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Thursday, January 12, 2012

TFSA or RRSP contribution? What work best for the Dividend Girl

I really wanted to post yesterday but I was busy and finally, I didn’t post anything. I find Susan Brunner last comment quite interesting. Instead of investing 7k in my RRSP account, Susan suggested to simply invest 5k in my TFSA. Fact is, in 30+ years from now, when I will withdraw cash from the RRSP, I will be paying income taxes on each and single withdraw. The more I invest money in my RRSP and the more I generate money in my RRSP, the more I will be paying taxes at the end. Is that being smart? No, not at all. Without Susan, I wouldn’t have been able to figure this all by myself.

TD Waterhouse – like probably all of the brokers we have out there – is extra extra cheap. TD Waterhouse commission fee is 9.99$ per buy and per sell operations. TD Waterhouse policy for TFSA regarding withdraws is extra extra mean-cheap: ONE ohhhhh ONE single withdraw ONLY per year is authorized. You can do more than one withdraw per year but you’ll have to pay big $$$ to do any subsequent withdraws. Just like if you didn’t work hard enough for your money. This is how TD CEO gets paid millions and millions EACH SINGLE year. While they make us pay the big fees, there’re some lazy bankers who are getting overpaid. That’s for sure. That one TFSA withdraw rule really suck. However, let’s check on this all over again ok.

Which one is a better safe net for your money? TFSA or RRSP?

As you know, I have a 7k I can invest for my 2011 RRSP contribution. Per year, an investor can invest 5k in the TFSA without penalties. You can also add to that 5k the amount of any withdraws made the year before. Let say you have withdraw 2k from your TFSA in 2011, for 2012, you are authorized to invest 2k + 5k.

A RRSP contribution provides a tax break. Any investment made inside a TFSA is free of tax, but it won’t give you a tax break, meaning it won’t reduce the amount you declared as an income.

RRSP and TFSA are 2 different things.

I didn’t work that much in 2011. From what I have estimated, I didn’t earn more than 35k or something like it. That’s really not that much. So do I really need the tax break that provides the RRSP contribution? While living in New Brunswick, I pay a lot less in taxes that if I would have still be living in the horrible Quebec province. Knowing that I will have, one day, taxes to pay on every single RRSP withdraws... at this point, you know, the RRSP, I don’t really care any more. This being because while being a senior, I will have to pay taxes on withdraw made from the RRSP. In 30+ years from now, the money invested in the RRSP will certainly grow. And the original amount invested + all of the profit made will be tax at each withdraw.

I haven’t invested in my TFSA in 2010. This means I can invest 10k in my TFSA in 2012. But it doesn’t mean that I will be investing 10k in my TFSA.

I didn’t maximize my TFSA for quite a while because I preferred to have a 6 figures portfolio in a non-registered account with a margin account incorporated in it and have it all BIG.

Tuesday, January 10, 2012

Feel like getting a capital gain booster? Go with Agrium Inc. (AGU)

My non-registered portfolio is at a very good 116 821.84$, my TFSA is at 4 203.75$. The stock part of my RRSP is at 20 737.97$. Everything is performing well. When the stock market is on the high, everything goes. And when the stock market is on the high, the only thing I want to do is to invest more. And... guess what, tomorrow at midnight is... pay night! Fun, but I have a problem: I have a 7k RRSP contribution that I want to do before Mach of this year. 7k is a massive amount. This is a 7k investment that I won’t be able to enjoy freely inside a non-registered account. Does it really worth it?

I don’t like the idea of investing 7k inside my RRSP account, but on the other hand, I need a tax break. In 2011, I really didn’t work that much in term of monetary work. Strangely, 2011 has been the year of all the fantasies. I boost my dividend income as well as my debt level, I trade, trade trade. In silver, in blue chips etc. etc. etc. In other words, in 2011, it was the F off attitude and I trade and I never stop. It was truly a fascinating year, of all of the extravagances, the year of 31 years of F life. lol.

