Richard Croft
Member since: Dec '04
President at
R.N. Croft Financial Group Inc.
R.N. Croft Financial Group Inc.
1094 Opinions
Latest Top Picks
A political call since it’s a political year. The only thing republicans and democratic agree on is infrastructure. A nice piece for a portfolio to give stable growth.
Still bullish on growth. They are adding stores in Lululemon. They are doing everything right. A good way to play the retail sector. (Analysts’ price target is $240.13)
They have a great back-log and they are in a duopoly. The stock has a lot of challenges in the coming year. He’s doing a 6 month option.
(A Top Pick Dec 17/18, Up 30%) The covered call expired in July, which is why his returns were high. The stock has since plummeted with lots of challenges and changes in administration. If you did the option, then you did get the maximum amount and he got lucky.
(A Top Pick Dec 17/18, Up 3%) It’s a bond. Essentially, if you want a percentage of your portfolio in bonds, this is the way to do it. However, the interest rate has gone so low that the strike price came in.
Signal
Opinion
Expert
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COMMENT
COMMENT
December 27, 2019
Stocks aren’t that expensive relative to interest rates. If rates remain stable, and if there is no inflation, then it is positive. Low interest rates in Europe will probably continue too. The US will remain flat.
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Stocks aren’t that expensive relative to interest rates. If rates remain stable, and if there is no inflation, then it is positive. Low interest rates in Europe will probably continue too. The US will remain flat.
COMMENT
COMMENT
December 27, 2019
Trump’s tax cuts helped corporate earnings and prices. He thinks the impeachment could lead to more coverage and his popularity to rise.
Show full opinionHide full opinionTrump’s tax cuts helped corporate earnings and prices. He thinks the impeachment could lead to more coverage and his popularity to rise.
TOP PICK
TOP PICK
December 27, 2019
A political call since it’s a political year. The only thing republicans and democratic agree on is infrastructure. A nice piece for a portfolio to give stable growth.
Show full opinionHide full opinionA political call since it’s a political year. The only thing republicans and democratic agree on is infrastructure. A nice piece for a portfolio to give stable growth.
TOP PICK
TOP PICK
December 27, 2019
Still bullish on growth. They are adding stores in Lululemon. They are doing everything right. A good way to play the retail sector. (Analysts’ price target is $240.13)
Show full opinionHide full opinionStill bullish on growth. They are adding stores in Lululemon. They are doing everything right. A good way to play the retail sector. (Analysts’ price target is $240.13)
household goods
TOP PICK
TOP PICK
December 27, 2019
They have a great back-log and they are in a duopoly. The stock has a lot of challenges in the coming year. He’s doing a 6 month option.
Show full opinionHide full opinionThey have a great back-log and they are in a duopoly. The stock has a lot of challenges in the coming year. He’s doing a 6 month option.
Transportation
PAST TOP PICK
PAST TOP PICK
December 27, 2019
(A Top Pick Dec 17/18, Up 30%) The covered call expired in July, which is why his returns were high. The stock has since plummeted with lots of challenges and changes in administration. If you did the option, then you did get the maximum amount and he got lucky.
Show full opinionHide full opinion(A Top Pick Dec 17/18, Up 30%) The covered call expired in July, which is why his returns were high. The stock has since plummeted with lots of challenges and changes in administration. If you did the option, then you did get the maximum amount and he got lucky.
agriculture
PAST TOP PICK
PAST TOP PICK
December 27, 2019
(A Top Pick Dec 17/18, Up 3%) It’s a bond. Essentially, if you want a percentage of your portfolio in bonds, this is the way to do it. However, the interest rate has gone so low that the strike price came in.
Show full opinionHide full opinion(A Top Pick Dec 17/18, Up 3%) It’s a bond. Essentially, if you want a percentage of your portfolio in bonds, this is the way to do it. However, the interest rate has gone so low that the strike price came in.
E.T.F.'s
PAST TOP PICK
PAST TOP PICK
December 27, 2019
(A Top Pick Dec 17/18, Up 43%) He sold SPY June $250 put. At the time, it was trading around 245. He hedged his bets on the downside by buying a June 230 put. This means if the S&P500 collapsed below 230, it would be put to somebody else. He took in $6/share.
Show full opinionHide full opinion(A Top Pick Dec 17/18, Up 43%) He sold SPY June $250 put. At the time, it was trading around 245. He hedged his bets on the downside by buying a June 230 put. This means if the S&P500 collapsed below 230, it would be put to somebody else. He took in $6/share.
