Category: Story of Interest

Falling more than 10 percent  from 55.69, BLACKBERRY’s share price continues to depress – a typical story in the marketplace today.   Despite the recent unveiling of its latest products – the Blackberry Bold and the Blackberry Storm (designed to compete with Apple’s iPhone) – it has had little effect in raising investor confidence.  The TSX’s wild swings merely exacerbate problems further. So how can investors protect themselves in such volatile times?  “Puts” are a type of stock option that allows the owner to sell his stock at a specified price for a specific period of time. Much like house or car insurance, there is a premium for this option.  Puts are traded as contracts and one contract represents 100 shares. A “married put” is usually used when a trader is bullish on the stock, still wants the benefits of stock ownership (dividends, voting rights, etc.), but is weary of uncertainties … Continue reading Historic Options Example – BlackBerry

George C. Parker repeatedly sold the Brooklyn Bridge to willing buyers.  The only caveat?  It wasn’t his.  Neither did he own the Metropolitan Museum of Art, the original Madison Square Garden, nor the Statue of Liberty, but that didn’t stop him from duping a string of gullible targets before his final arrest and conviction in 1928.  Carl Sifakis, an authority on turn-of-the-century con men, once described the recipients thusly: “Several times, Parker’s victims had to be rousted from the bridge by police when they tried to erect toll barriers.” It appears little has changed since the days of Parker and his slickster kin. ‘Speculator’ is a fancy term for traders who make money from the rapid purchase and sale of stocks, bonds, futures, or option contracts, capitalizing on the subsequent volatility. In order to achieve this, traders will engage in a process known as “churning” – the act of purchasing … Continue reading 2008 Oil Bubble

Goldman Sachs and Morgan Stanley, the remaining two of the original five big investment firms, converted into commercial banks in recent years.  Taken together with the fall of Lehman Brothers and Merrill Lynch, it is clear that the age of the venerated investment bank has come to a close. The stand-alone investment bank came about with the creation of the 1933 Glass-Steagall Act in reaction to the Great Crash of 1929.  The law aimed to limit the capacity to which a commercial bank could further its own interests above those of the individual investor.  Once banks were no longer permitted to underwrite stocks or bonds, they were required to choose between becoming either a simple lender or a brokerage. Firms separated as a result, launching such divergent entities as J.P. Morgan and its subsidiary Morgan Stanley. The Act would be partly repealed in 1999 after two decades of protest from … Continue reading The End of the Independent Investment Bank

It is what we use to fuel our cars and jets, what we use to convert into propane and ethane for heating and cooking, and it’s what our farmers rely on to grow livestock and crops. And someday, we will suck the Earth dry. The widespread use of fossil fuels has been one of the most important drivers of economic growth since the industrial revolution, allowing humans to participate in takedown or the consumption of energy at a greater rate than it is being replaced. As demand for energy and consumption rises in Canada as well as in China and in India, we suddenly find tight competition in discovering and extracting the very last ounce of black gold from the ground. Analyst refer to the Peak Oil theory to warn us of what is evidently going to happen given current consumption and our lack of adaptability in alternative energy. First … Continue reading Peak Oil Theory

In our globalized economy it is important to be aware of the increasing technological trends that connect us and shape the way we do business. Algorithmic trading is such a trend that is increasing and may one day reshape the entire financial industry. Algorithmic trading is the use of a computer program in order to trade financial instruments, such as stocks and bonds. It does not involve using a computer only to complete a transaction, but the algorithm itself sets the parameters of the trade such as the final price, quantity, and execution time. These parameters are all set based on variables put into the program. For example having a  program sift through global exchanges looking for arbitrage opportunities or implementing technical trading strategies. Complex algorithms can take other factors into investment decisions such as fundamental analysis, news feeds or even weather patterns. Today, it is being used extensively by managers for hedge funds, … Continue reading Algorithmic Trading

