UA-300188601-1 The Dividend Girl: August 2011

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Tuesday, August 30, 2011

Home Sweet Home

What’s happening now is quite unbelievable. I had been trying to relocate in New Brunswick since a little while now. Actually, the death of my uncle in last February is what started it all. And now, I am on my way to move permanently to New Brunswick, back home. Everything happens at the same time: my cousin in Montreal trying to get a job and me trying to get out of Montreal. I knew it was my chance, I took it. The past couple days, I felt drain, over-sleeping, over-working. I was in need of a major change. It was this job or something else was about to happen. I taught about going back to school (how about English courses?? lol) among other. I was willing to do absolutely anything to get that something else.

I don’t know what I am doing wrong, but it seem like my cousin is not able to get a job here in Montreal. I got my interview last week, and I learned today... I am hired. And I feel really good about it. Like all my stress is gone. I feel bad for my cousin. I gave his resume to a guy I work with who know someone who could hire him in a call center... I just don’t get it why it’s so complicated. He just won’t to get a job to be able to pay his rent and his food while he’s in Montreal. It’s not like he’s looking to get the five star jobs. But in a way, maybe it’s a sign he need to enrol to whatever program and do something more. I really don’t know. I refer him to the place I work. I could possibly refer him to my weekend job. I mean, at this point, I even spot jobs for him. But now I barely have any time left.

My mom is funny. She wants me to put all of my stuff on the bus... I mean, I don’t have any furniture. But I have box and box of different things. I already made a lot of cleaning, but at this time, I just want to get someone to move my stuff and I hope that part goes smoothly. I already spend a couple of hours today over the phone, doing address changes. I am not even done with that, but almost. Next thing will be to take a deeper look into my stuff to see what’s valuable to keep. If I have too much stuff, I will have to seek for a mover. The perspective of throwing away things is not something I am very pleased with anyway.

Hopefully, my mom is going to come for a very quick weekend. If it works out, we are going to visit my brother in Ottawa. But please anyone, don’t tell him, it’s a surprise! :0)

Friday, August 26, 2011

My non-registered portfolio closed August 26, 2011 at 108 226.79$

and... TOMORROW is my BIRTHDAY!

31............

For my 31th birthday, Kinross Gold Corp (K) finished today session at 17.35$........ Yeah, I know....

Who look sexy smart now????

MEEEEEEEEEEEEE!

31 = $$$

Thursday, August 25, 2011

The no hassle investment portfolio

I am quite busy at this time. I work a bit on my cousin portfolio and seek for jobs for him. I am just hoping he’ll be fine because I have many things to do. I finally did my hair coloration and I feel much more better! I need to do my hair at least once every 6-8 weeks if not, I look horrible, with many shades in my hair. A darker red cover it all, but it need to be done once every while.

My portfolio data for yesterday were very good:

Non-registered portfolio value: 107 992$
Money used on margin: 43 669.37$
Money left on margin: 16 339.33$

So far, my non-registered portfolio is exceeding the 108k. It seem like Jack Layton funeral service is doing to happen on my birthday, which is very sad, but very kind of an honor at the same time. Jack Layton will be link to me for the rest of my life.

The portfolio remains stable, but truly these days, time is running. I barely have time to stress about my portfolio. And it’s a blessing to be able to do my things without having to worry too much about it.

My cousin needs to get a job.

Tuesday, August 23, 2011

New Flyer Industries Inc. (NFI) to complete its fantastic conversion

Today non-registered portfolio data were quite interesting:

Non-registered portfolio value: 106 846$
Money used on margin: 43 651.35$
Money left on margin: 15 643.72$

This is nothing very fabulous. But it’s actually what’s going on in the inside that is quite interesting. Just like expecting, K, PHS.U, PSLV and FR had gained in value, HZD had lost in value... and New Flyer had transformed itself into a real corporation. As you can see, I expected everything to go this way. The late New Flyer Industries Inc. (NFI.UN) no longer exists. A new company to the name of New Flyer Industries Inc. (NFI) had taken the place.

I am grateful to TD Waterhouse: despite the fact that I had deal with a Quebec license broker, my order to exercise my rights regarding New Flyer Industries Inc. (NFI.UN) had been executed properly, just the way I wanted. But to actually take the decision to exercise my rights wasn’t an easy decision to take for me because I barely understood what was going to be the effect. However, there was no doubt in my mind that exercising my rights was the right thing to do. I didn’t understand, but I have a sense of what I was doing.

Here we go. The facts and only the facts.

Before today conversion, my investment in New Flyer Industries Inc. (NFI.UN) worth 2 444.59$. Before the conversion, NFI.UN units worth around 7$ each. Following the conversion to the newest New Flyer Industries Inc. (NFI), NFI, now stocks, closed today session at... 0.75 cents. Is this a benefit at all? The answer being yes for the long term as my original investment in NFI.UN had duplicated into X times multiple stocks of the newest NFI. This transformation had increased the amount of stocks that I hold of NFI. So far, I had experiment a capital loss of close to 900$ with this transformation. But this is in nothing really dramatic because I am going, on the long term, get a maximum of cash from this. Believe it or not.

As far as I am concern, my investments are all made for the long term. I decided to invest in each and single of them and there always a reason behind. In case of NFI, I liked the cool name “New Flyer”, I love their fabulous bus designs. I love the fact that NFI is located in Winnipeg. When it comes to NFI.UN I love it all and the fact that my original investment made in NFI.UN had decreased in value didn’t change nothing of the appreciation. And New Flyer Industries Inc. (NFI) knows how to share the love. In September, I will be earning more than 100$ from NFI in dividend income. That’s going to be quite something. I am wishing for the same big amount on a quarterly basis. I am far of getting it all when it comes to the newest very fabulous fantastic New Flyer Industries Inc. (NFI). However, I am ready. Get ready for the dividend cash baby because I am ;0).

Jack Layton, 1950-2011

When I learned about Jack Layton death today, I was with my cousin. He’s not even 20 yet that he had decided to come to Montreal to find a job and play his music in bars. He has some problems to find a job, so I decided to give him a hand to save my soul. At not even 20, I was still at home, enjoying life and I never had worked more than the 3 summer months of the school year. I mean, at not even 20, I didn’t know anything about resume, job interviews and, like him, at not even 20, I wasn’t bilingual, I was even worst that what I am now. I am mean real worst! Keeping in mind who I was when I wasn’t even 20, well, I decided to text him and asked him if he had find a job yet. He didn’t. But he had given it a try. So I told him I was going to help him.

That’s how we met this morning. He was wearing his long hair in a ponytail and was wearing sunglasses. And there, I remember how I felt when I was not even 20. Unconscious and knowing nothing about absolutely everything. We went to eat. I bring him at a Portuguese restaurant on St-Laurent at a place where they cook typical Portuguese chickens with their own spices. Absolutely delicious! It was my treat. Following what, we sat down at a cafe.

First of all, he still had a New Brunswick number. So I make him call his carrier from my cell phone to have his number change to a local Montreal number because he didn’t care about his New Brunswick number and also, well, it absolutely need to be change. We had the number change, and after that, I took a look at his resume. A very short one page long, with no task description, just very little info. So I told him, always for the best of my soul, that I will later review his resume...

Despite the very short resume, we run to a place where I knew there has a chance for him to get a job. I would have prefer for him to work in a restaurant, a shop or something like that, but despite the fact that I warm him about the job I was going to get him, well, he didn’t seem to care. I didn’t want to send a review resume to that place because I secretly would prefer him to work someplace else, any other place but that place. Anyhow, I brought him in, I refer him to the job. I am pretty sure he will get a job interview. But it’s not what I would have like for him. I cannot do miracle however. I will be waiting for that job response from him and if it doesn’t work, well from there, I will be working on his sweaty very little and short resume...

My soul count for something in it, but I was very happy to help him. It mean something to me.

While referring him, there was a TV on at the HR office and it’s there that I notice the picture of Jack Layton with the dates 1950-2011... I couldn’t believe it. I was totally, very devastated and I felt greatly sad for the lost, the man, the party I had voted for at the latest federal elections.

On the day I met my cousin in Montreal, Jack Layton died.

Sunday, August 21, 2011

Seriously in business with the Sprott Physical Silver Trust ET (PSLV)

The pass week had been difficult for my portfolio. Here are the data for this last Friday:

Non-registered portfolio value: 106 387$
Money used on margin: 43 664.23$
Money left on margin: 16 249.97$

This week had been mark by my sell of HZD, among other. I don’t know if I will be able to invest in CNR anytime soon like it was planned because I am running short on cash. But for sure, when I will be able to do so, I will be investing in a few stocks of CNR.

