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Tuesday, February 15, 2011

How to use Sprott Physical Silver Trust UTS (PHS.U) to leverage your finance

Today I wake up and the day start on a strange way: I decided to sell more than 400 units of Just Energy Group Inc. (JE). This was the first time I was selling some stocks of Just Energy Group Inc. (JE). Why did I decide to sell some units of Just Energy Group Inc. (JE)?

The value of JE in my portfolio was exceeding the 16 000$. Following my last purchase of 300 stocks of Just Energy Group Inc. (JE) not too long ago, a reader said that I might be holding too much in Just Energy Group Inc. (JE). I took the decision to sell some stocks of Just Energy Group Inc. (JE) not because I no longer belive in the company, but because I felt important to reconsider my latest investment in JE. Fact is, 16 000$ is quite some money. I find it incredible to hold that much in one single company (considering the current state of my portfolio).

Also, I wanted to sell some JE in order to extend my portfolio in other area, without knowing about what I would like to invest next... I still own some stocks of Just Energy, I will always be an investor in JE. I love Just Energy! And for a couple of days, my dream was a reality: I had been holding more than 1 000 stocks in JE, my dream had came true... for a couple of days....lol...

Following the sell of some stocks of JE, I decided, to invest in 25 stocks of TD (yep, I had invested in my favorite bank, finally!) and 400 units of PHS.U. Why did I pick those 2 investments? Well, what I am looking for is leverage. With those 2 investments, chances are that I will be able to register some great gain on a relatively short period of time. That's the deal. That's what I want: MONEY lol.

Seriously, I know I can make great money out of the Sprott Physical Silver Trust UTS (PHS.U) because I already made great money through the Sprott Physical Silver Trust UTS (PHS.U). Back in November 2010, I had purchased 200 units of PHS.U at 10.73$! Currently, the units are at 13.46$! We are talking here about a profit of 546$! Very good!

I never own some TD stocks before, but I am very proud to be a new TD Canada Trust (TD) investor, even for the extra tiny amount of stocks purchase. I can easily see TD stock hit the 80$+ without too much trouble.

That's the changes that happen today in my portfolio. But that's not all, because some other changes could happen soon? Why? Well today, I may be single on Valentine Day, writing this post. But where is my Valentine? lol.. BUT, I had received an email from a reader giving me a great opportunity in a company that I never heard before: DATA Group Income Fund (DGI.UN). The fund is what it is, it's an income fund, it could be the only one left inside the TSX. I don't know.

Despite the fact that I am holding several companies, adding another one to the bunch is just a benefit, because it's add to the diversification of the asset. I don't have a specific diversification scheme, but I like to have a diversify portfolio and I think that, even at this time, I hold a diversify portfolio. When I have to leave home to go to work, I feel comfortable leaving the stock market behind, because I know my portfolio is diversify.

I will post more about DATA Group Income Fund (DGI.UN) on a later date. In the meantime, you can do your own search. You'll see, the dividend yield is very great!!

Don't forget: life is about getting what you want.

Monday, February 14, 2011

Happy Valentine trading

Latest trading update, could not post - or I was going to be late for work:
Sell of 438 unis of JE for 6 279.69$.
Purchase of 400 units of PHS.S for 5 424.91$.
Purchase of 25 stocks of TD for 1 985.99$.

Happy Valentine!

About my latest stock investment in TMX Group Inc. (X)

I had been lucky enough to catch TMX Group Inc. (X) when its stock price was at 41.97$. Whit this investment, I am looking to get the same thing as for my investment in EnCana Corporation (ECA): good quality grow and some dividend among the way. Back in the time, I was able to purchase 200 stocks of EnCana Corporation (ECA) at 29.59$. It was a great bargain. I don't think EnCana Corporation (ECA) while go down to 29.59$ any time soon. My initial investment of 5 918$ in EnCana currently worth 6 237$, for a 319$ profit. EnCana close Friday at 31.03$.

As for now, I want to hold ECA because I am pretty sure it ECA will reach 35$ per unit soon and, for long term, I am looking for a 40$ per stock. Does it mean I will sell EnCana when it reached 35$-40$ per stock? No because it's a quality stock in natural resources and on top of that, it's a Derek Foster stock. And remember, ECA was once at 60$+, it could hit the 60$ per stock again when the TSX hit back its old 15 000 points like in 2008, before the stock crash.

When it come to TMX Group Inc. (X), it's a different story. At more than 40$ per stock, my investment in TMX represent quite some money. A lot of money that I don't have in form of real cash. I used some of my margin money to place this stock purchase. At this point, my using of margin is balance. I had borrowed 28 013$ of my margin. I still have available close to 35 000$ available on my margin. I feel comfortable with those numbers.

This 28 013$ include the 5 000$ that I use to pay off my line of credit. If I feel the market is getting volatile, I can at anytime transfer the money back in my margin account. I feel my margin is well balance yes, but under no circumstances, I cannot place any other stock purchase order using my margin money. That could be potentially dangerous. I am willing to take the risk with the current holdings I have, but I cannot handle more risk.

Why did I suddenly decide to invest in TMX Group Inc. (X)? Well, on February 9, 2011, TMX Group Inc. (X) discuss merger with the London Stock Exchange Group. Without knowing more than that, I knew this was something very important and we could possibly consider the date of February 9, 2011 as an historic event, prior to the actual merger.

The deal is not completed yet, as Ontario and Quebec provinces are the only 2 players left that need to agree in order to close the merger. If Quebec province refused, I suggest to kick out Quebec province from Canada. No more problem. No more time wasted. Stephen Harper had spend so much time trying to satisfy the fools, its awful. Now, time to satisfy us Canadian workers-investors. We are going to make millions out of this. And watch out for very awesome profit for TMX Group Inc. (X). And by the way, Quebeckers are not smart enough to be in charge of something as important as financial regulation. It's should be a federal jurisdiction. We are one country, one currency, one federal power. Rock on Canada. Make be become rich $$$.
 

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