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Tuesday, September 17, 2013

Welcome in my non-registered portfolio Shoppers Drug Mart Corp (SC)!

The happy event happen on... September 13th, on Friday the 13th. Shoppers Drug Mart (Corp) worth more than 2k in term of margin value bucks in my non-registered portfolio, which mean SC probably worth like 70%. From what I saw so far, 70% is the highest margin value EVER. So SC is on top of the top. I invested a reasonable amount of money, not too much. Don't expect my margin to fall apart anytime soon.

My non-registered portfolio is at $120 344.20, +7.91%. Since the stock market allow it, I do, in the early morning and in  the evening transfers to my credit lines to my margin (in the morning), and in the evening, margin to credit lines. That little trick allow me to save in interest money, I had explained that previously. I am able to play the game in good market conditions, but if the market deteriorate because of the Fed or whatever else, the money will have to remain on the margin account. Its a day-to-day situation. Its not very hard to evaluate the situation, how much worth my portfolio, on how much points close the TSX and that's all I need to know.

I have a 1.99% credit balance transfer with American Express. I now have a $2 500 at 1.99% for 6 months - it will expire on April 1th. This is giving me enough time ahead to pay off that debt.

I have a $1 121.20 on my RBC line a credit. It will be paid by Friday.

The other debts remaining:

-A $740.17 on another credit line when I have the gut to transfer 7k from my margin to my credit line. But I usually only transfer 5k max. I will try to pay off the extend of $740.17 by the end of the month.
-A $5k at 8.75%.
-A margin that is around $54k at this time.

Its not as bad as we could imagine at first. If I am lucky, my 5k credit line will be almost completely paid off by the end of the year. This year, my Christmas gifts won't be more than a chocolate box. Sorry, but I come first!

My non-registered portfolio slowly begin to deliver.

First, lets talk of my latest investment, Shoppers Drug Mart Corp (SC). In one of his latest newsletter, Derek Foster warn his readers saying that he still hold Tim Hortons in his portfolio but he wouldn't purchase TIM at this time because he find it too expensive. And also, Derek said that the price of the purchase impact your overall return.

I partly agree with him and this make it the perfect occasion to express my point of view on how to invest.

You can be a very strategic investors like Derek Foster or you can be like me and follow the vibe of the moment, which sometimes pay well, just as well as being a strategic investor.

Last week, I wrote that I wanted to invest in Shoppers Drug Mart Corp (SC) to benefit from the acquisition of Loblaw. Fact is, a deal like  this don't happen really often in a life time. Its just like the acquisition of the TSX Group by the group of banker freaks. You want to be part of that shit no matter what. And exactly the same scheme is happening with Shoppers Drug Mart Corp (SC) at this time. 

When there's an opportunity, don't ever waste your time thinking there might be a better deal. Business acquisitions are a great and very easy way to make money on the stock market, you just to be patient. The acquisition of TMX took sometime to happen, but it happen. In the case of Shoppers Drug Mart Corp (SC), we didn't have to wait long. The court already approve the takeover of Shoppers by Loblaw. It actually happen today! And it result, my investment gain 0.61%. We are not taking or 2-3%. But still, a gain is a gain and soon I will received a dividend distribution from Shoppers.

Of course, if I would had invest in Shoppers way before, I would had made more money. But when you deal with quality stocks, and good acquisition deal, its never too late. There will be always money to be made. As an individual who work full-time, I don't spend 30 hours per week studying the market, reading the news etc. But that is that kind of time that is needed to be aware of everything. Being late in a discovery doesn't mark  the end of the world, its just that less cash will be made.

Good stock always go up. Take for example my MX, FTS, KBL, PPL, ENF, EIF, CNR etc. The best time to invest in those are now, because in a few months, they will have gain again in value. That's how it work with blue chips. Of course, you can always wait for a market correction. But why wait when you can invest now? Why wait later when you can received great dividend payment now?

In other words, when you see a hot and sexy deal, just go for it!

Shoppers Drug Mart Corp (SC) is not my only stock going up these days.

At $52.01, my Methanex Corp (MX) currently trade among its highest value EVER.

We have quite a bit of trading history with New Flyer Industries Inc. (NFI). For a while, I had accumulate a loss of several hundred dollars on this one, but recently its start going much better for this stock and I am now at less than minus $200 in term of loss on NFI. Holding to this troublemaker stock was the right thing to do. I never doubt about it.

NFI recently win a contract with Houston Metro. Business just keep going for New Flyer Industries Inc. (NFI). I have a long term holding with NFI and this is the type of stock that can sometime be problematic to hold. If I would be a millionaire, I wouldn't mind, but since I am not, I am a bit scare that problems could resurfaced so I am looking forward to partly sell NFI, but not now.

Bombardier Inc. (BBD.B) haven't move that much by the CSeries. But I guess some contracts will need to come over before the stock seriously begin to gain in serious value. However, ta the price that I got my Bombardier stocks, I am currently on a profit territory. The only thing is that I would like to earn even more profit from my smart investment. This is possible. For now, BBD.B pay a good dividend and I think that no matter what happen, Bombardier is good to hold.

Quebec province is a good leader in the field of aerospace. Bombardier is one example, and Heroux-Devtek Inc. (HRX) is another example. Back in December 2012 (remember that?), Dividend Girl bitch got that good idea: invest in HRX to benefit from its 5$ special dividend distribution. Do you remember that? I DO!!! It was crazy, it was fun, but at the end, I got my pretty hands on a juicy profit. Following the special dividend distribution, I decided to hold to HRX, I never sell back my investments because I taught that HRX could grow or even better, be the perfect company for an acquisition.

Recently, Heroux-Devtek Inc. (HRX) earned the privilege to supply the Boeing 777. With this deal, HRX will earn millions and we are good and in business until... 2028!!! (Or something  like it).

For now, HRX doesn't pay any regular dividend distribution, but since it had paid a special dividend once, maybe there could be more, how knows.

No matter how you decide to benefit from the stock market, there's no rule to follow you do like you want, the way you want and if God allows it, your bling-bling will turn in gold. Or fake gold.

Those are about all of the hot news for now.


Anonymous said...

I guess we need to be happy you are happy at this point. You could be doing better, but that will take time to learn. Again, pull the weeds and water the flowers. - Cheers.

Anonymous said...

stupid move good luck. I hope the takeover won't happen and you will learn your lesson and lose 25 pct instantly. there are better opportunities out there just for literally few bucks and lots of downside.

Anonymous said...

we need a market correction so that you will learn your lesson and cry in your own little corner. enough said


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