January 12, 2014 Comments

On Friday the S&P 500 rose 0.2% while Toronto climbed 0.9%. The Canadian dollar fell another half cent and can now be purchased for 91.8 U.S. cents.

Stantec was up 3.4%, Liquor Stores N.A was up 1.5% and Toll Brothers was up 2.0% to $36.73 (I have an order in to trim my Toll Brothers position slightly at $37.50).

I added to my Melcor position on Friday. I had entered an order on Thursday evening to buy at $20.00, it opened at $19.88 so that was the price I paid on that order.

Also on Friday an order I had entered to buy some Canadian dollars with U.S. cash was triggered and I bought some Canadian dollars in exchange-traded fund FXC on New York. This basically hedges some of my U.S. exposure. FXC will rise in price if the Canadian dollar rises.

There are also two ETFs on Toronto DLR is U.S. dollars priced in Canadian dollars, DLR.U is U.S. dollars that trades in U.S dollars on Toronto. Apparently it is possible to buy one and then have the broker “journal” it to the other to sell in the other currency. It seems that if you wanted to bet the Canadian dollar will keep falling you could buy DLR.U the U.S. dollars on Toronto. You would pay an exchange fee. Later the investment can apparently be journaled (transferred) to DLR where you could sell in Canadian dollars with no further exchange fee. This is probably not worth doing unless you have a keen desire to bet that the Canadian dollar will continue to fall.

I am currently taking a look at Element Financial an equipment finance company that has been growing rapidly. I plan to complete an analysis and add it to the site. So far my impression is that it looks expensive. If it is bought it would be a speculative situation. While its share price has risen rapidly it is not (yet?) earning a reasonable return according to its financial statements. (There can be a vast difference between shareholder returns and accounting returns).

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