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Saturday, February 23, 2013

An in deep look at my non-registered portfolio


Previously on the Dividend Girl blog (which is my blog blog by the way), we comment on the way to add gambling to a regular and boring stock portfolio. Before getting on any gambling game, the first question you need to ask yourself is: can you afford losing any money at all? I know the regular stock blablabla of Derek Foster ok, something like you are not in to lose money or something like it. A blablabla sentence of Warren Buffett.

Personally, I probably trade on the stock market for the next 50 years and possibly even more. This means that I have the rest of my life to recover from my taste to danger and gambling while I gamble. The trick is to gamble moderately.

I post a couple of times about my troublemakers stock. I name “troublemaker stocks” the stock I am losing money on. Investing in stocks is the land of delicious temptations. It makes me laugh hard when I read articles like the one of Rob Carrick, “Keep it simple with ETFs”. The stock market is a word of opportunities, it is not simple and it wasn’t made to “keep it simple”.

At first, losing a couple of thousands on a stock is certainly heartbreaking, but it’s not something that will kill you. Investing in stock is dangerous. Investing in stock is evil. Once you enter in the world of stock, you enter in the world of capitalist salvation. And it doesn’t matter if you’re in the middle class status. I like to invest, buy and sell stocks because while doing so, there’s no direct interaction with others. On the stock market, you have no one to deal with but yourself. Youre alone. You don’t have to deal with dumb heads picking on you all the time for a yes or a no. On the stock market, you are the master mind. It’s a game between you, your money and the market. How well you’ll be doing will only depend on how smart you are. The battle field is widely open and any battle can take place.

Now, personally speaking, for a reason or another, I like to expose my personal finances on the Web. I made and loss great of money while trading on the stock market. Why I continue this game on and on? Well, I cannot stop it. I have no control over it. If I stop, I will be sad.

The stock market has intoxicated my life since 2008 now. I had been investing since 2005. I began with GICS and later on invest in mutual funds. The period of 2005-2007 has been an extremely boring one. I never gave up. I wasn’t able to get what I wanted. It took me Derek Foster and the Lazy Investor to get started. It took me a very long time. I invested in stocks when I was a splendid 27 beautiful bitch. I am lucky because nothing have change of me between the me of my 27 years old and the me at 32 years old. Still wrinkles free, I always think that my stock adventure began at 27 for a reason. The only reason I find is that I didn’t have too money to invest before 27l. I don’t have that much today, but I have a bit more than what I used to have. And it really just what matter. At least, I havent been stupid enough to invest in real estate. I dont own a place. All of my cash is place on the market. Well how good or how bad it will turn in a couple of years.

If you decided to take an adventurous road while investing, just prepare to lose money. I am able to understand about those things now because I have experiment it. I now become more able to distinct a good stock that will bring stability value and also a stable dividend income.

Here are they, the marvelous stocks that make my everyday gamble game possible:

Pembina Pipeline Corp (PPL)
+$6 467.29, +91.19%

Enbridge Income Fund Holdings Inc (ENF)
+$2 440.65, +40.64%

Methanex Corp (MX)
+$2 070.90, +127.30%

Exchange Income Corp (EIF)
+$1 913.43, +27.26%

Davis + Henderson Corp (DH)
+$1 598.27, +53.19%

WesternOne Inc (WEQ)
+$1 339.01, +71.53%

Corby Distilleries Ltd (CDL.A)
+$1 219.71, +121.30%

K-Bro Linen Inc (KBL)
+$1 051.01, +51.65%

Fortis Inc (FTS)
+$937.62, +34.19%

Canadian National Railway Co (CNR)
+$927.91, +30.22%

Bank of Nova Scotia (BNS)
+$800.30, +13.71%

Agrium Inc. (AGU)
+$698.76, +35.28%

Westshore Terminals Investment Corp (WTE)
+$593.04, +12.54%

iShares S&P/TSX Capped REIT Index Fund (XRE)
+$554.07, +26.43%

Premium Brands Holdings Corp (PBH)
+$539.29, +7.31%

Canadian Utilities Ltd (CU)
+$313.41, +24.20%

Enbridge Inc. (ENB)
+$257.13, +25.73%

TransCana Corp (TRP)
+$171.51, +16.87%

TMX Group Ltd (X)
+$87.87, +26.14%

Chorus Aviation Inc. (CHR.B)
+$79.23, +14.88%

Rogers Sugar Inc. (RSI)
+$61.69, +11.66%

Firm Capital Mortgage Investment Corp (FC)
+$38.81, +7.60%

Student Transportation Inc. (STB)
+$27.11$, +4.24%

Black Diamond Group Ltd (BDI)
+$27.51, +5.37%

Bombardier Inc. (BBD.B)
+$22.51, +4.49%

Cineplex Inc. (CGX)
+$6.51, +0.79%

TOTAL: +$24 244.55

Pretty nice isn’t? Well, don’t talk toooo fast, wait until you check out the list of my troublemaker stocks. It’s ugly, I am warning you:

