September 20, 2012 Comments

A mixed day on the markets, Canada down a bit, the Dow up a bit. Canadian Tire did well up 1.4%. I don’t see any reason that Canadian Tire will not report a decent quarter for Q3. But it seems the stock is probably not going to do all that much until it becomes more clear if Target is going to hurt its business starting next year. Meanwhile it appears to offers good value, but there are never any guarantees.

Melcor was up 2.4% to $15.72. But that was on a very small volume. Just a few days ago some shares traded at $15.00 This is is a company where being patient and putting in an order below the current market can work out at times. (If it is at the higher end of of where it has traded over the past month then you can try an order say 50 cents or 75 cents lower and see what happens). Lately it has been in the $15.20 to $16.00 range mostly and so unless one is very hot to buy, I don’t see much reason not to try to get it under $15.40 or so. right now it is showing $15.15 bid and $15.80 asked. That brings up the point that some investors want to know the full depth of the market meaning, how many shares are bid at $15.15 and then how many at the next lower price and so on and how many shares offered at $15.80 and how many at say $15.90 etc. Some people also want to see real time prices. These people are traders and not long-term investors. They buy “stocks” (squiggles on a screen) as opposed to shares of companies. Both traders and investors buy the same thing but it’s just a completely different mentality. Investors tend to add to positions on dips. Traders consider that to be madness and use stop losses to sell on dips. Depth of the market and real time prices would just be distractions to me. I especially don’t care to see real time prices. (Actually I do see it if I place an order and that is fine but I would consider it madness to sit and watch real time prices). And while depth of the market might be interesting especially on a thin trading stock, it’s not something I particularly want to see.