Richard Croft
Member since: Dec '04
President at
R.N. Croft Financial Group Inc.
R.N. Croft Financial Group Inc.
1031 Opinions
Latest Top Picks
(A Top Pick Jul 03/18, Up 2%) He bought then expecting higher interest rates, but that didn't happen, so banks are getting squeezed. ZEB has good dividends from quality companies. The Canadian banks are misunderstood. Their fees come from fees and investment banking, not only mortages. ZEB is worth holding.
(A Top Pick Jul 03/18, Up 4%) It consists of American small-cap dividend-payers which are less sensitive to trading headlines. He likes the dividends from solid stocks.
(A Top Pick Jul 03/18, Up 7%) Half of it are the FAANGs; half are dividend-paying small-caps. Both were badly hit in Q4 -2018, but the FAANGs have yet to recover fully. But if the market continues to rise, the FAANGs will recover. Hold onto FDN.
It's been beaten up badly, but after the G20 summit, he expects it to bounce back. It's the Amazon of China and this is one way to play China. (Analysts’ price target is $281.88)
True, they're under a lot of scrutiny and are looking for a new CEO, but they have an excellent capital position and just passed their stress test. They've raised their dividend and he expects them to raise it by 10%. They just announced 11% stock buybacks. This will support the stock price. They won't get hurt as much by the squeezed margins on the yield curve. (Analysts’ price target is $51.48)
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COMMENT
COMMENT
July 3, 2019
Today's record high was a "melt-up." If it continues to go, then this melt-up will be driven by FOMO, rather than stock fundamentals. Likely, we'll see more interest rates cuts in the US of 25 basis points--but we don't need this. There's a ton of investment money out there already, so we don't need that cut. Potentially, trade tensions will ease. Nothing happened at the G20, really. The new NAFTA signing faces a 50/50 chance to complete, given the political turmoil in the States. He expects the China-US trade agreement might happen next year, yet maybe not. Trump has long been playing the trade card with his base, based on trade deficits--which aren't as bad as Trump is leading people to believe. Manufacturing has left the U.S., but the US economy is NOT manufacturing, but high-end service. He's dumbing down issues to play to his base.
Today's record high was a "melt-up." If it continues to go, then this melt-up will be driven by FOMO, rather than stock fundamentals. Likely, we'll see more interest rates cuts in the US of 25 basis points--but we don't need this. There's a ton of investment money out there already, so we don't need that cut. Potentially, trade tensions will ease. Nothing happened at the G20, really. The new NAFTA signing faces a 50/50 chance to complete, given the political turmoil in the States. He expects the China-US trade agreement might happen next year, yet maybe not. Trump has long been playing the trade card with his base, based on trade deficits--which aren't as bad as Trump is leading people to believe. Manufacturing has left the U.S., but the US economy is NOT manufacturing, but high-end service. He's dumbing down issues to play to his base.
Richard Croft
President, R.N. Croft Financial Group Inc.
BUY
BUY
July 3, 2019
Do you recommend ZWS as a hedged covered call or prefer something else, and would you hold it at the only US equity in a portfolio? To answer the latter, no. And he prefers SPY-N as your core holding; it pays you yield and cash flow, becuase it holds high-dividend stocks and sells covered calls against them. Also, US dividends are taxed in Canada and don't benefit from the dividend tax credit.
Do you recommend ZWS as a hedged covered call or prefer something else, and would you hold it at the only US equity in a portfolio? To answer the latter, no. And he prefers SPY-N as your core holding; it pays you yield and cash flow, becuase it holds high-dividend stocks and sells covered calls against them. Also, US dividends are taxed in Canada and don't benefit from the dividend tax credit.
E.T.F.'s
BUY
BUY
July 3, 2019
A long/bull ETF if China outperforms other markets with a 1-3 year outlook It's liquid and has options if you want to sell covered calls. China is an interesting play now after taking a big hit from US tariffs, but recovering now after the G20 summit. He doesn't agree with Trump's methods, but with his end-game, which is getting China to play fairly.
A long/bull ETF if China outperforms other markets with a 1-3 year outlook It's liquid and has options if you want to sell covered calls. China is an interesting play now after taking a big hit from US tariffs, but recovering now after the G20 summit. He doesn't agree with Trump's methods, but with his end-game, which is getting China to play fairly.
