Sunday, September 25, 2016

Recent Sale

In the past, I purchased 350 shares of Sherritt International in my margin account at $2.12 per share. Sherritt International has mines located in Cuba, Madagascar, and Canada.

Recently, the results for for the Q2 which ended Jun 30 were released a little while back. The resulting adjusted Q2 loss was $0.39 per share. The combined adjusted operating cash flow was -$0.12 per share. Both of these numbers were also negative for Q1. You can get a rough idea of the company struggling, by the fact sheet (courtesy of investor relations).

With the company struggling due to the price of nickel and the over supply of nickel, the company filed to have the maturity dates moved out on their debentures and these extensions have been approved. You can get more information on this issue by clicking here.

With the company struggling  for the foreseeable future and the fact they do not pay a dividend currently, I decided to  unload my shares at 350 shares at $0.82 per share. The cash as a result of this sale can be better used in a company that pays dividends.

DISCLAIMER
I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.

Saturday, September 17, 2016

Comments from Actual Blogger

Recently, I have been getting comments on random posts of mine from the username of BLOGGER. These comments appear to be advertisements or spam. Does anyone else have this same issue who are using blogger as their host? I figure I received around 10 of these comments in the last 2 weeks and have had to removed those comments.



Sunday, September 11, 2016

Option Trade

      I am looking to establish another position with Toronto Dominion Bank. The stock is currently trading around $58.00 a share after the recently earnings of all big 5 banks.  Some of the banks have raised their dividends in the last month.

     On Sept 6, I sold 2 put contracts on TD with a strike price of $56.50 and expiration date of Sept 30.  I collected a total premium of  $38.05 after commissions.

Summary:

Strike Price: $56.50
Total Premium Received : $38.05
Days to Expiration: 24
Current Annual Dividend = $2.20
 Option Assignment Fee = $24.95

Scenario #1 :  Option not assigned

Total Return = $38.05 / (2*100*$56.50)
                     = .0034
                     = 0.34%

The total return for 24 days is 0.34%.  The annualized return is 5.12%.  My high interest savings accounts pays an annual interest of 0.80%.

Scenario #2:  Option is Assigned 

Adjusted Cost Base  per share= [2*100*56.50 - $38.05 +$24.95] / 200
                                                = $56.43

Yield on Cost = $2.20 /$56.43 *100 %
                       = 3.899%

What would the yield be if shares purchased directly?

Commission = $4.95

ACB/per share = [2*100*56.50 +$4.95 ] / 200
                         = $56.52

Yield on Cost = ($2.20 / $56.52) * 100%
                       = 3.892 %

Disclosure:  I do not own any shares of TD in any accounts as of this writing.

DISCLAIMER
I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.

Saturday, September 3, 2016

Dividend Update - Aug 2016




      The month of August is another month of dividend income landing in my accounts. This money is used to help pay my expenses if it is needed. If the money is not needed, it is ALL used to purchase new investments to further increase my cash flow.

       The markets continue to go higher in the month of August.  The big banks in Canada all recently reported earnings.  Some of the big banks even raised their dividends.  On the flip side, the price of a barrel of WTI Crude Oil fell below $45.00 a barrel. 

      One thing for sure, is that I was paid dividends and distributions for being a shareholder or unit holder in  various companies or funds.

 Non-registered Account

  • Bank of Montreal (BMO) - $30.10
  • Emera (EMA) - $52.25
  • Enerplus (ERF)  -$ 5.58
  • Potash Corporation of Saskatchewan (POT) - $32.39
  • Shaw Communications (SJR.B)    - $19.75
  • TD Bank (TD) - $55.00
TFSA
  • Boston Pizza  Royalties Fund (BPF.UN)   - $26.91
  • Claymore 1-5 yr Laddered Corporate Bond ETF (CBO)  - $0.63
  • Cominar REIT (CUF.UN ) - $5.39
  • Dream Office REIT   (D.UN)  - $ 17.50
  • Killam Properties REIT (KMP.UN) - $  15.10

Total = $260.60

        This total represents a -14.23% decrease from 3 months ago and 0.0038% decrease year over year.
 
