Category Archives: Invest

Why you should not invest in Yellow Pages Group (TSX:YLO)

[highlight]As of today, Yellow Media will stop paying dividends as it tries to improve its finances.[/highlight]

Shares in Yellow Media Inc. (TSX:YLO) tumbled more than 45 per cent in to 31 cents on Wednesday on the Toronto Stock Exchange after the company’s review of its operations concluded that its assets are worth less than previously thought.

[quote]Yellow Media said on Wednesday it would take a C$2.9 billion ($2.8 billion) charge in the third quarter, sparking a 50 percent fall in its stock price. Yellow Media also said it will stop paying dividends after its October payment as it struggles to switch from print to a digital platform, while trying to manage its debt.[/quote]

Is this company done for? 

Yellow Media is the largest telephone directory publisher in Canada. Online properties comprise the YellowPages.ca and Canada411.ca online telephone directories, and the CanadaPlus.ca group of major Canadian city websites.

Print directories include 340 telephone directories published annually for Bell Canada, Telus, Bell Aliant, MTS Allstream and other telephone companies.

One of the reasons I don’t think this company will recover is that 75% of revenue is still coming from physical telephone directories.

A removal of all dividends paid to shareholders should be a sign that this company will not come back.  Additionally, their CFO resigned on September 6 as another big blow (http://www.ypg.com/en/newsroom/529-yellow-media-incs-chief-financial-officer-to-step-down).

When was the last time you used a phone book? 

No one uses them anymore, this is a dying business, and YPG should divest from this business into other more profitable online directories.

Best New Innovations in Financial and Banking Technology

Have you heard of Finovate?

 

[highlight]

Finovate is a series of unique conferences that showcases the best new innovations in financial and banking technology via short, fast-paced demos (no slides allowed) and high-quality networking.

[/highlight]

 

I heard about this from personal finance blogger, Ben Popken.

Here are  some of the technologies and new companies that were unveiled:

PayNearMe – A payment service intermediary that lets people without a credit card pay their bills. If, say, your landlord signs up for it, then you’ll be able to pay your rent in cash at the 7-11.

On a personal note, I think the more services that make it easier to pay bills is probably not the best thing for some people.

Bundle.com – A merchant review service that uses customer spending data so you can see what different psycho-eco-social demographics think of different restaurants and stores.

This sounds like a high level data mining where companies can get deep information about their consumers and how to get more money out of each group.

[box type=”info”]Are there any new Canadian made innovations coming out?[/box]

Where to find Commission-Free ETFs in Canada?

[quote]Scotia iTRADE has partnered with Claymore1 to bring you commission-free* online trading on 46 ETFs, covering a vast array of sectors, from Claymore ETFs®* and other leading Canadian ETF providers.[/quote]

Exchange-traded funds (ETFs) are among the fastest growing investment products in today’s global marketplace. Built like mutual funds, ETFs consist of a portfolio of investment products, but they trade like individual stocks on major stock exchanges and can be bought or sold at any time in any amount throughout the trading day.

What does this mean?

Usually when buying and selling ETFs you incur commissions. You can pay as much as $29 per trade depending on your broker. There is no minimum order amount.

Hopefully some other discount brokerages like Questrade will follow suit with this!

Here is the list of ETFs that are available.

