Posted on 08 November, 2012
Apple is no longer the underdog, the contender; they are now the company to beat – the ones with the target on their back. And while Apple continues to be known for its excellence, innovation and quality, life at the top is much more rigorous, and pressure bound than being second in command. If you believe in the company’s long term value, there are a bunch of different and creative ways to play Apple using option
Posted on 19 March, 2011
With the VIX trading at near lows in Jan & Feb 2011, Frontwater loaded up on 2012 protective put options on the TSX, DJIA, and S&P 500. This week we were rewarded for our prudent risk management strategy…
Posted on 28 December, 2010
With U.S. targeted mergers & acquisitions up 11 percent this year and takeover speculation moving the markets, see how options action may reveal which names could be takeover targets.
Posted on 08 November, 2010
Long-only portfolio managers traditionally manage risk through asset allocation strategies that concentrate on finding a balance between equity, fixed income, and cash. But what happens when demand for seemingly safe fixed income investments, such as government and investment grade bonds, drives prices up to ‘bubble’ territory. Shifting assets out of equities and into an inflated asset class such as bonds does little to minimize risk.
Posted on 20 January, 2010
Both shares of McDonald’s (MCD) and Burger King Holdings (BKC) have underperformed the Standard & Poor’s 500 index over the last year. However, Credit Suisse recently upgraded McD’s while cutting Burger King. We, at Frontwater, believe both stocks deserve at the very least special attention.
Posted on 13 December, 2009
Research in Motion (RIM), makers of the Blackberry, is a Canadian success story but its stock is not without its risk. The company is worth more than $36 billion. It generates over $600 million in profit every quarter. It carries no debt on its books. It has a dominant position in the US with a market share greater than 55%. And it is expanding aggressively into sought after international markets including Russia and China. Here’s one way to limit investment losses in RIM ….