Month: October 2010

Time to Buy Rogers?

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I had been watching Rogers Communications (RCI.B) for a couple of months now. But once the stock started hitting $39 and $40 I felt it was overpriced and out of reach. I was waiting for a correction as a buy signal. So when Rogers missed earnings expectations today – big time, I was paying attention. In a previous article Bad News Investing ~ Profit from Crisis, I discussed how when companies get hit with bad news, it can be a great buy opportunity. Today Rogers Communications Inc. (RCI.B-T) reported weak third quarter earnings, posting a profit drop of 24 per …

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CLF ~ Claymore 1-5 Year Govt. Laddered Bond ETF

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Right now bonds are expensive, as they are trading at premium with low yields. Bonds are also very complex instruments.  So for most people buying bonds directly in a record-low interest rate environment means you are overpaying for the bond, with a reduced yield below the coupon rate.  However loading up a portfolio with 80% or 90% dividend yielding stocks is not prudent either. We only have to look back at the market crash of 2008 to see how equities did – but bonds and bond funds did well. Bonds are a necessary component of any portfolio, since they create …

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Horizon’s BetaPro S&P/TSX60 (HXT) ETF. A Sheep in Wolf’s Clothing!

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Investors have been flocking to ETF’s these last couple of years like bees to honey!  On September 14th, Horizon announced the BetaPro HXT, an ETF that tracks the S&P/TSX60 Index. With a MER of only 0.07% you can easily understand the interest that generated! Imagine an ETF that tracks the TSX-60 for a super-low MER. It sure had me thinking recently, when I saw the TV commercial, and had extra money to invest. Well hold on, what appears to be isn’t so. Here are some facts about the Horizon HXT ETF that might have you rethinking your decision to purchase: …

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Are Canadian Banks Overvalued?

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It seems these days that caution has been thrown to the wind, and investors have been looking for higher yields and even better returns on investment.  With blue chip stocks paying dividend yields higher than government bonds and some corporate bonds, it’s no wonder dividend stocks are the flavour of the month.  A lot of attention has been centered on the Canadian Banks lately, and with yields of 3.5% to 4.7%, these stocks are looking attractive to investors.  But with three of the six big banks trading near their 52 week highs, and all six trading at or near 2007 …

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