E.T.F.'s
COMMENT
COMMENT
July 3, 2019
I gained $1 from a recent call and put, but WGA is volatile. Take the gains or wait till the October call? Amazon is having trouble disrupting WBA's healthcare business and sector. If you want to take gains, then take half the position you got and close it out--take your profits and let the rest of your money ride.
I gained $1 from a recent call and put, but WGA is volatile. Take the gains or wait till the October call? Amazon is having trouble disrupting WBA's healthcare business and sector. If you want to take gains, then take half the position you got and close it out--take your profits and let the rest of your money ride.
specialty stores
PAST TOP PICK
PAST TOP PICK
July 3, 2019
(A Top Pick Jul 03/18, Up 2%) He bought then expecting higher interest rates, but that didn't happen, so banks are getting squeezed. ZEB has good dividends from quality companies. The Canadian banks are misunderstood. Their fees come from fees and investment banking, not only mortages. ZEB is worth holding.
(A Top Pick Jul 03/18, Up 2%) He bought then expecting higher interest rates, but that didn't happen, so banks are getting squeezed. ZEB has good dividends from quality companies. The Canadian banks are misunderstood. Their fees come from fees and investment banking, not only mortages. ZEB is worth holding.
E.T.F.'s
PAST TOP PICK
PAST TOP PICK
July 3, 2019
(A Top Pick Jul 03/18, Up 4%) It consists of American small-cap dividend-payers which are less sensitive to trading headlines. He likes the dividends from solid stocks.
(A Top Pick Jul 03/18, Up 4%) It consists of American small-cap dividend-payers which are less sensitive to trading headlines. He likes the dividends from solid stocks.
E.T.F.'s
PAST TOP PICK
PAST TOP PICK
July 3, 2019
(A Top Pick Jul 03/18, Up 7%) Half of it are the FAANGs; half are dividend-paying small-caps. Both were badly hit in Q4 -2018, but the FAANGs have yet to recover fully. But if the market continues to rise, the FAANGs will recover. Hold onto FDN.
(A Top Pick Jul 03/18, Up 7%) Half of it are the FAANGs; half are dividend-paying small-caps. Both were badly hit in Q4 -2018, but the FAANGs have yet to recover fully. But if the market continues to rise, the FAANGs will recover. Hold onto FDN.
E.T.F.'s
BUY
BUY
July 3, 2019
Banks have suffered from interest rate issues and should be a core holding. TD is the best of the big 5 Canadian ones and has a growing US presence. There's little room for the stock price to drop, even as interest rates decline, because that decline is already priced in. History shows that the Canadian banks keep raising their dividends.
Banks have suffered from interest rate issues and should be a core holding. TD is the best of the big 5 Canadian ones and has a growing US presence. There's little room for the stock price to drop, even as interest rates decline, because that decline is already priced in. History shows that the Canadian banks keep raising their dividends.
banks
COMMENT
COMMENT
July 3, 2019
Convert ETF bond funds to rate reset preferred shares? They reset the dividend at some point on the yield curve, maybe 1% above the 5-year rate on Canada bonds. The benefit is that if interest rates go up, they will raise their yields which will stabilize their price. They are being impacted by those resetting their rates today as interest rates decline. That's negative. Preferred are better than bonds only if the preferreds are good quality; preferreds pay a better yield and offer a tax advantage.
Convert ETF bond funds to rate reset preferred shares? They reset the dividend at some point on the yield curve, maybe 1% above the 5-year rate on Canada bonds. The benefit is that if interest rates go up, they will raise their yields which will stabilize their price. They are being impacted by those resetting their rates today as interest rates decline. That's negative. Preferred are better than bonds only if the preferreds are good quality; preferreds pay a better yield and offer a tax advantage.
Richard Croft
President, R.N. Croft Financial Group Inc.
HOLD
HOLD
July 3, 2019
Selling the covered call to gain more income. This has work until recently. Do in the money covered calls instead? If you do, you'll lose the dividend when you sell it. He wouldn't because you'll likely lose the stock and the dividend.
Selling the covered call to gain more income. This has work until recently. Do in the money covered calls instead? If you do, you'll lose the dividend when you sell it. He wouldn't because you'll likely lose the stock and the dividend.
banks
BUY
BUY
July 3, 2019
Morningstar rates it only one star. He likes tech. Don't trust the Morningstar ratings blindly. It's a higher-beta ETF.