Something very special happen on Friday. On Friday, for the first time ever, my investment in Sprott Physical Silver Trust ET (PSLV) had gained in value. Sometimes, I can have the worst horrible timing ever! I first invested in PSLV when the units were at their highest value ever, somewhere around 22$, just BEFORE the silver crash... Following the silver crash, I decided to buy more of Sprott Physical Silver Trust ET (PSLV) units. That time, the units were at 16$. So with a mix of 22$ and 16$ units, I was able to make my way. My initial investment value in PSLV worth 3 075.16$. My investment in PSLV closed Friday session with a 3 127$ value! Nothing huge, but I had been able to recover from the silver crash and from now on, my investment in PSLV can only grow more.

As for the Sprott Physical Silver Trust UTS (PHS.U), I own some units in my TFSA and my RRSP. In my TFSA, I had been holding PHS.U for quite some time. My original investment was of 3 114.60$. The same investment closed Friday at 4 013$, a 898.40$ gain. My RRSP investment is more recent. My initial investment was of 1 188$. That investment closed Friday at 1 338$, a gain of 150$.

Another positive sign: my Sprott Canadian Equity fund investment closed Friday session at more than 7k. As long this one can exceed the 7k, I am happy! Because I originally invested a bit more than 7k in this one back... in 2008. This investment is a survivor of the 2008 stock crash.

It’s very difficult to make money in these market conditions, but adding silver and gold to an existing portfolio can help create value and minimize the lost. My portfolio closed Friday session at 106 387$. Not too good, but not too bad either. I am now able to emotionally manage the market crash better. It’s something I am getting use to... Because for me personally, the biggest crash I lived as an investor was one of 2008. That was like 3 years ago... There’s a major different between a normal and desire market volatility and a stock market crash. And the difference is not easy to live.

Despite it all, I am going through this. My margin account is adding more risk, but I have a 8k I can transferred to my margin account in case of need. Some of my very strong asset makes it possible for me to go through those difficult times.

Despite the crisis, this small cap had performed extremely well: WesternOne Equity Income Fund (WEQ.UN). I closed Friday session with a gain of 203.01$ on this one. So thank you, kind reader share this precious one with me... Try to find a top small cap performer in these market conditions... It is really that difficult at this time!

Luckily, I always have in my portfolio good performers. So the good ones help bring some fuel to the bad ones... I am happy to be able to spend my days following the market and work overnight and in the weekend only. I am about to turn 31 sometime soon and I had all the luck of the world. At least so far.......

Friday, August 19, 2011

The TSX had crashed again, investors fear recession

A couple of hours passed since I had sell Horizons BetaPro COMEX Silver Bear Plus ETF (HZD). I do not regret my decision for all the reasons I had explained previously. No regret. Just a release. It feels very great now, despite the fact that I had experiment a capital loss by selling HZD. But the time had come, especially following the move of you know who in you know what.

The TSX losing a great deal of points today. Here are the data for August 18:

Non-registered portfolio value: 107 538$
Money used on margin: 43 524.99$
Money left on margin: 17 129.79$

I am aware the situation could deteriorate. Japan just got hit by another earthquake. Euro zone markets and Asian ones as well had lost again points. Probably today opening will be as ugly as yesterday. I focus on the possibility that things will eventually get better. As long my portfolio don’t get liquidate over a margin call, as long everything remains the same, as long I continue to cash the same good dividend income well, on that case, all the chances of the world will be on my side. I am very curious about how things are going to be for the market opening so if you don’t mind, I am going to bed now :0)

Thursday, August 18, 2011

Welcome Kinross Gold Corp (K) in my portfolio! Adios, Horizons BetaPro COMEX Silver Bear Plus ETF (HZD)!

It wasn’t a difficult or easy decision to make. However, my decision took place a day after Eric Sprott sells some gold asset to reinvest an amount 30 million in silver. See, Eric Sprott had previously sold silver just before the silver crash (in May or April 2011?, I don’t quite remember despite the fact that I had lived the silver crash because I has some investment in silver...). This time, Eric Sprott recent move in silver mean to me that silver will probably keep gaining value. If it’s the case, my investment in Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) would have continued to lose in value... Since my last portfolio update – that was back in July – HZD had lost in value on a regular basis.

I had been holding Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) for a little while now. I got stuck with the investment following a day trading try out. But I have no regret. I never did some day trading before. I made a little bit of money, it was fun. But with HZD, I got stuck with it. I had been holding trying to sell at profit. But fact is that now than ever, silver is on the road for glory.

I like Eric Sprott very much and if he had sell gold to reinvest in silver, well, too me, it mean a big deal.

I sold previously this morning my 400 units of Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) at 4.72$, for an amount of 1 888$. I lost a bit more than 1 000$. It’s not something I could avoid, I needed to go through this to become a better investor. I don’t feel bad about. I like to share everything I do and this had been a big part of my learning experience. Generally speaking, I made and lost money in the market. No one wants to lose money. I am not in to lose money at all! BUT.. so far, my gains always had exceed my capital loss. This is what I focus more on. And I promised to stop investing once my loss will exceed my gains. I am not afraid of the market. The stock market always been good to me and I want to continue to invest. I took this new direction, to invest in blue chips for the next couple months. I did a good investment in TransCana. My next one will be in CNR. I am confident that overall, my gain will exceed my lost. That’s what, I think, all retail investors have to focus on. Making investment mistakes is no big deal (as long of course that the gain exceeds the lost...). I hope that this will eventually help people out there to realize the danger of day trading.

I know this will sound strange. But it does actually feel good not to hold Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) anymore. I was getting tired of it. So thank you, Eric Sprott for selling gold to reinvest your foundation money in silver. I am grateful.

I reinvested the money in not a blue chips, but in something that could help me to rebound from my 1k loss: Kinross Gold Corp (K). I purchased more than 100 stocks at 16.58$. Currently, K trade at 16.36$. I didn’t want to reinvest in PHS.U because its trade in US money. I didn’t want to invest in something I already have. K is being well ranked by analyst, so I taught about giving it a chance to save me. Of course, a 1k gains won’t happen overnight. Especially in this market condition. I am responsible for my bad investments. I am happy of my move. Holding HZD was getting depressing. I am about to turn 31 soon and I want to celebrate while only holding good stuff in my portfolio.

Also, K will pay a dividend in September, for which I qualify. Also, I did not want to sell part of my First Majestic Silver Corp (FR) stocks to invest in Kinross Gold Corp (K). I really like FR. It’s the purest silver producer of Canada. Latest quarter results were really great. I mean, no, I wanted to continue to hold FR for now.

And as always, we’ll see how it goes!

Wednesday, August 17, 2011

Eric Sprott had sell for 30 million worth of Sprott Physical Gold Trust (PHY.U) units

It's been reported by the Globe and Mail that the Eric Sprott has sold his gold units hold in his Sprott Physical Gold Trust (PHY.U). And seem like he is reinvested the money into his silver darling! WOW! The amount collected by his sell is... 30 million. Sprott is trading silver again! It's getting some of interesting!!!

TSX up of a few points, I am now back on the 110K for my non-registered portfolio.

Closing the night with my vote for New Flyer Industries Inc. (NFI.UN) IDS Holders of Non-Cash Rights Offering

That one was not easy to understand. Not easy at all. The prospectus received is really not easy to understand. That’s why I wait until the limit date to exercise my vote. I had vote the FOR, meaning I decided to exercise the rights on my shares. According to some reading done online, it was the best option. Also, I vote according to New Flyer recommendation. I also pick the option with the fiscal advantage, even if I don’t a clue of what it mean, especially knowing that in the prospectus, it is said that we have 90 days to print a document on New Flyer Web site to have those fiscal advantages... So it’s pretty mess up. However, the most important part was to exercise the vote. But what a headache!!! Very unclear and badly explained. The prospectus suck!!! I began to really hate New Flyer at this point for making me going through this.

My shares were bought at an average value of 11.75$. If lucky, this could boost my return to 12$+.  And this being done only by exercising my right! If you are a shareholder of New Flyer Industries Inc. (NFI.UN) and as much confuse as I am, read these posts and this one here. I think it’s obvious that exercising the vote is the best thing to do. It’s also what recommends New Flyer. I did the best I could.

It could take up to 2-3 weeks before I see the results in my broker account at TD Waterhouse. I cannot wait to see what it will be like... No matter what, I am still a proud shareholder of NFI.UN. But I guess they didn't give a damn that a retail investor understand or not what we were going to read and I find it quite insulting. Very shock still about the prospectus. However, I am very excited because this is my chance to recover from the current loss that I am experiencing with NFI.UN since I bought my shares at an average price of 11.75$ each. This is the ultimate chance.

