On Wednesday, the S&P 500 was up 0.2% while Toronto fell 0.3%.
The stocks on our list were “mixed” with no particularly noteworthy movements.
Statistics Canada reported the change in “Employment Insurance” for November.
Alberta was up 3.4% and in Edmonton and Calgary the increase was about 5%. I believe the recession in Alberta is over in that the economy has already hit bottom and is starting to improve. But the economy is still definitely lower than it was. Government energy royalties and income taxes were hit FAR harder than employment levels and remain FAR below the peak levels. The higher employment insurance numbers in November could be the result of expired severance packages. The increase year over year is actually 57.4% but it is the monthly change that shows what is happening more recently.
There was news that Hunter Harrison has left CP rail effective immediately. My first thought was that it for medical reasons. But no, at 72 he is said to taking on some role with a US. railroad. A role that is valuable enough to cause him to forfeit some $118 million of compensation/retirement benefits at CP. I am impressed that he had the drive and energy to take on a big role at another rail road at this point. He must be addicted to the adrenalin that comes from the power of such a role. And if he is to be paid something more than the $118 million he is giving up, that goes to show the impact that a CEO at a large company can have.
It would also suspect that Hunter Harrison will never spend most of the wealth he has amassed. If he wanted to focus on spending he would not be taking on a new job.
Clearly Hunter Harrison was able to whack out huge swaths of costs at CP. He created HUGE value for share owners but no doubt caused a lot of grief for employees. He did a lot at CN also although I always thought that it was Paul Tellier who put CN on the right track and that Harrison continued with Tellier’s approach. It may be though that Harrison accelerated the cost cutting moves at CN.
And, oh yes, the Canadian dollar fell over one U.S. cent today after the Canadian Central Bank said an interest rate CUT was still a possibility. Currency moves are notoriously unpredictable. This latest drop may have been a bit of an over reaction.
TD Bank is offering Timbercreek Financial Corp 5.45% convertible debentures. I know nothing about this company but took a quick look at their financial statements and they have what appears to be a strong balance sheet and good earnings. These debentures seem worth considering. The offering is still open at the moment. I am not going to buy any due to lack of knowledge about the company and since I am more interested in preserving than spending cash at the moment.