Morningstar rates it only one star. He likes tech. Don't trust the Morningstar ratings blindly. It's a higher-beta ETF.
E.T.F.'s
COMMENT
COMMENT
July 3, 2019
A Canadian bank. They pay a good 5% dividend that they've raised 8 times in the last 3 years. True, management keeps messing things up, though.
A Canadian bank. They pay a good 5% dividend that they've raised 8 times in the last 3 years. True, management keeps messing things up, though.
banks
COMMENT
COMMENT
July 3, 2019
I'm 90 and love banks, but what happens to the money I invest in those banks. Should I stop investing? You buy a bank GIC that pays under 3% annually for 5 years or you can buy a bank stock that pays a higher yield, offers tax advantages and rises in share price. Which is better? Keep investing.
I'm 90 and love banks, but what happens to the money I invest in those banks. Should I stop investing? You buy a bank GIC that pays under 3% annually for 5 years or you can buy a bank stock that pays a higher yield, offers tax advantages and rises in share price. Which is better? Keep investing.
Richard Croft
President, R.N. Croft Financial Group Inc.
HOLD
HOLD
July 3, 2019
It's the leading investment bank in the U.S. There's alot of investing money and GS will take advantage of this. Hold onto this; it'll pay off.
It's the leading investment bank in the U.S. There's alot of investing money and GS will take advantage of this. Hold onto this; it'll pay off.
investment companies/funds
COMMENT
COMMENT
July 3, 2019
Strategy or option plans in Canadian energy? Canadian oil is more volatile than the overall market. Look for big oil names that are very liquid, so you can trade options. Look at Suncor for a covered call, but don't expect growth prospects in oil stocks. There'll be headwinds, namely the growth of e-cars. We won't see $100 oil again.
Strategy or option plans in Canadian energy? Canadian oil is more volatile than the overall market. Look for big oil names that are very liquid, so you can trade options. Look at Suncor for a covered call, but don't expect growth prospects in oil stocks. There'll be headwinds, namely the growth of e-cars. We won't see $100 oil again.
integrated oils
PARTIAL BUY
PARTIAL BUY
July 3, 2019
ZID is as good as any. India is a large, diverse economy with 300 million in its middle class. But don't put a lot of money in here; India doesn't invest in economy like China.
ZID is as good as any. India is a large, diverse economy with 300 million in its middle class. But don't put a lot of money in here; India doesn't invest in economy like China.
E.T.F.'s
BUY
BUY
July 3, 2019
A balanced ETF. This includes bonds. If you're around 50 and planning retirement, there's nothing wrong with holding a lot of stocks, but a core holding should be balanced like this one. Weight your equities depending on how agressive you feel you want to be at a given point and time.
A balanced ETF. This includes bonds. If you're around 50 and planning retirement, there's nothing wrong with holding a lot of stocks, but a core holding should be balanced like this one. Weight your equities depending on how agressive you feel you want to be at a given point and time.
E.T.F.'s
DON'T BUY
DON'T BUY
July 3, 2019
It's up 30% this year. It consists of junior gold companies. If these companies find gold, those companies get profitable quickly, but you also gett three times the leverage. It's not a long-term play, but a short-term aggressive one. GLD is better for the long term.
It's up 30% this year. It consists of junior gold companies. If these companies find gold, those companies get profitable quickly, but you also gett three times the leverage. It's not a long-term play, but a short-term aggressive one. GLD is better for the long term.
E.T.F.'s
DON'T BUY
DON'T BUY
July 3, 2019
Do you recommend ZWS as a hedged covered call or prefer something else, and would you hold it at the only US equity in a portfolio? To answer the latter, no. And he prefers SPY-N as your core holding; it pays you yield and cash flow, becuase it holds high-dividend stocks and sells covered calls against them. Also, US dividends are taxed in Canada and don't benefit from the dividend tax credit.
Do you recommend ZWS as a hedged covered call or prefer something else, and would you hold it at the only US equity in a portfolio? To answer the latter, no. And he prefers SPY-N as your core holding; it pays you yield and cash flow, becuase it holds high-dividend stocks and sells covered calls against them. Also, US dividends are taxed in Canada and don't benefit from the dividend tax credit.
