The silver of Eric Sprott trading like gold: Sprott Physical Silver Trust UTS (PHS.U)

I wake up late today (again!) and I was only able to take a look at the stock market on my way to work. I was shocked to see a TMX burning the old 14 000 points, but I was more shocked, completely amazed to realize that my Horizons BetaPro COMEX Silver Bull Plus ETF (HZU) was exceeding the 34$ per unit! WOW! When I saw Horizons BetaPro COMEX Silver Bull Plus ETF (HZU) running somewhere to 34.20$, I place my sell order and was able to sell immediately my 150 units at 34.24$!!! With the stress of the past days, I taught I was never going to sell HZU at profit. The past days, I saw HZU going as low as 29$ per unit... I didn’t want to miss my chance to decrease the amount due on my margin account, this was my time... the timing was perfect; I was going to make it after all and YES I DID IT. I sell HZU at 34.24$ per unit, making a profit of 98.50$ after sell and purchase commission (this is for you Frank). This amount is perfect as its covering the interest of 90.88$ own on my margin account. Absolutely perfect. This is exactly what I wanted. Horizons BetaPro COMEX Silver Bull Plus ETF (HZU) closed the day at 35.04$. I could had made more money out of my sell of course, but there’s no way I could know that HZU was going to close at 35.04$. No regret, just a lot of fun and exciting trading time. This is getting real interesting.

Horizons BetaPro COMEX Silver Bull Plus ETF (HZU) or Sprott Physical Silver Trust UTS (PHS.U)?

I am feeling much more better now. BREATHE... The amount due on my margin had decreased. That 5k investment of mine in Horizons BetaPro COMEX Silver Bull Plus ETF (HZU) was not even paying a dime in dividend anyway. Better to get rid of it! HZU is an ultra complex holding! Really not for an investor like myself. Hell no.

If you ask me to choose between Horizons BetaPro COMEX Silver Bull Plus ETF (HZU) and Sprott Physical Silver Trust UTS (PHS.U), I will pick Sprott Physical Silver Trust UTS (PHS.U). HZU is much more volatile, very sensible to the outside aspect of trading. Horizons BetaPro COMEX Silver Bull Plus ETF (HZU) is far of being one of my favourite. It caused me a lot of stress among the way.

Sprott Physical Silver Trust UTS (PHS.U) is much more stable and reliable. I had been actively trading PHS.U since November 2010 and I am a huge fan of the Sprott Silver. The only thing I dislike about the Sprott Physical Silver Trust UTS (PHS.U) is that it’s difficult to trade it in a Canadian currency account. But... WOW. PHS.U has it all! PHS.U is certainly my favourite silver holding of all time! Big money can be made of the PHS.U. The proof being that the little investor that I made big bucks out of PHS.U. Despite its currency problem, it’s possible to make HUGE amount of money out of the PHS.U and I am going to tell you how, simply and easy.

So here it is, the Dividend Girl way to make huge profit out of the Sprott Physical Silver Trust UTS (PHS.U). Here’s the story behind. TD Waterhouse rep can be very helpful when you become angry and hateful after them. Remember this post? At the time, I was back home in New Brunswick for my uncle funeral. As always, I was closely watching the Sprott Physical Silver Trust UTS (PHS.U) as always and, as always, the PHS.U was running in fire, exceeding my wildest expectations. That was huge! I calculate I was good for a 300$+ profit, but the 300$ profit turn into something like 40$ after currency conversion. I will never understand this. PHS.U is a TMX ticket symbol. Sprott Physical Silver Trust UTS (PHS.U) trades on the TMX BUT trade in US currency. Why? God why? Anyhow, on that time, something happen that I wasn’t use to, the currency eat major part of my profit! I got ripped off by TD Waterhouse! AGAIN! ME? Being ripped off? NO WAY...

I got that incident in mind and a couple of days ago, I got upset to a point I needed to speak to someone and well, having no one to really talk to about my investment, I call TD Waterhouse. The one and only TD Waterhouse. As always, I went on the English line but got a lingual rep. I wasn’t lucky, but at least, I was able to speak my mind. And tell, I explain what happen, that usually, the currency was of far less than 4% and something. Sometime .2%, etc... What went wrong on that day? Why was it 4%? And there, in the moment, I told the guy: TD cheat on me! (I know, that was mean of me but...) Than, the rep explain it was because of the currency, that it was a value that was changing all the time etc... I know that of course, but still... 4%&?%!!!!!!! NO SENSE! HELPPPPPPPPPPP :0)

Following his explanation, I ask him how can I get rid of that currency thing? Could you please transfer my PHS.U units into the US account? PLEASE. Well, the answer was a big NO. Why? The following is very important and is the key to make HUGE profit out of the PHS.U.

Remember 4 words: TFSA, RRSP, PHS.U and WASH. According to the TD Waterhouse rep, I didn’t need to get my units of PHS.U inside the US account, because I was holding them in my TFSA. A register account, TFSA or RRSP is magic when it comes to trade PHS.U in a Canadian account.

I didn’t sell my PHS.U units hold inside the TFSA account and I don’t plan to do anytime soon. But in case of an emergency, I will sell PHS.U and now, because of that WASH thing, I know how to avoid the currency thing related to the PHS.U.

Simple and easy: whenever a profit can be made. Sell. In the evening following the sell (it can be made after 4pm according the TD rep), call in TD Waterhouse and ask for a WASH for the TFSA and, from what I understand, the profit made won’t suffer of a currency thing. Which mean that if you make a profit of 300$ while selling the PHS.U, you will have a 300$ profit at the end of the day. But at the only condition to request a WASH. A WASH can only be made inside a TFSA or RRSP account. Pretty easy to remember too. WASH like wash your dirty apartment, WASH yourself, WASH your dirty clothes lol.... But of course, you understand this is my own interpretation of some stuff that I barely understand: get a confirmation of a broker first BEFORE actually going on with washing.

