Saturday, November 1, 2014

Portfolio Update - October 2014

      The month of October 2014 is now behind us.  During the month of October, the overall market dropped. With the world events of what is going on in Iraq and the health epidemic of Ebola weighed heavily on the markets.  We have seen huge drops in energy stock prices over the course of the month. This has heavily impacted my portfolio has one of my stocks, Enerplus, is a major holding for me.  Enerplus is directly involved in the production of crude oil and natural gas.  Enbridge is involved in the transportation of crude oil and natural gas by pipelines and other forms of energy.  The price of crude oil over the last two months had dropped from approximately $96.00 to near $80.00.


      Other stocks have pulled back as well. This market pull back does provide opportunities, especially in the energy sector.  Energy is a big part of my portfolio right now, so I am hesitant to add to any positions in the sector at the moment.
       In August, I sold two put options in different stocks on the Toronto Stock Exchange. These options had an October 18, 2014 expiration date.  The put option in TD Bank was assigned as it was trading bellow the strike price at expiration. The second put option in Roger's Communications did not get assigned as it traded above the strike price at expiration time.  I currently own 100 shares of Roger's Communications Class B stock. You can read more about these two trades here.
    
       Besides the option assignment of TD Bank stock (TD.TO),  I also acquired 1 more share of Killam properties in my TFSA via DRIP at a cost of $10.27.   I acquired 0.113401 shares of Scotia Bank (BNS.TO) through a full DRIP directly with the transfer agent.

As of Nov 1, 2014, the value of my portfolio stands at $72826.21. This is an increase of 1.309% over last month. Although my energy stocks dropped, the other stocks I currently own have increase in value.  I also contributed some cash to my portfolio.

I have updated my investment account tab above.

Disclosure: Long KMP.TO,TD.TO, RCI.B.TO

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

10 comments:

  1. It's certainly a good opportunity in the energy space right now. I'm also looking at resources. (^_^) Tech (TCK.B) has dropped to a 5 year low haha. Base metals and gold have been hit pretty hard. I think it will only be a matter of time before the stock market in the U.S. makes a 10% correction or more, and the central bank is forced to print more money to save the economy. Good job on the 1.3% increase. I think my portfolio was pretty much flat for October, but I probably made a small gain too. :)

    ReplyDelete
    Replies
    1. Liquid,

      I do believe the markets will fall some more. The United States is preparing for a years long commitment to Iraq. Some people on the business channels are predicting oil will go to $75 a barrel, while others believe it will go to the high $60.

      Delete
  2. Nice job on the increase of the portfolio for the month! I bought some more RDS.B and NAO in the energy sector love the dividends. I have some May options in BAC that are doing well. Thanks for the update!

    ReplyDelete
    Replies
    1. DSF,

      Thanks for dropping by. RDS.B and NAO will be good long term holds and will be good dividend payers for years to come. Since energy is a big part of my portfolio, I am hesistant to buy more at this time. I am debating to buy more Enerplus at these levels to average down my position. I did turn the DRIP back on to average down a bit.

      Three or four months ago, people on the business channels were predicting Enerplus to go to $27 to $30 dollars a share. You never know what can happen in the capital markets, that is for sure.

      I might sell another put option in Roger's Communications (RCI.B) to collect some option premium while waiting to see if the stock goes down or not.

      Delete
  3. My energy positions took a beating too so I feel your pain IP. It does though give us battle scars and makes us more seasoned investors.
    Congrats on another successful month though of navigating the markets.

    ReplyDelete
    Replies
    1. Pulling Myself Up,

      The battle scars for sure. Just Energy has seen its share of troubles over the years. With Just Energy being a smaller company then it was before, it is difficult to "weather the storm". As far as Enerplus, analysts had a target price over $27.00. The decline in the price of crude oil has definitely hurt their bottom line and this has made many investors fearful. Enbridge is involved in the transmission of energy via pipelines, solar etc. So I believe Enbridge will weather this storm no problem.

      I was glad to pick up some TD Bank, which is a solid company and great dividend payer.

      Delete
  4. Energy definitely took a hit, and provided some nice investing opportunities for those with capital to spend. I know I'm sorry I didn't have enough capital to jump in and snag some shares! I'll just have to find some other great opportunities.

    Thanks for sharing and hope November provides some strong buying opportunities!

    ReplyDelete
    Replies
    1. writing2reality,

      I am with you on not having enough capital. When the markets tank like they did , there are lots of opportunities. With the large amount of opportunities in the markets, it can also make it hard to decide. A have a few orders in now that will expire tomorrow if they are not filled.

      Hoping November has a similar month as October to deploy the capital as I am in the accumulation stage.

      Delete
  5. Thanks for sharing your most recent portfolio update. I understand that energy is already a large part of your portfolio but all indications are that oil and oil related stocks will bounce back from these fresh lows. Your portfolio will behave in kind. There are still many great energy naes that are well priced, BP TOT, XOM, CVX, etc.

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  6. DivHut,

    Like you, I do believe oil and oil related stocks will bounce back. I do believe the price of oil will fall further before it stabilizes though and starts to increase. I do reside in Canada, so I invest in energy companies listed on Toronto Stock Exchange. Enerplus and Enbridge are headquartered in Canada and are both listed on both exchanges. If I lived in the states, those stocks you listed would be definitely be on my radar and I would be doing lots of research. I plan to invest in US stocks some time in the future though.

    ReplyDelete