For your information: Exchange Income Corporation (EIF) getting some media attention

I own Exchange Income Corporation (EIF) to a reader who suggested EIF as investment. That was back in February 2011 and I had been holding EIF ever since. I am very grateful. It can be difficult, all by itself, to find new investment diamonds. The pearl pays a dividend yield of 7.602%. Best of all, EIF distribution are paid on a monthly basis. Following my sell of Yellow Media Inc. (YLO) a little while ago, I made the decision to reinvest the money in EIF, hoping for a big return and recover from a 300$ loss.

I love Exchange Income Corporation (EIF) from the started because their business is very diversified and they have business in the Inuit territory. And I love native and the Great North territory. Will the love pay back? So far so good. EIF is being managed from the West. It’s one of those company you can expect everything. Let’s see what the Globe had to report about EIF:

“Exchange Income Corp. (EIF-T21.31-0.37-1.71%), an acquisition-oriented transportation and industrial manufacturing company, delivered “excellent” second-quarter results, with both sales and margins exceeding expectations, commented Canaccord Genuity analyst Chris Bowes. “We believe the outperformance is sustainable and below the firm’s potential,” he said.

Upside: Mr. Bowes trimmed his price target by 50 cents to $23.75 due to more shares outstanding but maintained a “buy” rating. Stonecap Securities analyst C. Scott Rattee cut his price target by $1 to $27, citing “increasing macro headwinds” in its specialty manufacturing division.”

Fair enough. 23.75$ is a very good price. It’s exceeding my buy price value of a couple of dollars. Right on top of the world.

Gordon Pape positive review of the Claymore Gold Bullion ETF (CGL)

I had been holding some units of the Claymore Gold Bullion ETF (CGL) since March 2010. Back at that time, someone from Claymore had written me an email, which I was surprised of and of course, really pleased. I made the purchased inside my RRSP account at TD Waterhouse. I initially invested 3 587.30$ in some CGL units. In today market value, the investment now worth 5 449$. A very good gain of more than 2 thousand dollars. Kind of cool.

I had been very pleased with my investment in Claymore Gold Bullion ETF (CGL). In good market conditions like in bad ones, the value of Claymore Gold Bullion ETF (CGL) units had remained stable and naturally grow. The CGL doesn’t pay dividend. However, CGL worth it. This is the type of investment you can really rely on without any worries. The investment is very stable and won’t require any attention or management of your part. Investing in CGL is really that easy.

In one of his latest article title “Gold at $10,000?”, Gordon Pape gave a favourable review of Claymore Gold Bullion ETF (CGL). For once, I agree on something he wrote about. I could only applause his words, after holding CGL for close to 2 years now. 

Gordon Pape rock again.

My non-registered portfolio closing August 16 session at 109 714$

Just like unfortunately expected, my non-registered portfolio closed Tuesday session below the mark of the 110k. However, the results were not too bad for August 16, 2011:

Non-registered portfolio value: 109 714$
Money used on margin: 42 861.79$
Money left on margin: 18 170.20$

The market is fragile and may remains this way until Germany came with a solution for the Euro. While waiting for the Euro bonds, I think we’ll have to go through this yo-yo phase. Which meaning the TSX gaining points one day, and the next day, the same point gains disappeared... Over and over again. It takes more than just good investors to be on the today market world. It takes warriors willing to create wealth for the long term. I still believe in a buy-and-hold strategy. It’s just the market out of control volatility make it difficult to handle. But there’s nothing I can handle right.