I feel almost sad to invest 7k in my RRSP. That’s a 7k that will be detach of me forever. I won’t be able to withdraw it (I could, but I will face enormous penalties if I do). I could use all the money on a house but welcome trouble in 10 years from now when the money needs to return in. Like F-F-F. :)

And this problem is being even worst: in where to invest the money that will sleep in for more than 30 years?!!

RRSP? Definitively boring and depressing.

But, I find a product to invest 2 500$ and best of all, I can contribute by using my American Express credit card. I find that one in Derek Foster latest book The Worried Boomer: No Pension? Not wealthy? Here’s your plan! Simply go at the page 103. There’s you go, now you know in which product I will be investing 2 500$ of my own money. I have a close to 700$ contribution coming from my employer. That’s cool, but I still have a 3 800$ to go. I don’t know if you agree, but 3 800$ is quite of an amount. I think I simply put the money in my TD Waterhouse account and invest in conservative stuff. I want the RRSP money to be there when I need it. I will probably be living until 80 years and up, maybe more, maybe less but chances are I will be living until at least my seventies... See, that’s exactly why I don’t like RRSP because it makes me think about the future and I really don’t like that. Not at all.

BMO Bank of Montreal is showing off once again sign of little intelligence. BMO Bank of Montreal (BMO) upgrades Agrium (AGU). I knew from the start that Agrium is ABSOLETELY HUGE. This girl knows the stuff for sure right. BMO Bank of Montreal is a little late on its update. Me the Dividend Girl, I invested in Agrium Inc. (AGU) on December 14, 2011, when AGU stocks were at 67.13$. AGU closed today session at 75.16$. This make a direct and very real profit of 8.03$ per STOCK on a very short period of time. BMO Bank of Montreal has just waked up now. Wow. I am not impress.

I am a genius or almost. That you like it or not, there’s some stuff like that who will just never never change.

Of course, it’s not all of the multiple stocks I hold in my portfolio that are performing that well but remember, I am still a genius, focus on the overage, not on a one and single stock situation. Or it could kill you.

Tomorrow, we’ll discuss why my investment portfolio is X-LARGE and why I decided to invest in many multiple companies instead of having a portfolio of 5-10 companies. We’ll see all that tomorrow so stay tune ok.

And by just thinking now, investing 7k for my RRSP by March 2012 is going to be quite of a challenge. 

Sunday, January 8, 2012

Gordon Pape 2012 super stock pick: Brookfield Infrastructure Partners L.P. (BIP)

Gordon Pape top stock recommendation for 2012 is not a Canadian stock, but it’s a US one: Brookfield Infrastructure Partners L.P. (BIP). This company is from our fantastic TSX under the ticket symbol BIP.UN.

While the Canadian market offer many great investing possibilities, despite it all, Gordon Pape decided to go South for his 2012 top pick. What a shame coming from a well-known financial advisor who made his career in Canada. But don’t be surprise. Gordon Pape is not a Canadian. He was born several decades ago in the USA. The fact that Gordon Pape is not Canadian certainly played on the way he analyses the Canadian stock market and also on the way he perceived Canadians and our super-super Canadian stock market.

Believe it or not, we have one of the best stock market of the worldwide world. With their natural arrogance, Americans put their country in heavy deficit. Their recession has almost destroyed forever the capitalist worldwide. Nothing to be very proud of. However, despite it all, I had been able to turn the capitalist system to my own advantage with an investment portfolio that is almost 100% Canadian oriented. I have been investing since 2005. I start my personal financial blog in 2007 and I placed my first stock investment in 2008, shortly before the stock crash. No matter how bad was the hit, I totally recovered from the 2008 stock market crash. 2011 also been a difficult year for the stock market. It was a year where I experiment a 0% return, despite day trading, despite investing in the risky silver PHS.U. Despite is all, with all the risk I took, I didn’t lose money. Why?

The answer to this is because my investment portfolio is almost 100% Canadian. With many good stuff like PPL, ENF, BNS, CDL.A, FTS, DH, PBH and many many other, I had been able to survive the 2011. Fact is, I had made Canadian stocks the pillars of my lifetime investment project.