That’s how I learn, in a moment of complete desperation, how to make money out of the PHS.U without having to worry about the currency. And I have, of course, to thanks TD Waterhouse for that. Genius. I still hold PHS.U in my TFSA on date of today.

I sell HZU at 34.24$

And made a profit of 98.50$ after commission. The money will remain on the margin. I have enough stress and NFI.UN took a plunge. We'll talk about it later.

My portfolio is performing well and I am exhausted

My non registered portfolio is now at 110k+... which mean I certainly might be somewhere or close to or, why not, maybe I am exceeding the 155k in assets right now. No matter how much I own now, it’s just WOW. I usually post an update of my portfolio when I make great gains but lately, I am completely drained. The past week really exhausted me because I had been working like normal in an abnormal situation while trying to get my view on everything. The situation in Japan and Libya caused me a severe stress. I had been trying to understand what exactly is going on and I try to predict the effect on my portfolio. I had been doing so for absolutely nothing at all, as the TMX gains points and seem to be stable. At least for now. But this being said, the situation could change quickly. I decided for now to take it easier and not to focus that much on what’s going on. It’s not that I don’t care, but if I don’t detach myself, I won’t be able to go through another week like the one I pass last week. Because in a way or another, I don’t plan to sell any of my investment anyway, if not just HZU and a few other one just to decrease my margin. The gains realize in my portfolio had been very good. But the question being: will the gains remain? I am confident that I may be able to make my profit out of the HZU very soon. For now, my portfolio had gained in value and the asset remains stable.

Saturday night Montreal Supermoon

Yesterday night was a Supermoon night. I have to say, the moon was particularly beautiful. After I finish work, I went straight to bed as I was exhausted of my week. But I was able to wake up at 10pm to see the Supermoon. I went all downtown St-Laurent Boulevard to the Old Montreal. Some people were taking pictures, but not too many. The Old Montreal was too quiet and there wasn’t much going on, expect at the door of night clubs. The Old Montreal can be kind of boring sometime, especially late at night. Everything was close there, not even one coffee shop was open. I was happy to be there anyway as I really wanted to see the Supermoon... I saw it, the moon was beautiful, as stunning as a precious stone in the Montreal sky. You’ll see a few pictures in here.

Does Montreal Supermoon = super investment portfolio time?

It’s been one of those weeks! Stressful and absolutely awful. I never went on so much market stress of my entire life! This time is very different of what I live in 2008 when I went down on my first ever mega stock crash. None can compare a stock crash to a natural disaster of course, but the negative effects on investor is the same: stress, stress and a lot of stress. Nothing that I cannot handle, but still! It’s insane!

I was under the deep impression my portfolio was going to go through the first post-traumatic Japan tsunami week without having to deal with too much lost inside my portfolio... I was so sure to be able to make it that I even place 2 investments: 100 new stocks of DH and 380 stocks of WEQ.UN... I am sure, but I still needed to be careful. But worst part is that this is far from being over! I had been carefully following the after of the Japan tsunami. I find it very arrogant from the US officials to go out and make public declarations over the situation in Japan. The US had been responsible for so much devastation in the word. For once, they should shut their big fat mouths and let the Japan government talk for itself. I taught the USA were going to be different under Barack Obama. Well, I was all wrong. It’s still the same arrogant country.

Despite the situation in Japan, my portfolio had performed extremely well and from what I saw so far, I think that my overall portfolio might had gain between 3 to 5 000$ today! This driving me right through the 155 000$! 200 000$, be ready, I am coming soon! Well, this is all very exciting at this time, but without exactly knowing what’s going to happen next in Japan, the infamous uncertainty of Gordon Pape remains and well, you know what Gordon Pape said: SELL, SELL, SELL! lol... This is making me laugh soooo much. I especially like my “Gordon Pape calling it quits”. I am selling out Gordon Pape right here on my blog.

I still have plenty of years in my hand (well, I hope). And it’s not exactly the case for Gordon Pape. So when Gordon Pape announced that investor should take advantage of the latest stock gains to sell and make some money of it, I don’t know if Gordon Pape was thinking of what he was going to do for himself as a senior very old investor, or if he ever had in mind the warrior princess of the stock market out there (LOL)!

Whatever had in mind Gordon Pape, I don’t know, but what I know is that, despite the horrible stress, I just don’t see myself selling, cashing out the money and walking away. Just like that. No no no.

I am still not over the stupid column of Gordon Pape. I think we wrote what he did because of his senior age. But this upset me in a strange way. As a public financial figure, the message should be more of “a invest wisely” rather than a rage sell me out. If every single investor begin to sell, the effects could be disastrous. And that’s what upset me. I am not against selling stocks, I am against selling in period of uncertainty.

The responsibility belong to the investor to sell or not, depending the level of confident in the market. I didn’t sell in 2008 and it’s not anytime soon I will... But it takes some of an unconscious mind to be able to handle such things. My mind is very conscious, I understand the risk I am taking, but I had been a buy-and-hold investor since I started investing in 2005. I don’t fear that much for different reasons. Surviving the 2008-2009 stock crash while being able to recover from money lost, well, just that may have just make me a stronger buy-and-hold investor. In my condition, the worst that can happen is that a couple of investments of mine getting sell because of a margin call without the call. Such event would represent right there the loss of 27 000$. Would it kill me? No, but it would certainly be a good call for my brain to become fully conscious for the first time ever in 30 years of life on Earth.

