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Saturday, January 12, 2013

Gordon Pape's Enerplus Corporation (ERF) is a stock for losers

I received another paycheck this week and I have available exactly $1 110 in fresh new cash at my disposal for investment purposes. For some people, this could feel like a ridiculous low amount of money, but for me, that’s quite amazing to have the privileged to have more than a 1k available to do whatever I want with it. As an individual, like anybody else, I am capable of the worst and the best of anything. But the perfection in me had made myself so sexy perfect that I am able to save save save hundreds and hundreds of dollars every single month of my so enjoyable life. But don’t take my every word. Living in Quebec province for a proud patriotic Canadian like myself can be the desert. The sorrow of my life is to be stuck in a place that I don’t want to be, to be stuck in a place that elected Pauline Marois government. I want my life to be perfect and as a perfect Canadian, I want to be able to feel that I belong to a patriotic environment and it’s truly not the case while living in Montreal. Here in Montreal, I am nothing. I am a Canadian living in Bosnia.

So for all of you that have still the choice, for all future university students that might be reading me, think twice before even thinking to move to Quebec province. You’ll be tax more on your living and on top of that, you may not be able to graduate on time. See what I am talking about? Quebeckers are dangerous people and are able of the worst. They have ruined the economy of their province and now, they are looking forward to make of their own shit a country of their own – very good for them. But be aware that everything you acquired in Quebec doesn’t have any real values in the Canadian world. Corruption is the country of Quebeckers and you are way better to stay outside of it and stay as far as possible from anything related to Quebec government. Quebec is poison.

This being said, I am not in depression, I am not an alcoholic, I don’t do drug, I don’t prostitute myself. I won’t let Quebeckers kill me, but instead, I play hard. Very hard. LOL

I am staying strong, you know the drill – you know the chick anyway. And now come the real exciting part. Forget about all the Quebec shit. Now is coming the real interesting part. The reasons why you are reading my every word and the reason why you belong to me: what my next investment will be like? (I hope you liked the “you belong to me” part, because I really did).

Ok, so we first talked previously about getting my pretty hands on some awesome Emera Inc. (EMA). A reader recently suggested Cervus Equipment Corp (CVL). Apparently, this investment is hold by the Mister Jean-François Tardif. I don’t know if its true, I didn’t make any research but, what I do know is that Cervus Equipment Corp (CVL) could certainly be a new comer in my portfolio. Maybe not now, but later. CVL seems to be a good investment, the chart is nice and steady, not all over the place. The dividend is reasonable. 

Cervus Equipment Corp (CVL) is a much better choice than Gordon Pape’s poor stock pick Enerplus Corporation (ERF). In December of last year (2012), Gordon Pape wrote an article about this stock, saying that you know, you could have half of your portfolio in boring stuff like a GICs and sort term bonds and the other half could be invested in high dividend givers. 

Gordon Pape is actively promoting Enerplus Corporation (ERF). I am telling you this from the heart: look at the chart. On the long run, the chart is all ups, downs, even worse than the index. Enerplus Corporation (ERF) is all over the place, with no constancy and no direction. This is exactly the kind of investment you absolutely have to avoid. We are facing recession worldwide, this is not the time to play your money on the stock market. It’s time to build a strong portfolio with stuff you won’t have to never worry about. Now is the time to invest in quality stocks. And Enerplus Corporation (ERF) is not a quality stock. Its quite very scary that Gordon Pape came with that investment idea.

Gordon Pape is not protecting the middle class investors who are the vast majority of who are his readers. In time of insecurity, investors have to focus on quality. That’s something that is really hard to do when a so call financial guru is telling us that Enerplus Corporation (ERF) could be a good stock to any portfolio. With that level of inconsistency, Enerplus Corporation (ERF) seems to be very sensible to the volatility of the market. And while facing volatility, recession and whatever else, you need soldiers, you’ll need stocks that will protect the value of your portfolio. The soldiers are really hard to find. 

At first, because of its 8+% dividend yield, Enerplus Corporation (ERF) could appear appealing to middle class investors. But wake up. And shake it up for at least once in your life. Don’t be a fool, escape from the high dividend yield trap. Most of the time, the real soldiers, the quality stocks, offer a yield of less than 6%. Why is that? Well, companies sometimes are trying too hard to make themselves appealing to investors. In recent years, dividend investing had become fashionable. Most of the time, high dividend payers = what I have name among the way “troublemaker stock”. Over time, the capital invested in troublemaker stocks decreased in value and overtime, the company often struggle and reduced its dividend payment. When that happens, the stock often loses in value. See the big pictures?

It happen that Gordon Pape hold some Enerplus Corporation (ERF) stocks in his very own portfolio. As a senior citizen, it’s very an inappropriate investment that Gordon Pape has made in ERF. So don’t follow Gordon Pape every investment moves. I am way soo much better for explaining EVERYTHING to you.

