May 20, 2014 Comments

On Tuesday, the S&P 500 fell 0.7% and Toronto fell 0.8%

Most of our stock picks were down although none were down sharply other than Element Financial which was down 2.8%. Liquor Stores N. A. was up 4.8%. It seems someone must think the decline was over-done. I was just checking if perhaps insiders had bought any shares on this recent decline. Nothing has occurred or at least nothing has been reported yet.

TD Direct (Waterhouse) sent me notice of three more stock offerings today. A possible interpretation is that companies are scrambling to raise money while stock prices remain high.

It was interesting to hear today that the Target Canada CEO has been fired and replaced by a Target corporation marketing veteran. It is clear that Target made mistakes. It is not as clear who made the mistakes. I feel some sympathy for the fired CEO (though I imagine if I saw his severance package I might not shed any tears for him.). He had a very tough job. For whatever reason Target gutted many or most of the old Zellers locations and even expanded some. So this guy has basically been managing a HUGE construction project, or really close to a 100 construction projects. He had to continue doing that even as stores opened. He no-doubt has a construction executive but still it would not have been easy to manage the merchandising and store openings at the same time as maybe 50 construction projects were going on. Overall I believe Target paid way too much to Zellers and cam at Canada too big t and too fast. Now, we will see if the U.S. marketing executive will be able to straighten things out in Canada.