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Saturday, March 16, 2013

My next trade? Telus Corporation (T)


I wake up really late this... afternoon lol. I got ready, hit outside, went for a coffee. It was supposed to be a walk diet for a couple of hours but I find it cold outside so I simply went back home and log in my broker account. I cheat on my diet (I got a piece of cake with my coffee), but without sugar I am nothing. I am a sugar babe. 

Other than that I didn’t eat that much so it won’t be a disaster. I am drinking water for once. I began to feel hungry, but feeling hungry is sign that I am alive. I guess I had loss a bit of weight but it’s impossible to say since I don’t have any scale. I really need to go for a walk tomorrow or nothing will happen. Or I just keep going with the feeling hungry syndrome.

Once back home, I was quite happy to see my non-registered portfolio at $122 157, +1.31% (+$1 577.99). I am expecting an interesting month for my dividend income, something around $700 I guess. I am getting paid this week so I will have a little something left to invest in something new. My margin value is at $16 527.19 and I have 25k available on my credit lines for emergencies. I plan to invest inside my TFSA so whatever money made will be 100% free of tax. I am slowly getting there, but the major reason is that my portfolio is stronger now, but I am still using a great deal of my margin.

I am just very happy that Atlantic Power Corporation (ATP) is no longer from my portfolio. ATP closed last Friday session at $5.46. If I would have continue to that “sucker” as name by the one and only Lou Schizas, I would had fall into depression. The stress endured for holding ATP is unbelievable. I had trouble to fall asleep because I was thinking of that shit over and over again. I went through a lot of thing in my years of investment but I never had trouble to get my beauty sleep because of what I was doing on the stock market. Another situation that really stressed me out is when the earthquake happened in Japan. I really taught that the TSX was going to take an in deep plunge, but it didn’t. It was also a humanitarian sad event. It wasn’t exactly easy. But those events had no effect on the Canadian stock market – which I find very strange. The TSX take a hit every single time something bad is announced regarding the Euro zone, but when something really bad happen in a financial healthy country, nothing happen.

I may had loss $1 900 by selling ATP, BUT, that money will be declared as a capital loss (meaning kind of a tax credit) AND also, well just look at it now, my portfolio is at +$1 577.99, which is terribly close to the $1 900 and I have like 2k available for new investments and dividend income just keep coming kicking off. I am not dealing with a catastrophic situation here. It is not too bad. I am actually quite pleased on how well things are going. Class actions just continue to pop up one after the other against Atlantic Power Corporation (ATP). The latest on the list being Morgan & Morgan. I signed in with Levi & Korsinsky and things are now officials. On March 15, Levi & Korsinsky has commenced a class action lawsuit. I hope to be able to get a few hundred. I have no idea on how much I can earn, but at least, I have battle for my investor rights, you need to respect that.

Following my comment on his blog, Lou wrote me an email:

“Hey Sunny,
As I was taught - cut your loses and get to your next trade!
Happy Capitalism!”

Too kind. Thank you Lou. I like the fellow. Happy Capitalism is his trade mark sentence, the pitch of a ball. Mine is Hot and Sexy Sugar Babe addicted to sugar and other stuff you don't really want to read about on a financial blog.

For now, I am thinking of my next investment. And I cannot really wait! I am interested by BEP.UN, by the ABC stock of Derek Foster and a few other I talked about previously. I am always looking for new stocks to invest in. Readers are good to give me some hot picks. But sometimes, reader picks are too hot. I don’t want to burn myself anymore. I don’t want any more night of insomnias. I just want a portfolio that I can rely on, I want to be able to go to work without having to stress about my portfolio when I really have no time to full around.

This chick knows what she wants. In his latest newsletter, Derek Foster chatted about Colgate that’s going to split 1-2. Nice, but Colgate is a US stock. And it is also, I guess, terribly expensive (I didn’t look at its price value). Image this: I have found my very own sexy and Canadian split 1 for 2... It’s a company I talked about investing in and now is just the perfect time. It is the perfect time to invest in Telus Corporation (T)!

During a stock split, generally speaking, after the split, usually, the stock title gains value. And also, a stock split means you are in position of doubling the dividend income on the stock. Let say that on Monday I invest in 30 stocks of Telus, after the split, 1 for 2, I will own 60 stocks of Telus and my dividend income on the stock will go from let say $60, to $120. That’s kind of hot isn’t? It is really hot. So I guess that this time, I really had come with my very next stock pick.

I recommend to all an investment in Telus BEFORE the split event because it’s going to be sexy cool and $$$, super lucrative.

27 comments:

pattirose said...

no no no Sunny, you don't get double the dividend

Anonymous said...

That's not how it works. Dividend will stay at the same relative value

Anonymous said...

R U retarded? And fat?

Split does not increase dividend. It remains the same overall. It gets halved per share in a 1 to 2 split.

Anonymous said...

