investment
An investment is an asset or property acquired to generate income or gain appreciation. Appreciation is the increase in the value of an asset over time. It requires the outlay of a resource today, like time, effort, and money, for a greater payoff in the future or for generating a profit.
An investment involves using capital in the present to increase an asset’s value over time.
Investments may include bonds, stocks, real estate, or alternative investments.
Investments can be diversified to reduce risk, though this may reduce the amount of earning potential.
In business contexts, investments are financial; however, consider how some people spend time to make higher incomes in the future (i.e. invest in a college education).
Read More
Close
Theme investing has natural appeal. It simplifies things. Investors like it because they feel it can put their investment returns into overdrive. Some also feel it adds fringe benefits to their investing, by letting them support social objectives. Brokers like it because it gives them a rationale to recommend a variety of stocks. If a client thinks gold prices are headed up, a broker can think of all sorts of gold-themed investment opportunities. They include established gold miners; junior gold companies that are working on a promising gold property; or penny golds that are outright speculations. Other possibilities are financial companies that sell gold-related merchandise like gold coins....
ENCANA CORP. $15 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 741.0 million; Market cap: $11.1 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.2%; TSINetwork Rating: Average; www.encana.com) has agreed to sell its natural gas pipelines and compression facilities in B.C.’s Montney region to a partnership between Veresen Inc. (Toronto symbol VSN) and investment firm KKR & Co. (New York symbol KKR). Encana will continue to own and operate gas wells in this region.
Encana will get $412 million (Canadian) when the sale closes in the next few weeks. To put that in context, it earned $281 million U.S., or $0.38 U.S. a share, in the quarter ended September 30, 2014.
Encana is a buy.
...
Encana will get $412 million (Canadian) when the sale closes in the next few weeks. To put that in context, it earned $281 million U.S., or $0.38 U.S. a share, in the quarter ended September 30, 2014.
Encana is a buy.
...
Every Monday we feature “A Stock to Sell” as our daily post. With every stock or investment we recommend as a sell, we give you a full explanation of why we advise against investing in it at this time.
A recent question on “robotics stocks for aggressive investing” from a member of our Inner Circle led to this examination of three different companies involved in this growing field. One is a sell, one is a hold and one is a buy.
ReWalk Robotics (symbol RWLK on Nasdaq; www.rewalk.com) is an Israeli company that makes robotic exoskeletons for helping people with spinal cord injuries walk again. The FDA cleared this technology for use in the U.S. in June 2014. It has been marketed in Europe since 2012.
...
A recent question on “robotics stocks for aggressive investing” from a member of our Inner Circle led to this examination of three different companies involved in this growing field. One is a sell, one is a hold and one is a buy.
ReWalk Robotics (symbol RWLK on Nasdaq; www.rewalk.com) is an Israeli company that makes robotic exoskeletons for helping people with spinal cord injuries walk again. The FDA cleared this technology for use in the U.S. in June 2014. It has been marketed in Europe since 2012.
...
J.P. MORGAN CHASE & CO., $55.93, New York symbol JPM, earned $4.9 billion, or $1.19 a share, in the three months ended December 31, 2014. That’s down 6.6% from $5.3 billion, or $1.30, a year earlier. The latest results included $990 million of legal costs as Morgan continues to settle lawsuits related to its role in the 2008 subprime mortgage crisis. Without these expenses, it earned $1.54 a share in the latest quarter, beating the consensus estimate of $1.31. Revenue fell 2.8%, to $22.5 billion from $23.2 billion, missing the consensus estimate of $22.6 billion. Lower interest rates have cut the income Morgan earns on consumer and business loans. But the recent market volatility has raised its fee income from stock and bond trading....
CAE INC., $14.64, Toronto symbol CAE, is our Stock of the Year for 2015. The stock has gained 3.8% since we made CAE our Stock of the Year for 2014. We feel it’s just getting started and has many years of growth ahead. That’s because the company is in a strong position to profit from several trends that are just beginning to take shape. For one, airlines will have to hire more pilots in the next few years as existing ones retire. As well, global air travel volumes should rise 5% annually for the next 20 years. Both of these developments should boost demand for new pilots and increase enrolment at CAE’s flight schools....
SHAWCOR LTD. $38 (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 64.5 million; Market cap: $2.5 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.6%; TSINetwork Rating: Average; www.shawcor.com) makes sealants and coatings that keep oil and gas pipelines from rusting. It also manufactures industrial products, such as electrical wire and protective sheaths. Low oil prices are prompting oil and gas producers to delay new drilling projects in the Gulf of Mexico. As a result, ShawCor will write down the value of its pipe-coating facility in Texas. Meanwhile, the devaluation of Venezuela’s currency has prompted the company to write down its 50% joint venture in that country. These charges will cut ShawCor’s earnings by $80 million in the fourth quarter of 2014. To put that in context, it earned $115.5 million, or $1.90 a share, in the first nine months of the year....
Pat McKeough responds to many requests from members of his Inner Circle for specific advice on stock picks as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week, we offer you one of the highlights from these Q&A sessions. While we reserve our buy-hold-sell advice for Inner Circle members, these excerpts provide a great deal of information and analysis on stocks we’ve covered for members of Pat’s Inner Circle.
