Viewing Expert Richard Croft | StockChase
stockchase picture

Compiling comments that experts make about stocks while on public TV.

Viewing Expert

Richard Croft , President

R.N. Croft Financial Group Inc.

Address
218 Steeles Ave East
Thornhill, ON
L3T 1A6

Contact Info
Telephone: (905) 695-7777
Toll Free: 1-877-249-2884
Fax: (905) 695-9777
Email:
Website: http://www.croftgroup.com/index.htm

Bio:

R. N. Croft Financial Group Inc. is a boutique portfolio management company, providing fully customized discretionary asset management to discriminating investors. Our investment approach combines low cost tax-efficient indexed investment strategies, with targeted active management, and sophisticated options techniques to maximize client returns at any risk level. Our portfolio processes are unique, flexible and comprehensive.

Date Signal Chart Symbol Company Opinion Price
2016-05-10 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Markets. Thinks financial markets are being supported by stimulus. Today was a great example because the market turned almost on a dime when China announced they were going to stimulate their economy. Earnings have been weak for two quarters in a row, and have actually declined. There were a lot of beats this time, but mostly on the back of diminished expectations on one hand, and what has essentially been record stock buybacks, particularly in the US. That has made earnings on a per share basis look probably better than they should be. Yet the market keeps going higher. He doesn’t see any justification for this except for the stimulus factors. Doesn’t think earnings are going to be there for another year at best, and if that is the case, one of 2 things has to happen. You have to have the price/earnings multiple expand keeping stock prices here, or you are going to have the market fall a bit which is going to bring the price/earnings multiple where it should be. The exception to that rule, are companies whose price/earnings are less significant, because they are in a disrupting part of the economy, such as Facebook (FB-Q) or Amazon (AMZN-Q). Those are the kinds of things where price/earnings are not going to matter as much, but you have a company that can grow in an economy that is not growing very fast. However, they are expensive and there is some downside risk. Single digit returns are the new norm right now. If so, he can do that with some covered option writing strategies on blue-chip stocks, and the stocks really don’t have to go anywhere in order to get that number. There is also less risk.


Price:
$0.020
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
UNKNOWN
Owned:
_N/A
2016-05-10 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

How do you know what to write covered calls on? He looks at a stock and what he feels is its trading range. Using the premise that the market is based on mean reversion, it is going to come back to the centre at some point. We know markets overshoot to the upside and overshoot to the downside. Nobody knows exactly where that number ends. You create something called a mean reversion, it will come back into the middle. Technicians look at moving averages to try to figure out what that is. The options market can give you some insight as well. By taking options on a particular security you can wrap a trade around what you perceive to be the mean reversion. If you believe it is worth a certain figure, you could sell a call option at the top end of the range, and if there is a reasonable price and you really get it right, you can actually reduce the cost of the stock down to the bottom end of the range. You can play that mean reversion game all day long. This strategy should always beat a “buy and hold”. If you apply this methodology across the board on indexes, it actually does work.


Price:
$0.020
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
UNKNOWN
Owned:
_N/A
2016-05-10 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Energy. Feels we will find an alternative to oil, when we run out of oil. Technology will have figured it out at that point. Thinks oil is going to be a worthless asset 20 years from now. If so, then the long-term picture for oil is not good. Saudi Arabia is trying to get what they can get for oil today and build up a sovereign fund. They are putting their money where their mouth is because they are selling the main corporation, which they believe might be worth $1 trillion, which is based on the premise that at some point it will have no value. That means there will continue to be huge supplies coming out of the Middle East and around the world, and we will be sloshed in supply meaning oil prices will stay weak.


Price:
$0.020
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
UNKNOWN
Owned:
_N/A
2016-05-10 COMMENT Must be logged in to use chart BAC-N Bank of America

Probably one of the more volatile big name banks in the US. Trading at 60% of Book Value. Doesn’t think there is a lot of downside. It is going to be an increase in interest rates that drives this bank.


Price:
$14.300
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
UNKNOWN
Owned:
Unknown
2016-05-10 PAST TOP PICK Must be logged in to use chart CNR-T Canadian National R.R.

