option
An option offers its holder the right to buy or sell a particular security at a specific price within a specific time frame. Two kind of options are put options and call options.
PLEASE NOTE: One week from today, on January 24, 2014, shortly after the stock market closes at 4:00 p.m. Toronto time, we will reveal our #1 Aggressive Stock of 2014 to subscribers of Stock Pickers Digest. You can be among the first to hear about our #1 pick for 2014. Because you’re a loyal subscriber, we are happy to offer you a bargain-priced, no-risk introduction to Stock Pickers Digest. It gives you the first month—and the 2014 Stock of the Year—FREE. But you must act now. Click here. CAE INC., $14.10, Toronto symbol CAE, is our Stock of the Year for 2014. This is CAE’s third time as our #1 pick. It was our Stock of the Year in 2000, when it gained 130.0% for us. We picked it again for 2002, but 9/11 hurt air travel much more than we expected. Fuel prices also moved up, the economy weakened, and CAE dropped 54.2% that year....
Canoe EIT Income Fund, $11.99, symbol EIT.UN on Toronto (Units outstanding: 89.9 million; Market cap: $1.1 billion; www.canoefinancial.com), changed its name from EnerVest Diversified Income Trust in November 2013. The stock symbol remained the same. Canoe EIT is a closed-end fund that invests in a portfolio of stocks that are mainly listed on the Toronto exchange, with a focus on dividend income. The fund trades at a 16.6% discount to its net asset value and has an MER of 1.45%. The fund’s top holdings are TD Bank, Bank of Nova Scotia, Royal Bank of Canada, CN Rail, Crescent Point Energy, Telus, Microsoft, Boeing, Encana and Wells Fargo. Canoe EIT has 33.8% of its assets in finance stocks and 25.1% in oil and gas firms....
TIM HORTONS $60.25 (Toronto symbol THI; TSINetwork Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 147.1 million; Market cap: $8.9 billion; Dividend yield: 1.7%) continues to successfully launch new products to take advantage of consumer trends. The latest is its diet-conscious Turkey Sausage Breakfast Sandwich.
This sandwich sells for $3.29 and can be ordered with egg and cheese on a toasted English muffin. Served this way, it contains 330 calories and 14 grams of fat. Customers can lower these amounts to 280 calories and nine grams of fat by ordering the sandwich with an egg-white option.
The breakfast market is extremely important to Tims: it served 208 million breakfast sandwiches in 2012 alone, and an estimated two-thirds of Canadians who buy breakfast at a restaurant choose Tim Hortons.
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This sandwich sells for $3.29 and can be ordered with egg and cheese on a toasted English muffin. Served this way, it contains 330 calories and 14 grams of fat. Customers can lower these amounts to 280 calories and nine grams of fat by ordering the sandwich with an egg-white option.
The breakfast market is extremely important to Tims: it served 208 million breakfast sandwiches in 2012 alone, and an estimated two-thirds of Canadians who buy breakfast at a restaurant choose Tim Hortons.
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BLACKBERRY LTD. $6.29 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 524.6 million; Market cap: $3.3 billion; Price-to-sales ratio: 0.3; No dividends paid; TSINetwork Rating: Speculative; www.blackberry.com) has sold $1 billion U.S. of convertible debentures to a group of private investors. These buyers also have an option to buy up to $250 million U.S. in additional debentures. If all investors convert their holdings, the total number of shares outstanding would rise by 19.2%.
The cash will help the smartphone maker complete its restructuring, which includes cutting 40% of its workforce.
The company will also shift its focus away from consumers to business and government clients, who rely on its networks to send encrypted mobile email messages and other sensitive data.
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The cash will help the smartphone maker complete its restructuring, which includes cutting 40% of its workforce.
The company will also shift its focus away from consumers to business and government clients, who rely on its networks to send encrypted mobile email messages and other sensitive data.
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PLEASE NOTE: This is our last Hotline for 2013. Our next Hotline will go out on Friday, January 3, 2014. STANTEC INC., $66.94, symbol STN on Toronto, sells a range of consulting, project delivery, design and technology services. Its clients operate in a variety of industries, including transportation, construction and oil and gas. The company continues to grow through acquisitions. It has just agreed to pay an undisclosed sum for Virginia-based Williamsburg Environmental Group, which has over 115 employees in three offices....
AMAZON.COM INC., $384.24, symbol AMZN on Nasdaq, has expanded its AmazonFresh same-day grocery delivery service to San Francisco. The move follows the launch of the service in Los Angeles in June 2013. AmazonFresh has also been available in the company’s hometown of Seattle for some time. AmazonFresh promises same-day or early morning delivery of over 500,000 items, including groceries and food from specialty shops. Delivery is free on orders over $35 if the customer pays a yearly $299 subscription fee. The fee also includes the benefits of Amazon’s Prime service, such as free two-day shipping on most other products sold on Amazon.com. AmazonFresh may help the company achieve its goal of same-day delivery of all its products. In addition to groceries, AmazonFresh trucks will deliver a range of toys, electronics and household goods. Eventually, they could let the company ship to customers directly and do away with the services of UPS or FedEx in many markets. The trucks could also let Amazon pick up returns from customers, again cutting out the courier companies and speeding up service....
BLACKBERRY LTD. $6.29 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 524.6 million; Market cap: $3.3 billion; Price-to-sales ratio: 0.3; No dividends paid; TSINetwork Rating: Speculative; www.blackberry.com) has sold $1 billion U.S....
Rambler Metals & Mining plc, $0.45, symbol RAB on Toronto (Shares outstanding: 142.4 million; Market cap: $64.1 million; www.ramblermines.com), is a U.K.-based mining and development company. The stock is also listed on the AIM market in the U.K. (AIM is the London Stock Exchange’s international market for smaller companies.) In 2012, Rambler brought its first mine into commercial production—the 100%-owned Ming copper-gold-silver mine. The Ming mine is located on the Baie Verte peninsula in Newfoundland. The company shipped its first load of concentrate from the mine through its Goodyear Cover deep-water port facility in November 2012. Rambler also has interests in other early-stage properties, as well as small, former-producing mines, in the general area of the Ming mine....
SNC-LAVALIN GROUP INC., $42.59, Toronto symbol SNC, fell 5% this week after it cut its 2013 earnings outlook, mainly due to one-time losses on certain fixed-priced engineering contracts it signed between 2010 and 2012. The nature of these deals, which include hospitals, roads and unspecified projects in North Africa, prevents SNC from passing along unexpected cost increases to its clients. The company also expects that a previously announced reorganization of its European operations will cost an extra $75 million. At the same time, weak prices for gold and other commodities have slowed construction of new mining projects. As a result, SNC will probably earn $10 million to $50 million in 2013. That’s a big drop from its earlier prediction of $220 million to $235 million....