Good night. Today is the last day to exercise your rights. You need to call your broker. If not, no deal.

For your information: Exchange Income Corporation (EIF) getting some media attention

I own Exchange Income Corporation (EIF) to a reader who suggested EIF as investment. That was back in February 2011 and I had been holding EIF ever since. I am very grateful. It can be difficult, all by itself, to find new investment diamonds. The pearl pays a dividend yield of 7.602%. Best of all, EIF distribution are paid on a monthly basis. Following my sell of Yellow Media Inc. (YLO) a little while ago, I made the decision to reinvest the money in EIF, hoping for a big return and recover from a 300$ loss.

I love Exchange Income Corporation (EIF) from the started because their business is very diversified and they have business in the Inuit territory. And I love native and the Great North territory. Will the love pay back? So far so good. EIF is being managed from the West. It’s one of those company you can expect everything. Let’s see what the Globe had to report about EIF:

“Exchange Income Corp. (EIF-T21.31-0.37-1.71%), an acquisition-oriented transportation and industrial manufacturing company, delivered “excellent” second-quarter results, with both sales and margins exceeding expectations, commented Canaccord Genuity analyst Chris Bowes. “We believe the outperformance is sustainable and below the firm’s potential,” he said.

Upside: Mr. Bowes trimmed his price target by 50 cents to $23.75 due to more shares outstanding but maintained a “buy” rating. Stonecap Securities analyst C. Scott Rattee cut his price target by $1 to $27, citing “increasing macro headwinds” in its specialty manufacturing division.”

Fair enough. 23.75$ is a very good price. It’s exceeding my buy price value of a couple of dollars. Right on top of the world.

Gordon Pape positive review of the Claymore Gold Bullion ETF (CGL)

I had been holding some units of the Claymore Gold Bullion ETF (CGL) since March 2010. Back at that time, someone from Claymore had written me an email, which I was surprised of and of course, really pleased. I made the purchased inside my RRSP account at TD Waterhouse. I initially invested 3 587.30$ in some CGL units. In today market value, the investment now worth 5 449$. A very good gain of more than 2 thousand dollars. Kind of cool.

I had been very pleased with my investment in Claymore Gold Bullion ETF (CGL). In good market conditions like in bad ones, the value of Claymore Gold Bullion ETF (CGL) units had remained stable and naturally grow. The CGL doesn’t pay dividend. However, CGL worth it. This is the type of investment you can really rely on without any worries. The investment is very stable and won’t require any attention or management of your part. Investing in CGL is really that easy.

In one of his latest article title “Gold at $10,000?”, Gordon Pape gave a favourable review of Claymore Gold Bullion ETF (CGL). For once, I agree on something he wrote about. I could only applause his words, after holding CGL for close to 2 years now. 

Gordon Pape rock again.

My non-registered portfolio closing August 16 session at 109 714$

Just like unfortunately expected, my non-registered portfolio closed Tuesday session below the mark of the 110k. However, the results were not too bad for August 16, 2011:

Non-registered portfolio value: 109 714$
Money used on margin: 42 861.79$
Money left on margin: 18 170.20$

The market is fragile and may remains this way until Germany came with a solution for the Euro. While waiting for the Euro bonds, I think we’ll have to go through this yo-yo phase. Which meaning the TSX gaining points one day, and the next day, the same point gains disappeared... Over and over again. It takes more than just good investors to be on the today market world. It takes warriors willing to create wealth for the long term. I still believe in a buy-and-hold strategy. It’s just the market out of control volatility make it difficult to handle. But there’s nothing I can handle right.

A good stock market situation indicator is my Sprott Canadian Equity Fund. As long my investment in the Sprott Canadian worth at least 7 000$ (which was about the original amount invested back in 2008), well, that mean that the situation is not that bad. I will be feeling danger if the investment drops under the mark of 7 000$. That would mean that the situation is really getting dangerous for my margin, in the sense that will be in an in deep recession without knowing. The current recession is not that bad. My portfolio is getting through it. I continue to earn great dividend from my investments. My portfolio is very diversified and truly, if I had invested 7 000$ on the same spot, you can be sure I knew, back then, who was Eric Sprott and what the Sprott Canadian could do for me RRSP. I am still waiting for the extraordinary return to come. But while waiting, I appreciate the stability of my investment value. For those kind of things, I can be extremely patient. I just cannot wait to be in my 80s, be extremely rich and scream to the nurses who will be taking care of me: “See, I made it. I made a million out of the Sprott Canadian!” Yeah. And of course, at the age of 80, I will still be blogging and counting each single penny I have. At 30 or 80, everything will be the same damn thing.

While patiently waiting to be rich, I can always dream of...:0)))

Tuesday, August 16, 2011

This is my 900th post!

My non-registered portfolio is going well despite the fact that the TSX loss more than 100 points. I am currently at 109K. All that trouble just for the European countries who just can handle themselves properly. If it wouldn’t be for the very strong Germany, it would have been a long time that the Euro will have collapse. France? Don’t count on France to save the Euro. It’s the Germany who’s holding the whole thing all by itself. Anyhow, I am hoping for a relatively stable market because it’s not true I am going to wake up on time for the market opening each single day of the week. NO WAY :0) But a good news being, Germany is strong enough to handle it all. I am not under the impression that we will be hit by another market crash, but absolutely anything and everything can happen.

I should take time to update my portfolio value. My last update was back in the beginning of July. I was in vacations for the last 2 weeks of July. And after, in August, we had the stock crash. I never update my portfolio in bad times. Just in good times. It’s a matter of psychology. I won’t show off my results in bad times but I will write about it.

I am just very happy the TSX did not loss too much points and I am very happy that a reader share this new one with me: Aberdeen Asia-Pacific Income Investment Company Limited (FAP). It’s quite an impressive company and I will be working on a post about this one. There are really little things online being said about this stock. But that’s about to change soon. Aberdeen Asia-Pacific Income Investment Company Limited (FAP) going to be in what you know what.

Happy blogging, you are reading my 900th post! Got to reached the 1000 BEFORE my birthday!

My non-registered portfolio closing August 15 session at 110 429$

Finally, the first day of the week is officially OVER. I had been quite busy. I withdraw 2 000$ from my margin account. I used a bit less than 200$ from that money to pay my bills and eventually by next month, I will be making a 200$ on my margin account. And this left a bit more than 1 800$ on my RBC credit line. I was happy to make this payment. My credit line at RBC is at more than 7%, while my margin account is at 4.25%. If the stock market remains stable, I could see myself doing another transfer of 1 000$, but I wouldn’t go deeper for now.

The data on date of August 15 for my non-registered portfolio are very good:

Non-registered portfolio value: 110 429$
Money used on margin: 42 861.79$
Money left on margin: 18 581.30$

In case something happens on the stock market, I have closed to 8k that I can bring in on my margin. So I guess for now I will fine, but eventually, I will need to seek for another credit line or a credit line increase to protect the whole margin. I would need a good 20k credit line increase to protect my asset to be sale in case of a third stock market crash. The stock market crash some time to time, it’s something I am now getting better to understand but it each time it crash, it’s always difficult to believe it will eventually go up again. But it always does.

Following Rob comment in previous post, I am thinking of selling half of my holding in First Majestic Silver Corp (FR) and reinvested that half into Kinross Gold Corp (K)... That could be something interesting to do. K will be paying a little dividend in September... :0)

Monday, August 15, 2011

Sprott Inc. (SII) getting on the spotlight

And for the good reasons. Globe and Mail article mentions Sprott Inc. (SII) as a good pick. Price had been target at 11$. Maybe my 1 000+ stocks will turn into... gold... or almost. What do you think? Also, for a margin loan, Sprott Inc. (SII), despite being at less than 10$ per stock currently, well, at TD Waterhouse, SII has a loan margin value of 50%. This is HUGE. Knowing all that, now you know that SII is a good pick. The good picks? They are ALL in my portfolio. ;0)

"The increasing macroeconomic headwinds favour Sprott Inc.’s (SII-T8.70-0.09-1.02%) bearish investment stance and could help boost the asset management company’s net sales, said RBC Dominion Securities Inc. analyst Geoffrey Kwan. “Furthermore, we believe Sprott is a more diversified asset manager with multiple platforms to drive future growth and has greater growth opportunities relative to peers,” he said.
Upside: Mr. Kwan upgraded Sprott to “outperform” while raising his 12-month price target by $1.50 to $11."

Thank you Mr. Kwan. Thank you.