(A Top Pick Aug 18/15. Up 0.53%.) Bought this at $80, and wrote an $80 Call reducing the price to $77.11, that was the net cost. If you had bought this without writing the Call you would be down 2.5%-3%. By doing it this way he is up a little bit and still owns the stock and collected the dividends in the process.


Price:
$77.370
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
UNKNOWN
Owned:
Yes
2016-05-10 COMMENT Must be logged in to use chart CRAK-N Market Vector Oil Refiners

Long-term he doesn’t like this, but it is probably okay to be in.


Price:
$18.860
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
UNKNOWN
Owned:
Unknown
2016-05-10 COMMENT Must be logged in to use chart D.UN-T Dream Office REIT

This is a REIT that is in office space. You want to look at where they are located and where they’ve got their projects. This has a very good distribution, and it really comes down to occupancy rates.


Price:
$19.130
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
UNKNOWN
Owned:
Yes
2016-05-10 COMMENT Must be logged in to use chart DFN-T Dividend 15 Split Corp.

If you think interest rates are going to rise at some point later in the year, these things will continue to do well. This is leveraged to a certain sector in the economy, and if that drops, you can suffer. The return you are getting on this is the yield. If you Buy call options on this, that would play out and you do very well. This is a leveraged exposure to a sector that has done very well.


Price:
$10.490
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
UNKNOWN
Owned:
Unknown
2016-05-10 PAST TOP PICK Must be logged in to use chart FB-Q Facebook

(A Top Pick Aug 18/15. Up 34.8%.) He wrote a Covered Option that did not get assigned, which means that the stock went in and the option expired worthless.


Price:
$120.500
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
UNKNOWN
Owned:
Yes
2016-05-10 COMMENT Must be logged in to use chart FHC-T FT AlphaDEX US Consumer Staples

(Market Call Minute.) He would Buy this, but his preference would be to pick up something like an Amazon (AMZN-Q).


Price:
$24.870
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
UNKNOWN
Owned:
Unknown
2016-05-10 BUY Must be logged in to use chart FIE-T iShares Cdn Financial Monthly Income ETF

(Market Call Minute.) 


Price:
$6.540
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
UNKNOWN
Owned:
Unknown
2016-05-10 TOP PICK Must be logged in to use chart G-T Goldcorp Inc

Sell: Goldcorp Oct 24 calls at $2.80.

Sell: Goldcorp Oct 24 puts at $2.80.

This had an interesting price today closing at $24. Basically in October you are going to Sell the stock or Buy more. If you buy more, your average cost is going to be around $21. If you believe the thesis that the gold market is experiencing a sector rotation into that space, then very likely it will regress to the mean. If the stock stays the same or goes up, you are going to make $5.60, which is a very good return for 5 months.


Price:
$24.100
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
UNKNOWN
Owned:
Yes
2016-05-10 COMMENT Must be logged in to use chart IBB-Q iShares Nasdaq BioTech ETF

Biotech is a very volatile area of the market. This index has options on it. If you are a believer in Biotech, then you are really saying you are a growth investor that has a speculative bent that is looking for a real big move. Rather than paying $250 or so, you might want to think about getting an at the money call option, paying $20, and go for the ride. The worst case scenario is that you will lose $20.


Price:
$264.050
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
UNKNOWN
Owned:
Unknown
2016-05-10 COMMENT Must be logged in to use chart INXX-N EGSHARES INDIA INFRASTRUCTURE

(Market Call Minute.) This would be a Buy for a small percentage of your portfolio.


Price:
$10.510
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
UNKNOWN
Owned:
Unknown
2016-05-10 TOP PICK Must be logged in to use chart ORBC-Q Orbcomm Inc

A small company worth about $700 million, and they operate about 50 low Earth orbit satellites. If you are in the transportation business, and shipping high value goods and you want to track shipments, this is who you would deal with. They just launched their last 35 satellites. There is lots of risk. However, they have a lot of new business coming on board. A very low cost operator. He is looking for bottom line growth over the next 4-5 years.


Price:
$9.320
Subject:
OPTION STRATEGIES & E.T.F.S
Bias:
UNKNOWN
Owned:
Yes
Showing 1 to 15 of 723 entries
<< < 1 2 3 4 5 > >>

No Comments.


You must be logged in to comment.