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Wednesday, March 10, 2010

Doing great with Premium Brands Holdings Corporation (PBH)

Just a couple of days ago, I had place my latest trade using TD Waterhouse. My latest investment was 200 stocks of Premium Brands Holdings Corporation (PBH). I purchased the stock at 14.50$. Premium Brands Holdings Corporation closed the day at 14.86$. This represents a nice profit of 72$! Just wow! I always like it when my investment goes up like this. Thanks to Jean-François Tardif, I am becoming better and better at investing!

Because we have to remember from where we are coming from. We had experiment some difficult times with investments that turn out very bad. And I am thinking of Sprott Inc. (SII). Back in the times, I had invested in 500 stocks of Sprott Inc. (SII). Each stock had been purchased at around 10$. Currently, Sprott Inc. (SII) do not even worth 5$ per stock! Outch! Bad, you thing? Well, you didn’t hear about the worst… I was stupid enough to follow Eric Sprott when Timminco (TIM) was hot on Bay St… I had invested in 200 stocks of Timminco (TIM) when stocks were at 20.33$. When the stocks price begin to fail, I haven’t been smart enough to sale. The result: the 4 065$ investment only worth today 244$. But I still have faith in Timminco and I continue to hold 200 stocks of Timminco (TIM). Sprott Inc. (SII) and Timminco (TIM) are not bad investments, it’s just my timing wasn’t right. And I got caught in the investment game and I forgot about my reading of Derek Foster. But now I am sticking to my own rule and I have to say, my portfolio is doing better than ever.

So here’s some simple investment rule I had fixed myself among the way in order to protect my assets:

-Diversify my assets. Not to invest too much in the same company.
-Follow Derek Foster strategy and borrow ideas for his portfolio. Register to a DRIP for all my dividend payers.
-Invest in Jean-François Tardif 2009 top hot stock picks (they are really still good for 2010; check what just happen to me with the Premium Brands Holdings Corporation (PBH)!!!).
-Invest in dividend Payers Company only.

Jean-François Tardif is such a powerful, extraordinary investor that his 2009 stock picks still accurate for today’s market!

In my stocks and units investment portfolio, I hold some companies that do not pay dividend. They are: Timminco (TIM), Dumont Nickel (DNI), Blue Note Mining (BNT) and Hanwei Energy Services (HE). I also lost some money in Dumont Nickel (DNI), Blue Note Mining (BNT) and Hanwei Energy Services (HE) – but not that much. And I always told myself that if those losses would become too important, that I would eventually stop investing. Those DNI, BNT and HE investment were made a while ago and I am glade I made those investments because my failures provide me a great deal of knowledge. My mistake: I wanted to make money quickly out of the stock market with those investments. But I learned my lesson: I wasn’t going to make money quickly by buying and selling stocks, but I was going to be a good imitator. By that I mean an imitator of Derek Foster and others, including Jean-François Tardif. From the point I told myself I was going to follow Derek Foster strategy and make something out of it, I became in power of my finance. Ever since, awesome things happen to me, financially speaking. My earn dividends and some of my investments gain a lot of value. But I wouldn’t be at this point if it wouldn’t be of my failures (I am saying this of course because I just LOVE my portfolio at this time, it’s not a perfect portfolio, but its all mine! All that money is mine! lol…).

In investment, failures are an expensive way to learn.

I could had taken the money and leave it in a bank account. But my life would have been much more boring. And I wouldn’t be here writing on my blog…

I had been a great Derek Foster imitator over the past months. I never lost money by following Derek Foster tips. Never did I loose money in one of Derek Foster investment. And we are taking here of Bank of Nova Scotia (BNS), Pembina Pipeline Income Fund (PIF.UN), Pengrowth Energy Trust (PGF.UN), Enbridge Income Fund (ENF.UN) and Corby Distilleries Limited (CDL.A).

And believe it or not, Just Energy Income Fund (JE.UN) was one of my very own pick, as well as Fortis (FTS), Yellow Pages Income Fund (YLO.UN), Bell Aliant Regional Communications Income Fund (BA.UN) and Davis + Henderson Income Fund (DHF.UN). I am very proud of my Just Energy Income Fund units.

One of my fellow reader told me that Derek Foster had been published several updates of his portfolio in the Canadian MoneySaver magazine. It’s seemed like Derek Foster published update of his portfolio every 3 months or so in the Canadian MoneySaver – and I didn’t even know about it! But now I know and I am letting everyone know: Derek Foster writes for the Canadian MoneySaver magazine. The Canadian MoneySaver magazine had been around since 1981 and its own by Dale Ennis and Betty Ennis. Nice to see Derek Foster being published.