I am having that really strange feeling that I might be able to hit the 200 000$ in assets by the end of 2011. Or it could be just the Supermoon effect.

Fire detector and hope for the Toronto stock market

Lately, a lot had been going on and I got a crazy situation at my place involving a fire detector. We got an inspection today. And yesterday, I test my fire detector and it wasn’t working. I change the battery, it’s still wasn’t working! In a rush, I went to see if the concierge was at home... but she wasn’t there! What was I going to do? In my mind, I was afraid of getting a fine because this was an official inspection with the municipality.

Anyhow, in the morning of yesterday, I tried to see the concierge but she wasn’t there. So I did several places to get a fire detector and I didn’t get one. I went to work and after work, went buy a fire detector. Buying a new one was for me the only thing to do since I was at the last minute to fix this. And I was scared of getting a fine of what so ever. They are very good at doing so in Montreal!

And believe it or not, the detector I bough yesterday evening was not working either! I couldn’t make it work. In the evening, the concierge was not there either! I wake early this morning. Canadian Tire open at 8am so I went, and make sure the fire detector was working before leaving. After what, I got back home and went see the concierge. I was told it was ok but they were going to set a fire detector of their own... WOW! My problem is that I am so not good with my hands; I couldn’t install the new fire detector on the wall...lol...

That’s the incredible boring story that kept me running yesterday and today morning... Currently, I left the new fire detector on my counter and the old detector is on the wall. Before I left, the old detector work, but it was beeping beeping and than nothing well, that detector need to be change that’s for sure.

Despite reader comments, you won’t ever get me wrong... We are lucky here in Canada to have a fantastic stock market and it belong to small investors to take advantage of it. My non registered portfolio is close to 109k. I know my level of debt is high, but it’s not at the point where I cannot handle it. My newest investment in WesternOne Equity Income Fund (WEQ.UN) had done very well. I had done a good profit within a few days of holding the stock. Remember I purchase 380 stocks at 5.40$? Well, currently, WEQ.UN is at 5.67$. When I made this new investment, I knew it was a good one.

When readers send me their trading suggestion, I will do my search on the company of course, I will do my best but I have to say, my readers send me several very good investment. Just to name a few: DGI.UN, EIF, WTE.UN, STB, etc... All of those had performed very well. When I strongly believe that a company can be a nice fit for my portfolio, I won’t spend too much time at watching, I will buy, even at credit. I find it very cheap of some readers to say some stuff like, you are trading just to impress your readers. That’s not true. I write about what I do with my money to share my investment experience. I had been doing so since 2007. If I had been trading more lately, it’s because I have more credit facility due to my margin. While reading about EIF, I wanted to invest in it immediately. The company seemed to be so interesting. I wouldn’t wait for new cash to invest while money was available right there in my margin. So far, the overall investment experience had been positive and that’s what I want to let my readers know about. It’s not about showing it all and wanted to impress the whole wide world. I may sound something like pretentious sometime but it’s because I have faith in the companies I invest in and I pretty sure that, despite the situation in Japan, there’s hope for small investors like myself. There’s no place for calling it quit. My non registered Canadian portfolio is now at 109 039.78$ (that being 20 minutes ago...). GO! Now going for another day at work and I am already over it.

The new power is gas, according to the Globe and Mail

The following article from the Globe and Mail could explains EnCana magic gains of yesterday. This mean EnCana could continue to gain in value.

I am now at 151 121.80$

I didn’t calculate my portfolio and debt for quite some time. My RRSP had suffered the most from recent international events. My overall portfolio is at 158 655.56$. My dividend income (prospective one of course, including current gains) 7 533.76$. My debt level is at 71 773.63$. The interest own on debt: 3 534.33$. I can imagine a worth net of 83 347.60$, after including the dividend earning....

My investment portfolio on date of March 16, 2011

Savings:
303.57$

Non registered Investments:
Stocks and Units investment portfolio
Sprott Inc. (SII): 4 375$
Timminco (TIM): 92$
Blue Note Mining (BNT): 46$
Bank of Nova Scotia (BNS): 6 164.27$
Hanwei Energy Services (HE): 90$
Methanex Corporation (MX): 2 831.47$
Fortis (FTS): 3 455.03$
Pembina Pipeline Corporation (PPL):
9 570.30$
Just Energy Group Inc. (JE): 9 535.89$
Yellow Media Inc. (YLO): 2 487.76$
Pengrowth Energy Corporation (PGF): 2 700.40$
Enbridge Income Fund Holdings Inc. (ENF): 6 121.47$
Corby Distilleries Limited (CDL.A): 3 451$
Davis + Henderson Corporation (DH):
6 317.84$
Premium Brands Holdings Corporation (PBH):
3 382.08$
EnCana Corporation (ECA): 6 458.13$
iShares S&P/TSX Capped REIT Index (XRE): 2 176.02$
Horizons Gold Yield Fund (HGY.UN): 1 930$
Canfor Pulp Products Inc. (CFX): 1 670$
New Flyer Industries Inc. (NFI.UN): 2 351.70$
Capital Power Income L.P. (CPA.UN): 1 860$
Exchange Income Corporation (EIF): 2 030$
Rogers Sugar Inc. (RSI): 1 584$
Student Transportation (STB): 1 316$
Colabor Group Inc. (GCL): 2 364$
TMX Group Inc. (X): 3 756$
Data Group Income Fund (DGI.UN): 3 968.28$
TD Toronto Dominion (TD): 2 068$
K-Bro Linen Inc. (KBL): 2 042$
Westshore Terminals Invest Corp (WTE.UN): 4 512$
Horizons BetaPro COMEX Silver Bull Plus ETF (HZU): 4 402.50$
WesternOne Equity Income Fund (WEQ.UN): 2 036.80$