Companies like CNR, PPL, AGU could have easily earn the 2012 super stock title, but Gordon Pape decided to go to his homeland country. I don’t have any problem with that but I do know better.

There’s major problems with Gordon Pape 2012 favorite Brookfield Infrastructure Partners L.P. (BIP). First of all, Brookfield Infrastructure Partners L.P. (BIP) headquarters are located in the Bermuda.

You need to know that while deciding to invest overseas, you double the risk for your investments. The stock market is already rough in the present stock market we live in. While investing, you need to do it on the best stock market of the world. And you know that it’s the Canadian one.

Also, as soon you step outside Canada, you fall under a different accounting authority, a different legislation. Accounting “laws”, if I can name those like that are not all the same worldwide. Basic accounting principles are not always being followed in emerging countries and in other countries as well. And that being true about Bermuda and also China.

In order to explain better what I mean, I am partly copying a post that I wrote back in June 2011:

“I will always remember what a financial planner working for Manulife Financial once told me about business located in China. That was in 2007, when I invested in segregated funds for my RRSP. Back at the time, I didn’t want to handle any investment risks and despite my young age (I was 27 back than), I decided to invest like a senior, I invested in some Manulife Financial segregates funds, in the following: Maritime Life International Equity Fund (Templeton), Manulife Simplicity Growth Portfolio, Maritime Life CI Harbour Seg Fund, Maritime Life Fidelity True North Seg Fund and Manulife GIF MLIA B World Invest.

We had that conversation after I mention to her that mutual funds invested in Chinese companies that were performing well. At the time, I was closely following a BMO Bank of Montreal mutual fund: the BMO Greater China Class. The fund was performing extremely well and I was impressed by the BMO Greater China Class.

Following what, the financial planner told me that it was because in China, the regulations were not the same when it comes to financial statements and that there was a lot of business fraud in China. Also, all investments made in Chinese companies needed to be handle with a lot of care. Those words never leave me because I was absolutely fascinated by China economy of the time. I still have the same fascination. But I do not invest in anything related to China for the reason that the regulation is not the same. It’s already risky enough to invest, why should you add another risk by investing overseas? That’s why I am mostly Canadian oriented when it come to investment.

Anyhow, today, a very sad story came out about a company that I never really notice before: Sino-Forest Corp. (TRE). Despite investing in stocks, I am in a way very conservative in my investments. I am not very attract to the big shinny names who are extremely well-rank by analysts. Personally, the only analysts I trust are Derek Foster (the guy who stop working) and SP Brunner (a well established blogger). I never lost anything by following those 2. Brunner is quite modest, saying in her stock reviews that they are not stock recommendations but hey, when you read her hot stuff about K-Bro Linen Inc. (KBL), per example, is that really anything else that would do than just invest in the company after reading her review? :0)

Anyhow, until recently, Sino-Forest Corp. (TRE) was performing extremely well, its value had gone from a 5$ to a 20$+ very quickly. It was the darling of everyone... Until someone of the name of Carson Block arrived in the show. Carson Block is a good looking 35 years, gangsters rap fan and a trained lawyer (got the portrait?) who declared that Sino-Forest Corp. (TRE) does not have real trees and that the company is not operating a real business. That might be true, but investors will have to do a trip in China to see for themselves if Carson Block declarations are true of false, because Sino-Forest Corp. (TRE) operates in China only... That Sino-Forest Corp. (TRE) operates a real business or not has any incident for me. I am not an investor of Sino-Forest Corp. (TRE). So why do I care?

Well, this incident surrounding Sino-Forest Corp. (TRE) shows the importance of diversification inside a portfolio. On the stock market, everything and anything can happen. I received bad comments in different occasions, saying that my portfolio is too complex, too bizarre, too diversify. Investing is not necessarily easy and in the investment game, diversification is your best friend.” (The Dividend Girl, June 9, 2011).

