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Wednesday, July 12, 2017

Saying a sad goodbye Exchange Income Corporation (EIF). Goodbye love

Things are going a bit better for my non-registered portfolio. It closed today session at $175 042.78. My TFSA portfolio closed the session at $58 782.28. Today, I made the difficult decision to sell all of the Exchange Income Corporation (EIF) stocks I was holding inside my TFSA. I had been a long time investors of EIF and my shares had been bought at an average of $22.84 each, which is very good. I sell them all today and make a nice profit free of tax, but it wasn't with joy that I made this move. When it come to investing, I am more in an investing kind of move and I want to grow old holding on to the best of the best. The TSX is a castle with huge treasures.

However, my adventure with EIF came to an end because an American - oh surprise! - piece of shit of the name of Marc Cohodes is short selling Exchange Income Corporation (EIF). This could exposed EIF investors to big loses. Short selling should be made illegal. And I am imploring God and his darkest angels to throw all of the worst at Marc Cohodes. He might thing he's really smart guy now, but my attacking one of my stock, Marc Cohodes had just wake up a wolf who was quietly sleeping. There's no words to describe my anger. I was supposed to grow old on EIF, not sell it out. I hate that Marc Cohodes guy.

The TSX is the best stock market of the world and I can say so because I did my searches. When I invest, I try to target stock that present sky rocking chart. I did many searches using Stockopedia, desperately trying to find US stocks presenting such criteria and I can really say that the quality is really low in the US market. I was able to find only just a few US stocks sticking to my rule but I didn't even wrote them down. US is a big lack of stability and I don't want more exposure to chaotic US stock market at this time. Especially not under Donald Trump which is acting crazier and crazier every day. I came from fan to hater. I just wonder what happen next and I can't wait to see if Donald Trump Junior is going to hit a wall and go to prison. But in a place like the US, mediocrity is the norm. We can expect anything coming from Americans.

The TSX is no shit hold made for US investors. Its my place to be and shine. Anyone that hurt one of my babies can go straight to hell. And I wish hell for Marc Cohodes and a lot of pain. Pain so great that will make him remember that the TSX is not a playground. And I want him to feel my pain. I would like to be next to him right now so I can hit him sooooooo harddddddddd, for destroying my dream. Just stay on your side of the border, and I will stay on mine, on the BEST side. Not only that we have the best stock market, but Canadians are just so more smarter than Americans. On our 150th anniversary, we should scream it louder.

Small investors like myself have no choice. I went through some kind of similar experiences in the past, like for example in the case of Davis + Henderson Corporation (DH) . I only have that other example in mind right now. Retail investors always need to act quickly and when something like this show up, its sad, but its better to sell and profit from the gain because investor like Cohodes can really hurt the value of a stock, like really really badly. And I think that in the case of EIF, Cohodes had made and will make more damage to the value of the stock. Its my opinion and what had made me sell EIF today, but I really hope that my wrong. I was kind of doing in my pants today! I won't forget.

This being all said, no surprise, but this came sooner than I expect it: Bank of Canada is doing its job and is increasing interest rate. Party time is over. I am totally in favor of such action. Low interest rate is not a good thing in our economy. 

A reader just recently comment about the situation for Savaria Corporation (SIS), saying it went lower recently. Personally, I wouldn't worry about it, I won't sell my SIS just for a bit of volatility. A stock cannot always go up, it will sometimes go a bit down, its totally normal. Its the life on the market, sometimes the market go up, sometimes it go down, always for whatever reasons, but at the end, quality stocks always delivered. And nothing is wrong with SIS. If you are scared, you can always partly sell your position. There's currently no tangible adversity when it come to SIS. But for EIF, its a different story of course.

Imagine that because of my sell of EIF today, I now have close to 8k in fresh cold cash, all at my disposal to do whatever I want. I could pay off my big fat margin which is currently at $98 500, but still manageable. No very super great stock ideas at the present time, but I was thinking about pitching in Canadian Imperial Bank Of Commerce (CM) and enjoy some easy dividend. Since interest rates are going now up, banks are going to make great juicy profit, maybe 2017 will be a record year.

So let's go CM, be my newest proud. Get me in gorgeous profit and dividend like never before. Throw me out my chair and take me.