TOTAL: 107 145.94$

Tax-free savings account (TFSA):
EnerCare Inc. (ECI): 18.81$
Dumont Nickel Inc. (DNI): 460$
Sprott Physical Silver Trust UTS (PHS.U): 3 108.96$
Cash: 1.96$

TOTAL: 3 589.73$

RSP investment portfolio:
Sprott Canadian Equity Fund: 7 316.83$
Claymore Gold Bullion ETF (CGL): 4 245.28$
EnCana Corporation (ECA): 3 213$
Emera Incorporated (EMA): 6 389.76$
Cash: 94.56$

CIBC Dividend Growth Fund: 569.47$
CIBC Emerging Markets Index Fund: 399.17$
CIBC Monthly Income Fund: 1 052.98$

Energy and Base Metals Term Savings (Indexed term savings):
503.46$
Natural Resources Term Savings (Indexed term savings):
502.06$

GIC National Bank: 1 251.85$
GIC Plus TD: 500$

TD Canadian Bond, TD Monthly Income, TD Emerging Markets, TD Energy, TD Precious Metals, TD Latin American Growth, TD Entertainment and Communications, TD Dividend Growth, TD U.S. Mid-Cap Growth: 1 110.90$

Maritime Life International Equity Fund
(Templeton): 642.45$
Manulife Simplicity Growth Portfolio: 923.71$
Maritime Life CI Harbour Seg Fund: 1 098.35$
Maritime Life Fidelity True North Seg Fund:
1 077.45$
Manulife GIF MLIA B World Invest: 627.94$

Great-West – various: 1 834.72$

RBC Canadian Dividend Fund: 569.48$
RBC U.S. Mid-Cap Equity Fund C$: 1 994.19$
RBC Global Resources Fund: 1 225.94$
RBC O'Shaughnessy International Equity Fund: 623.61$
RBC O'Shaughnessy All-Canadian Equity
Fund: 1 200.23$
RBC Global Precious Metals Fund: 988.45$

TOTAL: 39 955.84$

Social Capital at Desjardins Membership share
for 3 accounts: 40$

Savings + Stocks, units, mutual funds + Tax-
free Savings account + RRSP + Online Income
(86.72$):
151 121.80$

My debt situation on date of March 17, 2011

9 298.94$ at a low interest rate of 4.75% (RRSP credit line rates) = 441.70$ in annual interest

4 900$ at a low interest rate of 4% (credit line rates) = 196$ in annual interest

7 914$ on a TD Canada Trust credit card at a low interest rate of 4.9% (result of a credit card balance transfer) = 387.79$ in annual interest

7 700.56$ at low interest rate loan at 5.50% (student loan) = 423.53$ in annual interest

5 000$ at 8.75% (credit line) = 437.50$ in annual interest PAID OFF

10 000$ at 7.27% (credit line rates) = 727$ in annual interest

31 960.13$ at a low interest rates of 4.25% (margin money coming from TD Water house): =
1 358.31$ in annual interest

TOTAL: 71 773.63$

TOTAL in annual interest: 3 534.33$
[In date of March 16, 2011]

Gordon Pape calling it quits

I read that a small earthquake had hit Montreal today around 1:30pm. At 1:30pm, I was at work, but I didn’t feel anything of the earthquake.

Some parts of my portfolio did very well today! Surprise for EnCana Corporation (ECA) who hit the 32.13$! A little while ago, I had invested in 200 stocks of EnCana Corporation (ECA) at 29.59$. Since my investment in ECA, I find the title had problem to go up again. It’s probably not anytime soon that ECA is going to hit the 65$ per stock like it use to be, but at least, the increase of today show that ECA worth the try. I could sell my EnCana Corporation (ECA) and pay off a major part of my margin facility and make a profit of more than 500$. Feel appealing, but it’s not anytime soon that I am going to sell my precious EnCana stocks. EnCana can do much more better than just a 32.13$ per stock! Just give EnCana the chance it’s deserved, and you’ll see, I may be right. Maybe.

In his latest column title More uncertainty!, Gordon Pape warns investors about a possible index loss of 5 to 10%. Well, that’s nothing compare to the 2008 stock crash. My philosophy being: if I had been able to get out intact (or almost lol..) of the 2008 stock crash, my portfolio – now even more diversify than before – is going to support a 5, 10, 15, 20 or even 30, or 35% loss. TD Waterhouse had made a huge mistake by publishing Gordon Pape article in their pages. It’s actually giving me the idea of changing of online broker! Never taught about trading at 4.99$ with CIBC instead of 9.99$ commission fee of TD Waterhouse? Hummm... Interesting but TD had done a lot for me.

Investors should know better than just cashing the cash and running away out like chickens of the stock market with their money in their pockets! In period of uncertainty, it’s time to hold and stick to what you believe in. And myself, I certainly do not believe in Gordon Pape!

The world we live in is full of uncertainties. There will always be conflicts. There wars going on in different places of the Earth. It’s just we don’t hear about all of them in the news every day or don’t pay attention to them. In his article, Gordon Pape focuses of course, on the Japan tsunami disaster and the problem going on in Libya. Arabic people had decided to join their forces and call a revolution. This step is necessary. It’s not because a country want to get a democracy of its own that its time to sell investments and call it quick. Mentality need to be completely reverse. More than ever, it’s time to support the economy. In his article, Gordon Pape is screaming to small investors: SELL, SELL, SELL! Uncertainty is part of life. If an individual cannot support it – like it seems to be the case of Gordon Pape – well, my opinion would be: don’t invest at all! Stay home stuck in bank GICs.