E.T.F.'s
BUY
BUY
December 27, 2019
He likes the Canadian banks and TD is one of the best. You could buy any of the Canadian banks. Declining interest rates has hurt the banks but the interest rates have very little downside from here.
Show full opinionHide full opinionHe likes the Canadian banks and TD is one of the best. You could buy any of the Canadian banks. Declining interest rates has hurt the banks but the interest rates have very little downside from here.
banks
COMMENT
COMMENT
December 27, 2019
He’s bullish on 2020. He thinks volatility will decrease. He would buy puts. They have liquid options and by having a $115 put option that expires at the end of next year. You don’t have to sell your stock, but you buy insurance.
Show full opinionHide full opinionHe’s bullish on 2020. He thinks volatility will decrease. He would buy puts. They have liquid options and by having a $115 put option that expires at the end of next year. You don’t have to sell your stock, but you buy insurance.
Transportation
DON'T BUY
DON'T BUY
December 27, 2019
There isn’t no fundamental basis for what it’s valued at today. However he would be afraid to short it. He wouldn’t touch it with a 20 foot pole.
Show full opinionHide full opinionThere isn’t no fundamental basis for what it’s valued at today. However he would be afraid to short it. He wouldn’t touch it with a 20 foot pole.
BUY
BUY
December 27, 2019
He likes it for their dividend. The cash-flow is excellent. If you want to add more, he would write a put option at $60 expiring in March or April.
Show full opinionHide full opinionHe likes it for their dividend. The cash-flow is excellent. If you want to add more, he would write a put option at $60 expiring in March or April.
telephone utilities
BUY
BUY
December 27, 2019
He likes medical devices a lot. The ETF looks good with reasonable MER. Once the rhetoric from the presidential campaign subsides, it’ll probably have more smooth sailing.
Show full opinionHide full opinionHe likes medical devices a lot. The ETF looks good with reasonable MER. Once the rhetoric from the presidential campaign subsides, it’ll probably have more smooth sailing.
E.T.F.'s
BUY
BUY
December 27, 2019
He likes BoA over CitiGroup. They’re one of the leading mortgage providers and this segment will benefit them. They’ve also done a great job cleaning the house. (Analysts’ price target is $35.00)
Show full opinionHide full opinionHe likes BoA over CitiGroup. They’re one of the leading mortgage providers and this segment will benefit them. They’ve also done a great job cleaning the house. (Analysts’ price target is $35.00)
banks
BUY
BUY
December 27, 2019
He likes BoA over CitiGroup. They’re one of the leading mortgage providers and this segment will benefit them. They’ve also done a great job cleaning the house. (Analysts’ price target is $35.00)
Show full opinionHide full opinionHe likes BoA over CitiGroup. They’re one of the leading mortgage providers and this segment will benefit them. They’ve also done a great job cleaning the house. (Analysts’ price target is $35.00)
banks
COMMENT
COMMENT
November 4, 2019
He doesn't see a recession. We had a correction in Q4 last year and a flat market since 2018. We're laying the foundation for a market that will do just fine. The US consumer remains strong, spending money in services (food, entertainment, travel, etc.), and pushing up the real estate market. Manufacturing is a little slow, though the Fed is lowering interest rates. Caveats: Volatility is below 13 now, which worries him, and we don't know who will lead the Democrats. He doesn't like Elizabeth Warren's idea about taxes.
Show full opinionHide full opinionHe doesn't see a recession. We had a correction in Q4 last year and a flat market since 2018. We're laying the foundation for a market that will do just fine. The US consumer remains strong, spending money in services (food, entertainment, travel, etc.), and pushing up the real estate market. Manufacturing is a little slow, though the Fed is lowering interest rates. Caveats: Volatility is below 13 now, which worries him, and we don't know who will lead the Democrats. He doesn't like Elizabeth Warren's idea about taxes.
COMMENT
COMMENT
November 4, 2019
Did 3 puts on May 10 at 284 and paid $9.61 on May 13. It was at 280 or a loss of $4/share, but the put went up to $11.13. Why did the put not protect the SPY position? Are the puts a good way to protect long positions? Problem is, options have a delta--they don't move dollar-for-dollar with the underlying security . The delta would be around $50 for him, so the option likely moved 50 cents up every dollar that the SPY moved down. So that's not 100% protection. He'd need 6 puts instead of 3.
Show full opinionHide full opinionDid 3 puts on May 10 at 284 and paid $9.61 on May 13. It was at 280 or a loss of $4/share, but the put went up to $11.13. Why did the put not protect the SPY position? Are the puts a good way to protect long positions? Problem is, options have a delta--they don't move dollar-for-dollar with the underlying security . The delta would be around $50 for him, so the option likely moved 50 cents up every dollar that the SPY moved down. So that's not 100% protection. He'd need 6 puts instead of 3.
