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Fintech Select Ltd. V.FTEC

Alternate Symbol(s):  SLXXF

Fintech Select is a provider of pre-paid card programs, an online payment platform, and a POS cryptocurrency platform that all are in-house developed platforms. The company also operates a multi-lingual call centre that provides services to customers across all its platforms, and to third-party customers. These core assets have been unified and enabled to operate through separate divisions, all harmoniously working together to create a new environment for consumers and businesses alike.


TSXV:FTEC - Post by User

Bullboard Posts
Post by Islayidiotson Jun 27, 2011 11:56am
182 Views
Post# 18768903

Down down down

Down down down

Worst is yet to come for hard-hit Canada stocks

By Claire Sibonney | Reuters

TORONTO (Reuters) - Canada's sliding stock market may not hit bottom formonths as weakening economic growth and an unresolved debt crisis in Europe turnoff more investors before a modest year-end rebound.

The majority of more than 20 strategists and fund managers polled by Reutersover the last two weeks expect the Toronto Stock Exchange's S&P/TSXcomposite index <.GSPTSE> to fall further from its close of 12,908.89 onFriday.

Many think it could slip another 5 to 10 percent between July and October,before a modest recovery begins later this year.

"The worries are not over, particularly with the concerns about when the eurozone and the IMF help provide Greece with its money," said Kate Warne, Canadianmarket strategist at Edward Jones.

"There are probably a few more glitches between today and the resolution ofthe current Greek debt crisis."

The St. Louis, Missouri-based strategist said other potential difficultiesfor the stock market include cooling economic growth in North America andChina.

Canada's benchmark stock market index has fallen about 4 percent this yearand 10 percent since the 2011 high reached in March.

Many market watchers see it tumbling to anywhere between 11,500 and 12,500.The index hasn't touched 11,500 since last August.

If the most pessimistic forecasts are right, this would mark a pullback ofnearly 20 percent, a common definition of a bear market.

Douglas Rowat, senior equity specialist at HSBC Canada, said another 5percent correction is certainly possible given the U.S. Federal Reserve'sdecision to end the second round of its quantitative easing program, in which itcreated money to buy U.S. government debt.

"That's largely been telegraphed to the market, but still, when it actuallyhappens, you could see some volatility," he said.

An August speech by Fed Chairman Ben Bernanke at Jackson Hole, Wyoming, inwhich he flagged the launch of the stimulus program -- dubbed QE2 -- helpeddrive the TSX's turnaround from a 10 percent correction last year.

TECHNICAL SIGNALS WATCHED

The technical picture also points to further medium-term weakness, said DonVialoux, a technical analyst at JovInvestment Management, who sees support atthe November low around 12,500.

While second-quarter results in July are expected to be solid, he cautionedthat the outlook from companies in the second half of the year tends to be lessupbeat. Seasonal factors could also weigh this September and October --typically bad months for stocks, said Vialoux.

Still, not everyone thinks Canadian stocks have much more to fall.

Ron Meisels, a technical analyst and president of Phases & Cycles inMontreal, thinks the TSX's seven-month low of 12,763.54, reached on June 20,will hold.

He said that, historically, the market has often bottomed on the Mondayfollowing the day options expire, in this case June 17.

The fact that more than 75 percent of stocks are trading below their 200-daymoving average is in fact a bullish sign, said Meisels, indicating an oversoldmarket.

Looking further out, Canadian stocks are widely expected to reverseyear-to-date losses and eke out low single-digit returns in 2011, helped by asecond-half pickup in economic growth and diminishing global headwinds.

Some analysts are speculating the U.S. Federal Reserve may even launch athird round of quantitative easing this year in a bid to further stimulate theeconomy, though Bernanke did not signal this at a recent appearance.

"In fact, it will be QE3," said Gavin Graham, president of Graham InvestmentStrategy. Until then, he expects more weakness, especially for resource stocks,which are particularly sensitive to global growth.

The energy and materials sectors have seen the steepest corrections fromhighs this year, skidding more than 15 percent. Yet many expect them toeventually lead the market higher.

The two sectors, which combined make up about half of the index, includeresource giants like Suncor Energy and Potash Corp .

Financials, the most influential sector with nearly a 30 percent weighting onthe TSX, have tumbled a more moderate 7 percent, and are also seen supporting ayear-end recovery. The sector's biggest names include Royal Bank of Canadaand Toronto-Dominion Bank .

Analysts said steeper declines in coming months would ultimately cheapenstocks and lure cash-heavy investors back into the market.

"While there is no shortage of headwinds, the selloff has been quite steepand has improved market valuations," said Elvis Picardo, a strategist withGlobal Securities in Vancouver.

($1=
.99 Canadian)

(Editing by Jeffrey Hodgson and RobWilson)

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