A good stock market situation indicator is my Sprott Canadian Equity Fund. As long my investment in the Sprott Canadian worth at least 7 000$ (which was about the original amount invested back in 2008), well, that mean that the situation is not that bad. I will be feeling danger if the investment drops under the mark of 7 000$. That would mean that the situation is really getting dangerous for my margin, in the sense that will be in an in deep recession without knowing. The current recession is not that bad. My portfolio is getting through it. I continue to earn great dividend from my investments. My portfolio is very diversified and truly, if I had invested 7 000$ on the same spot, you can be sure I knew, back then, who was Eric Sprott and what the Sprott Canadian could do for me RRSP. I am still waiting for the extraordinary return to come. But while waiting, I appreciate the stability of my investment value. For those kind of things, I can be extremely patient. I just cannot wait to be in my 80s, be extremely rich and scream to the nurses who will be taking care of me: “See, I made it. I made a million out of the Sprott Canadian!” Yeah. And of course, at the age of 80, I will still be blogging and counting each single penny I have. At 30 or 80, everything will be the same damn thing.

While patiently waiting to be rich, I can always dream of...:0)))

This is my 900th post!

My non-registered portfolio is going well despite the fact that the TSX loss more than 100 points. I am currently at 109K. All that trouble just for the European countries who just can handle themselves properly. If it wouldn’t be for the very strong Germany, it would have been a long time that the Euro will have collapse. France? Don’t count on France to save the Euro. It’s the Germany who’s holding the whole thing all by itself. Anyhow, I am hoping for a relatively stable market because it’s not true I am going to wake up on time for the market opening each single day of the week. NO WAY :0) But a good news being, Germany is strong enough to handle it all. I am not under the impression that we will be hit by another market crash, but absolutely anything and everything can happen.

I should take time to update my portfolio value. My last update was back in the beginning of July. I was in vacations for the last 2 weeks of July. And after, in August, we had the stock crash. I never update my portfolio in bad times. Just in good times. It’s a matter of psychology. I won’t show off my results in bad times but I will write about it.

I am just very happy the TSX did not loss too much points and I am very happy that a reader share this new one with me: Aberdeen Asia-Pacific Income Investment Company Limited (FAP). It’s quite an impressive company and I will be working on a post about this one. There are really little things online being said about this stock. But that’s about to change soon. Aberdeen Asia-Pacific Income Investment Company Limited (FAP) going to be in what you know what.

Happy blogging, you are reading my 900th post! Got to reached the 1000 BEFORE my birthday!

My non-registered portfolio closing August 15 session at 110 429$

Finally, the first day of the week is officially OVER. I had been quite busy. I withdraw 2 000$ from my margin account. I used a bit less than 200$ from that money to pay my bills and eventually by next month, I will be making a 200$ on my margin account. And this left a bit more than 1 800$ on my RBC credit line. I was happy to make this payment. My credit line at RBC is at more than 7%, while my margin account is at 4.25%. If the stock market remains stable, I could see myself doing another transfer of 1 000$, but I wouldn’t go deeper for now.

The data on date of August 15 for my non-registered portfolio are very good:

Non-registered portfolio value: 110 429$
Money used on margin: 42 861.79$
Money left on margin: 18 581.30$

In case something happens on the stock market, I have closed to 8k that I can bring in on my margin. So I guess for now I will fine, but eventually, I will need to seek for another credit line or a credit line increase to protect the whole margin. I would need a good 20k credit line increase to protect my asset to be sale in case of a third stock market crash. The stock market crash some time to time, it’s something I am now getting better to understand but it each time it crash, it’s always difficult to believe it will eventually go up again. But it always does.

Following Rob comment in previous post, I am thinking of selling half of my holding in First Majestic Silver Corp (FR) and reinvested that half into Kinross Gold Corp (K)... That could be something interesting to do. K will be paying a little dividend in September... :0)

Sprott Inc. (SII) getting on the spotlight

And for the good reasons. Globe and Mail article mentions Sprott Inc. (SII) as a good pick. Price had been target at 11$. Maybe my 1 000+ stocks will turn into... gold... or almost. What do you think? Also, for a margin loan, Sprott Inc. (SII), despite being at less than 10$ per stock currently, well, at TD Waterhouse, SII has a loan margin value of 50%. This is HUGE. Knowing all that, now you know that SII is a good pick. The good picks? They are ALL in my portfolio. ;0)

"The increasing macroeconomic headwinds favour Sprott Inc.’s (SII-T8.70-0.09-1.02%) bearish investment stance and could help boost the asset management company’s net sales, said RBC Dominion Securities Inc. analyst Geoffrey Kwan. “Furthermore, we believe Sprott is a more diversified asset manager with multiple platforms to drive future growth and has greater growth opportunities relative to peers,” he said.

