Sunday, December 21, 2014

Recent Trade

     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.

 Sherritt 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 )

      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
                                                                        = 400.10

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.

     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


1 comment:

  1. Good job with the $400 winnings :)
    I don't own Sherritt stocks. But I do have their 8% bonds which are maturing in 2018.
    I used to have a fairly high interest rate on my line of credit. But one year I decided to ask them to lower it for me, which they did, so that was cool. :D