Trading Account Update : December 28 2019

As previously stated on this blog, that I have started a trading account with a balance below $1000.00.   I started to add $50.00 every two weeks but that has stopped due to a recent job loss.  The following table shows my stats from the start of 2016:

                               

                               # of trades :                        49
                               Total Capital added:          $250.00
                               Trading Acct Balance:       $3588.18
                               Average Drawdown:          $111.57
                               Average Loss:                    $287.20
                               Average Accuracy:            83.67%
                               Average Risk:                    $127.31
                               Average Reward:              $109.23
                               Average Risk/Reward :      1: 0.857

        I have been trading penny stocks, stocks, REITS and options.  Any dividends that will be received from this account will stay within the account. The accuracy rate is high. Does this mean that I am a super trader? No it does not.  The risk to reward ratio states of every $1.00 of risk there is reward of  $0.857.  Ideally, a trader should aim for a 1:2  risk to reward ratio which causes the accuracy rate to be lower.  I lost big on a trade as I did not put a stop in at the initiation of the PZA.TO trade.  The stock kept dropping and dropping, so I felt it was best to sell.   

      The drawdown above is inter-trade drawdown.  This type of draw down is the dollar amount the trade moves against you.  Why is it important to keep track of inter-trade drawdown?  It helps you know if you are picking good entry points.  It is normal for trades to have inter-trade drawdown. 

Below is a chart of my 2019 percentile gains

Click to Enlarge

Below is a chart showing my overall percentile gains from January 1, 2016, to December 28, 2019. 

Click To Enlarge

Note:  The trades are listed under the Trading Tab above with all the trades listed as of December 28, 2019

Note:  As of December 28, 2019, there is no active trades. 

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.

Net Worth Update

Today is Christmas Eve 2019.  Although passive income through dividends and option premiums is my focus when it comes to investing, I decide to do a post about my current net worth.

What is net worth? Simply put, net worth is calculated by adding up all assets and subtracting the total of all liabilities.  Net worth is sometimes referred to as shareholder's equity.  Assets and liabilities are part of the balance sheet. 

Assets

Savings

The savings section is broken into 3 segments. This is a taxable high interest savings account, a TFSA savings accounts and a stock investment.

The taxable high interest savings acount, in which the interest rate is laughable, is with Tangerine.  Tangerine is an online bank, that is owned by Bank of Nova Scotia.  On December 24, the value of this account is $496.79.  The current interest rate is 1.1%.

The TFSA savings account is also with Tangerine.  On December 24, the value of this account is $1046.47.  The current interest rate, like immediately above, is 1.1%. I have no put money in this account in a while.

The stock investment involves a stock that I hold within my margin account.  I keep the dividends received separate from the dividends I post in my dividend income updates.  The stock is Inter Pipeline.  The ticker symbol is IPL and trades on the Toronto Stock Exchange.  I own 42 shares with an adjusted cost base of $901.80.  The cash not including dividends is $10.36.  I received a total of $41.93 in dividends since starting this position.  On December 24, the current value of this "account" is $1007.79.  I have not added any money to this account.

Overall, the savings total is $2551.05.

Non-registered Accounts

The non-registered accounts consist of a margin account and 2 stocks held directly with the transfer agents.  The margin account is with Questrade.  The total value is $92439.79 as of December 24.

TFSA Investing Account

The TFSA investing account balance is $37860.96 as of December 24.  This account is with Questrade.

Trading Account

The trading account is with Questrade.  This is done within my margin account.  I keep track of the balance, market value and cost basis of the trades. I only have one trade going on at a time. As of December 24, the value of this account is $3588.18.

RRSP

My RRSP is with Tangerine.  I held their funds for a while and eventually sold the funds.  Therefore, the RRSP is basically in a savings account.  On December 24, the balance is $11995.93.  The interest on this account is 1.1%.  I am not sure what I am going to do with account.  Ideally, I would transfer it to a brokerage and to buy stock or ETF positions.  I might also take it out to pay of line of credit.  

The current state of the Alberta economy is why I am hesitant in doing anything with this account.  Alberta's economy is highly dependent on oil and gas production and oilfield services.  When these are doing well there are a lot of spin off jobs involving restaurants, hotels, etc.  Currently, the province of 0Alberta is struggling while countries with oil and gas assets are doing well. 

Summary of Assets

Total Savings :  $2551.05
Non-Registered accounts : $92439.79
TFSA Investing :  $37860.96
Trading Account: $3588.18
RRSP Savings Account:  $11995.93

Total Assets = $148435.91

Liabilities

The balance on my line of credit is $6500.00.  Since I rent and do not have collateral, the interest rate on this account is 7.16%.  I get charge an insurance fee when carrying a balance.  This insurance fee depends on the balance, therefore it changes every month.  

Conclusion

On December 24, 2019, my net worth is $141935.91.  

Disclosure:  Long IPL

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.