E.T.F.'s
COMMENT
COMMENT
November 4, 2019
Which bank ETF or banks themselves to buy? Currently, he holds GICs. Buy the bank where you are holding your GIC. It's safe. With a GIC, you're loaning that bank money. Banks are starting to rally now after a weak summer. TD is solid. He also likes CIBC and Royal.
Show full opinionHide full opinionWhich bank ETF or banks themselves to buy? Currently, he holds GICs. Buy the bank where you are holding your GIC. It's safe. With a GIC, you're loaning that bank money. Banks are starting to rally now after a weak summer. TD is solid. He also likes CIBC and Royal.
DON'T BUY
DON'T BUY
November 4, 2019
They have challenges. Same-store sales are not living up to street expectations. This is not a terrible buy, but sees more growth in Starbucks. McDonald's pays a 2.6% dividend as it buys back shares with borrowed money, but interest rates will remain low.
food services
PAST TOP PICK
PAST TOP PICK
November 4, 2019
(A Top Pick Nov 09/18, Up 19%)synthetic long Apple He bought a call and sold a put. It acted like the underlying stock. He didn't put up any money, and got a 60-cent credit right out of the gate. He closed everything last Friday and got $40.75/share--a huge win. He tamped that down and put up 30% margin. So, that 19% return would triple. He took that off the table though and simply bought Apple which was up 19%. He was being conservative.
Show full opinionHide full opinion(A Top Pick Nov 09/18, Up 19%)synthetic long Apple He bought a call and sold a put. It acted like the underlying stock. He didn't put up any money, and got a 60-cent credit right out of the gate. He closed everything last Friday and got $40.75/share--a huge win. He tamped that down and put up 30% margin. So, that 19% return would triple. He took that off the table though and simply bought Apple which was up 19%. He was being conservative.
electrical/electronic
PAST TOP PICK
PAST TOP PICK
November 4, 2019
(A Top Pick Nov 09/18, Up 7%) This will break out, has serious upside, and he expects a US-China trade deal.
Show full opinionHide full opinion(A Top Pick Nov 09/18, Up 7%) This will break out, has serious upside, and he expects a US-China trade deal.
E.T.F.'s
PAST TOP PICK
PAST TOP PICK
November 4, 2019
(A Top Pick Nov 09/18, Up 2%) A covered call. Boeing is under the regulatory microscope for a good reason. He sold a call and made a modest profit even though the stock itself has gone down. Don't trade Boeing now, but do a call. Boeing has a long runway ahead, pun intended.
Show full opinionHide full opinion(A Top Pick Nov 09/18, Up 2%) A covered call. Boeing is under the regulatory microscope for a good reason. He sold a call and made a modest profit even though the stock itself has gone down. Don't trade Boeing now, but do a call. Boeing has a long runway ahead, pun intended.
Transportation
COMMENT
COMMENT
November 4, 2019
If it holds its 200-day moving average, it's now an entry point. China is key--how will their relationship with the Chinese government shape up? Starbucks offers better growth than, say, McDonald's.
food services
BUY
BUY
November 4, 2019
A good portfolio hedge? Yes. With this, you're buying the VIX x 2. TVIX is a short-term vehicle. You hedge because you feel the markets are irrational now, expecting the market to move down which spark the volatility, which gives you double the bang for your back. But keep a very close eye on this as you execute it.
Show full opinionHide full opinionA good portfolio hedge? Yes. With this, you're buying the VIX x 2. TVIX is a short-term vehicle. You hedge because you feel the markets are irrational now, expecting the market to move down which spark the volatility, which gives you double the bang for your back. But keep a very close eye on this as you execute it.
E.T.F.'s
BUY
BUY
November 4, 2019
A universal bond ETF for Canada? If you want an ETF that gives you a cross-section of Canadian bonds, then buy XBB-T. If you want something more global, then Google "global bond ETF" which you can buy and hold long-term.
E.T.F.'s
WEAK BUY
WEAK BUY
November 4, 2019
Long term hold? There's nothing wrong with it, but CWW doesn't excite him. You can buy it now, but he feels neutral about it. He'd rather buy SPY.
E.T.F.'s
DON'T BUY
DON'T BUY
November 4, 2019
Energy faces a lot of challenges. If you're contrarian you can buy some of this. He's not a fan of energy. Current energy prices are about right. Also, Aramco is going public, as announced today, which will attract some investment at the expense of Canadian energy stocks. Alberta needs pipelines.
