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Friday, June 24, 2011

Another stock market review by the Dividend Girl: it will never stop

I knew it, the TSX wasn’t going to stay over the 13 000 points for very long... Yesterday, I closed with more than 22k available on my margin account. I currently have a bit less than 22 000$ available. I don’t have any cash available and the next time I will be able to proceed with another 1 000$ deposit on my margin will be in the middle of July, just before leaving for my vacations. I am just hoping for a more or less stable market situation until the beginning of August, if it’s not too much to ask.

No opportunities of selling HZD at profit had presented itself. It’s a good thing in a way, because it’s not anytime soon I will be gambling my money over day trading. Never again. Overall, the portfolio is doing well. I had received a good dividend payment today of 40.77$ coming from Exchange Income Corporation (EIF). My fantastic Just Energy Group Inc. (JE) closed today session at less than 14$ per stock. Usually, JE is always exceeding the 14$ per stock. Seeing it under is just adding pressure. Pressure of adding more diversification in. I am not looking to sell what I currently hold of JE in any way, just a notification of a market volatility hitting the hard way. I don’t like to have EnCana Corporation (ECA) under the 30$ mark. All the good gain had disappeared by magic, just over the deception of a deal that never go through with PetroChina.

Some stocks of mine are being treated roughly on the market, but some other are doing extremely well: WesternOne Equity Income Fund (WEQ.UN), DNI Metals Inc. (DNI) and Student Transportation (STB) just to name a few. Colabor Group Inc. (GCL) is going back on track. GCL may be able to reach its old 12$ per stock once the market will be more stable. New Flyer Industries Inc. (NFI.UN) is going through some real challenge.

NFI.UN slowly prepared its transformation into a corporation. From my understanding, the dividend distribution should remain the same. NFI.UN is quite difficult to hold, but I am confident in the company. I am in to stay. Selling now and declaring a capital loss is not something I am into when it come to New Flyer Industries Inc. (NFI.UN). On June 21, NFI.UN announced they had been selected to supply 27 transit buses for the City of Sorel (province Quebec). Previously on June 16, New Flyer Industries Inc. (NFI.UN) signed a three year agreement with Metrolinx in order to produce 287 diesel transit buses. This contract has a value of $114 million! Quite good, knowing the economic situation of this time. So I think New Flyer Industries Inc. will be a winner on the long run. No need to sell and report a capital loss on this one.

The London Stock Exchange Group had come with this brand new idea: pay current TMX Group Inc. (X) shareholders a special dividend of 4$ per stock once the merger of equals deal closed and completed. I could barely believe it when I read the good news yesterday, I was in heaven. I invested in some stocks of TMX Group Inc. (X) at 41.97$ several months back, when the merger of equals project became public. That was on February 10, 2011. This was a very great move of mine. Back in February 2011, the announcement of the merger of equals totally captivated me. An investment in X was not needed, it was a necessity. And here I am today, having the chance to speak my mind of the merger of equals. Not only that, but I am going to cash big on this!

I made the decision to vote in favor of Xavier Rolet merger of equals project because from my perspective, the Maple Group proposal is a complete nonsense. Banks and pension funds cannot take care of the Toronto Stock Exchange PERIOD. The TMX Group Inc. (X) made the decision to sell its business, this decision had been taken by a group of specialist and if Tom Kloet, CEO, TMX Group made the decision to team up with the London Stock Exchange Group and Xavier Rolet, well, I won’t go against his will. A failure in the deal of the merger of equals could cost the TMX Group million of dollars. If the majority of X shareholders vote against the merger of equals, TMX will have to pay to the London Stock Exchange Group 10 million of dollars. And reverse is also true. If shareholders of the London Exchange vote against the merger of equals, London will have to pay TMX 10 million of dollars. If TMX is being hit behind by Canadian authorities, the Group will have to pay not 10 but 39 million to Xavier Rolet.

You can be sure that both Tom Kloet and Xavier Rolet know what they want and to establish such deal, they might be almost 100% sure that it will go through. The merger of equals is truly fascinating and the monster is going to bring a great deal of cash to me, shareholder of TMX Group Inc. (X). Following the merger of equals, London will become the center of the world. I hope UK people worth it. Canadians are giving themselves away. It’s all business, yes, but it’s also about building a stronger financial future for the UK and Canada. And I believe in such project. The Maple Group is a trap. Bankers of the Maple Group are being paid millions of dollars and they are part of a Canadian highly corruptible making million on the back of the middle class. But the middle class is smarter than them, and will vote, I hope, in favor of the merger of equals. Middle class and richer, for the merger of equals, there’s absolutely no other alternative and think about the cash, the stronger financial future and keep in mind, dear investors, the 4$ special dividend. Remember: life is all about money. Remember that. Time to show it all. It’s now show time for the TMX Group. Enjoy the show because I am quite enjoying it. ;)

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