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Sunday, February 17, 2013

Eric Sprott next hot sexy thing. It’s not the Dividend Girl, it could be Platinum

What you are about to read could be my longer post ever. It explains in details my strategy to get my hand back on a $7 081.80 dividend value. It also explains a nice plan to get yourself a bit richer if you have a few thousands you don’t know what to do with it. Most of the time, I always know what to do with my money.

I am doing the best I can to stimulate the Canadian economy by investing in Canadian stocks. It’s something that is really important for me. But now, I made a fascinating discovery and of course, business like usual, I am telling you all. I am really hoping that you are doing your reader job right now because what’s coming next is HOT. I just hope you have the intelligence it take to read me and not doing what a reader did, like f@ck, reading me once every 6 months... SHIT. I am insulted. Deeply. Massively. (You can read the comments post in the previous post to figure it out, it’s not like I am going to explain everything).

Not too long ago, I can still remember trading silver on and on and on. I buy, I sell, I buy, I sell. It was fun. It was cool. It was lucrative. But for a reason or another silver value collapse. I own silver in my RRSP and TFSA, and also in US dollars. I invested several thousands of dollars in silver, but suddenly, the silver value collapse, so I just kept in what I had, hoping silver value will raised again later on.

For those kind of things, when my idea is fix, I don’t have any problem holding an investment that is not doing well. I went through those kind of things more than one time and at the end, I got my rewards.

The very first stock I ever purchased was Sprott Inc. (SII). I purchased it when stocks were at $10 each – right before the 2008 stock crash. Following what, the stock market crash, my investment went from a $10 per stock value to less than $5. Imagine! My first stock investment was just like BLOWING me off. LOL. I guess you never had read that from your life, blowing me off...

This is what you get from a French girl.

Following the 2008 stock market crash, SII reached the closed to $10, if not back $10. It reached back that value because Sprott had launched the Sprott Physical Silver Trust ET (PSLV) and Sprott Physical Silver Trust UTS (PHS.U). Right now, Sprott Inc. (SII) is below the $5 bucks. But this time, its’ not silver that will come to the rescue of Sprott. It’s Platinum. I read about Platinum a bit here. I get the idea that Platinum is a valuable and needed metal. 

Just like silver is. But because the stock market is all over the place, the economy is weak, silver and gold are not exactly the best of the best right now. But there are alternatives. And one of those alternatives right now is Platinum.

Because Platinum is so hot, Sprott launched Sprott Physical Platinum and Palladium Trust (NYSE Arca: SPPP) and Sprott Physical Platinum and Palladium Trust (TSX: PPT.U). I think that the Platinum Sprott products will have the same effect as silver did. I HOPE.

I don’t recommend to invest in the Canadian version of Sprott Palladium Trust (PPT.U) because just like the Sprott silver, it’s in US dollars, and not Canadian ones. The headache is not at the time of the purchase, but at the time of the sell... It’s complicated and trust me, you don’t want of PPT.U in your portfolio. But SPPP in US dollars, in a US $ broker account, go for it. Its really that much messy.

If I would have a couple thousands, I would invest in SPPP. But not right now. Right now, I want to get to the same dividend earning level I used to be BEFORE Just Energy Group Inc. (JE). I am about to get back on the glorious road very soon. By target is to hit back on at least $7 081.80. It is quite good money made on relatively secured stock position. I know my portfolio very well despite knowing little about such stocks like WTE. I never fail on my duty however, I like to find new stocks to invest in and I like to make my portfolio better and stronger. It’s always a very sad event when a company like JE, for example, decrease its dividend income. I work at one single job right now. I made just a bit of money my blogging and a bit more by doing some freelance. So the money available to invest is just not there. 

As I am getting older, I don’t like the idea of hitting on 2-3 jobs at a time, but this is really how I made it possible to get all the cash needed to invest. Life is not so expensive in Montreal, but I turn down my medium velouté coffees at Second Cup. I cannot turn down on makeup shopping and nail polish. Those represent an average of 1,5k expense per month for my living. 

This is going to be quite an enormous post to read. I am not even done yet!

Back in the days, TELUS Corporation (T) was a Derek Foster stock. Currently, Telus trade at its highest ever, but it’s been said over here that Telus could make a 6% in 2013. The dividend yield is not too bad, almost 4% but not exactly 4..., but 3.775% In my case, you might know it by now, I have a margin account in my non-registered portfolio. So adding something like Telus Corporation (T) in my portfolio will increase the value of my margin without having to inject cash. Of course, the money borrowed on the margin will remain high, a bit more than 51k at this time, for a 16k left. 