Upside: Mr. Kwan upgraded Sprott to “outperform” while raising his 12-month price target by $1.50 to $11."

Thank you Mr. Kwan. Thank you.

Geoffrey Kwan is an analyst for the RBC Dominion Securities Inc. Seem like this one actually knows what he's talking about.

My non-registered portfolio is exceeding the 110k

Yesterday night had been absolutely crazy. I spend the night cleaning by stuff. I had been living in here for a couple of years, in my little one and a half apartment. Little, but close to everything you can ever thing of. I like the location, I wouldn’t like to move anyplace else. At least for now. Anyhow, over the years, I had accumulated all kind of financial statements, mutual funds papers, magazines, newspapers.... so I clean and I clean and I clean. I kept of course important papers, like the ones they give you to sign when you invest in mutual funds, statements, etc. I had for about 10 garbage bags of my oldies and I am not even done yet, but almost. I also have all of those old shampoo bottles to get rid of (I know, yacki yacki!). I so not minimalist like this lady. I am a total mess. Or should I say: I was a total mess.

I have to say, it’s feel much better now. My place is now more in order. I wake up late this morning, even if I set myself a bunch of things to do. But I hate Monday. Like this morning, I was supposed to go to my grocery shopping. Did I go? No. Oh well... And yesterday, I was supposed to do my hair coloration. I skipped that as well... I did some laundry however. Impossible to do it all in one night. What I really wanted to do is to clean in my papers. And I did.

The TSX is a rocket stardom... My non-registered portfolio is currently at 110 603.07$. So it’s a good week debut. From what I had read, the week is going to be good. But a turnaround is always possible. As for my part. I am going to take 2k from my margin and use it to pay my 10k credit line. I just received some awesome dividend payment today!

I chat with one reader yesterday and it really help me to understand the response of Derek Foster to my letter. I guess my reaction to the non leverage thing was one of a wild still young and free sometime lazy person that I am still am despite the fact that I am turning 31 sometime in this late of August. When it will happen, I will late you know. Until that time, well, tried to find on the Web someone who’s more addict to the Stop Working thing. Just try. The fact that I am so into it had turn myself into a following guru and Stop Working had all the other books of Derek Foster well, they are powerful. And it’s kind of becoming a religion and his books the Bible. About Derek Foster being a hypocrite, well, I guess it was the reaction of a young person in front of the words of a guru. Nothing more. But I understand now, just that Derek Foster is too hot. The stuff is just too HOT. :0)

Canadian National Railway Co (CNR), next month, it’s your turn

The TSX didn’t close today session on very high gain but at least, the situation remains stable. No matter what, even while the TSX gains less than 3 points today, my non-registered portfolio closed the week with interesting gains.

Non-registered portfolio value: 109 152$
Money used on margin: 40 899.59$
Money left on margin: 19 871.42$

This 109k value is interesting. I am reaching the 109k following a 1 000$ investment in TRP. My original 113k worth non-registered portfolio would have been at 108k, leaving a -5k behind. But knowing what the market has gone through, I think this is not bad at all. More than ever, I am to follow the plan I came previously with: to invest in blue chips once in a while to add value to my portfolio. It began quickly clear that this is the only I will be able to eventually recover from my lost. I am optimist. My next investment will be in Canadian National Railway Co (CNR). CNR pays almost nothing in dividend, but this stock will add a + value to my portfolio. CNR is of a very strong value. On top of that, it will add diversification to my portfolio. So be ready, CNR, because really soon, you’ll be in the club.