We have the best stock market of the world, there’s no reason why you should be following Gordon Pape footsteps and invest in a US company based in Bermuda on top of that. I mean come on.

Also, Brookfield Infrastructure Partners L.P. (BIP) doesn’t have enough in history to be name best stock of 2012. The company began to trade way AFTER the 2008 stock market. So we don’t know for sure if BIP can handle an in deep stock market volatility and, even worst, a stock market crash affecting the economy worldwide. The stock crash of August 2011 doesn’t count because it was related to the Euro, it wasn’t major enough for us to analyze BIP.

When I invest in a stock, I look at the chart on date of the creation of the stock on date of today. First thing to check: you want a chart that goes on like a rocket, not a yo-yo stock. What I am running after is constancy, something that will be strong enough to support my margin and my appetite for trading. Good past results doesn’t mean that the future of the stock is brilliant. However, it’s a good indicator about the volatility of the title. While investing, I want is all, I want a title stable in value that will also grow in value overtime and I also want a good dividend yield. It’s difficult to have it all but not impossible. BIP is a too young company to be name best 2012 stock pick. And fact that BIP is located in Bermuda is not helping either. Stay away from companies having their headquarters overseas. Be extremely careful with those.

Brookfield Infrastructure Partners L.P. (BIP)? No, it’s not for me, and it’s not for you either.

Saturday, January 7, 2012

My deb situation on date of January 6, 2012

8 371.27$ at a low interest rate of 4.75% (RRSP credit line rates) = 397.64$ in annual interest

4 800$ at a low interest rate of 4% (credit line rates) = 192$ in annual interest

7 756.82$ on a credit card at a low interest rate of 2.9% (result of a credit card balance transfer) = 224.95$ in annual interest

7 050.55$ at low interest rate loan at 5.50% (student loan) = 387.78$ in annual interest

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

8 943.30$ at 7.52% (credit line rates) = 672.54$ in annual interest

49 911.02$ at a low interest rates of 4.25% (margin money coming from my broker account): =
2 121.22$ in annual interest

TOTAL: 86 832.96$

TOTAL in annual interest: 3 996.13$
[In date of January 6, 2012]

My investment portfolio on date of January 6, 2012

Savings: 201.10$

Non registered Investments:
Stocks and Units investment portfolio CAN$
Sprott Inc. (SII)
Timminco (TIM)
Blue Note Mining (BNT)
Bank of Nova Scotia (BNS)
Hanwei Energy Services (HE)
Methanex Corporation (MX)
Fortis Inc. (FTS)
Pembina Pipeline Corporation (PPL)
Just Energy Group Inc. (JE)
Pengrowth Energy Corporation (PGF)
Enbridge Income Fund Holdings Inc. (ENF)
Corby Distilleries Limited (CDL.A)
Davis + Henderson Corporation (DH)
Premium Brands Holdings Corporation (PBH)
EnCana Corporation (ECA)
iShares S&P/TSX Capped REIT Index (XRE)
Horizons Gold Yield Fund (HGY.UN)
Canfor Pulp Products Inc. (CFX)
New Flyer Industries Inc. (NFI)
Exchange Income Corporation (EIF)
Rogers Sugar Inc. (RSI)
Student Transportation (STB)
Colabor Group Inc. (GCL)
TMX Group Inc. (X)
Data Group Inc. (DGI)
K-Bro Linen Inc. (KBL)
Westshore Terminals Invest Corp (WTE.UN)
WesternOne Equity Income Fund (WEQ.UN)
Atlantic Power Corp (ATP)
First Majestic Silver Corp (FR)
Kinross Gold Corp (K)
TransCanada Corp (TRP)
Canadian National Railway Co (CNR)
Firm Capital Mortgage Investment Corporation (FC)
Sprott Strategic Fixed Income Fund (SFI.UN)
Enbridge Inc. (ENB)
Agrium Inc. (AGU)
Canadian Utilities Limited (CU)

