Welcome to OSIC

1
Welcome to OSIC

• Visit us on the web at
• http//www.management.uottawa.ca/osic

2
Canadian Market Overview

• Potential changes in Airline ownership
• Acclaim and StarPoint Energy Trusts are merging
  4.5B trust
• Cad reached 13yr high of US 85.57cents on
  Tuesday

3
Canadian Market Overview

• Alberta announced 6.8B surplus
• Mr. Dodge makes historically significant
  statements about inflation/monetary policy
• Need to watch what happens after Oct. 18th
  meeting
• Cott Ltd. (BCB.TO) has been getting a lot of
  attention over the week

4
American Market Overview

• Greenspan is breaking my heart!
• Interest rate hike of 25 basis points (0.25)
• David Radler associate of Conrad Black agreed to
  29 month prison term and US250,000 fine Queens
  University retuns a 1million dollars from Radler
  and strikes his name from building.
• Palm Mr Softy (microsoft, msft) Mobile
  operating system partnership
• Another Hurricane, Rita thousands flee
• - Shuts Gulf output

5
Cool Charts Technical Analysis

• Both these charts are Perfect examples of
  Companies that gap up after Good News
• General Mills Earnings
• look at the 5 day chart BOOM!
• http//finance.yahoo.com/q/bc?t5dlonzmqlp
  m502Cm200acsgis
• Fedex (FDX) Released Earnings
• look at the 5 day chart BOOM!
• http//finance.yahoo.com/q/bc?sFDXt5dlonzm
  qlc

6
Technical Analysis (TA)

• This is a very complex way of analyzing
  companies, not based on their earnings, their
  industry, or any other relevant fundamentals.
• TA is all about price trends and price behaviour

7
Look At Bollinger Bands

• Trends
• Overbought (Price too high)
• Oversold (Price too low)
• When Prices straddle the lower band
• Oversold (buying opportunity?)
• When Prices straddle the upper band
• Overbought (Selling opportunity?)
• Now take another look at FDX GIS
• http//finance.yahoo.com/q/ta?sGISt1ylonzm
  qlpm50,bac
• http//finance.yahoo.com/q/ta?sFDXt1ylonzm
  qlp,bac

8
Bollinger Bands

• What are the bands
• Two standard deviations from stock price moving
  average for a variety of days.
• The basic idea is that on average, over time,
  prices will return to their average.
• This is one faucet of Technical Analysis and
  should be used alongside Fundamental analysis as
  well as other technical indicators.

9
Side Note Random Musing

• If you have add like me and cant focus on pages
  and pages and pages of documents, just listen to
  companies managements discuss their earnings
  and operations during their earnings calls
  through this link brought to you by the awesome
  people at YAHOO! Finance
• http//biz.yahoo.com/cc/

10
Canadian Portfolio

• Kingsway announces acquisition of HI Holdings
• Northern Orion Gold Rally?
• Maple Leaf Earnings Call Good News, check out a
  one day chart, muy caliente
• Listen in at this link http//biz.yahoo.com/cc/8/
  59168.html

11
American Portfolio

• Commerce Bancorp.
• Flat week
• Watch for Katrinas impact Greenspan ?

12
Upcoming Events to Follow

• Always, Always, Always, Always. Keep track of
  whats happening in the news around you!!
• This stuff will help you become rich or keep you
  from going broke!!

13
MONDAY, SEPT. 26

• Earnings
• Jabil Circuit Inc. reports fourth-quarter
  results.
• Walgreen Co. reports fourth-quarter results.
• Economics
• The U.S. National Association of Realtors reports
  on existing home sales in August..
• U.S. Federal Reserve Board Chairman Alan
  Greenspan speaks via satellite to the American
  Bankers Association

14
TUESDAY, SEPT. 27

• Economics
• The U.S. Conference issues its consumer
  confidence report for September. Economists
  expect a reading of 94, from 105.6 in August.
• The U.S. Commerce Department reports on new home
  sales in August.

15
WEDNESDAY, SEPT. 28

• Earnings
• Research In Motion Ltd. to report share profit in
  the second-quarter, 2006.
• AGF Management Ltd. reports third-quarter
  results.
• McCormick Co. Ltd. reports third-quarter
  results.
• Red Hat Inc. reports second-quarter results.
• Economics
• The U.S. Commerce Department reports on durable
  goods orders in August
• The World Economic Forum releases its Global
  Competitiveness Report 2005-2006.

16
THURSDAY, SEPT. 29

• Economics
• Statistics Canada reports on the industrial
  product and raw materials price indexes in
  August.
• The U.S. Commerce Department issues its final
  report on the gross domestic product in the
  second quarter.
• The U.S. Labour Department reports on initial
  jobless claims in the week ending Sept. 24.
• Earnings
• Family Dollar Stores Inc. reports fourth-quarter
  results.
• PepsiCo Inc. reports third-quarter results.

17
FRIDAY, SEPT. 30

• Economists expect Statistics Canada to report
  month-over-month growth.
• The U.S. Commerce Department reports on personal
  income and spending in August.
• The University of Michigan releases its revised
  index of consumer sentiment for September.
• The Chicago arm of the National Association of
  Purchasing Managers releases its index of
  manufacturing activity in September.