Geoffrey Kwan is an analyst for the RBC Dominion Securities Inc. Seem like this one actually knows what he's talking about.

My non-registered portfolio is exceeding the 110k

Yesterday night had been absolutely crazy. I spend the night cleaning by stuff. I had been living in here for a couple of years, in my little one and a half apartment. Little, but close to everything you can ever thing of. I like the location, I wouldn’t like to move anyplace else. At least for now. Anyhow, over the years, I had accumulated all kind of financial statements, mutual funds papers, magazines, newspapers.... so I clean and I clean and I clean. I kept of course important papers, like the ones they give you to sign when you invest in mutual funds, statements, etc. I had for about 10 garbage bags of my oldies and I am not even done yet, but almost. I also have all of those old shampoo bottles to get rid of (I know, yacki yacki!). I so not minimalist like this lady. I am a total mess. Or should I say: I was a total mess.

I have to say, it’s feel much better now. My place is now more in order. I wake up late this morning, even if I set myself a bunch of things to do. But I hate Monday. Like this morning, I was supposed to go to my grocery shopping. Did I go? No. Oh well... And yesterday, I was supposed to do my hair coloration. I skipped that as well... I did some laundry however. Impossible to do it all in one night. What I really wanted to do is to clean in my papers. And I did.

The TSX is a rocket stardom... My non-registered portfolio is currently at 110 603.07$. So it’s a good week debut. From what I had read, the week is going to be good. But a turnaround is always possible. As for my part. I am going to take 2k from my margin and use it to pay my 10k credit line. I just received some awesome dividend payment today!

I chat with one reader yesterday and it really help me to understand the response of Derek Foster to my letter. I guess my reaction to the non leverage thing was one of a wild still young and free sometime lazy person that I am still am despite the fact that I am turning 31 sometime in this late of August. When it will happen, I will late you know. Until that time, well, tried to find on the Web someone who’s more addict to the Stop Working thing. Just try. The fact that I am so into it had turn myself into a following guru and Stop Working had all the other books of Derek Foster well, they are powerful. And it’s kind of becoming a religion and his books the Bible. About Derek Foster being a hypocrite, well, I guess it was the reaction of a young person in front of the words of a guru. Nothing more. But I understand now, just that Derek Foster is too hot. The stuff is just too HOT. :0)

Saturday, August 13, 2011

Canadian National Railway Co (CNR), next month, it’s your turn

The TSX didn’t close today session on very high gain but at least, the situation remains stable. No matter what, even while the TSX gains less than 3 points today, my non-registered portfolio closed the week with interesting gains.

Non-registered portfolio value: 109 152$
Money used on margin: 40 899.59$
Money left on margin: 19 871.42$

This 109k value is interesting. I am reaching the 109k following a 1 000$ investment in TRP. My original 113k worth non-registered portfolio would have been at 108k, leaving a -5k behind. But knowing what the market has gone through, I think this is not bad at all. More than ever, I am to follow the plan I came previously with: to invest in blue chips once in a while to add value to my portfolio. It began quickly clear that this is the only I will be able to eventually recover from my lost. I am optimist. My next investment will be in Canadian National Railway Co (CNR). CNR pays almost nothing in dividend, but this stock will add a + value to my portfolio. CNR is of a very strong value. On top of that, it will add diversification to my portfolio. So be ready, CNR, because really soon, you’ll be in the club.

Some recent comments are making me laugh. This blog is my personal finance diary and I am totally careless about negative feedback I am receiving. I don’t think those individuals really have the intelligence to realize what this is all about. I have the arrogance to say this: in many aspects, my blog is much more interesting than the other financial blogs there is out there. Many bloggers blog like if they were experts on the topic they write about. And truly, I am pretty sure that the vast majority of them don’t even earn half of my dividend earnings and don’t half of my trading experience. You get to know what they hold once in a wild, but it’s about it. Nothing about their debt situation, portfolio worth, trading, etc. That being as well true with the so call experts that we read on the Globe and Mail like Rob Carrick, or so call debt specialist like Gail Vaz-Oxlade. And I will even say, much of them are just as much as hypocrite as Derek Foster is.

See, in response to my email, Derek Foster reply with this message: “Margin borrowing and other credit scares me...you might consider paying down you debt for increased safety...just my thinking...derek”. Ok, you might ask yourself where is the hypocrite part? Well, Derek Foster pretty much builds his portfolio using leverage. He had used margin and he had borrowed to invest. From my part, I did the reading of Derek Foster on a perpetual basis so I am no longer able to tell you from which part of which books we are able to find information about his leverage but if I am saying that Derek Foster had used leverage, well, it’s because he did. Same thing for another know-it-all, Andrew Hallan said that he doesn’t believe in margin, but he had used leverage himself too! What’s the problem with those guys?

The only way to make it is to use leverage. Derek Foster and Andrew Hallan are kind of being “financial personalities”. They want to look good and be presented at their best advantages. In the financial Canadian small world, leverage is not being well-considered. Derek Foster and Andrew Hallan are more now of the banker type of personalities know-it-all. They are giving advices and are saying what is politically financially correct ONLY. They are representative of the banking high class financial. They want to be known as financial speaker and they want to sell their books. The only way for those 2 to make it happen in term of writer and speaker is to be politically financially correct. If not, no more interviews, no more books will be purchase.

Myself, I am satisfied with my term of leverage. I am coming roughly on those 2, they are just examples. I said very good things about Derek Foster on my blog and I continue to think all of those good things about him. However, I find in him a hypocrite nature. There’s what he had did and use himself to be where he is at this time and there’s that part of him who is an author and who’s coming with politically correct things that he never respected himself. So it’s not only Quebeckers who can be actively hypocrite, the rest of Canadians can also be quite hypocrite, I can tell you something about it.

So why Derek Foster, Andrew Hallan, blog readers who are getting hard on me in their comments, why all of these people are against leverage? Well, there’s a good and bad side to it. Good part being it’s the dangerous nature of leverage but truly, tell you this: if I had been able to manage my margin account and my leverage, anyone can.

While wanted to promote a don’t-use-leverage strategy, Derek Foster and Andrew Hallan are being hypocrite because leverage is what had made it possible for them. And now, they are transforming their methods into non-leverage one just to be out there, not to be just an individual blogging anonymously. So to be part of the financial world, you need to be correct but the nasty side is what I had described. They will tell you in response that the market had change, but the market did not change. For small investors, leverage is the only way to go. So go for it. Forget about paying debt. Paying off debt won’t bring in any dividend income. It will bring nothing at all, if not just an artificial satisfaction of your banker.

So when I read the latest comments on my blog, I am afraid I am facing the hypocrite nature of human being.

My best advice would be: push leverage for as much as you can but keep it safe. Meaning that minimal payment on debt should not exceed a certain point, and that a good amount of money should remain in the margin at anytime. What is missing right now from the Canadian scene is someone who can actually teach how to use leverage. But don’t you ever dare to wait for Derek Foster or Andrew Hallan to teach you that. Of course not.

I can easily make a good living out of an income of 1 300$ a month. Currently, I am about an average of 700$ per month in dividend earning. I should have started to invest in stocks much earlier. But this is how it went for me. The sooner the better. Anyhow, I am more than half way there. Once that goal reach, I don’t plan to stop working, but it will allow me to be much more aggressive in my career choices, to go back to school if I want to, etc. etc. etc. It’s not exactly a stop working strategy, it’s a strategy for a better life. Because don’t expect anyone to help you among the way. You are alone and if, unfortunately you live in Quebec, you are even more alone. That’s what is missing from Derek Foster and other so call guru. It’s missing the intelligence of the beginning. And I am still at a point where I believe in it very strongly. There’s really no one and no comments can stop me while being so deeply into it. Just watch me going. And may you forgive me. 

Let the margin and leverage be for my best advantage.

Friday, August 12, 2011

A night spent with the Awkward Family Photos

I had been quite busy lately at being lazy... I guess it could be the market stress of the past couple days, don’t ask me what it is, my nerves had been attacked badly... but these days I am sleeping in very late. My bed and groceries shopping had not been done and I have tonne of laundry to do. But yesterday, I spend a big part of the night on this Web site and I could not stop laughing and laughing very hilarious Web site: Awkward Family Photos. It’s a very funny page and I with all that fun, I went to bed at 3AM... and now, I am asking myself why I cannot wake up? Being lazy is great sometime, I can assure you.

And while sleeping peacefully this morning-part of the afternoon, my non-registered portfolio is now at a very beautiful 109 877.11$. I am getting closer to the original 113k of BEFORE the August crash and I like that. I like that very much.