E.T.F.'s
COMMENT
COMMENT
July 3, 2019
I'm concerned when funds keep issuing shares over time. Is there a risk of too many shares in a regular stock and the chance of a rollback? No. They are issuing more shares, likely for institutional investors. So they would buy more of the underlying product to support the ETF.
I'm concerned when funds keep issuing shares over time. Is there a risk of too many shares in a regular stock and the chance of a rollback? No. They are issuing more shares, likely for institutional investors. So they would buy more of the underlying product to support the ETF.
Richard Croft
President, R.N. Croft Financial Group Inc.
TOP PICK
TOP PICK
July 3, 2019
It's been beaten up badly, but after the G20 summit, he expects it to bounce back. It's the Amazon of China and this is one way to play China. (Analysts’ price target is $281.88)
It's been beaten up badly, but after the G20 summit, he expects it to bounce back. It's the Amazon of China and this is one way to play China. (Analysts’ price target is $281.88)
TOP PICK
TOP PICK
July 3, 2019
True, they're under a lot of scrutiny and are looking for a new CEO, but they have an excellent capital position and just passed their stress test. They've raised their dividend and he expects them to raise it by 10%. They just announced 11% stock buybacks. This will support the stock price. They won't get hurt as much by the squeezed margins on the yield curve. (Analysts’ price target is $51.48)
True, they're under a lot of scrutiny and are looking for a new CEO, but they have an excellent capital position and just passed their stress test. They've raised their dividend and he expects them to raise it by 10%. They just announced 11% stock buybacks. This will support the stock price. They won't get hurt as much by the squeezed margins on the yield curve. (Analysts’ price target is $51.48)
investment companies/funds
TOP PICK
TOP PICK
July 3, 2019
March300 calls It's a short-term trade. The $300 calls will cost around $18. If you believe markets will continue to rise, this is how you play it with limited risk. The VIX is low. If the S&P goes to 3,200, you'll get a double on this option.
March300 calls It's a short-term trade. The $300 calls will cost around $18. If you believe markets will continue to rise, this is how you play it with limited risk. The VIX is low. If the S&P goes to 3,200, you'll get a double on this option.
E.T.F.'s
COMMENT
COMMENT
May 9, 2019
Trump has strong support across the board in America; China doesn't play by the rules. He doesn't agree with Trump's style of negotiation, but at least he is calling China on that issue. The markets are spooked by an America-China trade deal not happening tomorrow. No question: tariffs will hit both sides, though there's almost no inflation. We have the lowest unemployment since 1969, which is remarkable, yet we have no inflation--and this confuses central bankers around the world. How? We don't know. This is the most important long-term factor on markets. China has a 6% growth rate, but productivity has been falling for 15 years, yet also has little inflation. Meanwhile, the US is running a high deficit and some day it'll have to be paid back. Down the road, a dramatic melt-up could happen.
Trump has strong support across the board in America; China doesn't play by the rules. He doesn't agree with Trump's style of negotiation, but at least he is calling China on that issue. The markets are spooked by an America-China trade deal not happening tomorrow. No question: tariffs will hit both sides, though there's almost no inflation. We have the lowest unemployment since 1969, which is remarkable, yet we have no inflation--and this confuses central bankers around the world. How? We don't know. This is the most important long-term factor on markets. China has a 6% growth rate, but productivity has been falling for 15 years, yet also has little inflation. Meanwhile, the US is running a high deficit and some day it'll have to be paid back. Down the road, a dramatic melt-up could happen.
Richard Croft
President, R.N. Croft Financial Group Inc.
COMMENT
COMMENT
May 9, 2019
Buy a call at $54 in January 17, 2020 or Jan. 15, 2021 at $55? Is the latter better for the extra year? And add a put to offset the cost? They've had a good run, though it has staggered a bit recently. To buy a two years out is more like a warrant. You'll pay more for the one in 2021. This depends on your timeline--how long do you think CVS will return to its previous level. Either call is fine. Selling a put: If you sold at $55, you'd collect some premium and that would help pay for it. But if you do, all you're doing is creating a synthetic long position, and the same as owning CVS stock.
