Investing Pursuits: January 2014

Sunday, January 26, 2014

Recent Purchase

What do a lot of people do on their way to work? No matter what Canadian province I am in, there is always a huge line ups inside the restaurant and in the drive thru. I decided to make a purchase in this successful business.

On January 24th, I purchased 100 shares of Tim Horton's (THI) on the Toronto Stock Exchange. The purchase price is $59.70 plus $4.95 commission for a total of $5974.95.

Tim Horton's is a restaurant that serves coffees, specialized coffees, teas, donuts, timbits, muffins, soups, sandwiches etc. This is a no frills coffee shop. The morning coffee is a daily ritual for most people on their way to work.

Tim Horton's first store (Tim Horton Donut Shop) opened in Hamilton, Ontario in an old gas station. The restaurant was owned by Tim Horton (Toronto Maple Leaf hockey player) and a police man named Ron Joyce. Tim Horton unfortunately was killed in a motor vehicle accident in 1974. Ron Joyce then bought out the family's share of the business for 1 million dollars.

Currently, Tim Horton's has about 4300 hundred stores, with about 3400 being in Canada. As of Friday's close, THI trades at a P/E 21.13 and a yield under 2%. I believe THI is slightly over valued.

I am going to sell a $60.00 covered call on this stock. I have put in my option order already. I am slightly bullish on this stock.

DISCLAIMER:

Wednesday, January 22, 2014

Blackberry Surge!!!

I recently completed a Trade in Blackberry. My profit from the trade was approximately $165.00 before commissions. I sold my Blackberry shares at $6.60. Blackberry is a risky investment as the company has had it share of problems the last few years resulting in layoffs in the thousands.

Recently, they hired a new CEO to try and turn the company around. The stock close today Jan 22 / 2014 at $11.96. If I would of held on to this stock (that was a trade) I would be looking at approximately gains of $2845.00 .

I like to have an exit strategy in place prior to making a trade, so I don't let my emotions get to me. I believe it is better to take small profits then try to hit the home run. I am happy with my $165.00 profit on my trade. I did not believe Blackberry's stock price would of grown this amount in a short time span, that is a second reason why I did not hold on to the stock to see if there is further upside.

DISCLAIMER:

Friday, January 17, 2014

Trade Update

I discussed in a recently Recent Trade. I sell order went through on Jan 14, 2014.

I sold all 1200 shares of Sherritt International Corporation for a total of 4382.05 including commissions.

Cost: 4284.00
Commission: 9.95
Sell 4392.00
Commission 9.95
Margin Money: 264.30@6%

Profit = (4392.00-4284.00)-19.90-0.30=87.80

Return =[Net proceeds + Dividends - Margin Interest] / [Cost Basis ] - 1
            = (4392-9.95-0.30) / (4284.00-264.30+9.95)-1
           = 8.74%

What if I didn't use margin (Note : This is not a recommendation to use borrowed money)

Return = [4382.05/4293.95] -1
             = 2.05 %

DISCLAIMER:

Shaw Communications

Today, Shaw Communications (SJR.B) announced a dividend increase of 8% annually. The annual dividend rate increases from $1.02 per share to $1.10 effective March 28, 2014. The company is based out of Calgary Alberta. The company surpassed analysts expectations by $0.02/ per share.

"Shaw lost 29619 basic cable and 9323 satellite subscribers in the quarter, while adding 2746 Internet and 1351 digital phone customers" - Canadian Business

It is difficult to get a raise of that much at a job these days. That is one of the benefits of investing in dividend paying stocks. The business continues to grow and profits increase, Shaw rewards its investors by increase their dividend .

Disclosure Long SJR.B

Photo Credit : www.shaw.ca

DISCLAIMER:

Friday, January 10, 2014

Recent Trade

I purchased 1200 shares of Sherritt International Corporation @ $3.57 for $4293.95. I didn't have all the money so I used some margin money, but not much.

                     Cost : $4284.00
                     Commission : 9.95
                     Margin Money : 264.30

"Sherritt is a world leader in the mining and refining of nickel from lateritic ores with projects and operations in Canada, Cuba, Indonesia and Madagascar. Sherritt is the largest independent energy producer in Cuba, with extensive oil and power operations across the island. Sherritt licenses its proprietary technologies and provides metallurgical services to mining and refining operations worldwide. " - Sherritt International

Sherritt International Corporation has announced on Dec 24, the they are selling off their coal business to invest more on their more profitably businesses. The transaction will likely settle close to the end of the first quarter.

Disclosure : Sherritt is a trade position

DISCLAIMER:

Sunday, January 5, 2014

Dividend Update Dec 2013

We are now into January 2014, and it is time to do a dividend update for December 2013. During month I received 10 separate dividend payments from 8 companies that I count as dividend income.

Non-registered Account

Killam Properties (KMP) - $5.56
Shaw Communications (SJR.B) - $17.00
Just Energy (JE) - $46.69
Enerplus (ERF) -$ 44.82
Enbridge (ENB) - $ 2.14

TFSA

Killam Properties (KMP) - $ 13.53
Cominar REIT (CUF.UN) - $ 10.56
Dundee REIT (D.UN) - $ 10.64
Boston Pizza Royalties Fund (BPF.UN) - $23.87
Enbridge (ENB) - $10.40

Total = $185.21

This total represents a 4.31% increase from 3 months ago.

I received two distributions for Cominar REIT this month. Cominar REIT pays on the 15th of each month or first business day if 15th falls on a weekend. They paid a second distribution of equal amount on Dec 31. So there will be no January payment from this REIT.

I also received another distribution payment of $56.00 for my swing trade in Dundee 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 $315.47 in distributions so far on this trade.

I will update my dividend income tab with the new amount.

Disclosure : Long all securities above.

DISCLAIMER:

Friday, January 3, 2014

Portfolio Update Dec 2013

December 2013 is now behind. It is time for the monthly update. During the last month I made a few investments in my two accounts. I increased my position of Dundee REIT in my TFSA. Towards the end of December I increased my position in Scotia Bank.

The following stocks were DRIPPED.
- Enerplus 2 shares @ $19.58
- Just Energy 6 shares @ $7.63
- Enbridge 0.049 shares@ $43.47

During the month I made a trade in Blackberry that resulted in a gain of $160.00 including commissions.

The current value of my portfolio is $55101.53.

I will update my investment tab spread sheet.

Disclosure: Long ERF, JE, BNS, ENB, Dundee REIT (in TFSA)

DISCLAIMER:

Wednesday, January 1, 2014

2013 !!!

The year 2013 is now behind us. I made an incredible increase in my net worth. I ended 2012 with a net worth of $48061.31 and ended 2013 with a net worth of $70418.13. That is an increase of 46.52%.

During 2013, I decided to increase my percentage of paying myself first from 30% to 35%. The markets have been doing good. At the end of every month, I also put the money that is left over into my investing accounts. I also paid down my investment line of credit by approximately $2100. I started the year 2013 not paying any extra on the line of credit. The bank did raise my interest rate so started to make payments on it.

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