expected to blow ashore early Saturday somewhere in Texas between Corpus Christi and Houston, with some forecasts saying it could become a Category 4 storm.
Jennifer Dowty, a portfolio manager at MFC Global Investment Management said that she doesn't think crude prices will come anywhere close to US$80 a barrel - a benchmark used by many oil producers when planning their businesses.
"Because it's had such an aggressive pullback, we're going to see a reflex rally which could take it back up to $110 in the near term," she said.
Leading the TSX was the technology sector which climbed 2.5 per cent as Research in Motion (TSX: RIM.TO) rose $5.08 to $117.44. The company announced earlier in the day that it had inked a deal with Microsoft Corp. to carry its web search engine on BlackBerry mobile devices.
The gold sector lost 1.5 per cent, as the December bullion contract on the Nymex fell $17 to close at US$745.50 an ounce, marking its longest streak of losing sessions in eight years.
The TSX financial sector was up 0.5 per cent, and the TSX Venture Exchange ended 32.91 points lower to 1,563.82.
www.rogerbiduk.ca
rogerbiduk@rogerbiduk.ca
Goldbugs I've been speaking to are getting kind on antsy....gold's down 10 days in a row.
Time for me to look a few gold stocks for a short trade. HBU, YRI, K, G, ELD, ABX & HBM are the ones I'll look at.
The Toronto stock market ended the day higher after launching a fervent battle against deeper losses tied to uncertain oil prices, lower gold and a beaten down U.S. financial sector.
Toronto's S&P/TSX composite index closed up 115.61 points to 12,612.76 on Thursday after losing as much as 121 points earlier in the day.
The CDN$ was at 92.89 cents US, down 0.59 of a cent.
Falling crude prices have been a significant factor in driving down Canada's major stock market, which is heavily weighted to oil, gas and commodity companies.
The energy sector rose 1.5 per cent as oil prices slipped lower despite hurricane Ike's march toward oil platforms in the Gulf of Mexico.
The October futures contract for light, sweet crude slid $1.71 to end at US$100.87 a barrel on the Nymex, its lowest close since April.
Fears of a global economic slowdown have been offsetting concerns about whether hurricane Ike could harm refinery operations in the Gulf of Mexico, falling U.S. crude inventories and an OPEC decision to cut production by 500,000 barrels a day.
Ike, coming on the heels of last week's hurricane Gustav, was expected to blow ashore early Saturday somewhere in Texas between Corpus Christi and Houston, with some forecasts saying it could become a Category 4 storm.
Jennifer Dowty, a portfolio manager at MFC Global Investment Management said that she doesn't think crude prices will come anywhere close to US$80 a barrel - a benchmark used by many oil producers when planning their businesses.
"Because it's had such an aggressive pullback, we're going to see a reflex rally which could take it back up to $110 in the near term," she said.
Leading the TSX was the technology sector which climbed 2.5 per cent as Research in Motion (TSX: RIM.TO) rose $5.08 to $117.44. The company announced earlier in the day that it had inked a deal with Microsoft Corp. to carry its web search engine on BlackBerry mobile devices.
The gold sector lost 1.5 per cent, as the December bullion contract on the Nymex fell $17 to close at US$745.50 an ounce, marking its longest streak of losing sessions in eight years.
The TSX financial sector was up 0.5 per cent, and the TSX Venture Exchange ended 32.91 points lower to 1,563.82.
www.rogerbiduk.ca
rogerbiduk@rogerbiduk.ca
Tuesday, September 9, 2008
Roger Biduk - TSX tanks almost 500 points...
Roger Biduk writes:
Where are those analysts that only a couple of months ago were predicting that oil was going to $200 and gold to $2000?
The slide on the Toronto market was led by a 6.4 per cent drop in the energy sector as oil moved closer to the US$100 a barrel level.
The October crude contract on the New York Mercantile Exchange fell $3.08 to US$103.26 a barrel as hurricane Ike appeared less likely to strike Gulf of Mexico energy installations and Saudi Arabia suggested OPEC will not cut output.
The gold sector fell 8.8 per cent as the December bullion contract on the Nymex fell $10.50 to US$792 an ounce.
Where are those analysts that only a couple of months ago were predicting that oil was going to $200 and gold to $2000?
The slide on the Toronto market was led by a 6.4 per cent drop in the energy sector as oil moved closer to the US$100 a barrel level.
The October crude contract on the New York Mercantile Exchange fell $3.08 to US$103.26 a barrel as hurricane Ike appeared less likely to strike Gulf of Mexico energy installations and Saudi Arabia suggested OPEC will not cut output.
The gold sector fell 8.8 per cent as the December bullion contract on the Nymex fell $10.50 to US$792 an ounce.
Monday, September 8, 2008
Roger Biduk - Investors Lost 90% Overnight in Freddie & Fannie
Talk about a sh*tkicking. Not just for investors, but many banks and mutual funds were holding both. Many mutual fund investors had them in their RSPs and RIFs and probably didn't even know it.
Both companies hold around half of the $12 trillion of mortgages in the U.S. and they went belly-up! How could they run out of money?
It's kind of funny in a sick way. A couple of weeks ago the media was celebrating when Freddie Mac raised $2 billion in financing. \
Well, both Fannie and Freddie have $230 billion in debt that is coming due by the end of the quarter!