Buy a call at $54 in January 17, 2020 or Jan. 15, 2021 at $55? Is the latter better for the extra year? And add a put to offset the cost? They've had a good run, though it has staggered a bit recently. To buy a two years out is more like a warrant. You'll pay more for the one in 2021. This depends on your timeline--how long do you think CVS will return to its previous level. Either call is fine. Selling a put: If you sold at $55, you'd collect some premium and that would help pay for it. But if you do, all you're doing is creating a synthetic long position, and the same as owning CVS stock.
specialty stores
COMMENT
COMMENT
May 9, 2019
Many people are looking for income. This pays a 6% yield. (See his top picks later.)
Many people are looking for income. This pays a 6% yield. (See his top picks later.)
E.T.F.'s
BUY
BUY
May 9, 2019
This is close to the TSX 60 ETFs, like XIU. This is an index play on Canada. Buy and hold it. A great core holding.
This is close to the TSX 60 ETFs, like XIU. This is an index play on Canada. Buy and hold it. A great core holding.
E.T.F.'s
BUY
BUY
May 9, 2019
It's an income product, so don't worry about the stock price. The covered calls add a bit more distributions to the dividend. Is it enough for you? This is a bond proxy, really.
It's an income product, so don't worry about the stock price. The covered calls add a bit more distributions to the dividend. Is it enough for you? This is a bond proxy, really.
E.T.F.'s
WEAK BUY
WEAK BUY
May 9, 2019
India is interesting, because 300 million people there are now middle class. India has a lot of potential, and he would hold a small position.
India is interesting, because 300 million people there are now middle class. India has a lot of potential, and he would hold a small position.
E.T.F.'s
COMMENT
COMMENT
May 9, 2019
Is there enough liquidity and volatility to trade option on leveraged U.S. ETFs? Would there be enough volatility to make day trades? Buy options on the volatility index instead. This index is six times more volatile than the S&P 500. He thinks (not sure) that there are options on a 2x volatility index in the U.S. which means 12x the leverage.
Is there enough liquidity and volatility to trade option on leveraged U.S. ETFs? Would there be enough volatility to make day trades? Buy options on the volatility index instead. This index is six times more volatile than the S&P 500. He thinks (not sure) that there are options on a 2x volatility index in the U.S. which means 12x the leverage.
Richard Croft
President, R.N. Croft Financial Group Inc.
PAST TOP PICK
PAST TOP PICK
May 9, 2019
(A Top Pick Aug 02/18, Up 4%)A covered call. He suggested buying Apple and selling a $200 call on it. $6.45 on the call, so the cost of your shares are $195. The options expired in August, so the stock were trading under and weren't called. Then, Apple tanked. It would have been hard to hang onto it, but if you had, you would have done great. Today, he'd write options on it again.
(A Top Pick Aug 02/18, Up 4%)A covered call. He suggested buying Apple and selling a $200 call on it. $6.45 on the call, so the cost of your shares are $195. The options expired in August, so the stock were trading under and weren't called. Then, Apple tanked. It would have been hard to hang onto it, but if you had, you would have done great. Today, he'd write options on it again.
electrical/electronic
PAST TOP PICK
PAST TOP PICK
May 9, 2019
(A Top Pick Aug 02/18, Up 13%)An August covered call. He sold an August call. He thought that the market was ahead of itself and he took some money off the table. The price in August was $338.50 and the option to sell at $360. It never got there. You wouldn't kept the stock. Your cost was $317, hence the 13% return.
(A Top Pick Aug 02/18, Up 13%)An August covered call. He sold an August call. He thought that the market was ahead of itself and he took some money off the table. The price in August was $338.50 and the option to sell at $360. It never got there. You wouldn't kept the stock. Your cost was $317, hence the 13% return.
Unknown
PAST TOP PICK
PAST TOP PICK
May 9, 2019
(A Top Pick Aug 02/18, Up 1%) Most FAANG stocks are momentum plays and led the market last year until September, plunged, then returned. He isn't thrilled about momentum now.
(A Top Pick Aug 02/18, Up 1%) Most FAANG stocks are momentum plays and led the market last year until September, plunged, then returned. He isn't thrilled about momentum now.
COMMENT
COMMENT
May 9, 2019
E.T.F.'s
BUY
BUY
May 9, 2019
This or buy gold itself? He prefers this ETF over gold itself--but he doesn't like gold. XGD tracks the price of gold closely. GLD tracks the actual gold in the U.S., and he doesn't like it as much though you can write covered calls with this, though the market is illiquid.
