Sunday, April 30, 2017

Portfolio Update - April 2017

       The month of April is now behind us. The price per barrel of crude oil is currently trading below $50.  The oil patch in Western Canada has picked up some, but no where close to it was prior to September 2014.  In Sept 2014, the price of oil was around $95 per barrel for a barrel of WTI Crude Oil.  With the price hovering around $50.00 per barrel, the energy stocks are are trading low and some are struggling to be profitable.

        Last month, I wrote about selling puts in Home Capital Group (HCG.TO) at a strike price of $25.00. I bought to close the 2 put option contracts to reduce my losses. It ended up with a loss of around $355 dollars.

       Was this my last stake in Home Capital Group? I am afraid not.  I got my tax refund back and put the refund in my TFSA.  So with approximately $1200 in my TFSA, I bought 65 shares of HCG.TO at $18.00.  The stock rose a bit and I tried to sell, but the stop limit order was triggered but the stock did not rise up to the limit price I wanted to sell.  The day ended and I still owned my shares.  Prior to the open of the markets the next day,  HCG.TO announced an intent to have a $2 billion line of credit with an interest of approximately 15%.  See, HCG.TO is in the mortgage business.  So people deposit money in saving accounts and interest is paid to these savers.  HCG.TO then lends this money out by writing mortgages at a higher interest rate. Savers have been pulling there money out at record levels in the past month. This company is being investigated by the Ontario Securties commission, fired there new CEO,  and had directors resign.  The stock closed Wednesday at $5.99 per share.

        Back to my postion at $18.00 per share.  When I woke up the next day the stock was trading at $8.00 per share. I set a limit order at $7.00 to sell.  I changed my order to a market order when it was trading at $7.30 per share. As we all know market orders get filled right away.  This did not happen. So I cancelled the market order and made a new one. Still nothing happened.  Then went to Yahoo Finance and typed in the ticker symbol, which said the trading of the stock was halted.

     When the trading resumed of HCG.TO, the sell order was filled at $7.28 but then apparently a buy for 65 shares was executed.  I then placed an order to buy 25 more shares of Dream REIT in my TFSA.  After this order for $D.UN.TO  was filled, I noticed my cash balance in my TFSA was negative by approximately $500.00.  This fiasco of HCG.TO did not show up in my trading confirmations or account summary.  My brokerage Questrade said it seems that order for HCG.TO went through when it was not suppose to go through.  As of April 30, they never got back to me yet.  

      The 25 new shares of D.UN.TO was filled at $19.45 for a total of $491.29 including commissions. D.UN.TO currently pays an annual distribution of $1.50 per unit. This purchase adds
$37.50 to my annual dividend income.

     I wrote previously about wring 2 cover call contracts on Rogers Communications Class B shares (RCB.B.TO)  with a strike price of  $60.00 per share.  I thought my position was safe as RCI.B never traded above $60.  Then earnings was announced on April 18. They stock has risen in value, and I did not want the covered calls to get assigned. I bought to close my covered calls for a loss. 

     On a positive note, my short put in TD.TO expired worthless.  The strike price of this put was $64.00.  I am own 100 shares of TD.TO.

Shares Acquired Through DRIP

3 Unit of D.UN.TO @ $20.0035 for a total cost of $60.01 (Margin Account)

1 units  of CUF.UN @ $14.6435 for a total cost of $14.64 (TFSA)

Please note, that the DRIPs inside my margin account and TFSA are synthetic drips which indicate the distribution or dividend must be enough to purchase whole shares. 

I received the dividend payment of my shares of Bank of Nova Scotia (BNS.TO) with the transfer agent on April 26. It takes a few businesses to show the price of the shares and the amount of new shares.  As of the time of this writing, I do not know the price of reinvestment and the amount of new shares.

As of April 30, the value of the portfolio is $104236.43 . This is a 1.186%  increase over last month's total.  The spreadsheet in the investment tab above has been updated.

 Disclosure:   Long RCI.B, TD.TO, BNS.TO, D.UN.TO

Please Note:  All stocks are from the Toronto Stock Exchange.

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.

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