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

Recent Opinions

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Date Signal Company Expert Opinion Price
2016-06-28 N/A A Comment -- General Comments From an Expert
A Commentary
Benj Gallander

Economy. House prices have gone up like crazy and he expects that by the end of 2018 there will be a housing bust. Thinks the government should increase the amount needed for down payments. There should be a special tax for foreign buyers based on the price of the home and should pay more in taxes. Knows the government will not be raising interest rates soon, but they should think about doing that.


Price: $0.020
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: _N/A
2016-06-28 N/A A Comment -- General Comments From an Expert
A Commentary
Jim McGovern

Markets. Today’s rally shouldn’t have been too much of a surprise, as you always get a snap back after a big plunge in the market. This is a normal market action. He will probably use this as a chance to Sell more. Views BREXIT as a continuation of what has been going on for quite some time. It is really a function of big secular changes going on in the global economy, which manifest themselves in these sorts of situations. We are going to be in a sort of disinflation, deflationary type environment for quite some time. It sets up some really interesting opportunities for investors, but just outright Long equities are probably not the optimal solution. There are 7 or 8 really big things that have manifested themselves in today’s vernacular of lower for longer in terms of both rates and global growth going lower. We have a lot of debt, and this debt needs to get addressed. You can either write it off, monetize it or mark it down.


Price: $0.020
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: _N/A
2016-06-28 COMMENT Apple
AAPL-Q
Jim McGovern

Has this as a Short. Their products are fabulous, but the bottom line is that the iPhone is everything to them, and it is in decline. Trading roughly at around 10X. Expects the stock to fall 10%-15% from here.


Price: $93.590
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Yes
2016-06-28 BUY AgJunction Inc
AJX-T
Benj Gallander

This is GPS for agriculture. They also concentrate on steering for tractors. Just did a deal today with a much bigger company, and provide the steering that it needs. A clean balance sheet with no debt. Thinks it can do well going forward.


Price: $0.670
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: Yes
2016-06-28 TOP PICK Albemarle Corp
ALB-N
Jim McGovern

The biggest in the lithium space. He is not super excited about base metals, but is very positive on precious metals. Last quarter their earnings exploded to the upside. They want to be the dominant player in lithium. Just sold their chemicals business. Expects they will make some more acquisitions. The thesis of this selection is electric cars.


Price: $78.290
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Yes
2016-06-28 COMMENT Alacer Gold Corp
ASR-T
Benj Gallander

They have the financing in place for their copper deposits in Turkey. They are now producing gold. Management has really been doing what they said they would do. He sees how this could go up a long way from here. He likes the company.


Price: $2.970
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: Yes
2016-06-28 BUY Bank of America
BAC-N
Benj Gallander

He likes this. The key thing is that they have moved through this horrible tunnel of litigation. Because of that, the bottom line should improve. Dividend has been increased from $.01 a share to $.05 a share, and thinks it will go up further. Can see the shares going up quite a distance from here. Dividend yield of 1.6%.


Price: $12.700
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: Yes
2016-06-28 COMMENT BlackBerry
BB-T
Benj Gallander

Had a huge loss of over $600 million in the past quarter. Often one of the good things to do is to back a good jockey, and John Chen is a good jockey. Thinks he has the ability to turn this around. When you have a company like this that is very, very popular and very much in the news, if and when it turns, it can turn in a nanosecond. Thinks it is a worthwhile play.


Price: $8.440
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: Yes
2016-06-28 COMMENT Bird Construction Income Fund
BDT-T
Benj Gallander

When you see what the government is planning on doing on infrastructure and building, this company could do well. A smartly run company. Thinks it has a fair bit of upside from here.


Price: $13.190
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: No
2016-06-28 DON'T BUY PowerShares Senior Loan ETF
BKL-T
Jim McGovern

Presumes this is a floating rate type senior loan fund and is marketed principally on the idea that you are going to be protected. As rates go up your income will go up. There are always small problems with these loan portfolios. They are typically offered as leveraged companies, and he has found that it is all good, and then one day it is not good.


Price: $18.850
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Unknown
2016-06-28 COMMENT Brick Brewing Company Ltd.
BRB-T
Benj Gallander

It looks like this quarter could be a boffo quarter. It is not only the spring/summer season, but looks like their sales are really perking up. Have moved into a new facility and have taken care of some of their costs. He would like to see some company, swallow this.