By: Nicholas Ivanecky The start of this New Year has been an interesting one for formally known company Research in Motion Ltd. [NASDAQ:BBRY] as the company had finally awoken from its deep sleep to compete with Apple, Google, and Windows. Their product launch for the BlackBerry Z10 on the 30th of January spurred many new opportunities to grow the company. But would that be enough to bring in new and returning customers back to the critically acclaimed Blackberry that introduced the world to smart phones? The launch in late January was a successful in the eyes of Thorsten Heins, CEO of BlackBerry, as he spent the last year overhauling the company, cutting 30 percent of its workforce to save $1 billion and restructuring the sales and marketing for this launch. His efforts were seen by investors late September that caused the stock to double. Moreover, investors reacted differently when they … Continue reading On the Homefront with BlackBerry

By: Ali Masud On 16th march, the EU and IMF agreed on a €10 billion ($13 billion) deal with Cyprus making it the fifth European country to receive money from the EU and IMF. Part of the bailout agreement demands that all bank customers pay a one-time levy that led to heavy cash withdrawals throughout Cyprus. Under the currently agreed terms, depositors with less than 100,000 euros in Cyprus accounts would have to pay a one-time tax of 6.75%. Those with sums over that threshold would pay 9.9%. Some sources have said that the president may want to lower the former rate to 3%, while raising the levy on the larger depositors to 12.5%. The president of Cyprus, Nicos Anastasiades has insisted that without the bailout, Cyprus could face bankruptcy and a possible exit from the EU. The banks were closed on Monday for a national holiday and are being … Continue reading Cypriot Bailout Strategy

By: Blair Logan In the recent U.S. election that saw President Barack Obama return to office, attention now turns toward reconciling the “fiscal cliff” and policies to lower the United States budget deficit. Reconciling the American fiscal cliff is at the forefront of concern across global markets  erasing rallies and optimism in investor outlook. In the previous week of trading following Obama’s re-election,  the S&P 500 lost 2.4 percent, it is biggest decline in the last five months.  As risk and uncertainty spreads throughout markets,  an effective solution towards resolving the American budget deficit remains in debate. This week the president has invited top Democratic and Republican leaders to the White House, beginning  talks on a plan to settle the fiscal cliff. Without any action from Congress, over $600 billion in spending and tax increases are scheduled to commence effective this coming January as a first approach in the deficit … Continue reading Implications of American Fiscal Cliff

By: Maya Baluschak Ford Motor Co. and the Canadian Auto Workers (CAW) have finally reached an agreement. The four-year labor agreement has come into play quick enough to avoid the strike that would have halted production. The agreement is expected to create at least 600 new positions at Ford Canada, having the vast majority at the company’s Oakville plant. However, the CAW’s first priority is to bring back as many of the 800 laid off Ford employees throughout Ontario. The agreement mostly eliminates cost-of-living raises for workers and retirees. In doingso, each employee will receive lump sum payments of $2,000 in year two, three, and four of the contract, along with a $3,000 ratification bonus. The CAW is asking for Chrysler Group LLC and General Motors Co. to accept the same terms. So far it has been indicated that they are unable to agree to those terms. “So I say … Continue reading CAW Reaches Tentative Labor Agreement with Ford

By: Jeremy Bober-Inoue Relations between Japan and China, two of Asia’s biggest economies, has never been in good spirits, their exchange has been referred to as “hot in trade and cold in politics”.  However two countries have managed to stay complacent as they are one of each other’s largest trading partners.  This changed on September 11 when the Japanese Cabinet approved Tokyo Governor, Shintaro Ishihara’s, request to use public funds to buy the islands from a private owner which has resurrected a decades old feud on the Islands true ownership.  China contests that this “constitutes a severe violation of China’s sovereignty”.  Since then Japanese personnel have landed on the islands and boats have been patroling recently. Disdain towards Japan hasn’t been this heated since 2005 when Japanese textbooks downplayed the brutality of their actions during the Second World War.  Protests have been held daily since the occurrence forcing some Japanese … Continue reading Territory Dispute Between China and Japan Over Islands Disrupts Economy