To sell or not is the investor choice. In many occasions, while facing some lost, I decided not to sell my valuable assets. In most cases, the decision had pay off. My most famous example would be my 2008 investment in 500 stocks of Sprott Inc. (SII). Just before the stock crash of 2008, I made my ever first stock investment at 10$ per stock, 5 000$ value. Following the crash, Sprott Inc. (SII) got a hard hit and went from 10$ to under 4$... Imagine... My first stock investment, and I was already ruined... Back than, I was 28, all the time of the world. I was hurt, but I knew the market was going to recover. I never doubt about my investment in Sprott Inc. (SII). 2 years later, Sprott Inc. (SII) had hit closed the 10$, had paid many times dividend and special dividend. I mean, I win and will win again on the long run. This is all what investing in stock is about for me: investing in trust. I have the same level of confident in most of the companies that I invest in. That's why it's not anytime soon I will be selling piece of my portfolio just for the heck of selling.

Japanese are so self-efficient, they almost already fix their nuclear problem. Nothing is totally fixed yet, but at the speed things are improving, I am very tempted to say that we are going to have a resolution very soon. In order words: don’t sell your stocks because of a possible major Japanese nuclear eruption. We have to believe in those people and stop being as selfish as Gordon Pape. The stock market is more than just a place where to make (and sometime loose) money. It’s about being connected to something bigger than what you can actually imagine. That’s why I am so into the London-TMX merger. The possibilities are endless. But many of the banks CEOs, sitting comfortably on their millions, are not willing to open the possibilities. Of course not.

In other words, when it comes to finance, be careful to whom you’ll be listening to. Don’t trust the fool who suggest selling when a storm is about to hit hard, don’t trust the CEO bank pigs, the ones who don’t want of the London-TMX merger. All together, they are all the same, losers willing to make themselves important. Selling stocks in period of uncertainty is for LOSERS. Will you be part of them? I won’t, but I will be ready for the storm and, if it has to happen, a margin call. I AM READY! :0)

Welcome again Davis + Henderson Corporation (DH)! 100 new stocks of DH in my portfolio

To be continued soon!

Welcome WesternOne Equity Income Fund (WEQ.UN), 380 stocks of WEQ.UN in my portfolio

More about WesternOne Equity Income Fund (WEQ.UN) coming up soon!

The effect of the Japan tsunami on my investment portfolio

Devastation continues in Japan and my prayers go to the victims. The TSX got through a very hard time today, especially this morning. Despite all, I took the decision to move forward with my investment project. I even inject 5 000$ that was available on my line of credit over my margin, in order to avoid any sell stocks coming from TD Waterhouse.

Here's the thing: I use margin in my broker account. If my portfolio looses too much value, my margin could turn into the negative. Following what, TD Waterhouse could sell some of my most valuable assets without any warning. But even there, it was my choice to use margin and no matter how bad is the situation at this time, I do not regret my choice. I think my portfolio will go through the Japan tsunami and its consequences without too much trouble, but I could be wrong. And that’s why I had transferred a 5 000$ cash in my broker account today.

Just a couple of minutes ago, Stephen Harper announced that Japan nuclear crisis poses no radiation risks for Canadians. No risk for Canadians, but there could be a risk for the economy worldwide and I guess no one can really tell what’s going to happen next. How the Canadian stock market will react to Japan radiation? We had an example of the reaction just today: an awful and legitimate reaction. But still, I believe it’s not time to sell, it’s time to invest wisely. Good portfolio will be able to make it, and other not. I had gone through the 2008 stock market without any trouble because of 2010 awesome result. What I learn was essential: It takes bad years to have good ones. The years will pass, no years will be like 2008 and no years will be like 2011. But what matter is the long term. As long there’s human life there’s hope for a better financial future. And at this time, that’s really what I am hoping for. For life to continue, and the market to be good for me in the years to come. That’s part of the reason why I decide to trade today. Because my life goes on.

I am just hoping that things will get stabilize quickly in Japan, not much for the market, but for the human lives involve in the tragedy. How much money you can make from the stock market does not matter when human kinds suffer.

And the only reason behind is that my investment project is for the long run. I like to invest, I had been doing so since 2005 and I started investing in stocks back in 2008. Six years of investment had changed my life for the best. I couldn’t imagine myself selling all out or going a few months without investing. I would be bored.

Today had been a great day for my dividend income. Here’s what I received today in dividend:

Corby Distilleries Limited (CDL.A): 28.28$
Data Group Income Fund (DGI.UN): 32.52$
Pembina Pipeline Corporation (PPL): 56.55$
New Flyer Industries Inc. (NFI.UN): 19.49$

Total: 136.84$

That’s more in what I earn in a day of work for sure at this time. With what I currently earn in dividend so far and what I will probably earn in dividend for the next couple of months, well, I am now at the equivalent of 600$ in dividend income per month. That’s good, but I would like to double the amount by investing more of my own cash in the following months/years.

Now that the stock market is close, I transferred 5 000$ from my margin to my credit line. Will I have to pay interest on the 5 000$ transfer that I did today? I don’t know, but that would be a good question to ask TD and I think I am going to call them right now...

Tomorrow, I will transfer 5 000$ from the credit line to my margin and I guess I will be doing this scheme every working day for the next couple of weeks. Why? Well, it’s to avoid any critical situation. My stocks are my most precious possession. I won’t allow anyone to sell them. 5 000$ is not that much, but it’s all that I have available as fund to save me from an eventual disaster. That’s the price that needs to be paid while investing on margin.

Transfer money on your margin broker account....

It could be a good idea. TD Waterhouse can sell if the balance left in the margin reach the negative (because of stock loosing value...). I had 5 000$ I just transfer on my margin to keep it safe. My portfolio value (non registered Canadian one) is at 101k... I hope I will be ok.