Nothing has been done from my home work, BUT, the non-registered portfolio had performed extremely well. Those data of for yesterday August 11, 2011:

Non-registered portfolio value: 108 684$
Money used on margin: 40 899.59$
Money left on margin: 19 605.78$

I like to believe that the worst is now behind us and that the bottom line had been reached. If it continues that way, I will take a couple of thousands of $ from the margin and put it on the 10k credit line I have at 7.52%. I guess I could begin with a 2k, in other not to take too much from the margin. And if goes very well, I could add another 1, 2 or 3k on, depending of what’s going on.

The weekend is going to be very relax and lazy but I really need to get that laundry done. Anyone volunteer?

Thursday, August 11, 2011

Welcome to my non-registered portfolio TransCana Corporation (TRP)!

I find the last couple days going on like a yo-yo. But the past few days had been good for the stock market and despite my worries, I decided to invest in TransCana Corporation (TRP). Yesterday, or should I say earlier last night, I said I was going to invest in TRP if the TSX opens on a happy note...

Actually, I was still in bed for the market opening and I continue my beauty sleep until... 12:30pm... I wake up looking gorgeous (ah!), wondering what the TSX was going to be like... To my surprise, the TSX has exceeding the 12 300 points so this was the time. Time has come to invest in the very precious TransCana Corporation (TRP). GO FOR IT!

I kept in mind the advice of Rob Carrick to continue to invest even in a quasi-depression state of the market (and of myself on the same time)... So I just did what I needed to do, I invest in some stocks of TransCana Corporation (TRP) at 40.27$... For now, I have used my margin money, but I will, if not this afternoon, proceed with a 1 000$ deposit on my margin.

While keeping Rob Carrick good advice on mind, I decided to stick to the plan I describe previously before: to invest in blue chips once every month when possible using my very own money. My next investment will probably in Canadian National Railway Co (CNR).

My portfolio is doing fine. Including my newest investment made in TransCana Corporation (TRP), my non-registered portfolio is now at 108 210.20$. Getting closer to the original 113k of BEFORE the market crash of August 2011. I find it very important to continue to invest at this time to bring in more value to my portfolio. Investing in blue chips won’t significantly increase my dividend earning. Anyhow, it’s not anytime soon I will be able to live form my dividend. So having all that in perspective, better to continue to invest in some blue chips really not that generous on dividend BUT who will be able to bring in extra value for the long run.

No worries, it won’t be done on margin. Blue chips paying so little in dividend, they don’t even worth the buy on margin lol. At least just for dividendly thinking. Got the idea? Real cash, blue chips, small extra dividend earnings. That’s the plan for now.

Welcome aboard TransCana Corporation (TRP)! May you have a long and happy existence inside my non-registered portfolio. You’ll see, it’s going to be fun.

Balances Data of TD Waterhouse for August 10, 2011

Today data for August 10 are actually very good:


Non-registered portfolio value: 105 123$
Money used on margin: 40 470.31$
Money left on margin: 17 835.76$

I am under the bar of the 20k on my margin, but that 17k satisfies me, knowing I have a 6k I can transfer over at any time.

I have now this 1 000$ available and I wonder what to do with it, if investing in TRP is really that a good idea. But you know what, I will let the market decided. Tomorrow morning, if the TSX opens on a positive note, I will invest in TRP, if not, well, there will be no investment in TRP, the money will goes as deposit on the margin. It doesn’t have to be complicated, and truly, it is not.

In 16 more days, I will be 31.

Wednesday, August 10, 2011

EnerCare Inc. (ECI) Derek Foster ex darling is making a comeback!

In the darkness, there’s still hope... I think the past 2 days have been an illustration of that. Holding was the right thing to do. What wasn’t right to do however, according to Derek Foster, was to borrow to invest. Yesterday, the TSX gains point like crazy and Derek Foster has the very good idea to come with a brand new newsletter and I was happy of those 2 combination that I wrote Derek Foster a little email to say hello (because I never did before) and to say that the stuff was working well for me. I also told him I had a margin and that oh, unfortunately I had borrowed to invest. And he’s the answer I got from the master (not to say MONSTER lol...):

“Margin borrowing and other credit scares me...you might consider paying down you debt for increased safety...just my thinking...derek”

I thank him kindly of his answer, of course.

If I expose his answer here it’s just to show that you know, with Derek Foster, you’ll get the best investment ideas and the best advices. My margin and debt situation are not the safest heaven that’s true and I should definitively start to slow down and pay off my debt.

I think this show the willingness of Derek Foster to teach how to build health, but from our own hard worked money and that’s very good and I totally agree. I am not in great danger at this time, but the TSX could loss more points. Remember that guy that say the TSX could go lower and reached the 9 000 points? Well, it could happen, everything is possible.

But my problem being I don’t think we’ll be hitting on the 9 000 points anytime soon. I think things will get better. The Fed, governments, everyone out there will do whatever can be done to save us from a recession and I truly believe will go through this.

But once again, my debt situation is not healthy. I understand the risk associate to it.

At this time, the market is full of possibilities. This is my time to invest in TransCana Corporation (TRP) like I wanted for quite a long time now. This is my time. Ok, I know, the amount invested is just 1 000$, but I am getting overexcited here and if I don’t invest in TRP tomorrow, I will be very sad.

That my debt and margin account turn into a complete nightmare – I have doubt about that. However, Derek Foster is right, I should pay off my debt. It’s a good real advice for the little bummer that I am. Imagine the girl, working at night to follow the stock market during day time, this absolutely BUMMER super sexy. 

Thank you Derek Foster, thank you very much :0)

Ok, this being said, EnerCare Inc. (ECI) is making a HUGE come back!!!! Back in the days, when ECI was trading under a different, ECI was a Derek Foster stock. ECI was well ranked by the one and only Jean-François Tardif. Back in the days, ECI was hot. And after, Dividend Ninja came and said ECI was holding too much debt. Anyhow, do I really know any of it? No.

BUT... I decided to sell my ECI stocks in order to invest in the Sprott Physical Silver Trust UTS (PHS.U). See, at the time, it was the silver mania. Silver was hot and Eric Sprott as well. I made money out of silver, and my PHS.U still continue to perform well, even following the silver crash. The only problem being that PHS.U grow in value, but pay 0$ in dividend. However, I do not regret my move. Holding and trading PHS.U had been quite fun. At least so far. At this time, I do not trade actively silver. I am sticking and holding PHS.U inside my TFSA.

This being said, I may consider buying back some EnerCare Inc. (ECI) stocks back again. Why? Because it’s a stock I know, Jean-François Tardif grades this stock well (long time ago but still) and the experts at TD like the stock.

For the next couple of months, I want to add some stocks CNR and ECI to my portfolio. At more than 8% in dividend yield, ECI is HOT. And CNR? Well, watch it grow, if not explode in value in the next couple of months. It’s going to be FANTASTIC. Check it out in here.

So there’s absolutely no way I am about to pay off debt any time soon but I am aware the advice is good and coming from a big heart.

My non-registered portfolio is now at 105 910.18$ and tomorrow, I will boost the TSX of one more 1 000$.

I think the bottom line has been reached

Because my non-registered portfolio is now at 106 117.87$

From now on, it can only get better, right?

Is that it? Did the Toronto Stock Exchange had reached its bottom line yet?

Reaching the bottom line mean for me reaching the point where we had reached the lowest the TSX could go in those recent stock crash events. For a second day on a row, the TSX is gaining points (it was gaining points until a few minutes ago...). Most fantastic gains were yesterday. On today, the TSX remains stable. So far, TSX recorded a little loss of 5.39 points. For this morning, my non-registered portfolio is at a good 104 257.94$. I am confident that real soon, I will be back on my old 113k value.

Until it happen, I will continue to invest occasionally. This that, what is different is that I am only focusing on high quality stock. And I think TransCana Corporation (TRP) is among those high quality stocks that can help stabilize the value of my portfolio on the long run.

Like it was planned, I will be investing some bucks in TransCana Corporation (TRP) sometime tomorrow. TRP is currently trading at 39.40$.

What I learn so far from margin investing during the August 2011 stock crash

For the past couple days, I notice some technical difficulties with TD Waterhouse trading platform but nothing major. I had written about some of them previously. But tonight, I won’t have to wait until tomorrow morning to access my Balances Data. TD Waterhouse has updated everything and it’s currently 12:51AM Eastern Time on August 10. Way to go TD Waterhouse! Please continue that way. I need you to be working properly. Especially at this time. Don’t make me calculate myself my margin value.