Price: $2.420
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: Yes
2016-06-28 COMMENT CAE Inc
CAE-T
Benj Gallander

This has had an incredible run. They are leaders in the field. It is a good company and well-run.


Price: $15.480
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: No
2016-06-28 COMMENT CDI Corp.
CDI-N
Benj Gallander

The new CEO has made a lot of changes. Have had a lot of write-downs, and because of that they have been losing money. Thinks the CEO is on the right track. They cut the dividend and eliminated about $10 million of money that was going out of the company. Selling at about half BV. If you take out goodwill, it is selling at far less then BV. He is happy to be holding onto this.


Price: $5.640
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: Yes
2016-06-28 COMMENT Cisco
CSCO-Q
Jim McGovern

This is a terrific company. Have made some really clever acquisitions in the last few years. Feels the dividend is quite safe.


Price: $27.790
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Yes
2016-06-28 COMMENT iShares Global Advantage Dividend E.T.F.
CYH-T
Jim McGovern

(RESP 15-20 year minimum?) European equities hedged to the Cdn$. Pretty much everything in Europe and the UK, but without financials. He would advocate a broader global strategy and without the Cdn$ hedge. This is a perfect time, because you can average in through all the nonsense that is going on.


Price: $17.000
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Unknown
2016-06-28 COMMENT D-Box Technologies
DBO-T
Benj Gallander

Has recently expanded its relationship with Cineplex (CGX-T). Also, did a deal with an Alibaba (BABA-N) subsidiary, which bodes well. Revenues have gone up quite smartly. The debt load is very, very reasonable.


Price: $0.590
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: Unknown
2016-06-28 BUY on WEAKNESS Walt Disney
DIS-N
Jim McGovern

Leaning a little towards the bearish camp on this, but wouldn’t be Short, but only because he thinks we are at peak sports in regards to money that is being paid. However, besides ESPN, this company has some other terrific businesses. People are not ascribing a very high multiple to their movie business, because every now and then you don’t have a hit. This is a Buy in the low $90s.


Price: $96.050
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Unknown
2016-06-28 PAST TOP PICK Extendicare Inc
EXE-T
Benj Gallander

(A Top Pick June 19/15. Up 15.49%.) Pays a nice dividend. Stock recently got hit, because the payout ratio last quarter was about 86%, much higher than normal. Recently revenues and the bottom line went up very, very smartly. They’ve withdrawn from the US market and got $1.2 billion. They are expanding in the Canadian market. A demographic play because it is health and Senior citizens’ homes, etc.


Price: $8.220
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: Yes
2016-06-28 COMMENT Fission Uranium Corp.
FCU-T
Benj Gallander

This company doesn’t fit into his model at all. He doesn’t like companies that don’t have revenue and a lot of it is hype and hope.


Price: $0.680
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: No
2016-06-28 DON'T BUY Female Health
FHCO-Q
Benj Gallander

A worldwide leader in female contraceptives. The problem is that they are a one product company and management is in their 80s. This would be a good fit with a larger company. They have money in the bank and no debt, and are constantly profitable. Doing a deal with Aston Park pharmaceuticals, a company with a number of products in the pipeline, but none them have revenues. He is hoping the deal doesn’t go through.


Price: $1.260
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: Yes
2016-06-28 SHORT Foot Locker
FL-N
Jim McGovern

This is 75% Nike distribution, but Nike has an online platform now where you can order customized running shoes online. This is a terrific Short here, and thinks it is going substantially lower.


Price: $52.180
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Yes
2016-06-28 COMMENT Flyht Aerospace Solutions
FLY-X
Benj Gallander

They supply some of the ingredients for the black boxes on airplanes. A small company with about $10 million in revenues, and has $6 billion in debt. This could go higher, but one of the dangers of a company like this is dilution. In May they sold more stock and gave out more options. This is a wing and a prayer.


Price: $0.180
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: No
2016-06-28 BUY General Electric
GE-N
Jim McGovern

Probably one of his favourite companies in terms of safety. He would buy this for the long-term. They have jettisoned their financial services business, which is virtually all complete now. It is now wired up and ready to go. If we do get a recession in the US, this will be at acquisitive company again.


