Archives for September 4, 2019

Stocks to Watch: Hudson Global (HSON)

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Tracking shares of Hudson Global (HSON), we have noted that Span A is presently above Span B. Traders following this signal will be looking for signs of a bullish stock price shift.

Novice investors might be striving to create a trading strategy that produces results in the equity market. Once all the research is complete and the stocks are picked, they may need to decide what kind of time frame they will be working with in terms of buying and selling. Some investors will be making longer-term term plays, and others will be trying to make shorter-term moves. At some point, every investor will have to decide when to sell a winner and when to cut loose a loser. This can be one of the most difficult decisions to make. Investors may find it really hard to sell an underperforming stock when they still believe that it will turn around and move to profit. Waiting around for a turn around that may never come can lead to the undoing of a well crafted portfolio. Regularly staying on top of the markets may allow the investor to make educated buy or sell decisions when the time comes. This may involve following major economic data, studying company fundamentals, and checking in on historical price movement and trends. Investors who are able to keep their emotions in check might find themselves in a better position than those who let emotions get the best of them.

Active traders have a wide variety of technical indicators at their disposal for completing technical stock analysis. Presently, the 14-day ATR for Hudson Global (HSON) is spotted at 0.49. First developed by J. Welles Wilder, the ATR may assist traders in determining if there is heightened interest in a trend, or if extreme levels may be signaling a reversal. Simply put, the ATR determines the volatility of a security over a given period of time, or the tendency of the security to move one direction or another.

Shifting gears to the Relative Strength Index, the 14-day RSI is currently sitting at 45.95, the 7-day is 39.21, and the 3-day is currently at 30.91 for Hudson Global (HSON). The Relative Strength Index (RSI) is a highly popular momentum indicator used for technical analysis. The RSI can help display whether the bulls or the bears are currently strongest in the market. The RSI may be used to help spot points of reversals more accurately. The RSI was developed by J. Welles Wilder. As a general rule, an RSI reading over 70 would signal overbought conditions. A reading under 30 would indicate oversold conditions. As always, the values may need to be adjusted based on the specific stock and market. RSI can also be a valuable tool for trying to spot larger market turns.

Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. Presently, Hudson Global (HSON)’s Williams Percent Range or 14 day Williams %R is resting at -100.00. Values can range from 0 to -100. A reading between -80 to -100 may be typically viewed as strong oversold territory. A value between 0 to -20 would represent a strong overbought condition. As a momentum indicator, the Williams R% may be used with other technicals to help define a specific trend.

Taking a peek at some Moving Averages, the 200-day is at 13.90, the 50-day is 11.90, and the 7-day is sitting at 12.02. The moving average is a popular tool among technical stock analysts. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock.

Traders are keeping a keen eye on shares of Hudson Global (HSON). The Average Directional Index or ADX may prove to be an important tool for trading and investing. The ADX is a technical indicator developed by J. Welles Wilder used to determine the strength of a trend. The ADX is often used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of the trend. Presently, the 14-day ADX is resting at 21.74. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend.

Stock market investors may be well aware of how turbulent the investing climate can be. Markets might be surging to new highs leaving the average investor to wonder what will happen next. When everything is going higher in the stock market, it may seem as though every pick is going to be a winner. Conversely, when things are going down, investors may be cursing the day they ever entered the markets. These ups and downs are a normal part of investing in the stock market. Having a well thought out investing plan may help ease the burden of day to day volatility. Many successful investors and traders will preach the wonders of sticking to an outlined plan. It may take some time to actually realize how well the plan is working. If after some time the results continue to be sub-par, then it may be time to devise a different plan.

