We offer regular reviews of topics that are important to asset owners and managers who trade capital markets. Our opinions and insights are freely shared.

Is The Writing On The Wall?

August has already proven to be an eventful month. Trump started the festivities, as he did at the beginning of May, with a tweet announcing new tariffs on China. While equity markets fell on the news, traders initially began buying on the belief that markets typically don’t react to repeat news (ie, May’s correction would

Is The Writing On The Wall?

Governance Issues At Canopy And CannTrust

Summary Big questions cannabis investors need to be asking. Hidden rooms and pesticides. Canopy can be added to watch lists for the future.   What really is happening in the cannabis industry? This article is not about a particular investment thesis of CannTrust Holdings (CTST) and Canopy Growth (CGC) but about how these two companies

Governance Issues At Canopy And CannTrust

Long-Term Portfolio Outperformance By Reducing U.S. Equities

Between Fed rate cut giddiness and another truce in the U.S.-China trade war following the G20 summit, traders went berserk buying the large-cap indexes earlier in the week. Dow, S&P 500, and Nasdaq all hit new record highs. The Russell 2000 small cap index and S&P 400 Mid Cap indexes have lagged as Microsoft, Apple,

Long-Term Portfolio Outperformance By Reducing U.S. Equities

Taking a Risk with a Promising Natural Gas Stock

Natural Gas today is at $2.312 per MMBtu, well down from January’s 2019 high of $3.722 but bouncing back a bit after hitting a three-year low on June 16. Over the past two years, we have owned shares of four of Natural Gas companies in our Natural Resource portfolios: Devon Energy (DVN), Encana Corporation (ECA),

Taking a Risk with a Promising Natural Gas Stock

Two Dividend-Paying Retailers To Stock Up On

The Technology-driven U.S. equity rally has continued in 2019, despite a lot more “chop” in the indexes, including another -10% correction in tech names this past May. While the debate rages on about when the U.S. equity bull market (bubble) will end, we have learned not to be too dogmatic on picking the ultimate top

Two Dividend-Paying Retailers To Stock Up On

A Decision-making Process for Equity Investors

Buying stock is always easy. But, for independent-minded portfolio managers, the decision-making always comes down to a matter of choice and therein lies a problem. This week we had two stocks under consideration to buy for the WMA Cara Natural Resources Portfolio: the large cap diversified metal and coal miner Teck Resources (TECK) and small

A Decision-making Process for Equity Investors

The Single Most Important Indicator For Equity Investors

Buy Company Stocks For The Real Reason To Buy Stocks Many have expressed frustration in trading equities over the past few years. Between central banks holding interest rates at inappropriately low levels, official direct intervention (Swiss National Bank, Bank of Japan and undoubtedly clandestine government equity purchases) to support the stock market, and a massive

The Single Most Important Indicator For Equity Investors

Comparing the ‘Cannabis 50’ to the S&P 50

This week we compare many corporate fundamentals of the ‘Cannabis 50’ companies to the largest 50 of the S&P 500 companies. If we are going to buy, sell or hold the stocks, then we ought to understand how they stack up to the world’s best-known companies. In fact, for both sets of 50 companies we

Comparing the ‘Cannabis 50’ to the S&P 50

THE ‘BILL CARA CANNABIS 50’ COMPANIES

This week we focus on 50 cannabis companies for which we, as portfolio managers, capture comprehensive investor-related data. We show how we capture the data and apply it to a proprietary algorithm to generate decision-support information. We will let the data speak for itself. But new readers will first need an explanation. Every week my

THE ‘BILL CARA CANNABIS 50’ COMPANIES

A Study in Detail of 21 Cannabis Companies

With apologies to many other cannabis companies, this article focuses on the 21 of them for which we have been able to capture comprehensive investor-related data. In this article, we show how we capture the data and apply it to a proprietary algorithm to generate portfolio management decision-support information. Let beauty be in the eyes

A Study in Detail of 21 Cannabis Companies

Is cannabis moving from brown to green?

The cannabis industry would have us all believe that the only color is green, and most of the early investors saw it that way too. But today, the picture has changed. Too much brown bud that can’t be sold and not enough green in their financial summaries or ours either. A week ago, I reviewed

Is cannabis moving from brown to green?

Cannabis Stocks: The Massive Gap between Fact and Fantasy

Our Two Cents on Cannabis Stocks Perhaps the single biggest driver of the global cannabis industry has been the vast amount of risk capital raised by investors of Canadian-based companies, which in turn has been due to political leadership in Canada, and specifically by its Prime Minister Justin Trudeau. A small but long-popular stock exchange

Cannabis Stocks: The Massive Gap between Fact and Fantasy

What I have learned over 50+ years of trading

Change is constant. Markets are competitive. For the owners and managers of assets, only students of the market survive. We must learn to adapt to change. That involves the continuous study of  ​social and political change, macro-economic data and business conditions, international trade and taxation, commodity prices, interest rates and market liquidity, emerging markets, industry life cycles, corporate balance sheets and operating fundamentals, investor sentiment, trading research methodologies, and so forth. Needing to be a specialist at just one thing is a myth. Multiple interests and skills are required.

We all have it in our power to develop sufficient expertise to trade as well as most professionals. However, like anything in life, the experience needed to survive and prosper takes time and should not be rushed.

How to trade, survive and prosper

Through our publications, we offer a practical guide that incorporates an holistic approach to trading capital markets. Before we should buy any security, we need to understand the market and how to trade.

We believe we should buy only what we need and to buy the highest quality. The basic choices are Growth, Value or Yield. You should ignore any other marketing label put by to the sell-side. Understand that large-, mid- and small-cap companies or companies that operate in different regions of the world is simply your preference.

To ascertain the highest quality for Growth, Value and Yield requires a study of corporate fundamentals, comparing performance of one company to all other companies. In our proprietary database of almost 5,000 companies, we input the data of about 15 datapoints from Bloomberg and Thomson Reuters and then calculate weekly composite scores for Growth, Value and Yield, which we then rank from best to worst. For the most part, we are interested only in the highest quality companies. For order entry timing optimization, we study the market price & volume data for each of these companies from about 50 datapoints we capture from various sources on a daily and perhaps intra-daily basis.

Each portfolio is created and managed to meet different investor requirements; however, the trading methodology we use is consistent with what we know from experience works.

To guide our readers, we produce a Cara 100 list that balances Growth, Value and Yield considerations. This freely accessible list of what we consider to be quality companies is updated at the end of each quarter year, based on relative fundamentals, giving a range of large-, mid- and small-cap companies.