Sprott Inc. (SII)
-$6 196.53, -62.17%

Just Energy Group Inc (JE)
-$4 789.01, -43.37%

Timminco Ltd (TIMNF)
-$4 064.86, -100%

Data Group Inc. (DGI)
-$2 934.74, -69.91%

Encana Corp (ECA)
-$2 217.41, -36.31%

Kinross Gold Corp (K)
-$1 327.63, -52.96%

Atlantic Power Corp (ATP)
-$758.25, -23.01%

Blue Note Mining Inc. (BNT)
-$683.60, -99.42%

Hanwei Energy Services Corp (HE)
-$627.50, -93.10%

Canfor Pulp Products Inc. (CFX)
-$470.85, -29.56%

Pengrowth Energy Corp (PGF)
-$399.67, -28.73%

Colabor Group Inc. (GCL)
- $396.77, -33.74%

Horizons Gold Yield ETF Common (HGY)
-$327.88, -15.85%

New Flyer Industries Inc. (NFI)
-$316.75, -12.96%

Crescent Point Energy Corp (CPG)
-$171.69, -16.76%

Veresen Inc (VSN)
-$146.61, -14.56%

First Majestic Silver Corp (FR)
-$145.99, -7.70%

Heroux-Devtek Inc. (HRX)
-$138.69, -22.45%

JFT Strategies Fund (JFS.UN)
-$68, -3.40%

Emera Inc. (EMA)
-$16.49, -1.83%

GEOVENCAP Inc. (GOV)
-$0.60, -42.86%

TOTAL: - $25 441.27

- 25 441.27 + + 24 244.55 = - $1 196.72

I think this illustrate how important it is to have massive asset in good quality holding if you want to fully enjoy the stock market to the max and enjoy a bit of gambling. Gambling might had taken too much place inside my trading life, but I am slowly recovering. I invested in great quality stocks recently, like Cineplex Inc. (CGX), Black Diamond Group Ltd (BDI) and even more recently, RioCan Real Estate Investment Trust (REI.UN). 

The most interesting part is that some investments I made were for gambling purposes at first, but they turn out very well! I am thinking of Bombardier Inc. (BBD.B) and Chorus Aviation Inc. (CHR.B).

There’re a few investments on the negative side that I don’t worry about: Horizons Gold Yield ETF Common (HGY), New Flyer Industries Inc. (NFI), Crescent Point Energy Corp (CPG), Veresen Inc (VSN), First Majestic Silver Corp (FR), Heroux-Devtek Inc. (HRX), JFT Strategies Fund (JFS.UN) and Emera Inc. (EMA).

As for the other stocks, like Sprott Inc. (SII), Date Group (DGI), only time will tell if I was right to hold them tight. Losers may not be losers forever.

This exercise only covers my non-registered portfolio. I hope you enjoy.

20 comments:

Sunny said...

This kind of apply to this post: http://business.financialpost.com/2013/02/22/how-to-avoid-getting-burnt-by-hot-stocks/

David Chaves said...

I you really want to continue gambling for 50 years, then you should know and apply the Fortune's Formula, at least.

http://www.fortunesformula.com

http://www.amazon.com/Fortunes-Formula-Scientific-Betting-Casinos/dp/0809045990

Do you?

Otherwise, you WILL NOT be able to survive, financially speaking, mathematically speaking.

Anonymous said...

Holding so little of so many stocks must drive your commission costs through the roof. Wouldn't it be cheaper on average to hold an index fund after your commissions and interest payments are added together? They must equal more than a poor performing mutual funds' MER!

Sunny said...

I don't believe in index fund. They are terribly boring. I will hold an index fund when I will be out of stock inspiration. But I found just yesterday a brand new stock for my TFSA!!! I assure you, it will be the topic of my next post.

I got my investments made in HGY and my Jean-François Tardif strategic fund commission free $0 because I participated in their initial public offering.

It cost me $9.99 per sell and buy operations. I made some good money on a few trades (like the sell of most of my stocks of TMX Group - X commission free) for example. I made also great money on my dividend income.

Yes, it cost money to trade, but you can do it for as low as $4.99 with Questrade. I prefer to be with TD Waterhouse because I am in love with their male brokers and I prefer to be affiliate with a bank. I feel more secure.

As for now, my portfolio is pretty much set up for life. My majors holding like ENF, ENB, EIF, CNR, AGU, PPL, KBL, MX etc and all those I am winning on will remain in for I hope the next 50 years. So counted on the term of 50 years, my portfolio would have barely cost me anything.

I am pretty much focus on the long term, what happen in the immediate time doesn't really count.

I didn't read back my post, but is it giving the impression that I am going to ONLY gamble for the next 50 years?

Its really not it. Look at my non-registered portfolio, look at my troublemakers. I lost 25k of my very own money on bad stocks. I think its kind of enough, don't you think so?

My latest investment, the one made in MMP.UN was a gambling one. My investment I made in the silver Sprott a long time ago was also a gambling move. My investment in CHR.B and BBD.B were gambling ones.

But my investments in BDI, CGX, REI.UN were real ones. What I name gambling is when I invest and I absolutely know that the investment made can turn in the negative zone.