TOTAL: 115 947.38$

Stocks and Units investment portfolio $US:
Sprott Physical Silver Trust ET (PSLV)

TOTAL: 2 293.12$

Tax-free savings account (TFSA)
EnerCare Inc. (ECI)
Dumont Nickel Inc. (DNI)
Sprott Physical Silver Trust UTS (PHS.U)

TOTAL: 4 058.15$

RSP investment portfolio:
Sprott Canadian Equity Fund
Claymore Gold Bullion ETF (CGL)
EnCana Corporation (ECA)
Emera Incorporated (EMA)
Sprott Physical Silver Trust UTS (PHS.U)

CIBC Dividend Growth Fund
CIBC Emerging Markets Index Fund
CIBC Monthly Income Fund

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

GIC National Bank

Maritime Life International Equity Fund
Manulife Simplicity Growth Portfolio
Maritime Life CI Harbour Seg Fund
Maritime Life Fidelity True North Seg Fund
Manulife GIF MLIA B World Invest

Great-West – various

RBC Canadian Dividend Fund
RBC U.S. Mid-Cap Equity Fund C$
RBC Global Resources Fund
RBC O'Shaughnessy International Equity Fund
RBC O'Shaughnessy All-Canadian Equity
RBC Global Precious Metals Fund

Employer RRSP program

TOTAL: 38 184.66$

Social Capital at Desjardins Membership share: 40$

Savings + Stocks, units, mutual funds + Tax-
free Savings account + RRSP + Online Income
160 801.66$

Friday, January 6, 2012

Welcome in my investment portfolio Canadian Utilities Limited (CU)!

Between yesterday and today, I had enough time to rethink my position in Colabor Group Inc. (GCL). I had been holding GCL in my portfolio since February 2011. Since that time, I was holding more than 200 stocks of GCL, which I consider being too much in today’s market condition. Today, I sell some stocks of GCL at 10.82$ and 10.80$. It felt very good to do so. I saw GCL going upside down within a matter of just a couple of months.

I still own some Colabor Group Inc. (GCL) stocks in my portfolio, but I do not hold 200+ stocks anymore. I was getting tired of GCL and now was the perfect time to sell a few bunch of GCL.

I reinvested the money coming from the sell in Canadian Utilities Limited (CU). I bought some CU stocks at 61.20$ and I was very pleased. Boost by my investment, Canadian Utilities Limited (CU) closed this Friday session at 61.38$.

Canadian Utilities Limited (CU) nicely completes my collection of blue chips. I am happy and very release. Holding too much of a troublemaker stock like GCL had created an unhealthy financial portfolio stress. Fact is, no matter how much a portfolio is diversified, no matter on how many blue chips I hold, I am always exposed to the market volatility. Knowing that, I think it’s important to reduce the whole thing to a minimum of risk by trying to avoid small caps with a high dividend yield. At a point, I don’t want to have to worry about my portfolio, my holding, my margin account situation, etc.

Today I took a first step in reducing my portfolio stress. I reduce my portfolio stress and... also my dividend income. However, knowing that I mostly invest in a non-registered account because of my margin, I don’t mind reducing my dividend income. Not at all.

I had experienced the small cap high dividend payer stock in Superior Plus Corp. (SPB), Yellow Media Inc. (YLO) and many other. All troublemaker stocks. Now, I want to establish my portfolio for good. No more trading, just lay back, enjoy the dividend income and I will be done. Once establish, I won’t be trading as much as I had done in 2011. Or should I say, I WILL TRY not to trade that much.. lol..

I just realized now, I had placed today my first investment of 2012!

And there’s many more to come! (See, it’s very hard to control those kind of impulses).

Following what, it seem like my non-registered portfolio is now at 115 947.38$. Quite good!

Next thing coming up is my RRSP contribution.

Thursday, January 5, 2012

Did you know? Gordon Pape net worth exceeds the 2 million of $$$

Look who's rich and have super cash! And this is the kind of info that people and the Dividend Girl just LOVEEEEEEEE to know. Of course. Because life is all about money. You must know that by now.

