When you have no time to research in the market, forcing trades is a great way of gambling. You might get lucky, but you probably won’t.
The last two weeks has been the most positive in the markets in quite some time. This came to a halt on Friday when the market reacted heavily on some US data concerning jobs and employment, but the new economic paradigm is that human labour is expensive and businesses that attempt to automate all processes to avoid the human element will do better than those that are labour intensive. There are a lot of industries with labour costs that can not be automated (e.g. full service restaurants) and they will continue to become more and more expensive as government continues to raise the cost of labour.
Arctic Glacier (TSX: AG.UN) gave their unitholders the mother of all dilutions when they announced that they will be allowing their convertible debentures to mature into units. While this will allow the company to avoid creditor protection, their market capitalization is currently $12.7 million on a 32.5 cent unit price, versus the $90.6 million of debentures that are to be redeemed. Doing some simple mathematics says that unitholders will be holding 11.7% of the original company. Ouch!
Keep solvent, readers! The broad markets continue to be choppy.