Social Icons

Monday, January 23, 2012

Watch out, DNI Metals Inc. (DNI) is in fire

My non-registered portfolio closed today session at a very good 117 313.28!

Also today, DNI Metals Inc. (DNI) had gained 6.38% and closed today session at 50 cents. This is actually really good because I now have more than double my initial investment value in DNI Metals Inc. (DNI). Yeah! Is 2012 going to be the year where DNI is going to switch from a penny stock to a dollar stock? Maybe.

Very good result for my portfolio today overall. I cannot write more, got to go. My art class is tonight.

Sunday, January 22, 2012

I love trouble

This morning, the temperature is of -28 Celsius Degrees in X town of New-Brunswick! Very cold! See for yourself:


 
In this cold Sunday morning, what can I do better than checking over my investment portfolio? Seem like TD Waterhouse system is down this morning. I have to say, it’s been a long time since I wake up at 8am on a Sunday morning, so I don’t know if this is normal or not. But I know for sure that TD Waterhouse usually performs maintenance in their system around midnight Eastern Time every Saturday night.

Anyway, I don’t need to access my portfolio in order to discuss the topic of this morning.

So far, everything is great financially speaking. Otherwise it’s another story, but I won’t talk about the other stuff for now, at the exception that my father is very sick. It’s been a week now and he has a hard flue to get over. It’s the reason why I am not sleeping in this morning. It’s the only reason why lol.

It would have helped me to have access to my portfolio because I wanted to look at my troublemaker stocks. The profile of a troublemaker stock? I name troublemaker stocks the stocks that are not stable in value. Usually speaking, those pay a high dividend yield (it’s the reason why I got enroll in them at the first place).

A high dividend yield does not equal a high quality stock.

That’s something I learned among the way. A stock should never provide more than around 8% in dividend yield. After the 8% mark, it’s an exaggerate dividend yield payment that could potentially caused damage to the company in bad economic time like we are in right now.

Beginning of 2011, the only thing I wanted was to increase my dividend earning. And in order to do so, I simply invested in companies who were paying a high dividend yield. It wasn’t exactly a good decision because I had experimented capital loss in term of holding.

In my portfolio, I want it all. I want a good dividend payment, I want to experiment grow inside my portfolio and I also want a portfolio that won’t decreased in term of value. Having it all represent a lot of work. And it also mean not being scared of restructuring your portfolio when you are been giving the opportunity to do so by the stock market. We’re going to discuss of all those things. Interesting? Oh yeah for sure.

In my non-registered portfolio, here are my troublemaker stocks:

EnCana Corporation (ECA)
Canfor Pulp Products Inc. (CFX)
New Flyer Industries Inc. (NFI)
Rogers Sugar Inc. (RSI)
Colabor Group Inc. (GCL)
Data Group Inc. (DGI)
Kinross Gold Corp (K)

EnCana Corporation (ECA)

In 2010, I initially invested 5 946.88$ in EnCana Corporation (ECA) in my non-registered portfolio. I also hold EnCana Corporation (ECA) in my RRSP broker account. Currently, the closed to 6k invested worth half of it. I invested in EnCana Corporation (ECA) when its stock value was somewhere around 30$. Back in the time, I taught that ECA was going to hit it old 60$+ value. You can imagine how excited I was following my investment in ECA. Since that time, ECA increased a little bit in value but in the recent months, EnCana Corporation (ECA) had decreased in value to reach as low as 17 buck per stock.

There’s a demand for natural gas, it’s just that it’s being sell at very low price. EnCana Corporation (ECA) has good gas reserved and had made many improvements to their business. ECA has also been for a little while a Derek Foster stock. So all those combines together, I think it would be a mistake to sell ECA at this time because ECA can easily trade back again at 20$ per stock, if not higher.

While investing in stock, I always invest for the long term. Hopefully, ECA will recover and hit back the 30$+ once the economy get better – one day.