Stocks to Watch: Mitcham Industries Inc (MIND)

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Looking at the recent signals on shares of Mitcham Industries Inc (MIND), we can see that the short-term MACD indicator is presently pointing to a Sell. The MACD is typically used to measure bullish or bearish price movements. The MACD signal direction is currently reading Strongest. Switching to another short-term indicator, we have noted that the current 7-day average directional indicator is Buy. This signal may be used to determine the market trend. The 7-day average directional direction is currently Strongest. This signal indicates whether the Buy or Sell signal is getting stronger or weakening, or whether the Hold is leaning towards a Buy or Sell. The 7-day directional strength is Weak. This trend strength indicator measures the signal based on historical performance where minimum would indicate the weakest, and maximum would represent the strongest.

Investors might be looking to rebuild the portfolio as we move into the second half of the year. New investors can be tempted to try to maximize returns by owning one specific sector or be exposed to a fairly large single investment. By diversifying the portfolio, investors might be able to protect themselves from a sudden move against the position. Finding the correct portfolio balance is how many investors choose to approach the markets. This may take some time to master, and there may be some bumps along the way. Investors managing their own money may want to make sure that they know exactly what stocks are in the portfolio at all times. Keeping tabs on portfolio performance can also be a good way to make sure that it is weighted properly.

Investors are often watching stock price support and resistance levels. The support is a level where shares may see a rebound after they have fallen. If the stock price manages to break through the first support level, the attention may shift to the second level of support. The resistance is the opposite of support. As a stock rises, it may see a retreat once it touches a certain level of resistance. After a recent look, the stock’s first resistance level is 3.81. On the other side, investors may be taking note of the first support level which is currently 3.34.

Looking further, we can see that the current 9 day MACD for Mitcham Industries Inc (MIND) has been noted at -0.14. This value represents the difference between a short-term and a long-term moving average. A reading above zero may offer a bullish signal, and a value below zero may indicate a bearish signal. Going a little further, we can see that the difference between the most recent close and the close one month ago is presently -0.46. This represents a percent change of -11.50% over that period of time. Taking a look back to the start of the calendar year, we can see that the price change has been noted at 0.98. Investors may be trying to gauge which way company shares will trend in the second half of the calendar year. As companies start reporting quarterly earnings, everyone will be focused on how the actual numbers stack up against analyst estimates. An earnings beat may prod company shares higher, while a miss may stall momentum.

Shares of Mitcham Industries Inc (MIND) currently have a standard deviation of -0.25. Standard deviation is defined as a measure of the dispersion from the mean in regards to a data set. When dealing with financial instruments, the standard deviation is applied to the annual rate of return to help gauge the volatility of a specific investment. Tracking the standard deviation may help investors with trying to project if a stock is primed for a major move. The stock’s current pivot is 3.62. The pivot point is frequently used as a trend indicator. The pivot is the average of the close, low, and high of the prior trading period.

Investors often have to make the decision of how aggressive they are going to invest. Some investors looking to make a quick dollar may jump in head first without a plan. This can be dangerous for the health of the portfolio in the long-term. Taking a chance on a risky stock may provide high returns, but investors often need to calculate whether the risk is worth the reward. Managing that risk in turbulent markets may help keep the average investor afloat when the markets inevitably turn sour for an extended period. Doing all the necessary stock research may include keeping a close tab on technicals, fundamentals, relevant economic data, and earnings reports. Investors may have to find a way to keep the rational side from being consumed by irrational behavior when studying the markets.

All eyes on Bank of Canada’s interest rate decision, view of global economic climate

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Governor Stephen Poloz is widely expected to hold the overnight interest rate at 1.75 per cent as the Bank of Canada delivers its first policy announcement since early July.

Governor Stephen Poloz to give 1st policy announcement since early July

Canadians will hear from the Bank of Canada on Wednesday for the first time in eight weeks — which is a long time given the brisk movements of global economic conditions.

Governor Stephen Poloz is widely expected to hold the overnight interest rate at 1.75 per cent as the bank delivers its first policy announcement — or public commentary of any kind — since early July.

Many market analysts are expecting a shift in tone from the Bank of Canada that will crack open the door to a possible rate cut — or rate cuts — in the final months of 2019.