Derek Foster had an article in the latest edition of the Canadian MoneySaver. In the article, Derek mentions PM as a company he holds. I won’t mention more of more because you will have of course to buy and read the magazine – but I did a fantastic discovery. I was searching for PM but on the Canadian market, while Derek holds the PM company, but the one located in the state. But the PM company list under the TSX is quite interesting, but the stock is not being hold by Derek Foster – but I will certainly later own some PM stocks.

So what’s that PM and what’s so great about it?

Well, PM stands for Prism Medical Ltd. The company is located in Ontario and had activities in the US and the UK. So here’s what Prism Medical Ltd. is all about: “Prism Medical Ltd. is a provider of durable medical equipment and related services to the mobility disadvantaged in Canada, the USA and the United Kingdom (UK). Operating since 1996, Prism services the mobility disadvantaged wherever they reside – the home, long-term care facilities or acute care facilities.” (Source: prismmedicalltd.com/About/Default.aspx). This sector of health is in high demands. You just have to think about the baby boomers generation who eventually will need medical equipment and so on… The company had been around for more than 10 years – so it’s a solid company, I don’t think they will close by tomorrow... Also, Prism Medical Ltd. pay dividend. A little dividend, but still, Prism Medical Ltd. (PM) pays a dividend. And remember the rule: we only invest in dividend payers companies. And Prism pays a dividend: 30 cents per stock annually. Also, Prism stocks are cheap: 6.95$. The company offers an international exposure to health care. The company made 65$ million in 2009. Do you need more blabla? Yep, I am telling you, that Prism Medical Ltd. is a good investment. I would like to invest in the company. And this will be done soon…

Today, I went to TD Waterhouse to open my RSP account. The account is now open. I am just waiting for the 10 500$ to be transfer over! And of course, we are going to invest in stocks! Yeah! And it’s going to be a happy mix of Derek Foster and Jean-François Tardif hottest picks… Hottest picks for the hottest investors’ lol.

So here’s what my 10 500$ RSP investments might look like:


-200 units of Just Energy Income Fund (JE.UN):
200 units: 2 832$ (approximate investment value): 288$ in annual dividend earnings

-400 units of Consumers’ Waterheater Income Fund (CWI.UN):
400 units: 2 072$ (approximate investment value): 259.20$ in annual dividend earnings

-100 units of Morneau Sobeco Income Fund (MSI.UN):
100 units: 1 056$ (approximate investment value): 94.50$ in annual dividend earnings

-200 units of Liquor Stores Income Fund (LIQ.UN):
200 units: 3 234$ (approximate investment value): 324$ in annual dividend earnings

-187 stocks of Prism Medical Ltd. (PM)
187 stocks: 1 306$ (approximate investment value): 56.10$ in annual dividend earnings

Total in dividend earnings: 1 021.80$

My investment RSP loan was 10 000$ at 4.75%, which represent, for a year, 475$ in interest. My dividend earnings help to cover the cost of the loan. BUT the dividend earns inside the RSP has to remain inside the RSP, it cannot go out. Too bad, because I could had partly made my minimum payment for the loan on the money earn by the dividend! My RSP loan payment is of 105.63$ per month.

At this time, I am just exposing a few ideas for my RSP. The default of the scheme is that there’s too much of .UN investment. Just love them too much. But they provide a very generous dividend. AWESOME to see a 1 021.80$ in dividend earnings from those.

6 comments:

ronaldco said...

Lucky for you, you didn't purchase PM yet as it looks you will be getting it much cheeper. I looked up the company and I fail to see why Derek Foster would hold this company. There's not much volume on trading, very hard to get price target and it has dropped 10% today alone. Seems a little risky to me....

Sunny said...

No DF didn't invest in the PM, in the Canadian one. He invested in the US PM. But while doing the surch, I first search PM under TSX and find Prism. Quite strange that PM (the Canadian one) lost so much in one day while the company had announced a dividend. PM - Canadian one once again may represent some risk - but I find it a good invesment. I just don't understand why its lost so much in value today, while the TSX exceeds the 12 000 points.

ronaldco said...

Derek Foster also said to invest in companies you know about and that people uses everyday. That company doesn't fit into that category.

Sunny said...

You are so right! PM-T is risky. Guess I am going to forgive about it for now. Guess I have to re-read all of Derek Foster books do I? Seem like I forgot some parts! :) But I have an excuse: I am working on a Web site project! Should come soon! :)))

ronaldco said...

I know, it's easy to forget what we read especially when we read so much. Also I believe in good market time (like now), we seem to think we can buy anything and can't lose. Not to say that PM will not double from where it's now, but also have a much higher change of going bankrupt than say bce. I am trying to stay away from stocks that might double in the next few years and than lose 70% of it's value in the next market crash. Can't wait to see your website project, Good luck!

Sunny said...

Thanks for the comment. Some stocks appear so attractive to me. Like that PM stock per example. But you are right, better stick with the best.

 

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