While facing adversity, the worst thing you can do is to do nothing and die.


frederic said...

No sure about this decision to sell EIF, assuming you bought it for the dividend and you still trust that dividend.
A drop in stock value is only a concern if you were holding the stock to sell it for capital gain.

The problem I see with dividend investing is that when you log on your broker, for example TD Webbroker, we see our investment and a percentage of "Gains/Loss" per position, and that gives a wrong impression of our situation.

Those damn big red fonts tell you every day that the value of the account is going down, but it isn't saying anything about your income. There is no good visual way to visualize just the income part. (The Gain and Loss tab on TD does show you the YTD dividend revenu, but that's it)

It's true that some day our TFSA "value" might go down hundreds of thousands over a few months -- and it big red letters, just to worry you more. It's actually misleading. What matters is how the income is going, because we're never really planning to sell the dividend stocks. Or if we were, it would be years down the line.

Companies are not paying dividend as a percentage of the share price. They are paying a fixed number of dollar per share, no matter what the stock price is. You would continually get the same amount of dollar per share, even if the price of the stock drops - unless the company has other issues. The stock price is just what people are willing to pay for it.

Later, we see the result of that as a "dividend yield" percentage, which helps us know if a stock is cheap or not. But the actual thing we care about after the buy the stock is the actual dividend dollar amount and whether they can maintain that.

A short campaign against a good stock is a huge opportunity to buy good stock at a rebate, as fundamental investors panic on short term news. A short campaign that reveals problems with a company -- like it did with HGC -- that's a bummer, but it's kind of doing us a favour, too.

Anonymous said...

This is for you to read so that you can get some background into the kind of 'humans' kadhr and his family are.

Anonymous said...

Another article for you, since you love traitors

Granny said...

MC just posted this to his Twitter. The man is a psychopath!! He is downright scary. Calling him a piece of shit was being kind. He's trying to bankrupt a company and put thousands of people out of work plus what people are losing in their stocks. I cannot believe he is getting away with this. Anyone says anything against him on Twitter he immediately blocks them. He retweets anything where people are kissing his ass. Makes one puke !

The Mite of Wall Street said...

MaccabiTrader said...

Are you upset that he went public with damaging info??? or are you mad that you missed it in your research?
Personally I am glad he showed that EIF is playing loose with the numbers...
Would you rather he didnt, and then eventually it blow up worse?
I read your rant twice, and all I see is emotion about how his messing forced you to get out of a stock that was a ticking time bomb... seems like you should be thanking him..

Anonymous said...

i believe people in the USA are being paid by Big hedge funds to bash small Canadian companies for profit and nothing else. I think these dregs of society have already met their demise or soon will. Just look at their healthcare, poverty, education levels and government.

Peruvian B said...

Why shoot the messenger?

If Marc is correct in his analysis of EIF then you have done very well by selling.

If he is wrong (which from his research posted looks unlikely) then you could buy more at a discount.

Either way - do your own research, read other people's research, listen to their opinions, and come to your own conclusions. It is your money after all.
But do not fall in love with a stock.

You describe a stock as one of your babies; let me quote Mr Buffett:

“You have got all these feelings. The stock doesn't know you own it. The stock just sits there; it doesn't care what you paid or the fact that you own it. Any feeling I have about the market is not reciprocated. I mean it is the ultimate cold shoulder we are talking about here.”

The one person not to blame here is the short seller.
Let's face it - if he is wrong he is going to have to buy back the stock.
If he is right then the company deserve everything they get and principles of Qui Tam should apply

Ronni said...

Good points in this post. I freaked out when I saw all my gains on EIF wiped away. But the recommendations on my websites all said "Strong buy" so I bought even more EIF stock. I hope I did the right thing. I like the stock and hope it comes back to new heights.

Anonymous said...

i have followed your blog for a while now. it's good.
I think you should add NWH.UN to your portfolio or at least research about NWH.UN. NorthWest Health Prop Real Est Inv Trust invest in Hospital building and currently pays monthly dividend @ APR 7.2%.
Anyway I think this Trust is good; among other reasons, their properties are geographically diverse and they recently made good acquisitions in Australia.

Bye for now


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