Some recent comments are making me laugh. This blog is my personal finance diary and I am totally careless about negative feedback I am receiving. I don’t think those individuals really have the intelligence to realize what this is all about. I have the arrogance to say this: in many aspects, my blog is much more interesting than the other financial blogs there is out there. Many bloggers blog like if they were experts on the topic they write about. And truly, I am pretty sure that the vast majority of them don’t even earn half of my dividend earnings and don’t half of my trading experience. You get to know what they hold once in a wild, but it’s about it. Nothing about their debt situation, portfolio worth, trading, etc. That being as well true with the so call experts that we read on the Globe and Mail like Rob Carrick, or so call debt specialist like Gail Vaz-Oxlade. And I will even say, much of them are just as much as hypocrite as Derek Foster is.

See, in response to my email, Derek Foster reply with this message: “Margin borrowing and other credit scares me...you might consider paying down you debt for increased safety...just my thinking...derek”. Ok, you might ask yourself where is the hypocrite part? Well, Derek Foster pretty much builds his portfolio using leverage. He had used margin and he had borrowed to invest. From my part, I did the reading of Derek Foster on a perpetual basis so I am no longer able to tell you from which part of which books we are able to find information about his leverage but if I am saying that Derek Foster had used leverage, well, it’s because he did. Same thing for another know-it-all, Andrew Hallan said that he doesn’t believe in margin, but he had used leverage himself too! What’s the problem with those guys?

The only way to make it is to use leverage. Derek Foster and Andrew Hallan are kind of being “financial personalities”. They want to look good and be presented at their best advantages. In the financial Canadian small world, leverage is not being well-considered. Derek Foster and Andrew Hallan are more now of the banker type of personalities know-it-all. They are giving advices and are saying what is politically financially correct ONLY. They are representative of the banking high class financial. They want to be known as financial speaker and they want to sell their books. The only way for those 2 to make it happen in term of writer and speaker is to be politically financially correct. If not, no more interviews, no more books will be purchase.

Myself, I am satisfied with my term of leverage. I am coming roughly on those 2, they are just examples. I said very good things about Derek Foster on my blog and I continue to think all of those good things about him. However, I find in him a hypocrite nature. There’s what he had did and use himself to be where he is at this time and there’s that part of him who is an author and who’s coming with politically correct things that he never respected himself. So it’s not only Quebeckers who can be actively hypocrite, the rest of Canadians can also be quite hypocrite, I can tell you something about it.

So why Derek Foster, Andrew Hallan, blog readers who are getting hard on me in their comments, why all of these people are against leverage? Well, there’s a good and bad side to it. Good part being it’s the dangerous nature of leverage but truly, tell you this: if I had been able to manage my margin account and my leverage, anyone can.

While wanted to promote a don’t-use-leverage strategy, Derek Foster and Andrew Hallan are being hypocrite because leverage is what had made it possible for them. And now, they are transforming their methods into non-leverage one just to be out there, not to be just an individual blogging anonymously. So to be part of the financial world, you need to be correct but the nasty side is what I had described. They will tell you in response that the market had change, but the market did not change. For small investors, leverage is the only way to go. So go for it. Forget about paying debt. Paying off debt won’t bring in any dividend income. It will bring nothing at all, if not just an artificial satisfaction of your banker.

So when I read the latest comments on my blog, I am afraid I am facing the hypocrite nature of human being.

My best advice would be: push leverage for as much as you can but keep it safe. Meaning that minimal payment on debt should not exceed a certain point, and that a good amount of money should remain in the margin at anytime. What is missing right now from the Canadian scene is someone who can actually teach how to use leverage. But don’t you ever dare to wait for Derek Foster or Andrew Hallan to teach you that. Of course not.

