Posted on May 12th, 2010 by Barry Schwartz

The 10% “fat finger plunge” last Thursday created one of the most violent stock market corrections in history.  The move was unsettling for investors, who are slowly getting more comfortable with this recovery after the massacre of 2008.  Credit Crisis Part 2 was avoided thanks to the quick and decisive action of EU and the […]

Posted on May 6th, 2010 by Barry Schwartz

Prior to October 2008, Shoppers’ traded at an expensive 20 times earnings.  The market awarded it a premium valuation based on its competitive strength, reliable earnings and its leverage to Canada’s aging population.  Then in October 2008, Shoppers’ stock fell 25% with the rest of the market, even though its business is recession-resistant.  We started […]

Posted on May 3rd, 2010 by Barry Schwartz

April was an historic month.  Volcanoes, Greece, Goldman Sachs and Oil spills dominated the headlines and our conversations with clients.  With so much bad news in abundance, one would have imagined that the stock market would be down significantly.  In fact, the TSX and the Dow were each up 1.4% for the month.  The gain […]

Posted on April 30th, 2010 by Barry Schwartz

As value investors we are big fans of dividend paying stocks.  In volatile markets it’s comforting to see those dividend payments roll in.  Dividend paying stocks also boost your returns.  Empirical evidence proves that dividends account for 40% of the average annual stock market return.  When buying dividend paying stocks for our clients we look […]

Posted on April 15th, 2010 by Barry Schwartz

Before I get started, let’s get a quote from Bill Gross, who manages the world’s largest bond fund at PIMCO which has $1 trillion of assets under management.  “Utilities yield 5% to 6%, not near zero, and in a low growth environment, it seems to me that a company’s stock should yield more than its […]

Posted on April 6th, 2010 by David Baskin

Here is some interesting data I have compiled this morning concerning the efficacy of stop losses in the Canadian market. High to Low range within each month of six high volume stocks.  Sample period Jan 1/09 to Mar. 31/10 (15 months) Move:      5%     10%    15% BNS    15/15    10/15    6/15       (Months stock fell more […]