In the past year, the SEC has investigated more than 120 companies over the backdating of executive stock options. The agency thinks companies improperly or illegally manipulated the exercise price on stock options they granted to their managers, to expand the manager’s profits at the expense of investors.

Only four of our recommendations are on the SEC list. Any restatements will …read more »

Stock market indexes in Canada and the U.S. are up only 4% or so this year. But that disguises the underlying strength of the global economy.

U.S. growth was an annulized 2.5% in the second quarter of this year. While that’s down from 5.6% in the first quarter, it’s still strong considering that the U.S. Federal Reserve has continued to raise …read more »

If the market is going to run into serious trouble, it often does so in the first half of a four-year Presidential term. Our last Presidential election was in November 2004. That made 2005 and 2006 the years when investors needed to watch out.

Several times since the fall of 2004, after a market downturn, investors wondered if we had entered …read more »

Some investors wonder if we’re in a bear market — a downturn that lasts one to three years and knocks 20% or more off the market indexes. The last one began in mid-2000 and ended in the winter of 2002/2003. It was an extremely costly experience for investors who made the mistake of loading up on Internet and tech stocks.

On …read more »

The market downturn that began last month looks like a correction, rather than a bear market. It’s a crucial difference. A correction may last three to six months and shave 5% to 15% off the market. A bear market can last for years, and the toll on the market can run much deeper.

This downturn has already knocked 6% or so …read more »

UNISYS CORP. $6 (New York symbol UIS; WSSF Rating: Average) cut its losses in the three months ended March 31, 2006, to $0.08 a share (total $27.9 million) from $0.13 a share ($45.5 million) a year earlier, due to gains on the sale of assets and savings from a restructuring plan. Revenue crept up to $1.39 billion from $1.37 billion.

Sales …read more »

Wal-Mart tried but failed to complete a couple of banking acquisitions, one in 1999 and the other in 2002. Now it wants to form its own bank subsidiary, and has applied for an industrial banking license.

Predictably, the proposal is drawing stiff opposition from banks and consumer advocates. They claim Wal-Mart’s clout would let it run small banks out of business. …read more »

The Bank of Canada raised interest rates in March by 0.25%, to 3.75% from 3.50%. That was the fifth consecutive monthly increase.

The increase was largely in response to rising inflation. The consumer price index or “All-items” index was up by an annualized 2.2% in February, down from a 2.8% rise in January. The index includes 600 items.

There are other measures …read more »

During the recent federal election campaign, the Conservative minority government of Stephen Harper promised to remove the capital gains tax on listed stocks donated to charities.

The conservative proposal will make it even more cost-effective to give stocks to a charity, rather than sell the stocks and then give cash.

Right now, if you donate stocks you own to a charity, you …read more »

The Conservative minority government of Stephen Harper plans to make tax changes that will affect Canadians for the better.

During the election campaign, the Conservatives proposed the elimination of the capital gains tax for individuals on the sale of assets when the proceeds are reinvested within six months. This includes assets such as family cottages, as well as stocks.

Our view is …read more »