Price: $29.940
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Unknown
2016-06-28 COMMENT Golden Star Resources
GSC-T
Benj Gallander

This company has some knocks against it. They had a lot of difficulties with the gold price being down. They always have trouble making money. Royal Gold made a royalty agreement and are giving them $130 million, but of course there is a whole payback with that, which will depress their earnings. He can see this going up $1.25.


Price: $0.830
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: Unknown
2016-06-28 COMMENT Imperial Metals Corp
III-T
Benj Gallander

Had a spill that really hurt them. They still have a difficult row to hoe, and is no longer on his watch list. There are companies out there that are not nearly as expensive, so this wouldn’t be first on his Buy list.


Price: $6.150
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: No
2016-06-28 TOP PICK Innodata Isogen Inc.
INOD-Q
Benj Gallander

This does digitalization. They are into e-books, work with the insurance industry and with the healthcare sector. This has virtually no debt. In the last few years they have lost a fair bit of money, and right now are operating at about breakeven. Wishes management were a bit more proactive. Just did a takeover of another company, but there is little information in the public sphere. The stock price tends not to be a slow grower, but tends to jump. He has a target price of over $7. His hope is that it will have one of the spikes that it has every few years, at which time he would jump out very, very quickly.


Price: $2.280
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: Yes
2016-06-28 TOP PICK iPath DJ-AIG Grains Index
JJG-N
Jim McGovern

These type of investments are very good diversifiers. This is composed of 3 different agricultural commodities, wheat, corn and soybeans. Soybeans has been the big driver, principally because there is a shortage in Brazil. Wheat is kind of finished, but corn is kind of interesting because we have this kind of El Niño affect coming down the pipe now, creating super hot and super dry in the US. Wouldn’t make it a big position in your portfolio.


Price: $33.320
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Yes
2016-06-28 COMMENT Loblaw Companies Ltd
L-T
Jim McGovern

Fabulous management and great market share. Their purchase of Shoppers was fabulous. It is a bit expensive. There is some talk that they are going to spin out the gas station part. It is hard to see it going up a lot from here, however he doesn’t see it going down a lot either.


Price: $68.650
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Yes
2016-06-28 DON'T BUY Linamar Corp
LNR-T
Jim McGovern

The rule of cyclicals is that you sell them when PEs are low and buy them when PEs are high. The PE on this is dirt low right now. Over the long-term you are going to be fine, but in the short run this is still dead money.


Price: $43.880
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Unknown
2016-06-28 BUY Lundin Mining Corp.
LUN-T
Jim McGovern

His favourite name in the copper space, but has been one of the poorest performers year to date because it is such a good company. They don’t have a lot of debt. Thinks a lot of investors are nervous about buying a company that wants to buy somebody else. He would have this is a Long, offset was some Shorts on companies he is not favourable on.


Price: $4.190
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Yes
2016-06-28 COMMENT Manulife Financial
MFC-T
Jim McGovern

Financials do not rate high on a Buy list in these markets. Has pretty much been Short financials since starting his fund 18 months ago. Insurance companies in particular are in a tough bind. With these low rates, putting premiums to work and earning a decent return without a lot of risk, is very tough. This doesn’t have much European business. Asian and wealth management businesses have been great, but offsetting those 2, they have had some issues with energy debt. The good thing is that it is really cheap. If you take an 18-36 month view, you can be okay.


Price: $16.970
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Unknown
2016-06-28 DON'T BUY Magna Int'l. (A)
MG-T
Jim McGovern

The rule of cyclicals is that you sell them when PEs are low and buy them when PEs are high. The PE on this is dirt low right now. Over the long-term you are going to be fine, but in the short run this is still dead money.


Price: $43.990
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Unknown
2016-06-28 COMMENT Norsat International
NII-T
Benj Gallander

His plan was that when they had a consolidation he would Buy back in. However, it is a stock that hardly ever trades and it is very difficult to buy and sell. Good management. Thinks it can go higher.


Price: $8.900
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: No
2016-06-28 COMMENT Nike Inc
NKE-N
Jim McGovern

Just reported and were disappointing on their revenue and future order front. Thinks the shoe business has peaked out.


Price: $53.090
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Unknown
2016-06-28 COMMENT Orange SA
ORAN-N
Benj Gallander

Orange (ORAN-N) or Banco Santander (SAN-N)? A telecom leader in France and many other countries. He likes the company and thinks it can double from here. Pays a good dividend. The French market is very, very competitive. If he were buying either, it would be Banco Santander.