Quand il y a un stock split, le dividende per share est coupé de moitié. Il n'y a rien à gagner de ce côté comme tu dis sexy sugar babe.

Anonymous said...

After a split, the dividend will be cut in half. Stock split is like a kitkat chocolate bar. You break it in half, you have twice as many chocolate bars, but they are smaller.

Anonymous said...

Are you sure about the dividend being kept the same after the split?

Anonymous said...

I think you got that wrong.

A 2:1 stock split means for every share you own, you get 2 shares. The price of the stock is cut in half. You cost doesn't change.

The dividend is cut in half as well, so the yield on cost stays the same . The purpose of a stock split isstays the same to make the stock more cheaper for people to buy it.

A reverse split is the opposite of all above.

Ruth said...

HI Sunny, love the telus idea and just bought in myself for a 100 shares...that is how i bought into enbridge ,,,they split too , it was $30..look at it now. i believe if you have a good 5 or 6 solid stocks , and if lucky , can buy on a dip but it is so hard now to get that with quality stocks as when there is a dip..there are many waiting to jump in.

Anonymous said...

Are you taking into consideration the changes that are to take place in the Telecom sector? This may result in Telus stock falling. See: http://www.thestar.com/business/2013/03/07/industry_canada_to_limit_telecoms_spectrums.html

Anonymous said...

Hello Sunny!
I think Telus would definitely be a good investment, especially with continued growth in the cell market.

Sorry to burst your bubble but when a stock splits, the dividend usually splits as well - meaning the yield remains the same. So you would not double your dividend after a split :(

Best wishes,
MG

Sunny said...

Wouldn't be sooo nice that stock split work my way?

Doubling the dividend would be just ahhhh soooo awesommmmeee!

:)

No no, I am not retarded, just a dreamer. I have a couple pounds to lose, I am not an obese Dividend Girl ok.

Thanks for correcting me, nice and (not so nice) responses....

Charming, absolutely charming.

I don't know why I taught I was doubling the dividend, I guess its what I really wanted in the bottom of my heart :)

Telus I guess is a good investment, dividend double or not.

Anonymous said...

You are again buying stocks at high price, but Telus is a good quality and dividend growth stock. So, it is ok to buy for any price; however, you should have bought at lower price than this.

Anonymous said...

DG: All the anons. gave u good advice. Stock splits dilute equity as they add more shares onto the market. On the other hand, they provide a lower purchase point for the individual investor, on the theory the share price is now more accessible. The divi will not necessarily increase, it would be extremely unusual to double. Its an individual decision by a company to split or not to split. You are still betting that the total value will go up in the future. Cheers!

Anonymous said...

you are just so stupid and totally clueless. if it was that easy to get double the dividend for half the price, everyone will flock their money into this stock. markets are efficient, there's no free lunch so to speak.

Anonymous said...

The comment about the double dividend was just so wrong, I'm starting to think that this is a blog set up as a troll. I.e. Higher ad revenue from people tuning in to watch the financial train wreck happen than a normal run of the mill PF blog..

If it is legitimate blog, then I'm sorry but despite your confidence, you don't seem to have the knowledge/skills to take on the kind of leverage you have. I strongly urge you to reduce the amount of leverage you are using.

Anonymous said...

Yep anon....efficient market theory, not free lunch theory...lol

agentfang said...

To all those anonymous name callers, you guys should really stop harassing Sunny. Why are you guys hiding behind your computers? Bunch of scumbags. Sunny is here to inform of her progress in her quest to financial freedom.

I enjoy reading your posts, Sunny. You are strong and keep working towards your goal! Sometimes, your stock picks are questionable, but it is what you make of it. I hope you much success in your Telus pick. I regret selling Rogers last year, I could have gotten a big gain if I only held it. Recently, I bought AT&T myself, looking for that 4.9% yield. But I will be hit with the foreign tax when I receive those dividends.

Anonymous said...

DG is the only blogger I've seen where the advice given isn't at all respected, even when the respondent has provided it in her native language because of her weak ability in English. This IS NOT a financial blog. Its misleading by name & content. This blog has NOTHING to do with dividend investing. PERIOD. It's merely a way to get page hits, produce some $ on the side & navel gaze. I'm surprised by the honest thoughtful advice freely given by the commentators & that continues to be given despite DG's self centered backwater arrogance that has put most people off this blog. Don't take this blog or DG seriously. This is the Quebec version of Duck Dynasty without the duck calls. Send her a message: join me in boycotting DG, even if its just for a few weeks or months. Chiao bella. Anony-gracia

Anonymous said...

Hey Anony-gracia,

You are just a sour individual!

By the way Chiao is a monetay unit of China.

Ciao buddy.

Anonymous said...

Hi Sunny: I like your blog. You speak from the heart even though we differ in the investment area I'll keep on visiting your blog because it's honest..


Cheers,

Mark

Anonymous said...