Very recently, Derek Foster has announced a new investment he made. I listen to the video. It’s a Canadian company we all know about. The stock recently decreased in value. The stock value is still high, but the dividend yield is terribly low, not even 2%.... I like Derek Foster very much, and I am very happy to see he’s getting back in the Canadian game.... but gees, that stock, I don’t really want of that stock in my portfolio.

It was strange for me to watch Derek Foster latest video because I saw some wrinkles on the left side of his neck and it was strange. How can you get some wrinkles on your neck like that? By having too much babies. ahah That is what it is. When it comes to Derek Foster little kids, I am always getting stuck on the number 6. I just wonder if it means that he’ll get 6 kids or it’s just me who’s imaging some stuff. Fact is, Derek Foster is getting older and I am getting older too. I just get involved in a relationship before my ovaries cannot procreate anymore.

No matter how many children he’ll get, I really wanted to hit the $700 in dividend income by the end of 2013. And I want to get it by investing in quality stock.

I am not a good investor, but I have a taste for gambling and I am adventurous. I know I said the idea of the mountain lion hero was a bad one... But I am extremely tempted to invest in Precious Metals and Mining Trust (MMP.UN). Why? Because with my upcoming investment in Telus Corp and by investing a relatively low amount of money on MMP.UN, I could very easily hit back the old $7 081.80 in dividend income. A low investment in MMP.UN (like $900) + a $1 700 investment in Telus would be enough to push be back on the very close $7 081.80 dividend value... This is terribly tempting. I might transfer another little sum of money inside my TFSA...  and invest in some Precious Metals and Mining Trust (MMP.UN). That will bring be to somewhere close to $7 052.75 in dividend income.

Inside my investment portfolio, I hold a couple of things that don’t pay a damn cent in dividend. Here they are, with their value on date of January 26, 2013:

First Majestic Silver Corp (FR): $1 752
JFT Strategies Fund (JFS.UN): $1 930
Heroux-Devtek Inc. (HRX): $517
Sprott Physical Silver Trust ET (PSLV): $1 943.66 (US $)
Sprott Physical Silver Trust UTS (PHS.U): $2 544.46
= $8 687.12

If I would sell and reinvest that money at 6% yield, it will pay mean annual: $521.22... Quite crazy isn’t? For now, I still hold those investments the way they are because I hope they will eventually gain in value... one day. I have no doubt about this concerning First Majestic Silver Corp (FR). As for Sprott silver, it could eventually go up again, I don’t worry two much about those 2. As for JFT Strategies Fund (JFS.UN), no big gain yet, I am actually losing in that one a bit, but I guess and hope that the fund is well managed  by Jean-François Tardif and you know, one day I will cash big the investment. As for Heroux-Devtek Inc. (HRX), I own it since December 2012 because the company decided to pay a crazy $5 special dividend... CRAZYYY.

No rush to hit on the 8k in dividend income, but I can make it happen. Also, once Sprott Inc. (SII) will gain in value, I will partly sell it and reinvested the money. We are talking here of about a major original 9k that worth a lot less now. I don’t have any problem holding Sprott Inc. (SII) for now. Patience is a virtue that I do have.

I more of a fantastic gambler than a very good investor but I do believe in my choices.


Sunny said...

Here's the link regarding Telus:

Anonymous said...

Hi Sunny!
Have you taken into account the special dividend from Rogers Sugar, payable at the end of February?

Good luck with your investing :)


Sunny said...


I didn't know yet about the special dividend of RSI. GREAT!

I just calculate the flat dividend. Like for HRX, I received $5 per stock in special dividend but that was in December 2012. the same amount in dividend is not counted... because it doesn't mean it will be done again this year...

But for RSI, its quite lovely if they pay a special dividend. I NEED THE CASH. :)))

Thanks for letting me know.

Anonymous said...

"I am doing the best I can to stimulate the Canadian economy by investing in Canadian stocks. It’s something that is really important for me", Sunny says.

Unless a company issues shares to raise capital and you invest in these exact shares the company doesn't make any money off you. Even with an IPO, the investment bank buys the shares from the company for a certain amount and then sells it to the public.

For the most part, buying and selling shares in your brokerage account is basically someone buying or selling your shares. This doesn't affect the company one bit unless they do buybacks and retire those shares.

If you spend your dividends or capital gains buying things then you help the economy directly.

Sunny said...

I see :)


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