Show full opinionHide full opinionEnergy faces a lot of challenges. If you're contrarian you can buy some of this. He's not a fan of energy. Current energy prices are about right. Also, Aramco is going public, as announced today, which will attract some investment at the expense of Canadian energy stocks. Alberta needs pipelines.
E.T.F.'s
BUY
BUY
November 4, 2019
A covered call He likes covered calls and you can do it with BHC. Write them and take the premium here. BHC has been rangebound, but demographics favour health stocks. However, governments will limit pricing of health services.
Show full opinionHide full opinionA covered call He likes covered calls and you can do it with BHC. Write them and take the premium here. BHC has been rangebound, but demographics favour health stocks. However, governments will limit pricing of health services.
Healthcare
BUY
BUY
November 4, 2019
How do DLR and DLR-U work? One bets on the US dollar, and the other bets against it. They're currency plays. He prefers betting on it, the DLR, because the USD is on the upside.
Show full opinionHide full opinionHow do DLR and DLR-U work? One bets on the US dollar, and the other bets against it. They're currency plays. He prefers betting on it, the DLR, because the USD is on the upside.
E.T.F.'s
COMMENT
COMMENT
November 4, 2019
Option trade with uncertainty in Canada? Do a covered call or write a put. If you sell a put, you must buy the stock at a certain price, so you can set a price point to enter the position. If a covered call, you're buying the stock, selling a call and capping your upside but reducing your cost base. The premiums on CNQ are in the top 25% of Canadian option premiums. Don't buy options on it now.
Show full opinionHide full opinionOption trade with uncertainty in Canada? Do a covered call or write a put. If you sell a put, you must buy the stock at a certain price, so you can set a price point to enter the position. If a covered call, you're buying the stock, selling a call and capping your upside but reducing your cost base. The premiums on CNQ are in the top 25% of Canadian option premiums. Don't buy options on it now.
oil/gas
DON'T BUY
DON'T BUY
November 4, 2019
He's never liked marijuana stocks. The hype wasn't justified and they got way ahead of themselves. This will be regulated like alcohol which means tight returns.
Show full opinionHide full opinionHe's never liked marijuana stocks. The hype wasn't justified and they got way ahead of themselves. This will be regulated like alcohol which means tight returns.
E.T.F.'s
BUY
BUY
November 4, 2019
Initiate a call option for a strike date of April 2020 at a strike price around $340? Likes Shopify. You will pay a lot for the option because the premiums are high, in the top 25%. Shopify has had a good run, though come off recently. Go ahead and do it. It's a speculative move.
Show full opinionHide full opinionInitiate a call option for a strike date of April 2020 at a strike price around $340? Likes Shopify. You will pay a lot for the option because the premiums are high, in the top 25%. Shopify has had a good run, though come off recently. Go ahead and do it. It's a speculative move.
TOP PICK
TOP PICK
November 4, 2019
Synthetic long Amazon Buy 1800 call that expires Jan. 2021 at $224, sell 1800 put -$193, net $31/share, so $51 cost out of pocket. Amazon is the best consumer play around.
Show full opinionHide full opinionSynthetic long Amazon Buy 1800 call that expires Jan. 2021 at $224, sell 1800 put -$193, net $31/share, so $51 cost out of pocket. Amazon is the best consumer play around.
specialty stores
TOP PICK
TOP PICK
November 4, 2019
Synthetic long Microsoft Buy January (2021) 145 call at $14.50, sell Jan (2021) 145 put at -$15.40, net $0.90/share. MSFT is a great company shooting on all cylinders. It has a great shot scoring the US government contract for cloud services (Trump doesn't like competitor Amazon/Bezos).
computer software/processing
TOP PICK
TOP PICK
November 4, 2019
Sell put JPM Sell 130 put for cost of -$11.55. If JPM is > $130 by Sept. 2021, the puts expire worthless. If JPM is < $130 by Sept. 2021, then buy JPM at $130 with a -$11.55 premium.
Show full opinionHide full opinionSell put JPM Sell 130 put for cost of -$11.55. If JPM is > $130 by Sept. 2021, the puts expire worthless. If JPM is < $130 by Sept. 2021, then buy JPM at $130 with a -$11.55 premium.
Financial Services
BUY
BUY
November 4, 2019
An ETF with exposure to US growth in the next 2 years, pays a good dividend and is super-safe? You won't find super-save without risk. CUD invests in US stocks that consistently increase their dividend that pays a yield better than SPR's.
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