Simon Harvey of Monex Canada says the country’s economy has bounced back after a slowdown at the start the year — but he adds there have been concerning signs like slowing domestic demand and, more notably, further escalation of the U.S.-China trade war.

The bank warned in July how widening global trade conflicts were posing a threat to Canada’s stronger-than-expected rebound — and Harvey says the environment has deteriorated further over the summer.

A research note from TD Economics says it expects the Bank of Canada to acknowledge the growing headwinds and be open to lowering rates in October, which would give governing council more time to monitor political developments and gauge business sentiment.

Vancouver Island company sending helicopters, crews to fight Amazon fires

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More than 165,000 fires are burning in the Amazon rainforest.

Coulson Aviation, based in Port Alberni, has 3 choppers en route to Bolivia

A family company on Vancouver Island is sending support to South America to help contain the wildfires raging in the Amazon rainforest.

Coulson Aviation, based in Port Alberni, has three helicopters and crews currently heading to Santa Cruz, Bolivia, at the request of the Bolivian government to help with fire suppression efforts. All three aircraft and the Coulson team are expecting to arrive later this week and begin work.

“We have large buckets and we basically are slinging water on top of the flames, working directly with on-the-ground firefighters,” said Wayne Coulson, company president and CEO in an interview with CBC’s On The Island.

Coulson called this action “direct attack” and said that while fire suppressant will be his teams’ primary focus, two of the helicopters can seat 18 passengers and could also be used to remove people from harm’s way.

The Coulson Aviation team, pictured here on Sept. 1 in Mexico, is expected to arrive in Bolivia Thursday to help with wildfire efforts. 

Coulson said the company, probably best-known for operating the Martin Mars water bombers, is “one of the go-to companies out there in the world of aviation” and was already helping Bolivia’s defence ministry with its own fleet of aircraft before the catastrophic blazes began this year.

“We have been down there multiple times over the last 36 months working on a suppressant system for their fleet,” said Coulson. “We know them and they know us.”

According to Coulson, two of the three helicopters were passing through Puerto Rico Tuesday on their way to Bolivia. The third aircraft is being airlifted to the Amazon.

Soldiers, firemen and volunteers combat forest fires in the surroundings of Robore in eastern Bolivia, on Aug. 25, 2019. 

Coulson said he plans to meet the helicopters and his crew in Santa Cruz on Thursday.

Anyone interested in following the progress of the team can look for daily video postings on the company’s Facebook page.

Divesting from U.S. gun industry is not so easy if you pay into Canada Pension Plan

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Companies that make assault rifles, handguns, bullets among CPP investments

Canadians who want to steer clear of investing in gun companies are out of luck if they pay into the Canada Pension Plan. 

CPP owns shares in American firearm manufacturers, including the parent company of handgun manufacturer Smith & Wesson, assault rifle maker Ruger and Olin Corp, which produces ammunition for the AR-15, the weapon of choice for many perpetrators of mass shootings.

The holdings are highlighted in a new report coming from Corporate Knights, a Canadian magazine focused on ethical investing, and come after another bloody weekend in the U.S., where seven people were killed and 25 injured in a mass shooting in west Texas.

“CPP does have systems in place to weed out some ethically egregious stocks,” said Toby Heaps, who publishes Corporate Knights. “But I think they’ve made a call that there’s not necessarily a consensus on gun stocks.”

Heaps pointed out that CPP’s holdings in firearms firms are small relative to the overall size of the plan — about $37 million Cdn worth of stock out of the $400 billion it manages. But he said many other public pension funds have opted to bail out of the category entirely.

Toby Heaps, publisher of Corporate Knights, said many public pension funds have stopped investing ion the gun industry altogether.  

“The Alberta pension fund doesn’t own it anymore, the B.C. pension fund and the Caisse in Quebec don’t own it,” Heaps said. “It appears there is a bit of a pan-Canadian consensus, at least among their peers in pension funds, that these stocks are too hot to touch.”