Beautiful sunny day in Montreal - far from being close to devastation of Japan. I cannot realize whats going on right  now. Can only pray.

100 David + Henderson (DH) at 20.98$

I may qualify for the special dividend at closing date of March 18. DH price had remain quite stable despite the TSX loosing more than 300+ points just this morning. That was the reason behind my choice. TD stock could also make a great pick. But as for myself, I am done for now. Peace.

380 stocks of WEQ.UN

Sad day for Japanese people today... Prayers for the victims.

The TSX is loosing points, but its a natural consequence of what's going on.

I know its awful to say, but there might be some good opportunities right now. Take a look at TD, PHS.U etc... As for myself, I purchase 380 units of WEQ.UN at 5.40$. But you can have it at cheaper if you plan to stay in front of your laptop all day today...

Despite I am trading today, I feel sad for the Japanese. I am just trying to help myself by adding something new to my portfolio.

TD Canada Trust is doing it again: credit card balance special interest rate with TD Visa

TD was the first Canadian bank to increase its dividend in 2011. I wrote in numerous times my experiences with TD Canada Trust banking services (most of them being very very good) and not to name them again, TD Waterhouse. And now, guess what, well, TD Canada Trust is helping me again! This morning, I wrote about my debt problem. I said I wanted to pay off a credit line at 10 000$ that I currently hold at a bit more than 7%. That one is not being hold at TD.

Anyhow, I wrote previously I wanted to pay off 2 000$ on it and so on. But the real reason why I was thinking about paying debt is that I currently hold a close 8k credit card balance at TD that is currently at a special interest rate at less than 5%, which is very good for a credit card. That special interest rate is about to expired this upcoming month of April. Which mean that sometime in April 2011, the regular rate of 19% will apply on that 8k debt... So in preparation of that, I taught about placing some money on my 10k credit line and later on transfer the money on my credit card...

But guess what, thanks to TD Canada Trust, I will be able to get an extension of my special interest rate. This means that I can continue to do whatever I want with my money. I won’t have to deal with a 19% interest rate and, best of all, if I want, I can keep that 2 000$ that I was talking about previously this morning for investment purposes if I really want to... I had been a long time customer of TD Canada Trust as well as other banks. And I can confirm, you simply cannot get a renewable of a credit card balance transfer special interest rate like that ANYWHERE ELSE, no matter how good is your credit score.

Just recently, the only thing that was able to do BMO Mastercard for me is to add an extra 1 000$ to my credit card, no credit check needed. And so what? What do you want me to do with an extra 1 000$ at 19%? BMO Bank of Montreal is such a pain. It’s just reflecting the lack of judgement of their management team.

But with TD Canada Trust, everything is different! I get what I want ALL THE TIME with TD! And with TD EVERYTHING MAKE SENSE. And it’s not like I have a mortgage with TD Canada Trust. I am not that valuable either way for TD in the sense that I don’t hold not even close to 200k in investment with them. See what I mean? So can you answer me why TD Canada Trust is giving me everything I want, and that being all the time? It’s because TD is a bank who care. In 2011, they had been the first Canadian bank to increase their dividend. TD Canada Trust is the only bank being open as early as 8 am in the morning. Many of TD branches are open on Saturday and, well, just like this wouldn’t be enough, many of TD branches are now open on Sunday. And on top of that, TD Waterhouse rep surf the Web looking for customers who had lived a bad customer experience with them and, instead of ignoring them like love to do BMO Investorline, well, you know what, TD Waterhouse has some rep who will initiate a contact no matter how little you are (that happen to me!!!). As a customer, can I really ask for more? I don’t think so.

And now, best of all, I can keep that 2 000$ of mine right inside my pockets and help boost my dividend income and asset value with whatever I want to invest in... (which I didn’t decide yet what to do exactly at this time because of the excitement but I will let you know for sure!!!).

That’s the power of TD Canada Trust as a bank: making things possible for the middle class people with big dreams.

Time has come to pay off some debt?

Today, something strange happen and it makes me realize something. Well, it wasn’t exactly strange, but anyway, I use to purchase one or 2 lotteries ticket every week and a couple of scratch and win tickets if you see what I am talking about, but not that much. I just like to play lottery, but I do not over-play. I didn’t win the jackpot yet lol... but I win a free Lotto Max ticket. Yeah! But as for my scratch and win tickets, I didn’t win anything. And there I was, thinking oh, I didn’t win... And there, I taught about the 2 000$ I had deposit this last Friday in my broker account.

Yeah, 2 000$! Don’t ask me how I make it possible to save such money, but the 2 000$ was really from my checking account (and now there’s less than 100$ left!) and since my rent and other was paid for this month and that I am going to earn a paycheque from my weekend job this week and the week after another one from my daytime job well, I taught, let’s go for it, let’s go purchase 100 units of REIT INDEXPLUS Income Fund!

But after scratching my tickets and after I didn’t win, I taught about this newest investment I wanted to made and I taught: am I pushing my luck too far? I had in mind the comments of the Dividend Lover about my debt situation, that after a certain point, it didn’t worth it to go too deep into debt for investment because it’s just not good exceeding a point etc. etc. etc... And at this point, I am close to 70k in debt... But... I really like my portfolio at this all. For 2011, including the dividend received so far, its 6 778.83$ in dividend income, not to include the RRSP dividend ones... Including the RRSP dividend, its reached 7 112.59$. Currently, the value of my portfolio is down of maybe 4k, but it’s in result of the fluctuation of the market. So why should I pay debt instead of investing?