That’s quite impressive! Jonathan Chevreau of the Financial Post reported that at 75 years of age, Gordon Pape is 2 times millionaire. I am not looking to have that much zeroes, for me, the ultimate please will be reach 200 000$ value in investment value will be just enough for me and 2012 could be the year where the 200k POP from this blog!

A new Gordon Pape book in on the way: Retirement’s Harsh New Realities, Protecting your money in a changing world.

I just hope I won’t need any hearing aids when I will be 75.

The Dividend Girl knows best

My non-registered portfolio is doing very well! I hit the 116 191.27$ today, which is quite amazing. I never taught I would be hitting the 116k anytime soon. The 120k is not too far away, that’s for sure.

At this point, I need to be extra careful on how I invest, in what I invest and also I need to be careful with the current investments that I hold. I once wrote a blog post about my troublemaker stocks. Among those troublemakers, I have Colabor Group Inc. (GCL).

Colabor Group Inc. (GCL) is the perfect example of what a troublemaker stock is. A troublemaker stock is an investment that is not secured. The problem with Colabor Group Inc. (GCL) is that the company made a bunch of acquisitions one after the other, very very quickly. The Fonds de solidarité FTQ has offered an unsecured subordinated loan of 15 millions. Nice, but it could not be enough to secure Colabor high dividend yield of 10%.

I won’t recommend to any of you readers to invest in GCL at this time. Richard Dufour of La Presse reported that GCL may be paying a too high dividend. Could Colabor Group Inc. (GCL) be the next Yellow Media Inc. (YLO)? It could be. Before falling into the state of a penny stock, YLO was paying a generous dividend of 12%.

I consider myself lucky. Currently, I am experiencing a capital loss of 185.60$ on Colabor Group Inc. (GCL). I am looking forward to reduce my position in Colabor Group Inc. (GCL).

In a lot of ways, my investment in Colabor Group Inc. (GCL) has a lot in common with another Quebec company I unfortunately hold in my portfolio, Rogers Sugar Inc. (RSI). RSI value price is under what I had paid for it. At a bit more than 6%, the dividend yield is reasonable, but the RSI is not a stock that grow in value, no matter how good or how bad the economy is going. From what I remember, I never made a capital gain on this one. I am currently experiencing a capital loss of 37.87$ on this stock, which I have to say, is not too bad. However, I would like to reduce my position in Rogers Sugar Inc. (RSI).

In the past for me, it was a dividend rally. My goal was to increase my dividend income. But focusing too much on the dividend income can be a trap. Some small caps can turn into very ugly situation. Here on the dividend girl blog, we have experiment a variety of ugly situation. Remember Yellow Media Inc. (YLO)? That was very nasty ugly. And just recently, Heather Munroe-Blum, the principal and vice-chancellor of McGill University herself resign from involvement in Yellow Media inc. (YLO). I wonder if she’ll resign from Royal Bank as well. Anyway, I don’t care about RBC, I do not hold RBC Royal Bank (RBC) in my portfolio and I don’t suggest RBC as an investment. Back on May 12, 2011, Heather Munroe-Blum was purchasing 10 000 stocks of Yellow Media Inc. (YLO). This is the kind of very fresh lady getting overpaid for what she does and making McGill University students overpaying for their tuition fees.

Heather Munroe-Blum is certainly not a reader of the Dividend Girl blog because on May 3, 2011, me, the Dividend Girl, I was selling ALL of my YLO stocks at 4.65$. It was a genius move. I had been able to cash major part of my investment and following what, I had reinvested the money in Exchange Income Corporation (EIF). A brilliant move that Heather Munroe-Blum certainly didn’t follow. I don't think that Heather Munroe-Blum have a good pulse of the stock market.

Some people are dumb enough to enrol in those so calls best universities. McGill University is considered as one of the best university of the country. But is it the case? I don’t think so. You need to be a dumb to enroll at McGill University, agree to pay thousands of $$$ in tuition fee. I mean come on.