Canfor Pulp Products Inc. (CFX)

I am naming here Canfor Pulp Products Inc. (CFX) as a troublemaking stock but it’s not really. The stock market is a very hard place to be. I am naming here CFX as troublemaker stock because in the past week, CFX title had been volatile. However, Canfor Pulp Products Inc. (CFX) quickly rebound. But at the time it crash, I really taught oh nooooooo not another troublemaker. LOL. That’s really what I taught. But I always like CFX and continue to happily hold it in my portfolio. I invested in Canfor Pulp Products Inc. (CFX) in January of the year 2011. Since that time, CFX grow in value. Lately, CFX decreased in value. I actually hold it at a lower price that I bought it.

CFX is an interesting BC company that manage business in the wood, forest industry stuff like that. It’s reliable. The dividend payment is good. I don’t have any problem at holding CFX and I would recommend to anyone to just stick-and-hold. After all, you’ll have some problems to get a better quality stock in that sector.

Canfor Pulp Products Inc. (CFX)? A bit of troublemaking but I still like it.

Rogers Sugar Inc. (RSI) and Colabor Group Inc. (GCL)

Recently, I took care of Rogers Sugar Inc. (RSI) and Colabor Group Inc. (GCL). I had close to 2k invested in RSI and GCL. I considered having too much money invested in those 2 trouble companies. Luckily RSI and GCL had gained in value recently. That allows me to partly sell RSI and GCL. I still hold RSI and GCL in my portfolio. RSI and GCL may be volatile and be troublemakers, but I still have enough consideration for them to still hold them in my portfolio. I reinvested the money collected this way in Canadian Utilities Limited (CU) and Veresen Inc. (VSN).

Data Group Inc. (DGI)

The only reason why Data Group Inc. (DGI) is from my troublemaker stock is that I initially invested in DGI stocks when they were at 6$+ each.

Currently, DGI is at 4.89$. I have hope that DGI will gain in value. The dividend yield is of more than 13%.

The company declared a couple of months ago that it will be able to continue to pay this kind of dividend. Since I have a DRIP, the dividends earned from DGI are being automatically transformed into stock. This will certainly played in my favour on the long run. And one DGI rebound, I would to sell a bit of what I hold in them.

I don’t like the capital loss that I am currently experiencing with DGI, but that’s part of the game. Don’t expect all of your stocks to be that extra good investment. Like never.

Kinross Gold Corp (K)

I used to have some stocks of Yellow Media Inc. (YLO) in my portfolio. I was fortunate enough to sell my stocks at what I remember being a bit more than 4$ per stock. That was just before YLO become trading for a few pennies. Selling YLO was the best decision I ever made. Following my sell of YLO, I reinvested the thousands of dollars collected in Kinross Gold Corp (K).

Selling my stocks of Yellow Media Inc. (YLO) was the best decision ever, but reinvested all of the money in Kinross Gold Corp (K) wasn’t.

At the time, gold was cool and I didn’t have invested that much in gold. At the time, K was considered a Strong buy by some analysts (they probably don’t worth sh*it) lol. When it come to finance, never trust no one, especially not anyone from BMO Bank of Montreal (BMO).

My invested in Kinross Gold Corp (K) decreased in value because they are having problem with a gold mine they have in Mexico or somewhere. Very frustrating. But that’s part of the game when you become an adventurous investor.

Derek Foster Canadian stock picks were amazing. PPL, CDL.A, ENF, etc. I made thousands of dollars from Derek Foster picks and I probably own him more than just kind words on my blog but that’s all what he’s going to get from me anyway. Lol. All this to say that everything was much better for me when Derek Foster was an investor oriented over his own stock Canadian market. But now, from what I understand, he exclusively holds US stocks and I find it so frustrating. Why in the world an invested like Derek Foster would say F U to the Canadian stock market and exclusively invest in US stocks? WHY? I would like to know why Derek Foster says F U to the Canadian stock market.