I have real problem to focus on paying debt but yesterday, something happen that make me realize that this might be a good time. So Monday, I will take a 2 000$ + an extra 1 000$ from my margin and deposit that money on my 10 000$ credit line.

After reaching and even the exceeding the 151k in assets, I was happy because I could see I was finally going somewhere. My net worth after debt was of 82k, I was earning great dividend, etc. This is all fantastic but I reach the point where I need to pay off some debt, even just a couple thousand dollars.

Which mean I won’t invest new money in my portfolio over the next months, but I will continue to look into new opportunities. I am still looking forward to make some money out of HZU and, why not, maybe even X, among other. And well, among the way, I could changed my mind and take on some money to invest if SP Brunner is coming on with something as great as K-Bro Linen Inc. (KBL).

This seems a bit unreal at this time still. Paying debt... I would really like to get into the REIT INDEXPLUS Income Fund for 100 units. It would had bring in 78$ extra in dividend. I don’t think I am really pushing my luck too far anyway.

And stay tune, because as requested, I will be posting the gain and new investments made in 2010 soon!

Initial public offering of Middlefield Group new REIT INDEXPLUS Income Fund

Despite the TSX small plunge that still persist today, my non registered portfolio is at more than 104k. I am confident I will be able to make a good return out of the HZU. In my previous post about Horizons BetaPro COMEX Silver Bull Plus ETF (HZU), a reader comment to be careful with Horizons BetaPro COMEX Silver Bull Plus ETF (HZU), that the lowest value had reached 8$ in the past 52 weeks. HZU value is now at more than 32$ per unit. While taking a quick look at the performance of HZU, any small investors could think that the 8$ per unit value is a sign of volatility of the title. But it’s truly not the case.

In the past 52 weeks, HZU constantly gains value, just like my favorite Sprott Physical Silver Trust (PHS.U). Which mean here that we are not talking here about a title that goes up-and-down without any reason. What we are seeing here is a fantastic case of steady grows. These days had been great for silver investment. Remember, I had been actively following the PHS.U since November 2010. That doesn’t make a silver specialist BUT, I can attest of what I had been able to achieve with my PHS.U. If it wouldn’t be for the extra-value of the Canadian dollars at this time, I would have been able to continue my success story with PHS.U. I am currently trying to achieve with HZU what I had been able to achieve with PHS.U. Meaning a lot of cash... And I have a feeling it’s going to work out! 

I got through something very interesting today: the initial public offering REIT INDEXPLUS Income Fund. I am going to explain why I will be investing in 100 units of REIT INDEXPLUS Income Fund.

These days, it’s seemed like Rob Carrick is going gaga for my iShares S&P/TSX Capped REIT Index (XRE)! I am saying “my”, because I had been holding iShares S&P/TSX Capped REIT Index (XRE) for a little while now. According to Carrick, it’s better to hold XRE inside an RRSP or TFSA account because the dividend earns through XRE are a mix of a bit everything involve in real estate. In other words, XRE is not very tax efficient. In my case, I decided to hold iShares S&P/TSX Capped REIT Index (XRE) outside a registered account to add something new to my margin. It wasn’t a bad decision to make if you want my point of view, because I didn’t have any interest in REIT before. XRE add a great diversification to my portfolio. I enjoy the monthly dividend.

Ok, but what iShares S&P/TSX Capped REIT Index (XRE) have to do with REIT INDEXPLUS Income Fund? Well, it’s all a matter of experience. And in this case, my personal experience with REIT. Despite international conflicts going on, the economy is doing better; many jobs had been created in the US. The fact that new jobs had been created in the US is one of the most positive and strong argument about the economy. And with Barack Obama, nothing can go wrong. That being said, the economy is getting stronger. On the long run, real estate is a good investment. I am not a house or condo owner, but I am a REIT units holder!

I had a very good experience with XRE. So far, I made a profit of a bit more than 100$ with my investment in iShares S&P/TSX Capped REIT Index (XRE), not to include the dividend earn. Not much, but the title is stable. And this is exactly what I am looking for when I invest: stability and dividend income. And I am getting both of best worlds with XRE.

Now, imagine an investment product that can possibly beat the TSX Capped REIT Index and promised a 6.5% dividend yield (XRE provided a 5.178% dividend yield). Wouldn’t that be great? Well, that’s exactly what REIT INDEXPLUS Income Fund is all about. 

For the initial public offering, REIT INDEXPLUS Income Fund units are only at 12$. The minimum investment required is of 1 200$ (minimum 100 units) only (and no commission fee!). Sound to me like a great investment and worth a try. I would to get a 100 units for my portfolio. REIT INDEXPLUS Income Fund is being offered by Middlefield Group, an Alberta based asset management company.

Getting ready for my 2010 tax declaration

I now have all the papers needed to do my 2010 tax declaration. I had worked quite a lot in 2010. Before deduction, I earn 49 398.99$ in work income + 4 112.42$ in dividend earning + 100$ or so in capital gains + around 300$ or so in online money. I didn’t trade that much in 2010. I mostly buy and hold. Overall, that makes more than 50k in income. Could seem great, but that 50k in salary include I don’t know how many hours working at 3 different jobs... Anyhow, if I calculate after all deductions, it makes something like 43 838.03$. This includes the 30% taxable dividend income.

For 2010, I made a RRSP contribution of 7 048$. 43 838.03$ - 7 048$ = 36 789.41$. My taxable income is of 36 789.41$. I use MorningStar Marginal Tax Calculator to see if I already pay enough in taxes. According to the Marginal Tax Calculator, I have 3 308$ in Federal tax and 4 206$ in Quebec provincial tax, for a total of 7 513$.