I decided to do better than that. :)

No matter what readers are leaving as comment, I perfectly know what I am doing. When I invest in a stock, the stock is perfectly selected to fit in the gem that is my investment portfolio. I am publishing all of the comments to show the stupidity of the readers. I don’t have anything to proof, I don’t feel like having to debate my points because guess what, the stock market, it’s the kind of stuff I handle well and it’s always getting better, better and better.

Let the Dividend Girl be and EXPLOSE in profit.

Tuesday, January 3, 2012

Is it a plane, a jet, a rocket? No, it’s my non-registered portfolio!

Extraordinary gains today for my portfolio! My non-registered portfolio is at... 115 365.97$! The TSX is performing well and my portfolio is simply following the waive and it’s quite cool.

I received Corby Distilleries (CDL.A) special dividend payment today: a really good 190$! I just can’t wait to see this baby DRIP. I should get a good 11 extra stocks. I had been holding CDL.A for quite a while and their recent special dividend payment is a reward I am getting for having the intelligence to hold the company in my portfolio. I know, I know. Holding can simply be the work of a pure genius. LOL! I also received a 17$+ from Methanex Corporation (MX).

I had been holding for quite sometime and I just cannot wait to see MX flying back to the old 30$ per stock. I made my purchase at half of that price a couple years ago. There’s big profit on the way, especially if the TSX decided to fly straight to the 13 000 points. Which I hope will be soon. If the US can create more jobs and if the situation remain stable in Europe, I may have my chances to get a 200 000$ portfolio value by the end of 2012. Stay tune, we’ll see what happen next.

Data Group Income Fund (DGI.UN) is now turning into a corporation of the name of Data Group Inc. (DGI). In result, Data Group Inc. (DGI) had fly to the very closed 4$ today, closing oday January 3....2012 session at 3.99$.

I had indirectly loss 1 647.87$ with this investment. I made my purchased at 6$+ per share. I am losing a lot on this one but it’s not something that upset me because when I made my investment in DGI.UN sometime in 2011, I was pleased to invest in the company. I loved what I had read about them and I also appreciate their dividend yield. If you had bought this one at an appropriate time, DGI could turn into a gold of mine for you. But if, like me, you had invested in DGI when the units were at 6$+, well, patience my dear. DGI had confirmed that their dividend will remain the same and that they are able to pay it. The dividend yield is now at 17.25%, because of the low value of the stock.

If I wasn’t already holding DGI, I wouldn’t be investing in DGI because I had now turned myself into a blue chips junkie. And it had paid off. Seek for yourself:

Agrium Inc. (AGU)
Investment made: 950.79$
Investment value now: 1 009.54$

Canadian National Railway Company (CNR)
Investment made: 2 144.40$
Investment value now: 2 390.10$

TransCanada Corporation (TRP)
Investment made: 1 016.74$
Investment value now: 1 097.75$

Enbridge Inc. (ENB)
Investment made: 999.51$
Investment value now: 1 057$

Those are among my latest investments and because they are all high quality blue chips, they had provided a really good return in almost no time. I plan to continue this way. The blue chips strategy is working very well for me. I am rocking the TSX as always. The stock market? It’s all MINE. It’s an absurdity under my own power. Fact is, a regular Beauty Queen Next Door can easily make big bucks on the stock market. Investing is simple as ABC once you get the real basics.

But what are the real basic rules of investing by the way?

A few things: diversification in different companies, in different sector. Do not invest too much of your money on the same spot. Derek Foster old picks of the Stop Working and the Lazy Investors are still good for today’s market condition. Don’t be afraid of the market volatility. The stock market goes up-and-down, up-and-down, up-and-down, it’s always the same scheme, especially in a very rough economic situation, so you are better getting use to it. Invest in blue chips. Don’t focus exclusively on dividend yield. Beware of high dividend yield (like the one that used to offer Yellow Media Inc. (YLO). Don’t invest in Quebec companies: Le Château, Yellow Media, all poorly manage companies who only exist to make you lose money. Boost the Canadian market, not the Quebec one.

