Month: October 2010

In a risky move by William Ackman of Pershing Square Capitol, Ackman recently took large stakes in shares for retailer JC Penny and manufacturer Fortune Brands, in hopes that the average US consumer would start spending more money and that these brands would hold the potential to grow during the economic recovery.

It is his long term strategy towards future growth that enables Ackman to reap the benefits; however, it is his immediate tactic of grabbing the shares that consumers can publicly see. Already in morning trading in New York, JC Penny’s shares climbed to $33.10 – a growth of up to 60% in the last month alone – and the firm grabbed most of its JC Penny shares while the retailer’s stock was around $20.

http://www.theglobeandmail.com/globe-investor/ackman-takes-stake-in-jc-penney-fortune-brands/article1749673/

Mr. Ackman is now considered one of the most successful activist managers in the hedge fund industry, and it is clear that he is targeting stocks he views as undervalued with considerable growth potential while at the same time considering his own firm’s financial conditions.

The current Canadian economy has greatly suffered as of late. In a recent finding by Statistics Canada, 6600 job positions were diminished; however, the unemployment rate dropped slightly to 8 percent. Compared to the condition in the United States, Canadians are faring considerably better for the most part.

http://www.theglobeandmail.com/report-on-business/economy/jobs/job-market-held-back-by-struggling-us/article1749025/

The problem is presented as the Canadian economy continually finds itself attached to the slow, stagnant recovery of the US (with an unemployment rate of currently 9.5 percent) , and therefore our job growth is predicted to remain slow as well. Once again, the sleeping elephant of the American economy is affecting their immediate neighbours as was said so many years ago by former Prime minister Trudeau. It spells out bad news on our part.

Prime Minister Harper continues to support his government’s intentions of ending the stimulus and reasons that “there’s going to be bumps along the way.” In order to achieve further growth in Canada’s suffering economy, business investments are entirely necessary and crucial for the well-being of our country.