I know it’s not like this I should calculate it, but: 49 398.99$ - 43 838.03$ = 5 560.96$ (suppose this is the amount I pay in taxes for 2010...)

7 513$ - 5 560.96$ = 1 952.04$

Does it mean I will have to pay 1 952.04$ in taxes?

I don’t think so. It will be less than 1 952.04$, but I may have a little extra to pay in taxes. For 2010, I had gain about the same salary and had made a 10 000$ RRSP contribution. At that time, I had paid something around 500$ extra in taxes.

10 000$ = 500$
7 000$ = ?

7 000$ x 500$ / 10 000$ = 350$ + 500$ = 850$

850$ makes a bit more sense but even here, I know my way of calculating it is far of being accurate... Anyhow, I need to have at least a 1 000$ ready in safe in case I need to pay extra in taxes...

This calculation do not include my tax credit for around 4 months of public transportation (from January to March or April 2009 – after what, I gave up on metro pass and only use my 2 feet to go everywhere...), my student loan, tax credit for dividend and other tax credit for investment loan. I am not exactly sure of what is eligible regarding all of the money I borrowed for investment. But once I find out, it will make a great post idea.

In other words: more money, more problems.

Recent trading and other events

Today was my first day back at work after spending 2 weeks away, partly in New Brunswick and another part in Montreal. It actually feels like I had been gone away for a month! I had slept a lot. I think I was emotionally and physically burn out at a point and I wasn’t even aware.

And it seemed like my colleagues love my new hair. It doesn’t take much for a little improvement, a little bit of makeup, coloration, a hair cut... But as for myself, while dealing with work, my investment and so on, well, I can easily neglect myself. There are many things in life I really don’t care about and my appearance well, is unfortunately one of those things lol... I personally prefer to focus on what really matter. But fact is, just a bit of makeup make on me all of the difference in the world.

I am back to work and it’s not as bad as I expected it to be. But I now have a lot to take care of. I really hope to be able to relocate in New Brunswick. When I was home in New Brunswick, I notice the time speed was lower, there was no stress, and everything was more relaxed. Of course, it’s because I was at home but still, I could feel a difference. I wasn’t in Montreal anymore and my soul was able to feel it. Fact is, I don’t belong to Montreal.

Lately, I try very hard to make money out of the stock market and just the fact of trying that much completely exhausted me. But did the effort worth it? Let’s see a few of our most recent trades:

Investment made: 470 stocks of Sprott Physical Silver (PHS.U) at 14.88$
Investment cost: 6 993.60$ + 9.99$ in commission fee = 7 003.59$
Sell at 15.67$, but cost of currency was of 4.15%.
Profit made after sell commission fee: +46.09$

Investment made: 100 stocks of K-Bro Linen Inc. (KBL) at 20.25$
Investment cost: 2 025$ + 9.99$ in commission fee = 2 034.99$
Current investment value: 2 069$
Profit made after sell commission fee: +34.01$
(I still hold KBL)

Investment made: 200 stocks of Westshore Terminals Invest Corp (WTE.UN) at 23.11$
Investment cost: 4 622$ + 9.99$ in commission fee = 4 631.99$
Current investment value: 4 804$
Profit made after sell commission fee: +162.02$
(I still hold WTE.UN)

Investment made: 200 stocks of Superior Plus Corp. (SPB) at 11.98$
Investment cost: 2 396$ + 9.99$ in commission fee = 2 405.99$
I had sold the 200 stocks at 11.31$: 2 262$
Profit made after sell commission fee: -153.98$
(I no longer hold SPB)


Investment made: 600 stocks of Data Group Income Fund (DGI.UN) at 6.66$
Investment cost: 3 996$ + 9.99$ in commission fee = 4 005.99$
Current investment value: 3 846$
Profit made after sell commission fee: -169.98$
(I still hold DGI.UN)

Investment made: 25 stocks of TD at 79.04$
Investment cost: 1 976$ + 9.99$ in commission fee = 1 985.99$
Current investment value: 2 072$
Profit made after sell commission fee: +76.02$
(I still hold TD)

Investment made: 100 stocks of Canfor Pulp Products Inc. (CFX) at 14.70$
Investment cost: 1 470$ + 9.99$ in commission fee = 1 479.99$
Current investment value: 1 684$
Profit made after sell commission fee: +194.02$
(I still hold CFX)

Investment made: 100 stocks of TMX Group Inc. (X) at 41.97$
Investment cost: 4 197$ + 9.99$ in commission fee = 4 206.99$
Current investment value: 3 977$
Profit made after sell commission fee: - 239.98$
(I still hold X)

OVERALL: +101.22$

Conclusion: yes, the effort worth it. I mess up with PHS.U and SPB, but the overall portfolio gain exceeds the lost. I was hoping for better results coming out of the TMX Group, but I guess I got excited too soon regarding the merger project with London. Anyhow, X should go up again, eventually.

But continuing this way could be dangerous because I am currently trading using margin money. The stock market is not the safest place to be, especially now. It could crash again, because of many factors currently playing at this time. In order words: better play safe.

Once I sell my units of HZU, the money will go and remain on the margin account.

Welcome Horizons BetaPro COMEX Silver Bull Plus ETF, 150 units of HZU in my portfolio

Ok, so here I am: I just buy 150 units of Horizons BetaPro COMEX Silver Bull Plus ETF (HZU) at 33.20$. I place a sell order at 34.70$... Will I be able to finally make a little profit out of the silver with HZU? That's what we are going to find out! It's going to be easier with this one. PHS.U was too much difficult with his American currency affair.

Going back to work after a 2 crazy weeks of so call "vacation" lol... but it was nice.

Remember and focus: we are going to make a 150$ cash out of the silver - I hope for this week.