For August 9, 2011:

Non-registered portfolio value: 103 443$
Money used on margin: 40 470.31$
Money left on margin: 16 938.86$

Today data were much more better. At a certain point of the day, my portfolio hit the 103 929.61$ and when it happen, I was very very very happy and of course, when it happen, I post the great news right here on my blog.

I want to believe that the worst is behind, but so far during this correction, I learned that investing on margin can be quite stressful. A usual market volatility is easy to handle. But a stock crash is not. However, I am getting through it so far, but it’s not because I am a good stock picker, it’s a matter of being extra lucky and also because my portfolio is diversifies in all sorts of stocks. If a lesson can be learn from my experience with margin investing well, it will be a “try to avoid” because margin investment is difficult.

At first, I was supposed to use my margin money at an interest rate of 4.25%. I did, but a big part of the margin went on stocks, to satisfy a maybe too in deep taste for adventure. This being said, I do not regret my move and I totally assume what I am in right now. It was my decision to invest on margin, no one else. But I will no longer invest on margin, just on my own money. The lesson learn was good, wasn’t? But this was needed in my case.

Let’s hope for me please that the Maple Group deal for the TMX Group (X) goes through so I can cash in more than 5k and that way, decrease my margin usage. Please.

Tuesday, August 9, 2011

Oh waittttttttttt.......

My non-registered portfolio is at 103 929.61$.

The TSX pushing today session at 12 108.09 points

This morning, I cannot tell the happiness I felt after seeing that the TSX had gains some points. This is greatly helping to stabilize my margin account situation. The past couple of days had been quite rough. I usually like to follow the market, but I had reached my limit of what my nerves can handle. I never doubt about my capacity to handle the margin, but while the market is in bad shape, there’s a limit of what I can handle, I cannot do miracle. I need to have the market on my side. I did not give up on the market and the market did not give up on me...

But here what it was like for the closing of yesterday August 8, 2011:

Non-registered portfolio value: 99 409$
Money used on margin: 40 481.52$
Money left on margin: 14 817.55$

Yesterday data were looking quite ugly. To see my non-registered portfolio stuck under the 100k was absolutely terrible. To response to the emergency situation, I wanted to sell my US investment and transferred the money into my Canadian non-registered account. I also wanted to transfer the investments hold in my TFSA to my non-registered account. But I did not proceed, because I had faith of being able to go through without having to transform my portfolio. A stupid damn faith in myself! LOL. I didn't want to have to call TD Waterhouse anyway.

Yesterday, I stay up late because even at 2AM, TD Waterhouse Balances sheet was not updated. I could have calculated manually the value of my margin, but it would have taken me a while to complete. So I went to bed at 2AM without knowing how was doing my margin account. However, I knew I was doing ok on the margin, it’s just I didn’t know how much was left on it. So I transferred back the 6k on my credit lines in order to avoid the high interest rate and the rest well...

On August 9, so far for today, my non-registered portfolio is at 103 630.72$!

Its been tough but I am doing ok on my margin.


A lot of this investment game is only base on psychology. Holding was necessary and in my case and it was a benefit. I am just hoping for the best. These past days had been difficult to handle. May the worst be behind. As always, my portfolio is rocking the place. Good you have me to read. Lucky you are ;0)

My non-registered portfolio is now at 101 243.16$!

Just wanna let everyone know!!!! My margin is safe for now and I am in heaven. Bye for now.

Monday, August 8, 2011

For Gordon Pape, it's decision time

My non-registered portfolio is now at 100 324.62$. What I expected is unfortunately happening. for Gorgon Pape, it's clear that we are into another recession and that investors have to choose between being out there or not to invest at all. For Rob (a reader), this is the continuity of 2008 recession. Some we'll say that the recession of 2008 simply continue. But as a believer, I wanted to be in a different time. For me, we were in better shape, it was getting better. Some of my companies like PGF, KBL ect. are still performing well in this current market condition.

At this time, I won't be selling my investment portfolio. I will be able to make today without a margin call I will transferred my TFSA investment into my non-registered Canadian portfolio. Selling at this time could be catastrophic. I always been in for the long run and on top of that, some very good companies are being offered at a cheap price. The same Rob reader says it will be difficult for me to make money out of my portfolio. It can only be a dumb broker or a Quebecker to have this kind of words for me. Is your portfolio has gain in value lately? I am very sure that the answer is no and it's ok. While facing difficult events, this is how any portfolio reacts. What will make the different at the end: will you be strong enough to HOLD?

While being fully invested like I am, the only solution is to hold the current asset. Another one could be to sell part of the asset and reinvest in gold or silver but it's not something I am really at right now. I want to add titles I never find attractive - quality stocks paying very little in dividend - you see the kind? I will be proceeding in my first of the kind investment in a couple of days.

Susan came with the idea to apply for another credit line - it's something I need to do NOW. I wait late, but as was optimist that the bottom would had been reached by now but it did not.

Since I am already in, I will continue what I had been doing for the past couple of years, I will continue to invest. We need to reach the bottom of it so the TSX can begins to gain points again. this time is harder than 2008, there's no way to figure out if we have reached the bottom of it or not. This is the most difficult part to deal with. To figure if the TSX can go any lower.

Time for retail investors to be warrior and invest for the long run in high quality stocks. It's not anytime soon that I will give up.

My only concern is my margin account of course, but I totally assume and so far, well, so good. My portfolio is strong enough to stay over the 100k. At least for now.

The Toronto Stock Exchange is about to lose its pants

I knew that the TSX was about to hit hard this morning. The TSX opens at 12 159.67 points, with a loss of 2.5%. Not too bad I taught... but very soon, the TSX recorded a loss of more than 5%. So far, the lowest the TSX has reached was 11 761.31 points. This was about to happen knowing that on Sunday evening, Asian stock markets has drop of hundreds of points. And TSX react to the drop worldwide buy dropping too. However, the day is long and things could change or at least improve.

Sometime, live is hard. I was in vacations during the last 2 weeks of July. Following what, when I came back home, I taught everything was going to be ok. There was still no agreement for the US default payment at that time, but I was confident that the US wouldn’t let a default payment happen. I was right, but I wasn’t ready for what was going to happen next: a major stock market correction. Nothing is really easy in my life. Facing the events of the past weeks had been absolutely awful.

I never have any doubt on what I was doing while investing in stocks. I must have read Derek Foster books so many times that now I am totally brainwashed... lol... I started investing after I began to work full-time. That was back in 2005. I did not start right away in stocks, that was only in 2008. The period of 2005 to 2008 wasn’t a real lucrative one. After reading Derek Foster The Lazy Investor, I realize I could do much better in stocks. And I did. But will I ultimately regret my decision?

Well, my investment journey is not about to take a drastic turn anytime soon. My non-registered portfolio is now at 104433.62$, which is not that different of last Friday closing result. However, there’s a 20 minutes delay. That 104 433.62$ worth is not being deliver in real time by TD Waterhouse. I think I will be ok for today, even if the Toronto Stock Exchange faces another rough day. I transferred 6k over my margin account. I think that will be enough – at least for now. And if you want my point of view, I don’t think the TSX will drop significantly today all day long because the market chickens are all gone, they all sell last week and they have nothing left. Now, time for the market warrior to rebuild health on the stock market and that include me who will be investing 1 000$ in TransCanada Corp (TRP).

I did not blog this weekend about my top performers because I had enough of thinking about my stocks and wanted to take a break – at least for 2 days.

OK... my non-registered portfolio is now at 99 340.22$.

Now I am 100 153.68$. I am going to stop watching this if not I will get a heart attack.

Saturday, August 6, 2011

My austerity plan: bread, peanut butter and black coffee

I just received my Just Energy dividend. I almost reached the 700$ in dividend income for the month of July, which is good, despite the fact that my portfolio seem to have reach the bottom line.

I transferred back a 5 000$ on my credit line. This leaves me like this for August 5, 2011 session (before the 5k deduction):

Non-registered portfolio value: 104 434$
Money used on margin: 35 481.52$
Money left on margin: 22 675.66$

I am under the 20k mark on my margin account (after the 5k deduction) and it seemed like my worst fear is slowly taking form: the TSX is losing points trading day after trading day. The US recently lost their triple A credit rank. Next Monday session will probably be very ugly, but I prefer not to think about it for now. Before Monday session start, I will again apply applied 5 000$ on my margin. But that time, it could not be enough.

I am seriously thinking about transferring my TFSA asset into my non-registered account. I am kind of froze in the moment and I find it very hard to go through this. It’s something very difficult to live. However, I always did what I wanted all the way, I don’t have any regrets – at least for now.