LOL. ;)

So here I am, trying to pick stocks for myself and it’s working....... kind of well overall.

Personally speaking, my goal is to boost the Canadian stock market from my little savings and you know, just be there, make a fortune from my stocks in a crazy style.

The only reason why I did not experimented capital loss in the overall value of my portfolio is 2011 is because we, Canadians, have the best stock market of the world. It’s the only reason why.

Overall, my experience with stocks had been very positive. My non-registered portfolio is at 116k+, my dividend income had been of 7k in 2011 and it will probably be the same if not a bit more for 2012. Everything is going fine, but it required a lot of work just to follow all of those stocks. It was my decision to have an X-LARGE portfolio and I don’t regret it. Not at all, even while holding troublemaker stocks.

Wednesday, January 18, 2012

A piece of me

Go see it here.

For those who really love me, and for those who really don't, it's your chance to get a piece of me. Lucky you!

:)

Spectacular me, spectacular Westernone Equity Income Fund (WEQ.UN)

Today, Westernone Equity Income Fund (WEQ.UN) decided to be hot and closed today January 18 of the year 2012 session OVER THE HEDGE! WEQ.UN finished the day at 7$ per stock. So far, I am experiencing a capital gain of 598.01$ on Westernone Equity Income Fund (WEQ.UN) and I own it all to a special reader.

Currently, my non-registered portfolio is at 116 405.03$, even while having a few troublemaker stocks in my portfolio. Those being NFI, DGI, SII and now, K. Kinross Gold Corp (K) is currently trading at less than 11$ per stock, very unfortunate. On the other hand, I have some stuff like my latest investment, VSN that are performing well so far. TRP, ENB, ENF, JE, MX, KBL, PPL etc. etc. etc. 

My margin value is closed to 20k by the way.

:)

I am currently thinking about taking a small 1k from my margin and apply it as payment on my credit line at 7.52%.

Nothing much today, except that WEQ.UN decided to be, just like me, totally spectacular. lol.

Monday, January 16, 2012

Welcome in the house Veresen Inc. (VSN)!

I had been looking at this little one for quite a while! And now, things had been done, following my sell of some Rogers Sugar Inc. (RSI) stocks.

I had invested in some stocks of Veresen Inc. (VSN) at 15.11$ each today. Welcome in my investment portfolio Veresen Inc. (VSN)! Great to have you aboard!

Why did I pick Veresen Inc. (VSN)?

Because, first of all, of its very AWESOME chart. The chart goes up-up-up all the way from its early beginning until today! VSN went down following the stock crash of 2008, like many other stocks that I hold, but it quickly gains back in value. And since that time, well, just an awesome chart.

Also, Veresen Inc. (VSN) dividend yield is extra sharp: 6.809%. This is a reasonable dividend distribution yield and on top of that, it’s being paid monthly. Also today in my portfolio, we welcome some very great dividend income coming from Colabor Group Inc. (GCL) (58.13$) and Premium Brands Holdings Corporation (PBH) (126.13$).

Also today, the spectacular DNI Metals Inc. (DNI) has decided to ROCK the Venture once again to climb the 42 cents per share, this bringing my investment in DNI to close to 1 200$. If I would be selling my DNI stocks now, I would be making a profit of 740$+. But since I am this very good investor (yeah yeah yeah!!), I won’t be selling my DNI stocks any time soon. Hold on DNI and stay tune because 2012 is going to be a rocking year for u!!!

Eric Sprott silver babe is on the high too! I made good gain in my TFSA today.

$$$

Friday, January 13, 2012

Reviewing my position within the troublemaker stock, I have name: Rogers Sugars Inc. (RSI)

Today, I did something I wanted to do for a real long time: I partly sell my holding in Rogers Sugars Inc. (RSI). I made my investment in Rogers Sugars Inc. (RSI) back on February 1, 2011. Since that time, I never had been able to make real good capital gain on RSI. Yesterday was a good day for RSI and it was the same today. While giving a quick look at my stocks today, I notice that RSI was still on a high for a second day on a row.

