On October 8, my limit order that I had placed on Sherritt International Corp was filled at $2.42 a share for 1500 shares. I never got around to writing a post on it.
is a world leader in the mining and refining of nickel from lateritic
ores with operations in Canada, Cuba and Madagascar. The Corporation 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 commercial metals
operations worldwide. (Source www.sherritt.com )
As this was a trade, my exit strategy was to place a limit order to sell at $2.70 a share. With the recent announcement by President Barrack Obama that the United
States improve relations with Cuba means possibly lower costs for
the Sherritt's operations on the island and less restrictions traveling
for its directors. This recent announcement by the US president plus the other details such announcing measures to possibly work with congress to the lift the full embargo lead to the huge rise in the share price.
Calculation of Return
Initial Investment with Commissions : 1500 *2.42 +9.95 = 3639.95
Proceeds of Sale : 1500*2.70-9.95 =4040.95
Profit = proceeds of sale - initial investment = 4040.95 -3639.95
Total Return = 400.10/3639.95
= 10.99 %
I am going to use this $400.10 to pay on my line of credit used for investing as the interest is high at 9.5%. The interest was initially around 7.6% but the bank raised it to over 10 %. I called about the increase and got it reduced to 9.5% awhile ago.