Friday, August 5, 2011

Another rough day for the Toronto Stock Exchange

I left home around noon and at that time, the TSX was under the 12 000 points, loosing, I could simply not believe my eyes, another 400 points being lost! I had enough of the stock market disaster. I had some free movie tickets left, so I took one and went to see Simple 8. It was very entertaining. Once I log in back to my laptop, the TSX had gained points, establishing itself over the 12k points. Currently, the TSX is at 12 164.23 points, a loss of 215.90 points. Not so bad, but what I anticipated happen. The TSX keep losing points, the bottom line has not been reached and that’s very scary and we are facing right now one of the most powerful, horrible events of our modern time, this being of course, speaking exclusively about money. But money is not anything and I am just very glad to be able to through this without too much problem. This being of course at this time. Because it’s a day-to-day situation and I am holding like ever before.

My non-registered portfolio is at 105 029.81$. There’s less than 15 minutes before the market closed. I am going to be ok with my margin, at least for today. But the question remains for the long term.

Finally, my sell order goes through. Remember yesterday, I was trying to set myself a sell order at a limit price of 8$ per unit for Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) and it wasn’t working? Well, I just place the sell order a couple of minutes ago and it finally go through. Whenever HZD reached the 8$ per minute, I will be selling all of my units. Other than HZD, I do not plan to sell any other investment. I had been patiently waiting to sell my HZD units for quite some time now. I hope my sell go through. It will help me to decrease my margin usage.

At this stage, I am not under panic. As a small investor, I know that my future financial success will depend on the action I take in those crucial times. Some of my investments are going extremely well, some other don’t. I will have more time this weekend to discuss about my investments that had performed well, and those who did not performed too well. Personally, I don’t think a portfolio can be compose of only winner picks, unless being a very good stock picker. In my situation, I will be considering myself extremely lucky if I can go through this without too much loss. I am not freaking out because I am confident the situation will sooner or later stabilize. I mean we still need natural gas, pipeline, and electricity right? This is not the end, it’s the beginning of a new capitalist and no matter what happen, I will obey to Wall Street gurus: I will continue to buy stocks as much as I can, but this time with real money, no more monopoly margin account money... Despite the situation, opening a margin account had been a great opportunity to test my investment abilities. We’ll see what happen next.

I am patiently waiting for my next week pay check to invest in TransCanada Corp (TRP). It will only be a 1 000$ worth investment which should allow me to buy more or less 25 stocks of TRP. TRP has a good chart and I think adding some stocks, even only 25 stocks, could be of a great benefit. I don’t have too much money to invest at this time. I may only be able to invest 1 000$ per month in stocks. It’s a good time to invest in TRP because they had announced lately a dividend distribution of 42 cents per share for stocks own at least 3 business days BEFORE September 30, 2011. So that’s currently the project.

But I have to admit, I am still thinking about the Sprott Strategic Fixed Income Fund (SFI.UN) and its 6% dividend. SFI.UN closed today session at 9.97$. At TD Waterhouse, SFI.UN has a margin loan value of only 25%, and TRP, has a 70% loan value. So for the benefit of my margin, I will probably invest in TRP, knowing the cash will be real and, on top of that, 700$ will be add to my margin account value - more or less. Got the picture? And don't forget that 10$ dividend coming soon :o)

My non-registered portfolio is now at 105 121.38$.

My non-registered margin portfolio had gone through a TSX 435.90 points lost without any problems... go baby go

When I left home earlier today to go to work, the TSX had already lost more than 300 points. Little did I know, but it didn’t stop there. On August 4, 2011, the TSX lost not 300, not 400, but 435.90 points. While facing the devastation, I did not feel anything, just like if I was totally disconnected in front of what was happening. I did not feel sad, I did not cry. I just look at the numbers, trying to understand the unthinkable. But this is real. Remember earlier today when I transferred 5 000$ from my credit line to my margin account? Well, the money had remained there.

This is how my non-registered portfolio closed August 4, 2011 session:

Non-registered portfolio value: 105 958$
Money used on margin: 35 481.52$
Money left available on the margin account: 23 471.56$

Even if the TSX lost more than 400 points today, I made it without a margin call or without having to deal with asset being sold automatically by TD Waterhouse to compensate on my margin lost. My non-registered portfolio might look crazy while looking at it quickly BUT I strongly believe that my diversification is what saves me today. I would have been able to go through August 4, 2011 stock market condition even without the 5 000$ that I brought in from my credit line to my margin account. Very good, but what if the TSX continues to lose points? I still have resources. I won’t let the Toronto Stock Exchange beat me. I will beat the beast.

The 2008 stock crash was much more easier to handle. Why? Well, it’s because once the stock market crash, it had reached the bottom line very quickly and following what, the TSX slowly gains points. This time, we are not facing the same thing.

The TSX had lost points on a regular basis for quite a long time now. Yesterday, the TSX rebound a little. And today, we had the crash that we now know. This time, no one can really say if he had reached the bottom or not. And the TSX could lose more points. And if it does, I will have to consider my options. Some analysts said that we could face a down market for the next 6 months or so. Does it mean that the TSX will lose points on every single trading day? We’ll have to live it to find out.

I still remain on my HOLDING position for many reasons. Many investments I hold inside my portfolio are still strong despite facing some major lost today: Bank of Nova Scotia (BNS), Methanex Corporation (MX), Fortis (FTS), Pembina Pipeline Corporation (PPL), Just Energy Group Inc. (JE), Pengrowth Energy Corporation (PGF), Enbridge Income Fund Holdings Inc. (ENF), Corby Distilleries Limited (CDL.A), Davis + Henderson Corporation (DH), EnCana Corporation (ECA), iShares S&P/TSX Capped REIT Index (XRE), Horizons Gold Yield Fund (HGY.UN), Canfor Pulp Products Inc (CFX), Exchange Income Corporation (EIF), TMX Group Inc. (X), K-Bro Linen Inc. (KBL) and First Majestic Silver Corp (FR), to name a few.

I am an eternal market optimistic no matter what and I still want to continue to invest. But this time, exclusively in blue ships, quality stocks. Right now, stocks like TransCanada Corporation (TRP), Canadian National Railway Company (CNR), and Enbridge Inc. (ENB) among other, stuff I talk to buy a little while ago. You know, all those quality stocks that pay very little in dividend? Well, it’s time to BUY a bit of each of them, even if it will be just by lot of 25 stocks. Basically, I plan to do the same thing I did following the 2008 stock crash: invest in stocks whenever I can, whenever money is available. And of course, I hope the market will eventually recover and that my worth will increase not to say explode in value, just like it did following the 2008 event.

I still believe in the market and it’s not anytime soon that I will give up.

I went through an interesting reading coming from the Globe and Mail: What investors need to do as the markets plunge. I really appreciate what John Stephenson, senior vice-president and portfolio manager at First Asset Investment Management Inc. has to say about the actual market situation. According to John Stephenson, dividend investment is still the way to go. Investors don’t have to go exclusively in GICs because of the rough market we are in. Gold and silver are a top value. John Stephenson had named TransCanada and Enbridge as strong value, etc. etc. I just hope he’ll turn wrong when he said that the market could go down to the 9 000 points... I mean, come on, we are in Canada, some of our companies, like PGF for example, are performing very well. COME ON CANADA. I am not giving up on you, don’t give up on me.

I think retailer investors have a role to play, even if it’s a small one. We need to HOLD in order to create HEALTH.

Tomorrow will be a decisive day as data regarding jobs will be available before the market opening. This time, I promise, I will try to wake up on time. ;0)

Thursday, August 4, 2011

Facing the stocks market crash correction and a massive wave of sell on August 4, 2011

My best advice: HOLD tight. Everyone should be holding instead of selling and facing capital lost.

For the past couple days, the TSX lost points almost every single day, at the exception of yesterday. As an eternal optimistic, I taught that today, the market will have open on a happy note, but it’s totally the opposite that is currently happening. Today, retail investors like registered investors, small like big ones, we are facing a market crash, an in deep correction that made the TSX lost more than 300 points on just one day, at least so far. But a great news being, the day is not over yet, the market could rebound. But for the way it look so far, the market will face some major lost today.

My non-registered portfolio is at 107 073.80$. Considering what’s going out there, I find this amount being strong and of a good result. I previously wrote in previous post about what I will be doing if the market continues to crash. It’s a real day-to-day situation. At this time, I transferred 5 000$ on my margin account. That money is coming from my credit line. I think that transferred will be enough for now. And before midnight, if I see everything is ok, I will transferred the 5 000$ back on my credit line in order to avoid the interest. My non-registered portfolio just jump to 107 219.81$.