Super stuff like those that I hold below ARE good investment picks. But don’t ask Gordon Pape too much. He won’t give all of those great stuff, but I will:

K-Bro Linen Inc. (KBL)
Westshore Terminals Invest Corp (WTE.UN)
WesternOne Equity Income Fund (WEQ.UN)
First Majestic Silver Corp (FR)
TransCanada Corp (TRP)
Canadian National Railway Co (CNR)
Enbridge Inc. (ENB)
Agrium Inc. (AGU)
Canadian Utilities Limited (CU)
Bank of Nova Scotia (BNS)
Methanex Corporation (MX)
Fortis Inc. (FTS)
Pembina Pipeline Corporation (PPL)
Enbridge Income Fund Holdings Inc. (ENF)
Corby Distilleries Limited (CDL.A)
Davis + Henderson Corporation (DH)
Premium Brands Holdings Corporation (PBH)
iShares S&P/TSX Capped REIT Index (XRE)
Exchange Income Corporation (EIF)
TMX Group Inc. (X)
Claymore Gold Bullion ETF (CGL)
Emera Incorporated (EMA)
Healthlease Properties Real Estate Investment Trust (HLP.UN)

The very only good investment pick I ever got from Gordon Pape was Firm Capital Mortgage Investment Corporation (FC).

You could think that the stock market is not a place to be for hot chicks (!!) or middle class or lower investors, but in my 5 years of investing in stocks, I only got richer among the way. And fact is, if you have the intelligence to ONLY and EXCLUSIVELY invest in high quality stocks and forget about stupid stuff like Gordon Pape’s Enerplus Corporation (ERF) and forget that high dividend stocks even exist, well, you’ll be on your way to become a millionaire at a very early age.

Personally speaking, I am not perfect, I got adventurous, a made money, lose money, but I had been able to equilateral ! the whole thing among the way. Now at a sexy 32 year old, I try to get myself on track and focus on quality stocks. And that’s why I have the privilege to announce you that I will soon get my pretty hands on some Emera Inc. (EMA) stocks so be ready.


Anonymous said...

Hi Sunny,

I personally would rethink your purchase of Emera. The S&P is close to its' high of 1561(October 2007). To me, everything looks overpriced. The banking crises of 2007 has not fully been cleaned up/dealt with.


Sunny said...

What do you want me to invest in instead? Enerplus Corporation (ERF)? Me who hold almost everything in my portfolio, I need something stable like EMA. I need conservative super strong stocks to: 1) Add value to my margin account, 2) Stabilize the value of my portfolio AND 3 but not the last 3) Add more dividend distribution in the house.

EMA is a good quality stock. the problem with good quality stocks is that they always or most of time they trade at their highest value. Take PPL, KBL for example. EMA is among those stocks, its the same situation.

I don't have too many choices and for now, I am still in for Emera, but I will let you know if I change my mind.

Anonymous said...

I don't think you have a clue about investing. If you did you'd be a lot closer to your Million Dollar mark versus just your first $50k. At a younger age you should be taking on more risk and reward rather than investing in what old retired people are doing, but hey what ever floats your boat.

Anonymous said...

Since you seem to review others inputs sometimes, other thoughts for smaller, growth dividend stocks AM and TMA... charts are good, and growing portfolios...Cheers.

Sunny said...

I unfortunately know too much and not enough at the same time about investing.

Fact is, investing in stocks is already enough a risky business, if you invest in the stock market - it need to be done in effective manners.

It is so easy to lose money with stocks. So when you take the ultimate decision to invest in stocks, you have no choice other than to invest in soldiers that will be able to beat in the field and stay up and ready to face any kind of market fluctuation.

Have I make myself clear enough now?

Gordon Pape is a lunatic to even suggest to invest in ERF. What a super moron.

Sunny said...

AM and TMA charts are not good at all. They trade even lower than the before 2008 stock crash. Those 2 are junk stocks, they won't make any good to any portfolio, that's for sure.

Anonymous said...

Re: AM and TMA - I guess that is where we differ in our investing knowledge - In 14 months, I have managed to return 36% on AM in vestment, and just over 30% on TMA.. Not trying to boast, just trying to highlight that there are differnt types of investment philosophies, and I am now clear that you are only looking at a small portion of an investors potential. Thank-you and best of luck in 2013.

Anonymous said...

I'll bite - Do you look at any other metrics than the stock has a dividend, a steady up long term graph, which is now curently higher than in 2008 crisis? I mean I just reviewed all the stocks you list in this post - I'm impressed if that is your strategy, and hey if it works for you great, but there is a lot more potential to investing than this... I'm not trying to knock you, just trying to point out you could have much higher potenial returns if you learn more about investing - what have you got to lose? you already have in your opinion a decent portfolio... Cheers.

Anonymous said...

So CSU might fit your profile then? MUCH higher than in 2008...

Mike said...

Since you have some cash and the market is high, why not pay down some debts? Promise yourself you can use $1000 margin on a rainy day if something really catches your eye? Patience is sexy!

Anonymous said...

Use the money to pay some debt/margin, you will get solid 4.25% return. You can buy more units in another market correction.

Sunny said...

Very good advice! Especially that I read on Susan Brunner blog about the possibility that we could get a bear market in 2013....

I don't have any financial knowledge so I go with what I can read, the chart, a bit a news, blogs, Derek Foster, Susan Brunner, Jean-François Tardif and its about it.

What I like more than ever now is stocks that are performing better than the before 2008 stock crash. I like to find stock that value increased compare to the 2008 crash. Basically, the chart need to go up up up since inspection. For me, its a good indicator.

Sunny said...

I am very impressed by the few comments above. Really good readers!

Anonymous said...

Interesting... Susan Brunner owns some AM too and for longer than i have... I linked over to her blog, based on your comment above - Not sure why she goes into so much number crunching, as most sites now can publish it for you . Her spreadsheet is interesting and similar to one I track - last column comments section are similar to mine for companies I hold. Cheer.


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