This or buy gold itself? He prefers this ETF over gold itself--but he doesn't like gold. XGD tracks the price of gold closely. GLD tracks the actual gold in the U.S., and he doesn't like it as much though you can write covered calls with this, though the market is illiquid.
E.T.F.'s
HOLD
HOLD
May 9, 2019
How far out would you write a covered call on this? That's a tough one. He wouldn't write a covered call on this. So, if you believe the US economy will grow above-average in coming years, then Canada will benefit. Sit tight and use it as a core holding. Wait till there's a trade deal--and it will happen. It's all bluster now.
How far out would you write a covered call on this? That's a tough one. He wouldn't write a covered call on this. So, if you believe the US economy will grow above-average in coming years, then Canada will benefit. Sit tight and use it as a core holding. Wait till there's a trade deal--and it will happen. It's all bluster now.
investment companies/funds
COMMENT
COMMENT
May 9, 2019
A perpetual strategy using a call and a put option to protect a portfolio against downside risk. Say stock X reaches a top at $60 and it falls below $50. No. You're talking about buying a put option to protect a stock you own. If X peaks at $60, you could buy a $60 put option with a 6-month term, that'll cost you $1. If the stock falls, put option rises in value, which is equivalent to a short. He doesn't like this strategy. If you're worried about a stock at a certain point, then go back and examine why you bought it. Otherwise, why keep it? Sell it.
A perpetual strategy using a call and a put option to protect a portfolio against downside risk. Say stock X reaches a top at $60 and it falls below $50. No. You're talking about buying a put option to protect a stock you own. If X peaks at $60, you could buy a $60 put option with a 6-month term, that'll cost you $1. If the stock falls, put option rises in value, which is equivalent to a short. He doesn't like this strategy. If you're worried about a stock at a certain point, then go back and examine why you bought it. Otherwise, why keep it? Sell it.
Richard Croft
President, R.N. Croft Financial Group Inc.
COMMENT
COMMENT
May 9, 2019
To play potential interest rate volatility. He trades this often. To buy a call on a put, you have to buy a premium. He thinks interest rates will stay flat in the coming 12 months.
To play potential interest rate volatility. He trades this often. To buy a call on a put, you have to buy a premium. He thinks interest rates will stay flat in the coming 12 months.
E.T.F.'s
COMMENT
COMMENT
May 9, 2019
In a TFSA? Don't. Hold stocks in a TFSA that you will hold for a long time. An interesting company for a covered call. Where SHOP is now, he would do only a covered call. It's run up so much that there's downside risk.
In a TFSA? Don't. Hold stocks in a TFSA that you will hold for a long time. An interesting company for a covered call. Where SHOP is now, he would do only a covered call. It's run up so much that there's downside risk.
BUY
BUY
May 9, 2019
He likes this. Medical devices play to an aging demographic. The risk is political intereference with governments issuing new laws that interfere with this sector.
He likes this. Medical devices play to an aging demographic. The risk is political intereference with governments issuing new laws that interfere with this sector.
E.T.F.'s
COMMENT
COMMENT
May 9, 2019
How does this pay a yield if weed stocks don't? It does pay a dividend, perhaps from capital gains from buying and selling those weed stocks within the ETF. He doesn't think cannabis will be an exciting industry, but will wind up like the liquor business.
How does this pay a yield if weed stocks don't? It does pay a dividend, perhaps from capital gains from buying and selling those weed stocks within the ETF. He doesn't think cannabis will be an exciting industry, but will wind up like the liquor business.
E.T.F.'s
TOP PICK
TOP PICK
May 9, 2019
Buy this for the dividend and don't expect much share price movement. BCE has raised their dividend 16 times since 2007. 5.31% yield that they just raised. They will continue to raise it. (Analysts’ price target is $61.44)
Buy this for the dividend and don't expect much share price movement. BCE has raised their dividend 16 times since 2007. 5.31% yield that they just raised. They will continue to raise it. (Analysts’ price target is $61.44)
telephone utilities
TOP PICK
TOP PICK
May 9, 2019
This gets the dividend from the big six Canadian banks and other premium from the sale of options before the PIF capital shares receive anything. This has a redemption price of $15 down the road with a 5.9% yield. Solid though it won't increase. An income producer.
