February 18, 2016

In Thursday’s action, the S&P 500 was down 0.5% and Toronto was up 0.5%.

Canadian Tire was up 7.8% on its earnings.

The Bombardier Preferred shares series C shares that I own and follow were up 10.1% to $10.90 to yield 14.3%. That yield signifies risk. However the market today appears to consider that they are a bit less risky than they were yesterday and the day before. Bombardier has the option to convert each preferred share into 12.5 common shares which as of today have a value of (12.5 times $1.12) $14.00. I don’t know if they would do that to end the requirement to pay the dividend on these preferred share, but you never know.

Bank of America was down 2.5% to $12.24 which appears to be very attractive. But banks being highly leveraged can be quite risky. A director of this bank purchased almost one million dollars worth of shares on Tuesday at $12.32. That seems significant given that there were no other insider purchases listed in the data that goes back almost two years.

Constellation Software released strong Q4 earnings after the close yesterday but the stock fell marginally today.