‘Weapons definitely out’

Toronto-based independent contractor Tina Lopes is “upset” that a portion of her monthly contributions to the Canada Pension Plan is used to invest in gun companies. 

“I want to make sure that my money isn’t doing harm,” said the mother of three. “I don’t want to profit from companies, manufacturers or industries that could potentially harm people.”

Lopes has spent most of her career focused on social justice issues, working with child welfare agencies and school boards. Ethics are a prime concern for her, so she hired an ethical investment advisor earlier this year to help her design a suitable portfolio.

“I told him weapons are definitely out, oil was out, and tobacco. And I also have a commitment to climate change,” Lopes explained.

The advisor she hired is Tim Nash, who runs a consultancy called Good Investing. Nash said a growing number of his clients are concerned about weapons. “Guns and also broader military companies are probably at the top of the list when it comes to exclusions,” he said. 

Gun stocks ‘underperform’

For many Canadians, however, the number one consideration when it comes to investment is profitability. CPP has the same priority.

“Our critical purpose is to help provide a foundation upon which 20 million Canadians build their financial security in retirement,” reads a statement on its website.  

But weapons aren’t even a great moneymaker these days, said Heaps.

“Some people think, Oh, if CPP has gun stocks, they must be making some good profit. But what we’ve noticed with gun stocks is that they tend to underperform,” said Heaps. “All these stocks have underperformed the market over the past five years.”

So, why hold them at all?

CBC News contacted the Canada Pension Plan Investment Board in the hope of learning more about its rationale, but received only a four-word email in response: “We decline to comment.”

Heaps believes CPPIB “wants to do the right thing,” but that it simply hasn’t received much feedback so far on the subject of investment in firearms. 

“I think if enough people express their disdain and write or phone the Canada Pension Plan, this is something that will rise to the top and they will say this is clearly offside [for] Canadian values.”

Not just CPP

Earlier this year, NDP Member of Parliament Charlie Angus tabled a bill in the House of Commons related to CPP, specifying that “no investment may be made or held in any entity that has performed acts or carried out work contrary to ethical business practices or has committed human, labour or environmental rights violations.”

Ethical advisor Tim Nash would also like to see change. “What we need to do is to continue to push CPP towards adopting more stringent socially responsible investment policies.”

He cautions, however, that it’s not just CPP that invests in guns. Many mutual funds do, too. 

“Unfortunately, it’s quite common that guns are inside of mutual funds and ETFs [exchange-traded funds], unless you have a mutual fund that is explicitly socially responsible,” Nash said.

Heaps said Corporate Knights’s report on controversial stock holdings will detail the Canadian mutual funds and pension plans that own them, and will appear in the November issue of the magazine.

“Doctors investing in tobacco, dentists investing in Coca-Cola, teachers investing in guns, investment in the climate crisis,” Heaps said, rhyming off some of the findings. “I think many people will be surprised at what they’re into.”

Air Canada complains to transport regulator about Onex takeover of WestJet

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Air Canada claims buyout would break foreign ownership rules

Air Canada has filed a challenge with the country’s transport regulator over WestJet Airlines Ltd.’s acquisition by Onex Corp.

Canada’s biggest airline argues the $3.5-billion takeover would breach federal rules that limit foreign ownership of carriers.

Toronto-based Onex entered into an agreement in May to pay $31 per share for WestJet, which would operate as a private company.

Air Canada says in a letter to the Canadian Transportation Agency that co-investors in Onex — a private equity firm whose funds include cash from foreign investors — may come from outside the country. Federal legislation limits foreign ownership of a Canadian airline to 49 per cent, with a maximum of 25 per cent for any one foreign investor.

Onex says it is pleased the deal has received approval from federal Transport Minister Marc Garneau and the Competition Bureau.

WestJet shareholders approved the proposed acquisition in July, with 92.5 per cent voting in favour. The same month, an Alberta court approved the deal, which Onex and WestJet expect to complete following further regulatory green lights later this year.