This gets the dividend from the big six Canadian banks and other premium from the sale of options before the PIF capital shares receive anything. This has a redemption price of $15 down the road with a 5.9% yield. Solid though it won't increase. An income producer.
investment companies/funds
TOP PICK
TOP PICK
May 9, 2019
Pays the highest yield among the big banks. Even though they damage themselves, CIBC will continue to pay that yield that they will increase. Buy this for the income. (Analysts’ price target is $123.93)
Pays the highest yield among the big banks. Even though they damage themselves, CIBC will continue to pay that yield that they will increase. Buy this for the income. (Analysts’ price target is $123.93)
banks
COMMENT
COMMENT
February 19, 2019
Walmart's numbers were very good today, signalling that the U.S. consumer is healthier than we thought in December 2018. That challenges the idea that the American economy was doing well last year until September. But he doesn't any stock that pulls back in the last minutes of a trading day, but he likes Walmart for the long term. Compared to Amazon whose multiple can't be justified on a retail model. (He owns Amazon.) We've never done deleveraging on the scale that the US Fed has done, like it is now. The December rate rise in December was probably a rookie mistake by Powell. He's sure there won't be a rate hike this year. We'll be in a trading range until the US and China sign a trade deal which will be the next catalyst--and it's partially built into the market already. Conversely, we'll see a major sell-off if there's no deal.
Walmart's numbers were very good today, signalling that the U.S. consumer is healthier than we thought in December 2018. That challenges the idea that the American economy was doing well last year until September. But he doesn't any stock that pulls back in the last minutes of a trading day, but he likes Walmart for the long term. Compared to Amazon whose multiple can't be justified on a retail model. (He owns Amazon.) We've never done deleveraging on the scale that the US Fed has done, like it is now. The December rate rise in December was probably a rookie mistake by Powell. He's sure there won't be a rate hike this year. We'll be in a trading range until the US and China sign a trade deal which will be the next catalyst--and it's partially built into the market already. Conversely, we'll see a major sell-off if there's no deal.
Richard Croft
President, R.N. Croft Financial Group Inc.
BUY
BUY
February 19, 2019
Call option? CAT should rally if the China-US trade deal is signed. If you sell a call option on CAT, go 5-8% out. A deal is only partially priced in now.
Call option? CAT should rally if the China-US trade deal is signed. If you sell a call option on CAT, go 5-8% out. A deal is only partially priced in now.
machinery
COMMENT
COMMENT
February 19, 2019
He's not a gold bug. If you believe gold is a hedge, then buy a hedge using gold companies. But he doesn't think gold is the crisis insurance that many believe. He's never held more than 5% gold in a portfolio.
He's not a gold bug. If you believe gold is a hedge, then buy a hedge using gold companies. But he doesn't think gold is the crisis insurance that many believe. He's never held more than 5% gold in a portfolio.
E.T.F.'s
COMMENT
COMMENT
February 19, 2019
How long should you hold a covered cold after a stock goes ex-dividend? Say you buy a stock on Monday and sold covered calls on the same day. The stock hits $36 and you sell covered calls at $32. The next day is the ex-dividend day. On Tuesday morning 9 am, the stock is not been sold, so you re-purchase the covered call then sell the stock. On Thursday, he was told he must re-purchase the stock and shouldn't have sold it. The only reason you couldn't sell it the next day is if the optioned was exercised and the stock was taken from you; you shouldn't learned this on Tuesday morning. This is the dividend capture program. The challenge with this is if the dividend is large, then the person who bought the call has the right to exercise it--and if he does this on the ex-dividend date, then he owns the stock and captures the dividend. Such a move doesn't have much time value. Apparently, you didn't know you had lost it. Talk to your broker/firm.
How long should you hold a covered cold after a stock goes ex-dividend? Say you buy a stock on Monday and sold covered calls on the same day. The stock hits $36 and you sell covered calls at $32. The next day is the ex-dividend day. On Tuesday morning 9 am, the stock is not been sold, so you re-purchase the covered call then sell the stock. On Thursday, he was told he must re-purchase the stock and shouldn't have sold it. The only reason you couldn't sell it the next day is if the optioned was exercised and the stock was taken from you; you shouldn't learned this on Tuesday morning. This is the dividend capture program. The challenge with this is if the dividend is large, then the person who bought the call has the right to exercise it--and if he does this on the ex-dividend date, then he owns the stock and captures the dividend. Such a move doesn't have much time value. Apparently, you didn't know you had lost it. Talk to your broker/firm.