I can easily make a good living out of an income of 1 300$ a month. Currently, I am about an average of 700$ per month in dividend earning. I should have started to invest in stocks much earlier. But this is how it went for me. The sooner the better. Anyhow, I am more than half way there. Once that goal reach, I don’t plan to stop working, but it will allow me to be much more aggressive in my career choices, to go back to school if I want to, etc. etc. etc. It’s not exactly a stop working strategy, it’s a strategy for a better life. Because don’t expect anyone to help you among the way. You are alone and if, unfortunately you live in Quebec, you are even more alone. That’s what is missing from Derek Foster and other so call guru. It’s missing the intelligence of the beginning. And I am still at a point where I believe in it very strongly. There’s really no one and no comments can stop me while being so deeply into it. Just watch me going. And may you forgive me. 

Let the margin and leverage be for my best advantage.

A night spent with the Awkward Family Photos

I had been quite busy lately at being lazy... I guess it could be the market stress of the past couple days, don’t ask me what it is, my nerves had been attacked badly... but these days I am sleeping in very late. My bed and groceries shopping had not been done and I have tonne of laundry to do. But yesterday, I spend a big part of the night on this Web site and I could not stop laughing and laughing very hilarious Web site: Awkward Family Photos. It’s a very funny page and I with all that fun, I went to bed at 3AM... and now, I am asking myself why I cannot wake up? Being lazy is great sometime, I can assure you.

And while sleeping peacefully this morning-part of the afternoon, my non-registered portfolio is now at a very beautiful 109 877.11$. I am getting closer to the original 113k of BEFORE the August crash and I like that. I like that very much.

Nothing has been done from my home work, BUT, the non-registered portfolio had performed extremely well. Those data of for yesterday August 11, 2011:

Non-registered portfolio value: 108 684$
Money used on margin: 40 899.59$
Money left on margin: 19 605.78$

I like to believe that the worst is now behind us and that the bottom line had been reached. If it continues that way, I will take a couple of thousands of $ from the margin and put it on the 10k credit line I have at 7.52%. I guess I could begin with a 2k, in other not to take too much from the margin. And if goes very well, I could add another 1, 2 or 3k on, depending of what’s going on.

The weekend is going to be very relax and lazy but I really need to get that laundry done. Anyone volunteer?

Welcome to my non-registered portfolio TransCana Corporation (TRP)!

I find the last couple days going on like a yo-yo. But the past few days had been good for the stock market and despite my worries, I decided to invest in TransCana Corporation (TRP). Yesterday, or should I say earlier last night, I said I was going to invest in TRP if the TSX opens on a happy note...

Actually, I was still in bed for the market opening and I continue my beauty sleep until... 12:30pm... I wake up looking gorgeous (ah!), wondering what the TSX was going to be like... To my surprise, the TSX has exceeding the 12 300 points so this was the time. Time has come to invest in the very precious TransCana Corporation (TRP). GO FOR IT!

I kept in mind the advice of Rob Carrick to continue to invest even in a quasi-depression state of the market (and of myself on the same time)... So I just did what I needed to do, I invest in some stocks of TransCana Corporation (TRP) at 40.27$... For now, I have used my margin money, but I will, if not this afternoon, proceed with a 1 000$ deposit on my margin.

While keeping Rob Carrick good advice on mind, I decided to stick to the plan I describe previously before: to invest in blue chips once every month when possible using my very own money. My next investment will probably in Canadian National Railway Co (CNR).

My portfolio is doing fine. Including my newest investment made in TransCana Corporation (TRP), my non-registered portfolio is now at 108 210.20$. Getting closer to the original 113k of BEFORE the market crash of August 2011. I find it very important to continue to invest at this time to bring in more value to my portfolio. Investing in blue chips won’t significantly increase my dividend earning. Anyhow, it’s not anytime soon I will be able to live form my dividend. So having all that in perspective, better to continue to invest in some blue chips really not that generous on dividend BUT who will be able to bring in extra value for the long run.

No worries, it won’t be done on margin. Blue chips paying so little in dividend, they don’t even worth the buy on margin lol. At least just for dividendly thinking. Got the idea? Real cash, blue chips, small extra dividend earnings. That’s the plan for now.

Welcome aboard TransCana Corporation (TRP)! May you have a long and happy existence inside my non-registered portfolio. You’ll see, it’s going to be fun.