Retards, all of you. The one who got it correct is the anon who said this blog is a TROLL!!

Correct, sir! Because nobody could really be so stupid, and arrogant. This blog is fantasy. There is no real investment going on.

I can't believe how gullible people like Mark, Ruth, etc. are to get sucked in so bad. Ey guys, I have a great deal on a bridge to sell you...

Anonymous said...

Hi all,

Some advice to everyone: Anyone who says that Telus is a growth stock is misinformed. Telus,Bell,Rogers, serve a market with 32M individuals. If you want to invest in the telecom sector try looking @ some international telecos. In my portfolio, I have PT Telekomunikasi Indonesia (ADR). When I bought it, it was yielding 4.7% and it has a larger market(130M people). So be careful what the mainstream media likes to say re: growth stocks such as Telus,Rogers..ect)

MArk

Ruth said...

I like the blog for just the chatter and this and that about stocks. i have written in for advice and there was always one of you to give it. i have a penny stock called Redknee Solutions, am wondering , do i hold..it cost me $1.89 a share, has been fun for the ride. where does one find stocks that start at the bottom and go high , i heard one person on business channel call in and said she bought 1000 of crew energy at $6.50..she is now up a nice sum..lovely short trade.

Anonymous said...

we need a major market crash and then dg will learn her lesson. high leverage with poor investment decisions = major disaster = possible bankruptcy

you've been warned...

Anonymous said...

a lot of your high yield investment is a return of capital based. if the investment doesn't go up, you end up getting back your money each month the stock distributes...

Sunny said...

I had been investing in stock since the crash of 2008 and trust me, ever since, there's been a lot of ups and downs. Those past 6 years of stock investment worth 20 years. I know how bad it can get, but I am an eternal stock market optimist.

I hold too much good stuff to be under the stress of any bankruptcy at all. For a reason or another you hate me and you are wishing me some shit.

Be extremely aware that I am wishing you much more shit. I don't know if you had been reading my blog for a long time, but I always get revenge sooner or later. And be scare because I will be praying for your hell.

Its ok for me do deal with grow, or just a bit or none at all. The richness will be created over time and not the immediate time. I hold too much of the good stuff for not making it happen. You'll just have to learn with that idea stock in your head.

Anonymous said...

Hi Sunny,

I would like to comment on some of the not so nice comments here and will add a few thoughts of my own.

1. I myself am offended by some who have referred to you with unkind words. I suspect they mean well because they are frustrated that you don't understand some the basics... but there is no reason to use expletives and profanity by yourself or by others. Successful investing and trading discipline develop with time. But I do hope your learning curving is much shorter. Make sure you check your emotions and be pragmatic for the right reasons.

2.your comment that the crash of 2008 is worth 20 years of investing....sorry to burst your bubble but it is not. I have been investing for nearly 20 years from 1995 to now. I made a decent amount of money and mistakes but fortunately my voracious appetite for information and knowledge and humility kept me out of serious trouble during the crash. I still consider myself lucky to own the assets I have when I purchased them. I have to agree with some of the contributors who describe your blog as...and I paraphrase...reckless and arrogant. In one of your comments in the past you proudly said that "these are my investments and my money so I do what I want" or words to that effect when someone admonished you to reduce debt and leverage. Well, a fool and his/her money will soon part ways. Have some humility. You and I do not know what calamities the world will bring and shake our investment foundation/thesis. If Bill Gross of PIMCO is humble enough to say he is lucky to have made his investors money in the bond market over the last 30 -40 years, then who are you or I to be cavalier with our finances.

Everyone investing needs to 1)develop a strategy and discipline that is pragmatic for the current and evolving market environment, 2) have a reliable basic cash flow to meet ones financial obligations with the best risk adjusted return and especially if you do not work or work is seasonal and 3) have exit strategies on stocks that can be considered speculative or that have run their business cycle.

2. If you did not know that when a stock splits the dividend also splits then you need to do more reading about the basics of stocks. Try Investopedia. I do. If your comments about stock splits were a mental slip... then this looks very unprofessional. Blogs should be accurate not simply to spew unsubstantiated comments.

3. regarding purchasing telus. I purchased the stock at $33 pre split. I am not bragging...I was very lucky, I also bought BCE at $27. I think if you are taking position in this company now you need to pay attention to their AGM. Certainly their PE ratio is reasonable compared to the TSX. Their free-cash flow yield is healthy and some analysts think they will be clear about their dividend growth strategy. Still, I am weary about how interest rates affect these kinds of stocks, how they will reduce their churn rate and maintain or increase ARPU. While oligopolies are reasonably safer in Canada...remember, in general you can gurantee yourself low returns by buying high PE stocks. Make sure you understand what factors will drive capital appreciation and then set your expectations.

I hope my comments will help you develop a more mature blog and I do hope you succeed with your investments. My apologies if the above comments sound patronizing.

Chris

 

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