Today August 4, 2011 mark a very sad day. Anyhow, I always saw my investment adventure for the long run. A stock crash is something I can go through, but still, I have doing so well, and now, this crash is destroying my hard work. I plan to hold without selling anything for now, at the exception of HZD. This may be a good opportunity for me to finally sell at profit Horizons BetaPro COMEX Silver Bear Plus ETF (HZD)... at least something positive may happen from this stock crash. But even my sell order at a limit price of 8$ does not want to go through. It’s the first time one of my order limits do not get accept by TD Waterhouse. When I try to set a sell at 8$ per stock for my 400 stocks of HZD, I get this crazy message:

“Error: your order request cannot be processed.
Your limit price is too far off the current market price. Please re-enter or contact your local TD Waterhouse office for assistance.”

Thank you TD Waterhouse!

I am doing just like usual you know! But it’s this situation that is not usual. Currenlty, HZD trades at 5.04$. I want to enter a sell order so my units get sell at 8$. But seem like I cannot place my order. I guess TD Watrehouse has modified their trading structure because of heavy transactions. A lot of people are selling their stocks at this time. But myself, I just want to sell HZD. Just that one. I don’t think HZD will be reaching the 8$ today. Maybe tomorrow or another if the market continues to crash.

My non-registered portfolio is now at 107 068.91$. I have to get out of here get some fresh air.

... my non-registered portfolio is now at 106 998.24$ ...

Welcome back 20k on my margin account! You are here to STAY

For once, the stock market finished the day on a positive note. Having to deal with a market that keep losing points day after day after day can be quite heavy. It’s not fun at all. But finally, the TMX gains some points today! And guess who have more than 20k left on its margin account? ME! My non-registered portfolio closed at 108 682$. This left a 20 080.54$ value on my margin account. You know that, what I currently focus on is the ability to exceed and/or reach a minimum of 20k value on what is left as unused money on my margin. Its currently one of my obsessions. :0)

The market is showing some positive signs. I explain my silver investment situation in the previous post. Also, something very positive is that despite all, my investment in the Sprott Canadian Equity Fund is exceeding the 7 000$ value. It’s a good sign. 7 000$ is the amount I had invested in the Sprott Canadian Equity Fund in 2008.

By next week, I would very much like to invest in 100 units of Sprott Strategic Fixed Income Fund (SFI.UN). SFI.UN unit value is quite stable and I like that. I would use 1 000$ on my own pocket money. The 6% dividend yield is quite interesting. I want to bring in something new and very stable in value – at least so far. SFI.UN answered both criteria. I did not invest for a long time and I miss it. I am getting bored if not.

I can see myself going through this correction without too much problems now that the market gain points. But it’s really a day-to-day. The market is all twisted, weird and at the same time, full of surprises.

Wednesday, August 3, 2011

The stock market nightmare: what to do to preserve your assets while operating on a margin account

The stock market is still losing points. My non-registered portfolio is at 107 943.85$. It’s not that bad, but if the TMX continue to lose points every single day of the trading week, well, at a point, I will have to consider my options. But the situation is not as desperate as it seems and I am going to explain my view.

First, both gold AND silver are performing well. At this time, First Majestic Silver Corp (FR), which is among one of my top performer, currently trade itself at more than 23$ per stock. Remember my US investment in Sprott Physical Silver Trust ET (PSLV)? I had first purchased some units at 22$, when silver was on top of everything, just before the silver crash. Following the silver crash, I purchased again some other units at something like 15$ or 16$ to help stabilize the whole thing. My book value for the investment is of 3 075.16$. And right now, my investment in the Sprott Physical Silver Trust ET (PSLV) worth 3 061.50$. So I am very proud of this one. I knew I was doing the right thing while investing in PSLV. Eric Sprott view on silver was correct. Very soon, my investment in PSLV will be exceeding the 3 075.16$ initial investment value. Just watch it grow.

In my TFSA, I hold Sprott Physical Silver Trust UTS (PHS.U). My book value for this one was of 3 114.60$. Currently, the same investment worth 3 818.84$. I don’t have that much invested in gold, but what I currently hold in Horizons Gold Yield Fund (HGY.UN) and Claymore Gold Bullion ETF (CGL) is performing very very well.

If the Toronto Stock Exchange continues to significantly drop in value, I will transfer what I hold in my TFSA to my non-registered portfolio. Currently, my TFSA worth 4 676.95$. It’s not that much, but transferring my TFSA holding to my non-registered portfolio will add a direct value of 4 676.95$ to my now worth 108 126.37$ non-registered portfolio. An increase of 182.52$. Ok. That would make a total of 112 803.32$. Quite good to face the market demons.

Despite the actual market condition, I do not plan to transfer my TFSA asset to my non-registered portfolio. Not at this time. But it’s something that I will consider if the market continues its plunge.

Something else that I will consider if the market condition continues to deteriorate is to sell my Sprott Physical Silver Trust ET (PSLV) and transfer the US money into my Canadian non-registered portfolio. That would probably bring in a good 3 000$ value in.

Those are options I will consider if I lose, let say, another 5k on the stock market. If not, everything will remain the way it is at this time. And I hope it does.

I face an in deep stock market correction in 2008, and at this time, I guess we can talk of a mini-crash, or another market correction or something like it. No matter what it is at this time, it’s not extremely pleasant. However, the dividend continue to kick in and I am almost at 700$ in dividend income for the month of July. I think I am now only missing my Just Energy Group Inc. (JE) dividend for the month of July.

Despite it all, I have very strong asset in my portfolio that help me to fight the, what I am now calling the “stock market demons”. It’s kind of the fight of a lifetime and I truly think that HOLDING everything is the best way to go. Especially in my condition. I am 30, single, no children to take care of. I am currently employed at 2 jobs that I have for a couple of years now, so my job situation is quite stable, that help of course. Myself, I don’t need to cash in my stock money and I don’t plan to cash any. At this point of the game, any actions taken will determinate if I will fail or succeed. Since I started investing in 2005, I mostly have been a buy and hold investor and what I have gain in value, I own it for the most part to a buy and hold strategy.

I am hoping for the best of course, but I am not under panic because most of what I hold in my non-registered portfolio is still at a good value. I was surprised to see Sprott Inc. (SII) at more than 8$ per stock because back in 2008, SII has drop to 4$-3$ following the 2008 stock crash. So this time, I am enjoying Sprott Inc. (SII) stability. Other stuff like Methanex Corporation (MX), Fortis (FTS), Pembina Pipeline Corporation (PPL), Pengrowth Energy Corporation (PGF), Enbridge Income Fund Holdings Inc. (ENF), Corby Distilleries Limited (CDL.A), Exchange Income Corporation (EIF), TMX Group Inc. (X) and K-Bro Linen Inc. (KBL), for the major part, still have a strong value and seem to be able to go through this without too much problem.

I am unfortunately a small cap lover and I am now paying the price for my love. Small cap are good in a relatively stable market, the dividend are awesome. But stuff like New Flyer Industries Inc. (NFI.UN), Colabor Group Inc. (GCL) and Student Transportation (STB) among other seem to experiment some problem to go through this current very rough market condition. That’s how it goes with small cap. Rob Carrick explains that very well in an online article title Kings of Pain loaded with investment lessons. And yes, currently, I am under massive pain, but nothing I can’t handle. I will show you the drill and hopefully, I will go through this without a margin call or without any asset to be sold, at the exception of TMX Group (X). If the Maple Group deal go through, I will be cashing in more than 5 000$. That could eventually safe my margin situation and save my life ;0).

I also have a bit more than 6 000$ available on credit lines. In case of need, I will of course transfer that cash in my non-registered portfolio.

At this time, I am not taking any actions; I am not selling, buying anything. I am closely watching the disaster. My non-registered portfolio is now at 108 215.69$.

I hope my holding strategy is the best one: facing the stock market headache in front of my laptop day after day


The stock market is taking such of an ugly turn. I am still confident – despite it all – that I will be able to go through this but still, the experience is rough and the market is very depress. My non-registered portfolio closed at 108 470$, leaving a 19 944.83$ on my margin account. What I had been trying so hard to avoid actually happen now: I am now below the 20k on my margin account and it’s not something that I like. I don’t know how long it will take for the market to get back on track. Today, the TMX loss 193.31 points. Despite the market condition, the Sprott Strategic Fixed Income Fund (SFI.UN) closed at 9.95$, which I find very good knowing the units had been launched a few weeks ago at 10$. I finally received my Bank of Nova Scotia (BNS) dividend. Love it. Other than SFI.UN, Horizons Australian Dollar Currency ETF (ASD) seems to be another safe bet. Get rich or died trying and try until the end.
 

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