Price: $15.610
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: Yes
2016-06-28 PAST TOP PICK Orvana Minerals
ORV-T
Benj Gallander

(A Top Pick June 19/15. Down 31.03%.) When they reported their recent quarterly results, they got a “going concern” attached to it. That often means bankruptcy is not too far away, however their debt is only a few million dollars. They have to do some reclamation in Spain which will cost them $6 million, plus in Bolivia they wanted to get the mine moving forward. Just got a loan of $7.9 million for their Bolivia holdings. Production is primarily gold and copper. He doesn’t know who the CEO will be going forward. A good speculative buy.


Price: $0.205
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: Yes
2016-06-28 HOLD Pfizer Inc
PFE-N
Jim McGovern

A super, high quality stock that people have owned for decades and decades. A constant dividend grower. Has always had a great pipeline of drugs. Doesn’t believe the entire drug industry is either a Long or a Short. Wait to see who is elected in the US, because that will have a very big impact on sentiment.


Price: $34.440
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Yes
2016-06-28 TOP PICK Reitmans
RET-T
Benj Gallander

A tough market because of Amazon (AMZN-Q) and the Internet. The major knock is that they are losing money. Last quarter they lost millions of dollars as well as in the quarter before. However, they have over $100 million in the bank. Margins have been squeezed because the US$ has gone up in the past year. Revenues have been flat for the last year which a lot of people felt was not good, except they closed 60 stores. Same-store sales have gone up about 8.8%. Included in that is the 56%+ that their online sales have gone up. Dividend yield of 4.85%.


Price: $4.210
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: Yes
2016-06-28 COMMENT Banco Santander SA
SAN-N
Benj Gallander

Orange (ORAN-N) or Banco Santander (SAN-N)? This got hit in the last couple of days. Goldman Sachs said it was going to cost them a fortune because of BREXIT and their profits would go way down. However, the CEO said she didn’t expect a lot of impact. Pays a nice dividend and constantly makes money. If he were buying either, it would be this one.


Price: $3.840
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: No
2016-06-28 COMMENT Banco Santander SA
SAN-N
Benj Gallander

This just got trounced in the past couple of days. It has been on his list for quite a while. He is watching it very closely. They have a lot of problems in Brazil, and have a lot of business in Britain. It pays a nice dividend. Thinks Europe is a good play.


Price: $3.840
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: No
2016-06-28 BUY on WEAKNESS Sba Communications Corp
SBAC-Q
Jim McGovern

Tower businesses have been reclassified as REITs, and they are terrific businesses. Cell phones aren’t going away, and with all the changes going on and what you can put through the lines, these towers are going to continue to be valuable properties. Any pullback would be a great time to get in.


Price: $103.540
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Unknown
2016-06-28 BUY Starbucks
SBUX-Q
Jim McGovern

Some of the more growthier type names have been sold down. This one has a tremendous loyalty program. Has done quite well in China. It is one you can buy and tuck away for ever.


Price: $54.850
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Unknown
2016-06-28 COMMENT Tricon Capital Group
TCN-T
Jim McGovern

Nice dividend and great management team. They were buying a lot of residential real estate property in the US when nobody else wanted it. Feels their block of properties is worth a lot of money. At some point there will be further consolidation in the space, and at some point they could be an acquisition.


Price: $8.430
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Yes
2016-06-28 COMMENT Trican Well Service Ltd.
TCW-T
Benj Gallander

On his watch list, but unfortunately it has gone up like crazy. The Wilkes Brothers were buying a lot. They are huge into the company, and are pretty sharp investors. As oil/gas comes back, this company should come back. Far less attractive to him now because it has gone up so much. For somebody wanting to get into the area, it could be a good pick, but there might be better picks with better balance sheets.


Price: $2.270
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: No
2016-06-28 TOP PICK iShares TIPS Bond E.T.F.
TIP-N
Jim McGovern

These are inflation protected securities. Thinks that CPI is going to continue to bump up. Expects the core PCE (?) in the US to be fully through 2% this year. A safer bet with less capital risk.


Price: $116.520
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Yes
2016-06-28 PAST TOP PICK United Security Bancshares Inc
USBI-Q
Benj Gallander

(A Top Pick June 19/15. Up 6.31%.) Based in Alabama and have 20 branches. They make money year after year and have excellent capitalization ratios. Selling at about two thirds of BV, which is something you generally don’t see in banking. In 2011 they eliminated the dividend, but it is now $.02 a quarter. Thinks there is tremendous upside on this. He can see the price quadrupling from this level.