Richard Croft
President, R.N. Croft Financial Group Inc.
BUY
BUY
February 19, 2019
Online purchases equal less than 20% sales during Christmas, but thinks this level will rise over time--big upside here. IBUY is a very good buy.
Online purchases equal less than 20% sales during Christmas, but thinks this level will rise over time--big upside here. IBUY is a very good buy.
E.T.F.'s
COMMENT
COMMENT
February 19, 2019
He bought a $175 July call for $8 and sold twice as many $190 July expiry. That's a ratio call spread: he bought a call at a lower strike price and sold twice as many calls at a higher strike price; his higher strike was $190. So if Apple trades up to $190, he starts losing money. He's got no money out of his pocket because he brought in enough money from the sale of two options. That long option will benefit all the way to $190. It's a good trade, but keep an eye on it. He doesn't normally like that with a volatile company, because specific events can make that stock rise dramatically. That said, he understands why one would do this with AAPL, but not with Netflix or Facebook.
He bought a $175 July call for $8 and sold twice as many $190 July expiry. That's a ratio call spread: he bought a call at a lower strike price and sold twice as many calls at a higher strike price; his higher strike was $190. So if Apple trades up to $190, he starts losing money. He's got no money out of his pocket because he brought in enough money from the sale of two options. That long option will benefit all the way to $190. It's a good trade, but keep an eye on it. He doesn't normally like that with a volatile company, because specific events can make that stock rise dramatically. That said, he understands why one would do this with AAPL, but not with Netflix or Facebook.
electrical/electronic
BUY
BUY
February 19, 2019
A very good holding at 10-15% in a portfolio. XEI creates healthy cash flow, given the dividends flowing consistently.
A very good holding at 10-15% in a portfolio. XEI creates healthy cash flow, given the dividends flowing consistently.
COMMENT
COMMENT
February 19, 2019
Where should a new investor start in today's market with a troubled outlook? He's never found a great time to invest in all his career. So, start--as a balanced investor--and buy the TSX 60 index with XIU, then SPY, XBB and XSB at 25% each, so that you buy the Canadian economy, bonds and the S&P 500.
Where should a new investor start in today's market with a troubled outlook? He's never found a great time to invest in all his career. So, start--as a balanced investor--and buy the TSX 60 index with XIU, then SPY, XBB and XSB at 25% each, so that you buy the Canadian economy, bonds and the S&P 500.
Richard Croft
President, R.N. Croft Financial Group Inc.
PAST TOP PICK
PAST TOP PICK
February 19, 2019
(A Top Pick Jul 03/18, Up 2%) Likes it. Banking had a bump in Q4, but it's coming back. A good long-term hold because of their dividends. Good cash flow. Banks will increase their dividends.
(A Top Pick Jul 03/18, Up 2%) Likes it. Banking had a bump in Q4, but it's coming back. A good long-term hold because of their dividends. Good cash flow. Banks will increase their dividends.
E.T.F.'s
PAST TOP PICK
PAST TOP PICK
February 19, 2019
(A Top Pick Jul 03/18, Down 0.4%) Small caps have outperformed since the year started, so he likes this. OUSM takes advantage of the new tax breaks in the U.S. because the top companies within it do. Small caps are more aggressive and should be part of a portfolio.
(A Top Pick Jul 03/18, Down 0.4%) Small caps have outperformed since the year started, so he likes this. OUSM takes advantage of the new tax breaks in the U.S. because the top companies within it do. Small caps are more aggressive and should be part of a portfolio.
E.T.F.'s
PAST TOP PICK
PAST TOP PICK
February 19, 2019
(A Top Pick Jul 03/18, Down 1%) Half of this are the FAANGs which took a bigger than deserved hit.
(A Top Pick Jul 03/18, Down 1%) Half of this are the FAANGs which took a bigger than deserved hit.
E.T.F.'s
COMMENT
COMMENT
February 19, 2019
Today's merger with Newmont Mining Synergies will improve their margins. But he would sell--he doesn't like gold in general and this is a selling opportunity.