  I also received another distribution payment of $37.50 for my swing trade in Dream Office REIT in my non-registered account. This is not listed above since it is a trade, so I keep the money in the account and do not pay myself first with this payment. I have received $1996.47 in distributions so far on this trade.  Dream REIT has reduced the amount of distribution they pay monthly which was announced in February.  Recently, I wrote about purchasing more units of D.UN inside a margin account.  Starting in September, the distribution from this D.UN inside the margin account will be included in my dividend income.

     I will update my dividend income tab with the new amount. It is great to see money from passive income sources deposited into my brokerage account every single month.

How was your dividend income for August?

Disclosure : Long all securities above.

Photo Credit: www.mipaq,co.za

DISCLAIMER
I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.


Friday, September 2, 2016

Portfolio Update - August 2016

     The month of August 2016 is now behind us.  One of the major issues still facing the world is the low price of a barrel of crude oil, which is currently below $45.00 a barrel. This creates uncertainty in many oil producing regions especially in Canada. 

     On Aug 21, I wrote about purchasing 300 units of Dream REIT (D.UN ) in my margin account, which you can read about here.  This brings my total units of D.UN in my margin account to 600 units. The previous 300 units I have owned for awhile, which I didn't count as income.  The REIT pays a monthly distribution of $0.125 per unit.  These 600 units will pay me a distribution of $75.00 a month, which will be counted in my dividend income updates starting for the month of September.

    On Aug 28,  I wrote about option trades involving Potash Corporation of Saskatchewan (POT) and Royal Bank (RY).  I currently do not own shares of Royal Bank.  Agrium  and POT, which are competitors in potash mining space, have announced they are in merger talks.  This lead to a increase the stock price of POT to over $23 a share on the Toronto Stock Exchange.

    On Aug 28, I wrote about a new purchase in IAMGOLD Corporation, which you can read about here.  By clicking on the linking, you can read about my actions as the stock has fallen from my purchase price of $5.84 per share.

    Last month I initiated a position in HNY, which is the Horizons Natural Gas Yield ETF.  I recently sold my units at a small profit, and then re-initiated a position today of 100 units at a price of $15.80 per unit for a total cost of $1580.35 including commissions.


As of Sept 1 2016, the value of the portfolio is  $94743.50.  This is a 2.186% increase over last month's total.  The spreadsheet in the investment tab above has been updated.

Disclosure: Long  all mentioned securities.

Disclaimer:

I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should be NOT taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk

Monday, August 29, 2016

Trading Account Update

As previously stated on this blog, that I have started a trading account with a balance below $1000.00.   I started to add $50.00 every two weeks but that has stopped due to a recent job loss.  The following table shows my stats from the start of 2016:

                                # of trades :                 22
                               Total Capital added:    $250.00
                               Trading Acct Balance:  $ 2180.46
                               Average Drawdown:   $29.22
                               Average Loss:             $51.83
                               Average Accuracy:    86.36%
                               Average Risk:              $36.39
                               Average Reward:         $67.25
                               Average R/R :             1: 1.848

     
       I have been trading penny stocks, stocks, REITS and options.  Any dividends that will be received from this account with stay within the account.

Note:  The trades are listed under the Trading Tab above with all the trades listed as of Aug 28, 2016

DISCLAIMER
I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.

Sunday, August 28, 2016

Recent Buy

    Image result for iamgold

  On Aug 23rd of 2016, I purchased 300 shares of IAMGOLD Corporation  at $5.84 a share.  THe total cost of this purchase is $1756.95 including commissions.

 IAMGOLD (www.iamgold.com) is a mid-tier mining company with four operating gold mines on three continents. A solid base of strategic assets in North and South America and West Africa is complemented by development, and exploration projects and continued assessment of accretive acquisition opportunities. (source: www.iamgold.com)

       I was attempting to sell covered calls with a $6.00 strike price, but the stock fell over the next couple of days.  So I decided to average down.  But I didn't buy additional 300 shares directly.  I sold 3 put contracts with a $5.00 strike price and an expiration date of Sept 16, 2016.  I received a premium of $53.05 after commissions.  If the stock goes sideways or stays above $5.00 at expiration, I keep the premium.  If the option is assigned, I will have bought 300 additional shares at a reduced cost basis.

I will update my investing tab spreadsheet in early September.


DISCLAIMER
I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.