Well the first quarter is completed and what a few months it has been. TSX is up something like 12%, crazy. My job has really put a kink into things this month and how much attention I had on the market. Knowing that my next couple months will be pretty busy, we put money to work and made many purchases in March. Before I break everything down I always share what my family and I have been up too, to keep it somewhat personable:
- Z and C got brand new bikes as nice weather has approached early in Alberta
- Z passed another level in gymnastics
- The kids got to go to their cousins birthday and Z got to ride a horse for the very first time
Z on a horse
Now lets get down to business
As you know if you have been following I’ve slightly changed my strategy using 5-10% of the portfolio to trade mainly well respected companies when short term noise has hurt the stock price by purchasing these companies and then moving on to the next candidate. This month was great with a gain of $650.94 by making two sell’s which I’ll discuss below? This bring’s the 2019 total to $2,066.79 not including any dividends received.
Sold my full position in EIF of 120 shares @ $33.33
I love this company and added a small position back later in the month however it was a 15% profit in a short period and wanted to lock in some profits.
Sold XLY.VN after holding for a month and went up massively in a 3 day window which gave me the opportunity to get out with an 8% profit in about 5 weeks of holding.
Added 120 shares of SIS @ $13.40 to bring our position to 240 shares
Who is SIS:
Savaria Corp designs, engineers, and manufactures products for personal mobility. Its products include home elevators, wheelchair lifts, commercial elevators, ceiling lifts, stair lifts, and van conversions. The company’s operating segments are the Accessibility, the Adapted Vehicles and the Span divisions. The Accessibility segment deals with manufacturing, designing, installing and distributing elevators, platform lifts and stairlifts for people with mobility challenges.The Adapted Vehicle segment adapts vans to be wheelchair accessible for people with mobility challenges.The Span segment includes the manufacturing and distribution of a comprehensive line of therapeutic support surfaces and other pressure management products for the medical market.
Anyone that follows me knows I love the senior living sector. Lets face it the baby boomers are retiring over the next 10-15 years and I personally believe this is a great place to be. SIS has a confident dividend of 3.25% with a recent increase. They just recently announced year end numbers which came in at their best year ever for revenue and EBITDA. I bought this one at the perfect time. If this gets close to $16 I will more than likely take some profits as they have reported that the first quarter will be a bit weak.
Purchased 500 shares of CHR, 200 @$7.47 and 300 @7.18
Who is CHR:
Chorus Aviation Inc is a Canadian holding company. It aims to deliver regional aviation to the world through its businesses. The company operates an airline with aviation interests including Jazz Aviation LP (Jazz), Voyageur and Chorus Aviation Capital. It specializes in contract flying, maintenance, repair and overhaul and aircraft leasing solutions. Through Jazz’s operations, the company provides a significant part of Air Canada’s domestic and trans-border network. It offers scheduled air passenger services on behalf of Air Canada to destinations in Canada and the United States. The company gets a majority of its revenue from Passenger services.
Chorus recently announced an extension agreement with Air Canada which will bring them to 15 years from now and since Air Canada is their biggest customer this is really good news for the company and the dividends they pay. Dividend is over 6.5% currently. I’m happy to sit back and enjoy the ride with this one.
Purchased 45 shares EIF @$32.79
Who is EIF:
Exchange Income Corp is Canadian diversified acquisition-oriented corporation focused on opportunities in two sectors, aviation services and equipment, and manufacturing. In particular, the company is focused on businesses that are suited for public markets, except, in certain circumstances, for their size. The business plan of the Corporation is to invest in profitable, well-established companies with strong cash flows operating in niche markets. The Aviation segment recognizes revenue on the provision of flight, flight ancillary services, and the sale or lease of aircraft and aftermarket parts. The Manufacturing segment recognizes revenue on the sales of manufacturing products and services.
EIF is very well diversified with multiple companies under their umbrella such as: Perimeter,Keewatin Air, Jasper Tank, Overlanders Manufacturing, Stainless, Water Blast, Calm Air, Bearskin, Westower Canada, Custom Helicopters, Regional One, Provincial Aerospace, Ben Machine Products, Quest Window Systems,Moncton Flight College and a couple being finalized within the past few weeks. EIF has also increased their dividend for 14 consecutive years! They carry a PE ratio of 15 which is below it’s 5 year average of 29. They had an awesome year end and life their future.Unchanged interest rates will benefit them short term, if interest rates start creeping up this one will be looked at closer.
Purchased 75 shares NPI @$24.13
Who is NPI:
Northland Power is an independent power producer founded in 1987, and publicly traded since 1997. Northland develops, finances, builds, owns and operates power generation facilities in Canada and internationally that produce energy using wind, natural gas, biomass, and solar technology.
Renewable energy is the future. They have many different ways of producing energy and have diversified themselves globally. $24.13 a share is fairly valued here however the potential growth over the next year is about 15.5%. PE ratio is just over 15 currently and revenue is consistent. Debt has been coming down since September and interest rates increases look like they are going to pause for a while which is good for them. I’m happy to collect a nice monthly dividend as well with a good chance of increase this year. If the stock gets to around $25 i will reassess based on earnings and future outlook.
Purchased 180 shares CAS @$8.45
Who is CAS:
Cascades Inc, along with its subsidiaries, produces, convert and market packaging and tissue products composed mainly of recycled fibres. The company is organized into four main business segments: Containerboard, Boxboard Europe, Specialty Products (which constitutes packaging products) and Tissue Papers. Business activity of the company is functioned through Canada, United States, Italy and other countries. Its customer base includes food processing companies, maintenance industry, accommodations and housing industry, micro-businesses, and boutiques.
This stock has been absolutely hammered with a loss in the 4th quarter and news of the closing of 2 paper tissue machines. The good news “I think” is they are buying back 2% of all shares which will reduce the amount of shares on the market and brings additional value to the remaining. In my mind this was a big oversell and a great time to step in. Expected annual growth is 13.4% and dividend payout is only 26% currently which leaves them quite a bit of cash to focus on debt. As long as interest rates stay where they are I will be happy to hold this one.
Dividend increases or decreases
XTC increased March payment by 9.5%
SU Increased March payment by 8.5%
No dividend cuts
2016 – 2017 – 2018 – 2019 Dividends
Dividends received in March were $236.18 which is a slight increase year over year, either way the trend is clearly on the rise.
Dividends received per stock
My watch list only consists of bank stocks and really just sitting back eating some popcorn. Not sure how low they could fall but this will definitely create a very nice buying opportunity. What do you think of the banks? Are they oversold or are they finally coming back to reality?
Currently almost fully invested but will be adding some cash and possibly adjusting the portfolio to free up some cash. Look out for my next post on my 2019 goals that is updated each quarter, until then:
INVEST IN YOURSELF