Price: $8.620
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: Yes
2016-06-28 TOP PICK United Security Bancshares Inc
USBI-Q
Benj Gallander

He likes regional banks. Also, has First United (FUNC-Q) and Bank of Commerce Holdings (BOCH-Q) in California. He started buying into the sector in 2009. This is a sector that has moved up for the most part, but this stock has not moved up as much. With BREXIT, there might be less inflation now for interest rates to move up in the US. If interest rates go up, that is good for the banks as it helps their bottom line. Dividend yield of 0.93%.


Price: $8.620
Subject: CONTRARIAN INVESTING
Bias: UNKNOWN
Owned: Yes
2016-06-28 COMMENT Visa Inc.
V-N
Jim McGovern

A great company and pretty much a staple in every portfolio managers holding. Visa Europe is very interesting and they are obviously taking in the rest of that. He has a series of shorts against this, such as Capital One, Discover and Allied Financial.


Price: $75.160
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Yes
2016-06-28 COMMENT Whitecap Resources
WCP-T
Jim McGovern

Right now he is very lightly positioned in energy. It has had a big move and he has seen a lot of energy stocks back up. A good company and management is fine. Doesn’t think you are going to get hurt on this except just through the general commodity malaise.


Price: $9.930
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Unknown
2016-06-28 BUY on WEAKNESS Wells Fargo
WFC-N
Jim McGovern

If you are going to buy one US bank, this would be it. The loan quality, credit quality and management are superb. However, it is one of the more expensive large cap banks in the US. It depends on your time horizon. Eventually rates will go up. Dollar cost into the name over the next year.


Price: $46.100
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Unknown
2016-06-28 DON'T BUY WSP Global Inc.
WSP-T
Jim McGovern

In the very short run, this is not the best time to buy this. A pure play engineering company, growth by acquisition. Terrific management. Believes it has about 10%-20% exposure to the UK. If things play out on a macro standpoint the way he thinks they will, at some point infrastructure spend starts to kick in, and this would be one of the beneficiaries.


Price: $38.010
Subject: NORTH AMERICAN LARGE - ETF'S & MACRO STRATEGIES
Bias: UNKNOWN
Owned: Unknown
2016-06-27 N/A A Comment -- General Comments From an Expert
A Commentary
Larry Berman CFA, CMT, CTA

EU and the euro. Feels the UK vote will hasten the development of the breakup of the EU and the euro. There will be an election in France next April, which will be very, very important, as well as an election in March in the Netherlands, and a recent survey indicated that most people would want to see a referendum. Feels people really understand that the EU is not working. Doesn’t think that foreign exports for markets is not a big deal. London is one of the greatest cities in the world, and with the pound weakening and the UK markets coming off, there is going to be some phenomenal shopping to do in London.


Price: $0.020
Subject: NORTH AMERICAN & ETFs
Bias: CAUTIOUS
Owned: _N/A
2016-06-27 COMMENT A Comment -- General Comments From an Expert
A Commentary
Larry Berman CFA, CMT, CTA

Negative bond yields? The entire spectrum of Swiss bonds/government bonds has negative yields. With this flight to safety, it shows that people are worried about equities.


Price: $0.020
Subject: NORTH AMERICAN & ETFs
Bias: CAUTIOUS
Owned: _N/A
2016-06-27 N/A A Comment -- General Comments From an Expert
A Commentary
Larry Berman CFA, CMT, CTA

Markets. You would think that VIX would be spiking up today in a big way. There was a big spike on Friday because the BREXIT results were not expected. However, today with the markets down as they are, VIX is not spiking again. Either markets are a bit complacent or there is much more to come. He is leaning on the side of much more volatility to come. We will get trading rallies, but those trading rallies are not something you want to get excited about just yet. There is a lot more downside, right through to the US election.


Price: $0.020
Subject: NORTH AMERICAN & ETFs
Bias: CAUTIOUS
Owned: _N/A
2016-06-27 N/A A Comment -- General Comments From an Expert
A Commentary
Larry Berman CFA, CMT, CTA

Buying US$s now? It depends on how you are buying. If you are going into the bank branch and paying 2.5%, and then 2.5% the other way, don’t do it. If you have some US$ exposure in your investment account via an ETF, the answer is yes. It really depends on what your cost of trading is when you are trading foreign exchange if you want to do that.