I guess it’s about it for now when it comes to the stock market super rules. I might be the only goodness investors out there who still hold Timminco (TIM) is her investment portfolio. It was just a matter of time before it happen but it’s happening now: Timminco (TIM), the ex-darling of a so call investor of the name of Eric Sprott ok, well the ex-darling had been suspended.

I guess Timminco (TIM) will go under a major reorganization. Fact is, Timminco (TIM) never recover from the 2008 stock crashes.

Lesson learns from this Timminco (TIM) disaster. What’s the lesson I learn from Eric Sprott who indirectly made be loss 4k of my own cash?


No matter who in the world had recommended you a stock, it doesn’t matter that it is Eric Sprott or anyone else. No one will be there to help you once you face capital loss. Eric Sprott won't be there for you. No one will. Billionaires like Eric Sprott are the modern gansters. Remember that.

And also remember that:


Now that you know all that, you should be doing fine :0)

I follow that tip when troubles began for the really shitty Yellow Media Inc. (YLO) and I had been able to save thousands of dollars. Luckily, I reinvested at the time the money in Exchange Income Corporation (EIF) and just go see for yourself how well Exchange Income Corporation (EIF) is doing at this time.

Exchange Income Corporation (EIF) is among my top performers. Exchange Income Corporation (EIF) is doing better than ever.

I know, I am pretty amazing.

Capital loss? Hummmmmmm. Seem like my top performers like EIF are simply going to simply erase all that.

I am a bit heartbroken to learn that Timminco (TIM) had declared bankruptcy. I was hoping for a recovery. I just hope that Timminco won’t get delisted from the TSX. If it does, I will be losing all my chances of recovery. But in a way, I had enough of having that poor little Timminco in my portfolio.

So bye bye Timminco (TIM). See you next time. See you in hell.

Sunday, January 1, 2012

How to win big bucks on gambling slot machines... or almost

To celebrate the first day of the year 2012, I went for a visit at my local casino. I usually go there once in a while. It was my second visit in a matter of couple days. On my last visit, I had lost 15 bucks. But today, I catch up nicely, as I made 56$. I had feed the slot machine of 20$ and it decided to treat me nicely, ranking to the 76$.

My favorite slot machine game is Cherry Rain. Cherry Rain is a fun slot games. Among the way, I came with some tips that I now followed each and single time I visit the Casino to play at Cherry Rain.

It’s only a game, nothing more

First of all, when visiting a casino, you have to understand that you are not there to make big bucks. The whole thing is a game made for entertainment purposes only. 

Leave your banking and credit card at home

For the past couple weeks, I never played more than 20$ each time I visit the casino. I played 40$ once and lose it all and learned my lesson. I bring my purse and wallet with me, but it never crossed my mind to withdraw money from one of those ATM machine available right there at the casino to just feed up more the machine. To protect yourself, you might like to leave your banking cards and credit cards at home while visiting a Casino.

Cash out when you win

I played the Cherry Rain game a multiple times on slot machines and my best advice will be: whenever you win 20$+, simply cash out.

Each and single time I continued to play following a major winning gain (that would be 20$ and up for me), and that I continued to play, each and single times, I lost everything.

If you make a 20$+ on a slot machine, remember: CASH OUT or you’ll lose ALL the cash. It’s really important to stay in control. Don’t have the slot machine have the last word on you.

That’s how I made 56$ out of nothing today!

Bid more and less, drive the slot machine gambling crazy over you

I like to bid at 45 cents per shot. I sometime decreased the bid at 35 cents. Following what, I increased it at 45 cents, decreased it to 25 cents, and after, increased it to 45 cents. I go on a yo-yo basis. I increased the bid, I decreased the bid, I increased, I decreased, etc. Usually, those casino slots answered well to such treatment.

The following post was made for entertainment only. Don’t ever think that you can make money at the casino or you’ll fall into a gaming trap that can be very evil and ugly.

Thank you

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