Wow how the month has gone by. Its been a fairly busy month
Here are a few things we have been up to:
- Went to Jasper for a conference for our home based business
- Z passed another level in swimming, little fish she is
- Celebrated my wife’s birthday
Here’s a few picture’s
Some of the greatest moments are when you don’t know a picture is being taken
Wife and I when we were in the 60’s
Quality time together was needed
Now lets get down to business
Portfolio details:
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. Last month it worked well with a profit of $1,055.17. So the question is how well did this strategy work out in February? Well I made a profit of $536.33. Which bring’s the 2019 total to $1,415.85.
Trades made within the month not mentioned below were 200 shares of CHR.TO and 50 shares of MFC.TO
Sold
Sold my full position in NPI of 70 shares @ $24.87
This stock is fairly valued and decided to take a 10% profit on a company that i only held for less than two weeks. Planning on adding back later in the future
Sold my full position in ENB of 18 shares @ $47.36
Great company however has gone up way too fast in my mind anyway and decided to step aside for now and take a profit.
Sold half my position in ZZZ of 75 shares @ $22.00
I love this company however I just purchased this portion of shares a couple weeks back and it went up very quickly. I bought these shares before the ex dividend at $20 and sold right before earnings. This was a 9% profit. I will continue to hold as I love the Endy purchase late last year.
Sold 85 shares of CSH.UN @ $14.72
I was heavy on CSH and wanted to free up some cash. I still have a strong position and will continue to hold as i love the future. This was a profit take of 9 1/2%.
Purchased
Purchased 120 shares of SIS @ $13.15
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.
My why:
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. Happy to hold long term.
Purchased 35 shares of SU
Who is SU:
Suncor Energy is one of Canada’s largest integrated energy companies, operating in western Canada, east coast Canada, the United States, and the North Sea. The upstream portfolio includes bitumen, synthetic crude, and conventional crude, which helps to offset higher-cost oil sands production. Suncor’s upstream production is supported by its refining operations, which have a capacity of 462 thousand barrels a day. Production averaged 685 mb/d in 2017, and the company estimates that it holds approximately 7.5 billion barrels of proven and probable crude oil reserves.
My why:
I spend time at their Refinery in Edmonton and they are by far one of the most responsible companies cost wise. They are set up for the future. I believe oil and gas is on it’s way back and so does Warren Buffet as he just opened a new position in them in the last quarter of 2018. Dividend is currently around 3.75% with a recent increase as well. 5 year pe ratio average is in the range of 55 so this can definitely go higher on price as well.
Purchased 350 shares TOG @$4.66
Who is TOG:
TORC Oil & Gas Ltd engages in the exploration, development, and production of oil and natural gas reserves in the southeast Saskatchewan area. Crude oil constitutes an overwhelming majority of the production mix the company gathers from its assets. TORC gains access to its assets through government issued royalties and uses various techniques to identify hydrocarbon reservoirs. The company focuses heavily on light oil resource plays and relies on a three-phased strategy of resource capture, delineation, and production growth.
My why:
I like oil and gas right now and this is a buy on fear kind of play. TOG is a very well managed company. They now have positive cash flow which is massive in this sector. 85% of their assets are not impacted by wide differentials. Trades at 4.5x cash flow vs. historic of 8x. Dividend is close to 6%. At current prices this should be trading closer to $6/share.
Other buys that don’t pay a dividend were ACB and XLY
Dividend increases or decreases
February T
No dividend cuts
2016 – 2017 – 2018 – 2019 Dividends
Dividends received in February were $139.68 which is well above the $97.74 received last February. The trend line looks promising.
Dividends received breakdown
| Stock List | January | February |
| CSH.UN | $10.83 | $14.99 |
| CJ.TO | $2.61 | $2.62 |
| NVU.UN | $27.97 | |
| PLZ.UN | $8.87 | $8.91 |
| ARX.TO | $8.60 | $8.60 |
| ALA.TO | $5.36 | $5.36 |
| CPG.TO | $1.59 | $0.00 |
| ENB.TO | $0.00 | $0.00 |
| EXE.TO | $6.92 | $6.92 |
| FRU.TO | $5.99 | $5.99 |
| GH.TO | $5.18 | $5.18 |
| SIA.TO | $8.80 | $8.80 |
| SPB.TO | $8.22 | $8.22 |
| EIF.TO | $10.04 | $21.90 |
| REBATES | $0.00 | $0.00 |
| DIV.TO | $0.44 | $0.44 |
| MFC.TO | $0.00 | $0.00 |
| XTC.TO | $0.00 | $0.00 |
| POW.TO | $0.00 | $0.00 |
| CHW.TO | $7.00 | $7.00 |
| TD.TO | $0.00 | $0.00 |
| ZZZ.TO | $0.00 | $27.75 |
| NPI.TO | $0.00 | $7.00 |
Currently sitting at around 12% cash to jump in when ready
My watchlist consists of the following:
NPI,MFC,TD,ZZZ,N,CHR,
Overall another great month with the new strategy. What is on your watch list? looking to add to mine at this current time, preferably great companies that haven’t got the love they deserve.
See you next month and remember
INVEST IN YOURSELF
Brian
Quick question for you.
With your 10% fund of quick trading for profit, are you doing this in a cash account, or TFSA?
Just wondering about the tax implications of quick trades in a TFSA. I’ve heard Revenue Canada frowns on this.
Also, if done through a regular cash account (non registered), then do quick trades like this still qualify for the capital gains taxes exemption (paying on 50% of profit), or is it considered as regular income like day trading?
Hey Alana,
The trades are not as quick as it sounds. Some are trades over a month and some are over a couple weeks.
I do this within a TFSA. What I have read is you cannot day trade (making multiple trades on a specific stock all in one day). You also need to be making piles of cash for them to even consider going after you, those that they have went after had TFSA accounts above 1 million dollars. The criteria they put out is very gray and if they really want to go after the smaller people they will need to be more specific on what you can and cannot do. This is part of why I only use 5-10% and the rest is all long term holds. They have never gave me a tax break on my losses several years back which they probably consider before auditing. This of course is how I have interpreted the information and it is my opinion on the matter.
Here is some more info that may help you decide
https://www.reddit.com/r/PersonalFinanceCanada/comments/7sbnvm/what_does_th_cra_consider_day_trading_in_a_tfsa_i/
I believe profits within a non registered account is taxed at regular income, I have no interest in using this account until my TFSA for both my wife and I and our contribution room on RRSP is maxed which at this point would be many years away.
Hope this information helps
Brian
Thanks for the speedy reply, Brian.
It’s in line with what my thinking was.
You’re so right that the criteria of trading within a TFSA is grey.
nice brian
congrats on the yr over yr growth and profit from those trades.
Thats a interesting concept, i have thought of selling a portion of my winners and deploying to lower stocks.
still debating it though.
keep it up
cheers!
Thanks ROb
Year over year is starting to show just where this strategy can go into the future.
I’m basically doing this will companies that have their stock price move very quickly. I also look at it if the stock can rise 20% in a month it could likely fall that much as well. It will be interesting to see how this pans out, so far I love it.
Brian
I always have difficulty in knowing when to sell … do you have a certain (%) that you follow when making the decision when to sell or is it a gut feeling?
Thanks, Michelle
I don’t know if there is a right or wrong answer here. I generally sell if the stock goes up too quickly with not a lot of indication on why. Buy on fear sell on greed and only on solid companies that your comfortable holding for many years.