This week an Inner Circle member asked us about FLYHT Aerospace Solutions. This Canadian company supplies a number of products and services. But the two that have attracted the most attention in the past year are devices that collect and stream flight data. The mysterious disappearance of Malaysia Airlines Flight MH370 in March 2014—and the recent crash of AirAsia flight QZ850—underlined the potential value of those devices. Pat looks into the company’s business and assesses its prospects for growth in a highly competitive market.
Q: Pat: I would appreciate having your thoughts on the following company: FLYHT Aerospace Solutions. Thank you.
A: FLYHT Aerospace Solutions (symbol FLY on Toronto; www.flyht.com) supplies a number of products and services to the aviation industry. The company changed its name from AeroMechanical Services in 2012.
The company’s products include the AFIRS UpTime data-collection device, which records flight information as it happens and relays it to the aircraft operator’s facilities by satellite. FLYHT also sells an emergency device called FLYHTStream that sends real-time data to the ground for immediate analysis. As well, it recently introduced the Dragon, a lightweight, portable satellite communication device that lets users access FLYHT’s technology with an iPad.
...
This week an Inner Circle member asked us about FLYHT Aerospace Solutions. This Canadian company supplies a number of products and services. But the two that have attracted the most attention in the past year are devices that collect and stream flight data. The mysterious disappearance of Malaysia Airlines Flight MH370 in March 2014—and the recent crash of AirAsia flight QZ850—underlined the potential value of those devices. Pat looks into the company’s business and assesses its prospects for growth in a highly competitive market.
Q: Pat: I would appreciate having your thoughts on the following company: FLYHT Aerospace Solutions. Thank you.
A: FLYHT Aerospace Solutions (symbol FLY on Toronto; www.flyht.com) supplies a number of products and services to the aviation industry. The company changed its name from AeroMechanical Services in 2012.
The company’s products include the AFIRS UpTime data-collection device, which records flight information as it happens and relays it to the aircraft operator’s facilities by satellite. FLYHT also sells an emergency device called FLYHTStream that sends real-time data to the ground for immediate analysis. As well, it recently introduced the Dragon, a lightweight, portable satellite communication device that lets users access FLYHT’s technology with an iPad.
...
Every Thursday we bring you one of our best U.S. stock picks. You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You will read about stocks making moves you should know about, most often from coverage in our newsletter on U.S. investing, Wall Street Stock Forecaster.
Newell uses oil to make its products, so it stands to gain from the almost 60% drop in crude prices since June 2014. And even when oil rebounds, it will continue to benefit from recent acquisitions and its high market share.
NEWELL RUBBERMAID INC. (New York symbol NWL; www.newellrubbermaid.com) makes plastic storage bins, tools, window blinds, pens and many other household goods.
The company makes most of its products from oil-based resins, so it stands to gain from the recent drop in oil prices.
Newell continues to streamline its manufacturing and distribution operations, which should cut $270 million from its annual costs by mid-2015. The company now feels it can save an additional $200 million a year by the end of 2017.
...
Newell uses oil to make its products, so it stands to gain from the almost 60% drop in crude prices since June 2014. And even when oil rebounds, it will continue to benefit from recent acquisitions and its high market share.
NEWELL RUBBERMAID INC. (New York symbol NWL; www.newellrubbermaid.com) makes plastic storage bins, tools, window blinds, pens and many other household goods.
The company makes most of its products from oil-based resins, so it stands to gain from the recent drop in oil prices.
Newell continues to streamline its manufacturing and distribution operations, which should cut $270 million from its annual costs by mid-2015. The company now feels it can save an additional $200 million a year by the end of 2017.
...
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a beginning or experienced investor, these weekly updates are designed to give you specific investment advice. Each Investor Toolkit update gives you a fundamental piece of investing strategy, and shows you how you can put it into practice right away.
Today’s tip: “Your investments gain doubly in your RRSP, but if you lose you take a double loss, so don’t use it as a place to find out if you have a talent for stock trading.”
Registered Retirement Savings Plans or RRSPs are a little like other investment accounts, except for their tax treatment. You can put up to 18% of the previous year’s earned income, maximum $24,930 for 2015, into an RRSP, and deduct it from your taxable income. (The limit is lower for pension plan members.) You only pay taxes on your RRSP investment, and the investment income it earns, when you make withdrawals from your RRSP.
...
Today’s tip: “Your investments gain doubly in your RRSP, but if you lose you take a double loss, so don’t use it as a place to find out if you have a talent for stock trading.”
Registered Retirement Savings Plans or RRSPs are a little like other investment accounts, except for their tax treatment. You can put up to 18% of the previous year’s earned income, maximum $24,930 for 2015, into an RRSP, and deduct it from your taxable income. (The limit is lower for pension plan members.) You only pay taxes on your RRSP investment, and the investment income it earns, when you make withdrawals from your RRSP.
...
When you take up a new job or pastime, you automatically pick up the jargon that goes with it. That’s human nature. You see it everywhere. In a health food store, moonlighting high-school students can rattle off opinions about which herbal tea or homeopathic remedy you should take for your heart problem. The students seem to know what they’re talking about. But they may simply be repeating what they read on the package, or heard from the company sales rep. Similarly, a sporting goods clerk may ask detailed questions about pain in your lower back and metatarsals before recommending a particular golf shoe. (For that matter, many weekend golfers sound like they make a living from the sport.)...