Symbol Market Description Sector
CLF CDN CLAYMORE 1-5 YR LADDERED GOV’T BOND Bond
CBO CDN CLAYMORE 1-5YR LADDERED CORP BOND Bond
CAB CDN CLAYMORE ADVANTAGED CDN BOND INDEX Bond
CHB CDN CLAYMORE ADVANTAGED HIGH YIELD BOND Bond
CRQ CDN CLAYMORE CANADIAN FUNDAMENTAL INDEX CDN Index
HXT CDN HORIZONS S&P/TSX 60 IDX CDN Index
XMD CDN ISHARES S&P/TSX COMPLETION CDN Index
COW CDN CLAYMORE GLOBAL AGRICULTURE Commodities
CBR CDN CLAYMORE BROAD COMMODITY Commodities
CGL CDN CLAYMORE GOLD BULLION Commodities
CGL.C CDN CLAYMORE GOLD BULLION (C$ HEDGED) Commodities
HUK CDN HORIZONS BETAPRO COMEX COPPER Commodities
HUZ CDN HORIZONS BETAPRO COMEX SILVER Commodities
XST CDN ISHARES S&P/TSX CAPPED CONSUMER STAPLE Consumer Staples
DLR CDN HORIZONS US DOLLAR CURRENCY Currency
GAS CDN CLAYMORE NATURAL GAS Energy
HUC CDN HORIZONS BETAPRO NYMEX CRUDE OIL Energy
HJE CDN HORIZONS GMP JR OIL & GAS IDX Energy
CLO CDN CLAYMORE OIL SANDS SECTOR Energy
XEN CDN ISHARES JANTZI SOCIAL INDEX Ethical
CEW CDN CLAYMORE EQUAL WEIGHT BANC & LIFECO Financial Services
XHC CDN ISHARES S&P/TSX GLOBAL HEALTHCARE Healthcare
CSD CDN CLAYMORE SHORT DURATION HIGH INCOME Income
CBD CDN CLAYMORE BALANCED INCOME Income
CPD CDN CLAYMORE S&P/TSX CDN PREFERRED SHARE Income CDN Div
CDZ CDN CLAYMORE S&P/TSX CDN DIVIDEND Income CDN Div
FIE CDN CLAYMORE CANADIAN FINANCIAL MONTHLY INCOME Income CDN Div
CYH CDN CLAYMORE GLOBAL MONTHLY ADVANTAGED DIVIDEND Income- International Div
XIT CDN ISHARES S&P/TSX CAPPED INFO TECHNOLOGY Information Technology
CIF CDN CLAYMORE GLOBAL INFRASTRUCTURE Infrastructure
CHI CDN CLAYMORE CHINA International – Equities
CBN CDN CLAYMORE BALANCED GROWTH International- Equities
CIE CDN CLAYMORE INTERNATIONAL FUNDAMENTAL INDEX International- Index
CJP CDN CLAYMORE JAPAN FUNDAMENTAL INDEX (C$ HEDGED) International- Index
CWO CDN CLAYMORE BROAD EMERGING MARKETS International- Index
CBQ CDN CLAYMORE BRIC ETF International- Index
XID CDN ISHARES S&P CNX NIFTY INDIA INDEX International- Index
XLA CDN ISHARES S&P LATIN AMERICA 40 INDEX International- Index
CMW CDN CLAYMORE S&P/TSX GLOBAL MINING Materials
CMR CDN CLAYMORE PREMIUM MONEY MARKET Money Market
CGR CDN CLAYMORE GLOBAL REAL ESTATE Real Estate
CLU CDN CLAYMORE US FUNDAMENTAL (C$ HEDGED) US Index
CLU.C CDN CLAYMORE US FUNDAMENTAL US Index
HXS CDN HORIZONS S&P 500 IDX (C$ HEDGED) US Index
CWW CDN CLAYMORE S&P GLOBAL WATER Utilities
XUT CDN ISHARES S&P/TSX CAPPED UTILITIES Utilities
Legend CLAYMORE FUNDS1 HORIZON FUNDS ISHARES FUNDS

 

Is Netflix (NFLX) stock headed for the bottom?

One of the main reasons I don’t like to invest in technology companies or technology services anymore is that the next ‘big thing’ can come along and convince the consumer to switch brands.

An example is Netflix (NFLX).

Their Unique Selling Proposition is that they are an easy way to view a huge library of videos and you can watch on a variety of devices and you do not need to buy cable anymore at an affordable price.

What I see happening is that the telcos and cable companies are creating a better experience for video-on-demand and people are starting to see that the Netflix catalog consists of a variety of B-movies and lack in current new releases.

Companies like Google with YouTube, and Hulu, and the existing cable companies are planning to take back this market that Netflix captured the last few years.

Here is their current stock price over the last year:

If you notice how the stock had a resistance point at over the $300/share point and is slowly moving down.

How do you see this company moving forward?

Disclosure:

I currently do not own any Netflix stock.