2. TD Bank (TD)
3. Imperial Oil (IMO)
4. Shoppers Drug Mart (SC)
5. Trans Canada Pipeline (TRP)
- C$ is at par, but I don’t think it will rise further beyond $1.02, as overnight interest rate will most likely keep at 1.0% and the higher the C$ will hurt international trade between US & Canada;
- Wewill have the Shoppers Drug Mart’s 3q10 result this week;
- Manulife Financial: 3q10 result is $1.1B lower than Bilibala’s expectation, cuz it wrote off $1B goodwill in related to its USA insurance business (no way I can’t guessitmate this kind of management decision. It is non-recurring, so, who cares!!). Overall, as interest rate start rising thx to the QE 2.0, Manulife’s performance for future quarters should look better.
Manulife has 3 major shift in its business model:
1. diversify by expand its asset management business;
2. de-equity risk by increase hedge & reinsurance to 50%;
3. de-interest rate risk by higher duration of its bond holdings.
From a risk management view, I think it will provide a much smoother quarter to quarter results. However, from a business view, this is not a smart move:
1. as we all know interest rate will go up eventually, instead of go down
2. equity market will go up when it was at the bottom (in 2009)
why should anyone earn less just to smooth things out? Just follow the crowd? Anyway…..
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