That's like feeding an elephant a box of Kraft Dinner and hoping it helps!
But here's the scary part.
There's $871 billion in debt coming due by the end of the year by other financial institutions!
Roger Biduk is an investment advisor for Union Securities and has no position in the above-mentioned companies.
rogerbiduk@rogerbiduk.ca
www.rogerbiduk.cs
Both companies hold around half of the $12 trillion of mortgages in the U.S. and they went belly-up! How could they run out of money?
It's kind of funny in a sick way. A couple of weeks ago the media was celebrating when Freddie Mac raised $2 billion in financing. \
Well, both Fannie and Freddie have $230 billion in debt that is coming due by the end of the quarter!
That's like feeding an elephant a box of Kraft Dinner and hoping it helps!
But here's the scary part.
There's $871 billion in debt coming due by the end of the year by other financial institutions!
Roger Biduk is an investment advisor for Union Securities and has no position in the above-mentioned companies.
rogerbiduk@rogerbiduk.ca
www.rogerbiduk.cs
Roger Biduk - More U.S. Homeowners in Trouble
Roger Biduk writes:
Here's some scary stats:
According to The Mortgage Banker's Association, though the second quarter of the year, 9.2% of mortgages (a record) are either in foreclosure or behind in their payments.
That's up from 6.5% from last year and 8.8% last quarter.
Plus, delinquencies were at 21% when it came to sub prime adjustable-rate loans in the second quarter....uh-oh...
Visit my website at rogerbiduk.ca
Drop me a line at rogerbiduk@rogerbiduk.ca
Here's some scary stats:
According to The Mortgage Banker's Association, though the second quarter of the year, 9.2% of mortgages (a record) are either in foreclosure or behind in their payments.
That's up from 6.5% from last year and 8.8% last quarter.
Plus, delinquencies were at 21% when it came to sub prime adjustable-rate loans in the second quarter....uh-oh...
Visit my website at rogerbiduk.ca
Drop me a line at rogerbiduk@rogerbiduk.ca
Roger Biduk: Weakening Global Econonies May Hurt U.S. Companies
Roger Biduk writes:
With the global economies weakening, stocks of many U.S. companies may be in for a rough ride.
Economic forecasts for economies in Asia and Europe have been lowered and that downward shift in global economic growth is a negative for many North American companies for two reasons.
The first is that there are so many U.S. companies depending on foreign growth and revenue. The second is that with the strengthening of the US$ against foreign currencies, you get a double whammy.
Since the U.S. was the first to see a huge slowdown in their economy and other countries later following, it looks like the US$ is saying that the U.S. should be the first to rebound.
But it's anyone's guess. The dramatic drop in the price of oil may help, but there's lots of analysts out there who say that the markets may test their lows they saw in July before rebounding.
Roger Biduk can be reached by email at rogerbiduk@rogerbiduk.com and his website at www.rogerbiduk.com
With the global economies weakening, stocks of many U.S. companies may be in for a rough ride.
Economic forecasts for economies in Asia and Europe have been lowered and that downward shift in global economic growth is a negative for many North American companies for two reasons.
The first is that there are so many U.S. companies depending on foreign growth and revenue. The second is that with the strengthening of the US$ against foreign currencies, you get a double whammy.
Since the U.S. was the first to see a huge slowdown in their economy and other countries later following, it looks like the US$ is saying that the U.S. should be the first to rebound.
But it's anyone's guess. The dramatic drop in the price of oil may help, but there's lots of analysts out there who say that the markets may test their lows they saw in July before rebounding.
Roger Biduk can be reached by email at rogerbiduk@rogerbiduk.com and his website at www.rogerbiduk.com
Sunday, September 7, 2008
Roger Biduk: Asian Markets Soaring
Roger Biduk writes:
Reaction to the governement bailout of Freddie & Fannie look very positive in Asia.
Singapore's Strait Times is +3.5%, Japan's Nikkei +3.5% and Hong Kong's Hang Seng + 3.8%.
I would also expect the US$ to strengthen again major currencies.
Reaction to the governement bailout of Freddie & Fannie look very positive in Asia.
Singapore's Strait Times is +3.5%, Japan's Nikkei +3.5% and Hong Kong's Hang Seng + 3.8%.
I would also expect the US$ to strengthen again major currencies.
Roger Biduk: Market futures soaring on Fannie & Freddie bailout
Well, looks like Wall Street like the bailout proposed by the U.S. government on Freddie Mac and Fanny Mae.
S&P futures are +33, Nasdaq +39 & Dow +248.
Both companies will be taken over by the government and that takes a huge amount of uncertainty out of the market...after all, around half of all the mortgage debt in the U.S. is with these two companies.
However, it's not good news if you own their common stock. S&P downgraded both preferred stock ratings to junk.
email comments to rogerbiduk@rogerbiduk.com
www.rogerbiduk.com
S&P futures are +33, Nasdaq +39 & Dow +248.
Both companies will be taken over by the government and that takes a huge amount of uncertainty out of the market...after all, around half of all the mortgage debt in the U.S. is with these two companies.
However, it's not good news if you own their common stock. S&P downgraded both preferred stock ratings to junk.
email comments to rogerbiduk@rogerbiduk.com
www.rogerbiduk.com
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