I am not a passive investor. When a stock fails at giving me what I want, I take care of business.

I had been lucky enough to have the opportunity to sell some GCL stocks at a good price. Just like RSI, GCL is another of what I have named around here as being troublemaker stocks. A troublemaker stock profile is the following: a too high dividend yield, unstable in the value in good like in bad market condition, no capital value gained been realized on the investment even after more than 6 months of being hold.

Once you hold them in your investment portfolio it’s terribly difficult to get rid of a troublemaker stock. Why?

Let’s take my example with Rogers Sugars Inc. (RSI). Back in February 1, 2011, I had invested in 300 stocks of Rogers Sugars Inc. (RSI). Since that time, because I am registered to an automatic DRIP for everything that I hold, the dividend distribution I received from RSI has mostly been reinvested to generate extra stocks of RSI. With those reinvestments, my book value was, until today, 5.57$ per stock.

It’s difficult to get rid of a troublemaker stocks because their value is unstable. Chances that you can eventually sell a troublemaker stocks at profit is very low. Most of time, the selling generate a capital loss. In this case, I have sold today more than 200 stocks of Rogers Sugars Inc. (RSI) at 5.56$. I am loosing here 20$. I still have some stocks left of RSI in my portfolio, but now, I don’t even have 100 stock of RSI.

Today, after broker commission fee, my sell of Rogers Sugars Inc. (RSI) generate 1 229.89$. It felt great to reduce my holding in RSI!

So far for January 2012, I had been able to reduce my position in 2 troublemaker stocks: Rogers Sugars Inc. (RSI) and Colabor Group Inc. (GCL). This is very great because I had been waiting a long time to do this.

Another troublemaker stock of mine is Data Group Inc. (DGI). I had bought some stocks of DGI at more than 6$+ per stock. Since that time, DGI value went below 4$ and it never went back to the 6$+. I don’t have problem with holding DGI at this time. When I first invested in DGI, I did so because I really like the company. No matter what, I am currently experiencing a capital loss of 1 587$ on this investment.

DGI recently transform into a corporation and since that time, DGI gained in value. It’s a course a bit scary to experiment this capital loss on Data Group Inc. (DGI), but you have to understand that there’s really nothing that the Dividend Girl cannot handle.

Fact is, an investor need to have the courage to make some change to its portfolio when its truly needed.

Next step will be to find a very great company to invest my freshly 1 229.89$ that been suddenly liberate from my sell of some RSI stocks.

When I decided to sell my troublemaker stock, I usually don’t sell them completely. I usually keep a small amount of shares in my portfolio, just as a souvenir that at some point, I had been sexy and adventurous. 2012 will mark my first 5 years of stock investment. So far, its look like this fifth year is going to be very amazing.

I am never getting enough of that TSX sublime stock market. Like never.

Thursday, January 12, 2012

My Canadian Utilities Ltd. (CU) is increasing its quarterly dividend by 10 per cent

Not too long ago, I add Canadian Utilities Ltd. (CU) in my very s-p-e-c-i-a-l and h-o-t portfolio and now, guess what, in result of me being in CU, CU couldn’t do it better... Canadian Utilities Ltd. (CU) has increased its quarterly dividend by 10 cent.

This increase will be apply to the dividend distribution of March 1, for stocks hold of CU for at least 3 BUSINESS TRADING DAYS BEFORE February 7. It will make it so much less confusing if everything was explained so explicitly.

My fabulous Canadian Utilities Ltd. (CU) will provide a 40.25 cents dividend per share.

Kind of cool isn’t? If you want to be part of the coolness remember: 3 business days before February 7. And now, what are you waiting for? Go get some Canadian Utilities Ltd. (CU) stocks now. Like right now.

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.
 

Thank you

Thank you for visiting!
 
Blogger Templates