Business

#1 Tech Stock to Buy After COVID-19 Crisis – The Motley Fool Canada

Published

4 years ago

May 5, 2020

Technology stock market indices have outperformed the S&P/TSX Composite Index over the last 10 years. The COVID-19 pandemic has weighed on the global stock market, but the technology sector has excelled during the crisis. If you don’t have any technology stocks in your retirement portfolio, today is the best day to buy top technology stocks like Open Text (TSX:OTEX)(NASDAQ:OTEX).

The S&P/TSX Composite Index level percentage change is negative at 14.15% less than at the year’s start. By contrast, the S&P/TSX Capped Information Technology Index level percentage change is a positive 16.66% for the year 2020. The S&P/TSX Capped Sector Indices selects and weights stocks from eligible S&P/TSX Composite equities, capping the weight of single stocks at 25%.

Open Text a top winner after the COVID-19 crisis

Open Text is likely to continue exceeding the S&P/TSX Composite Index during the stock market rebound in 2020. Thus far, this stock has only lost 6.2% of its value; meanwhile, the S&P/TSX index has lost 14.22% of its value. During the market rebound, you will want to own this top technology stock in your retirement portfolio.

There are many reasons to invest in Open Text over other technology stocks. For one, the company is using trends toward remote work during the coronavirus-mandated quarantine to restructure and contain costs.

With nearly all its employees working from home, the company is happy with the level of productivity.

A shift to remote work by more than 95 percent of OpenText employees has been “amazingly productive” and as a result, approximately half of its physical offices around the world will not reopen https://t.co/MTWcGZXXVK

— Sunil Johal (@JohalSunil) April 30, 2020

Thus, Open Text has decided to close expensive office space permanently to save money.

new from me: in what might (might!) be a bellwether for life after the pandemic, OpenText says it will shut down half its offices permanently since work-from-home is going so smoothly. (…and they’re also restructuring.) https://t.co/Mq21Lwhupu

— josh o’kane (@joshokane) April 30, 2020

Apparently, working from home does not lead to lower performance, even during a pandemic. It only makes sense that Open Text would leverage the opportunity to gain a cost advantage over the competition.

Should you buy Open Text stock?

Buying individual stocks versus exchange-traded funds (ETFs) has its advantages even during a COVID-19-induced recession. For one, you can pick solid companies with corporate ethics that align with your personal values.

Nevertheless, Open Text will not give you better returns than buying shares of an ETF that tracks the performance of the S&P/TSX Capped Information Technology Index.

Open Text may be overshadowing the S&P/TSX index, but it is underperforming the Information Technology Index. The IT index is up 16.66% this year, while Open Text lost 6.3% of its market value. If you are interested in the highest returns possible, the IT index may be your best bet.

The only catch is the other stocks in the fund adding to the risk. For example, the IT index likely includes Shopify stock, giving it the added boost. Shopify is up 79.93% as of Monday. Where the price of this stock goes from here, no one knows.

Regardless, I wouldn’t buy into Shopify now or ever. That’s my personal preference, as I don’t trust the stock. I’m suspicious of anything that seems erratically overpriced.

5 TSX Stocks for Building Wealth After 50

BRAND NEW! For a limited time, The Motley Fool Canada is giving away an urgent new investment report outlining our 5 favourite stocks for investors over 50.

So if you’re looking to get your finances on track and you’re in or near retirement – we’ve got you covered!

You’re invited. Simply click the link below to discover all 5 shares we’re expressly recommending for INVESTORS 50 and OVER. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a brief time only.

Click Here For Your Free Report!

Fool contributor Debra Ray has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool recommends Open Text and OPEN TEXT CORP.

Let’s block ads! (Why?)

Source link

Business

Carry On Canadian Business. Carry On!

Published

11 hours ago

October 22, 2024

Steven Kaszab

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

Business

Imperial to cut prices in NWT community after low river prevented resupply by barges

Published

15 hours ago

October 22, 2024

Anne Joseph

NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

Source link

Business

U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

Published

15 hours ago

October 22, 2024

Anne Joseph

TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

Source link