Price: $0.020
Subject: NORTH AMERICAN & ETFs
Bias: CAUTIOUS
Owned: _N/A
2016-06-27 N/A A Comment -- General Comments From an Expert
A Commentary
Larry Berman CFA, CMT, CTA

Dow Jones, how low? Thinks we stay weak generally heading into the US election. There will be trading rallies, but probably failed ones. At a minimum, equity markets need to retest their February lows from this year, over the course of the next few months. It could go down to 15,000.


Price: $0.020
Subject: NORTH AMERICAN & ETFs
Bias: CAUTIOUS
Owned: _N/A
2016-06-27 N/A A Comment -- General Comments From an Expert
A Commentary
Larry Berman CFA, CMT, CTA

Educational Segment. Brexit. At the end of every Bear cycle, if you are still bearish you make no money, markets rally. At the end of every Bull cycle, the Bulls have to feel some pain when things go down. Every correction we have seen in the last couple of years has been 1 month or 2, and then a recovery. Thinks BREXIT is enough of a catalyst, that this time it is going to be more painful, taking out the lows that we have seen earlier this year, and in the middle of last year. He showed the STOXX 600 Banking Index (European bank index chart). It showed the 08-09 lows, and lower lows in 2012. Today we are at about 6% from those lows of 2012. Those lows need to be tested and probably to be taken out at a minimum before we see people confident about coming back in to European banks. He then showed the STOXX 600, which is like the S&P 500 of Europe, a benchmark of all the European countries including the UK. Chart shows a long upward trend line from 2008, and we are sitting on the trend line now. If it breaks where do we go. Retracement levels are where you look for where the market might come back to. The trend line is almost certainly going to break, and that adds to the broader European markets of another 10%-15% downside. On fundamentals, looking at the last 5 years of the earnings, earnings have been going down. Negative interest rates don’t work, they are toxic. He doesn’t know how they stabilize things, and there is more downside to come. Fundamentally we have to go down lower, there has to be some pain. The US and Canadian markets are going to come down in sympathy. They probably retest February lows, and let hope it holds.


Price: $0.020
Subject: NORTH AMERICAN & ETFs
Bias: CAUTIOUS
Owned: _N/A
2016-06-27 N/A A Comment -- General Comments From an Expert
A Commentary
Gerard Ferguson

Commodities. Everyone is focused on Brexit and how the UK is going to play out over the next couple of years, but the real risk and the real fear is the contagion from that. The UK vote to leave is going to possibly trigger votes in other European countries, which will bring the euro into question. That will become the bigger issue. A stronger US$ has a strong impact on energy, but on other areas of the market such as gold, the US$ is typically weak, but the dollar is rising right now because of negative interest rates in Europe, as well as the risk premium that is being demanded by investors. There are other areas, such as China, that are much more significant. As long as the contagion doesn’t spread there, he thinks it is going to be relatively contained.


Price: $0.020
Subject: CANADIAN
Bias: UNKNOWN
Owned: _N/A
2016-06-27 N/A A Comment -- General Comments From an Expert
A Commentary
Gerard Ferguson

Interest rates. With the European situation, low or negative interest rates are going to be lasting even longer. Most economic models rely on having a risk-free rate, but those models don’t work with negative interest rates. What people have been saving for retirement is kind of irrelevant now. That is going to be the bigger impact if negative interest rates continue for a longer period of time. We need zero or positive interest rates around the world. We also need economic growth to pick up, so countries in Europe and Asia will be able to allow their interest rates to flow back up towards zero. 


Price: $0.020
Subject: CANADIAN
Bias: UNKNOWN
Owned: _N/A
2016-06-27 COMMENT A Comment -- General Comments From an Expert
A Commentary
Gerard Ferguson

Lithium? This has taken off by the increasing popularity of electric cars. There are very few deposits globally that are actually producing lithium which is refined and put into batteries for electric cars, and there has been a rush towards junior players. There is a lot of lithium in the world and major producers can increase their own, so there is not going to be a supply issue, and a lot of projects are going to get over inflated.


Price: $0.020
Subject: CANADIAN
Bias: UNKNOWN
Owned: Unknown
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