I try to keep a balance between my real investments and my gamble ones. I am not gambling that much these days. I more preoccupy on adding on new stuff in that will boost my margin value as well as my dividend income.

This is what my game is about.

Sunny said...

The Fortune Formula book seem to be interesting!

That book was made for me.

Anonymous said...

there's too much garbage in your portfolio. basically you just proved that after all these years you are not breaking even with your money. just invest in index etf and your return is positive rather than negative. the markets retrun 100% since the crash, what's your return from your stock picking piece of garbage???

Anonymous said...

you need to get rid of your losers... like many others you hold stocks until you lose almost 100% in the slim hope it will recover. I see many stocks that you hold that will never recover. this is just a poor portfolio overal. too many junk equals recipe for disaster.

Anonymous said...

Anon: "getting rid of your losers" is the crux of the problem. As an investor, either you need extreme non-emotional discipline, or you have to have a pre-planned attack. The buying is always the easy part (or the almost so easy part). I would recommend that anyone wanting to juice up their portfolio with risk, to have an exit plan. How you calculate it is your business: percentage up or down, support/ceilings, projections, ratios, etc. Be willing to walk away with money on the table (oh, the greed factor), or jump out to prevent deepening losses. There's an old adage to set up the stop loss at the time of purchase. That's probably the toughest decision. Be prepared for that price dip right after your purchase, its usually that hardest from an emotional standpoint to say to yourself: I didn't get the best bargain out there, and there's a possiblity I might be wrong. If you don't actively plan for risk or can't afford loss, (even total loss), don't take risk. If you don't have the time or can't do your own fundamental analysis, sector analysis, technical analysis & keep up on the news: invest in steady-eddy income securities. Subscriptions, newsletters, hot tips, blogs, magic formulas, trading software, won't do it for you. Usually the horse is out of the barn by the time they notify you. Simple. Anony-tartufo

Anonymous said...

Sunny: Can you identify which stocks you're DRIPPing?

pattirose said...

Anonymous said...
you need to get rid of your losers... like many others you hold stocks until you lose almost 100% in the slim hope it will recover. I see many stocks that you hold that will never recover. this is just a poor portfolio overal. too many junk equals recipe for disaster.

February 24, 2013 at 2:23 PM


So, I am curious as to what stocks Sunny holds that you think may never recover?

Ruth said...

Hi Pattirose

Sunny is never boring, I will say that much.Her MMP.UN is up. the losers that i think will not recover is Pengrowth and Just Energy. Will admit it is very hard to sell losers and i am working on that one. i sold those two.

Anonymous said...

Its not a question of "never recovering". I don't think anyone can point at an investment and say: it will NEVER recover. Circumstances change, sometimes dramatically. The true question is the "time value" of money. Lost time is lost opportunity. Every stock thats in a negative position is time lost between the purchase date and the present. Unless you have concrete indication that change is imminent, then bail. Status quo isn't good enough. If you do have that indication, then invest. Anony-penne ala vodka

Anonymous said...

I thought this was about dividend investing. If Sunny is making good $$ in dividends then why criticize her for her stock selections.

Mark

PS-Sunny-Bank of Montreal just increased its' dividend today by 2.8% to 0.74/share.

Anonymous said...

look at those 90% losses stocks, very unlikely you will see a recovery on those stocks ever = lost cause.

Ruth said...

agree with the subject of dividends but one wouldn't buy a stock just because of dividends. i did that and lost my principal..what sense is that? i now own mostly blue chips and am up nicely. i think one likes to have some growth in the stock also. bought 50 shares of CNR..hope i do as well as you did Sunny. looking at TD too. am up 20 % on BCE.

Anonymous said...

Atlantic Power Corp (ATP)

BLAM!!!! -28.85% Friday March 1

Anonymous said...

I would like you to drip your dividends instead of spending them. That is how you become rich.

Ciao

Anonymous said...

Mark: look at Sunny's portfolio. It isn't dividend investing. Its a mish mash including managed funds & securities that don't & won't ever pay a dividend. Sunny by her own admission has ceased re-investing those dividends she does collect. Why? Simple: cash flow. She needs it to cover expenses. Look at other dividend portfolios on the net by other bloggers & their techniques. The "dividend" in "girl" isn't a statement about investing.

Anonymous said...

agree with that comment. true that...

Anonymous said...

I have subscribed to your rss feed. I always enjoy reading peoples opinons about different stocks and am just switching from index investing to a mix of stocks and just a couple of index funds now.

I tend to think that you have too many stocks, though in Canada we have a small set of choices and you have to reach if you want to be diversified.
It seems like the management problem alone must drive you nuts.

I give you lots of credit for publishing your holdings both the good and the bad.

For myself, I am trying to stick to a mix of 17 equity/reits and 3 index funds. I will be selling one of the index funds and buying stocks when the market pulls back a bit.

I hope I can do OK with fairly large cap dividend payers.

Did you see this article ? Talk about a slim portfolio: http://www.theglobeandmail.com/globe-investor/investment-ideas/the-blazingly-simple-must-have-portfolio/article4391968/

Thanks for your blog.
Ian

 

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