Monthly Archives: May 2012

Bank Fees

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Everybody hates bank fees, but there are two ways that you can feel better about them.

  1. Stop paying them.
  2. Profit from them.

I feel that a lot of the hate directed at the big banks is misdirected. Especially here in Canada where our banks weren’t involved in the same shenanigans that some of the big banks South of the border participated in. Besides, do you really feel like paying cash next time you want to buy a car or a house? Banks provide a necessary service in the loans that they provide.

Stop paying them

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Stocks on my radar.

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Every day I read the financial news and you hear about the same few stocks that everyone is following. FaceBook… Apple… The big banks… bla bla bla.

Today I want to know about the small caps that you’re following. Why do you think they may be a good investment? Have you bought any shares?

I’ll go first…

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Money News

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  • Canadians who shop in the States will get a break soon. June 1st the new, higher, duty-free limits announced in the federal budget kick in. The duty-free limit for stays of more than 24 hours will be boosted to $200 from $50. Limits for visits longer than 48 hours will be increased to $800. The previous limits were $400 for a week and $750 for more than a week. According to a BMO Capital Markets report released Thursday.“Our latest random sampling of a basket of goods finds that Canadian retail prices are roughly 14% above U.S. levels, before taxes and adjusted for the exchange rate.”
  • Bank of Nova Scotia’s landmark red tower in downtown Toronto has been sold for $1.27-billion, the highest price yet paid for a Canadian office building. Although it was common in decades past for banks to own their headquarters, a series of real estate sales over the years left Scotiabank as the only of Canada’s Big Six lenders to own its headquarters.
  • On Thursday shares of Research In Motion fell to $10.89, its lowest level since the end of 2003, after a top sales executive in charge of the company’s global sales strategy quit the company.
  • Stocks were higher this week with the S&P 500 index rising 1.8% in the States and in Canada, the S&P/TSX composite index ended the week 2.6% higher.
  • There was some upbeat economic news in the United States: The University of Michigan’s consumer confidence index broke free of expectations and rose to 79.3 – its highest reading since October 2007 and its ninth straight increase.
  • Investors were more focused on Europe though, where Spanish regulators suspended trading in Bankia SA, Spain’s fourth-largest lender, ahead of what is expected to be a €19-billion bailout by the government as it attempts to steady the country’s financial turmoil.
  • Facebook shares fell another 3.4% on Friday. The shares have fallen a total of 16% from their initial public offering price of $38 (U.S.) last Friday amid a flood of complaints about the IPO process.

Hawaii on a budget.

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When I was a little kid I would hear about people going on vacation to Hawaii. They would return with a tan wearing a cool Hawaii 78 t-shirt and a puka shell necklace.

Later, when I was a teenager, my favourite TV show was “Magnum P.I.”. It took place in Hawaii and every week I would watch Tom Selleck race around Waikiki beach in his red Ferrari.

Somehow, someway, I knew I had to get to Hawaii one day…

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Money News

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Markets were down this week as the European economy showed increasing signs of deterioration and a U.S. payroll report points to another sluggish period for the economic recovery.

Canadian market this week

On Tuesday Research In Motion unveiled its crucial BlackBerry 10 software and the stock has dropped roughly 15% since to hit an 8 year low of $11.77. In 2008, RIM was worth more than the Royal Bank of Canada’s with a share price peaking around $148.

Research In Motion 1 year chart

On Wednesday Whole Foods (or Whole Paycheck as some people call it) reported second quarter results and sales for the quarter increased 14% to $2.7 billion. The stock is up 50% this year and is rated a “strong buy” by most analysts.

Whole Foods 1 year chart

The Super Bowl of investing is happening this weekend. The Berkshire Hathaway annual meeting – hosted by 81-year-old Warren Buffett – is a private event open exclusively to shareholders and select media. Buffett’s disclosure that he has prostate cancer has again raised the question of who will eventually succeed the world’s most successful investor at Berkshire Hathaway.

Full coverage of the event: The Motley Fool – Berkshire Hathaway 2012 Annual Meeting