Dividend Income Update: November 2019

      

    The month of November 2019 is another month of dividend income landing in my accounts. Recently, I switched my pay yourself first model to concentrate a little on debt repayment.  The interest on debt is 7.16% plus the insurance on the debt.  I currently pay myself 10% of income from job(s) and non-registered accounts to my TFSA.  The TFSA income is staying within the account.  I will deviate the 10% to savings account instead of to TFSA if a large expense comes up like a dental appointment. 

Note:  All the dividends and totals below are in Canadian Dollars. 

       

 Non-registered Accounts 

• Bank of Montreal (BMO) - $87.55
• Cineplex (CGX) - $15.00
• Emera Inc. (EMA) - $61.25
• Enerplus (ERF)  -$ 5.58
• Shaw Communications (SJR.B)  - $19.75

Subtotal : $189.13

TFSA

• A&W Royalties Income Fund (AW.UN) - $6.04
• Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
• Cominar REIT (CUF.UN) - $13.32
• Killam Properties REIT (KMP.UN) - $16.61
• Royal Bank of Canada (RY) - $58.80

Subtotal: $121.68

Total = $310.81

    I received a total of $310.81 in dividend income for the month of November 2019.  This represents a 3.38% increase from 3 months ago and 44.03% increase year over year.  

    My recent average down purchase involving Cineplex Inc. was done after ex-dividend date.  Therefore, there was no dividend paid out in November for this specific purchase.  

    I received dividend / distribution income from 10 different companies.   

     I received $0.00 in option premiums within my investment accounts in November 2019.

I will update my dividend income tab with the new amount.  I will include my option premium income also.  It is great to see money from passive income sources deposited into my brokerage account every single month.

How was your dividend income for November 2019?

Disclosure : Long all mentioned securities

Photo Credit: www.mipaq,co.za

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.

Portfolio Update: November 2019

The month of November 2019 now behind us.

The federal government on November 20 announced the new cabinet. The prime minister kept Bill Morneau as his minister of finance. If a new finance minister was chosen, I think it would of caused some market turmoil for a few days.

The major news event in Canada, which affected both Canada and the United States, was the strike at CN Rail (CNR.TO CNI). CN Rail serves 9 ports, 3 coasts between Canada and the United States. The strike lasted for about a week, but caused layoffs in other businesses due to the importance of CN Rail getting their goods and commodities to market. Quebec faced a major shortage of propane. CN Rail was operating at like 10% capacity during the strike.

Once the strike was over, CN started up operations the following business day at 6am local time for each of its locations. The federal government did not meet and pass legislation to force workers get back to work.

Portfolio Activity

Margin Account Activity

On November 5, I averaged down on my position in Cineplex Inc (CGX.TO). Cineplex Inc. operates movie theatres in Canada along with other entertainment establishments. Cineplex is in the transition phrase of being a movie theatre company to an entertainment company. I purchased 60 shares at $22.33 for a total cost of $1344.96 including commissions.

Cineplex pays a monthly dividend. I purchased the shares after the ex-dividend date, so the dividend paid on November 29 did not include dividends from the new shares.

TFSA Activity

There was no purchases and selling in the TFSA account.

I continue to build up cash in my TFSA to make another purchase and at a good price.

There was no drip in Cominar REIT (CUF.UN.TO) in November as the distribution was not enough to purchase one unit. The price of the stock has traded higher than my distribution amount in each of the last two months.

Shares Purchased Via DRIP

There was no shares purchased via the DRIP during November. The DRIP remains turned on for certain stocks as indicated in my investment tab spreadsheet.

Please note that if some brokerages DRIP shares when there is no DRIP program by the actual company. This DRIP is when the brokerage buys the shares directly off the public market stock exchanges.

Dividend Increases

On November 7, Telus Corporation (T.TO) increased their quarterly dividend from $0.5625 to $0.5825, or $2.25 per share annually to $2.33 per share annually. This is an increase of 3.56%. As of the time of this writing, I own 24 shares of Telus. This increase adds $1.92 to my annual dividend income. Telus has been raising their dividend semi-annually for the last several years.

Dividend Decreases

There was no dividend decreases announced in the month of November

Summary:

As I started to include my US position in my portfolio, I will once again included the information immediate below.

I decided to give a more accurate portfolio and included my US Stock portfolio along with the Canadian stock portfolio. I included the combined CAD amount for cash in all my postings but not the market value of the position.

I currently have one US position and it is held within my TFSA. The position is Facebook (FB). I have owned this position very near the IPO date or maybe even on the first day the shares traded.

I added a new sheet to my investment tab spreadsheet, showing this position and the USD cash position of both accounts. There is a small cash position within the US portion of margin account from a General Electric position I had years ago. Most of the cash as the result of the General Electric position was converted back into Canadian dollars.

The investment tab spreadsheet now has 2 sheets, one being the Canadian portfolio and one being a US portfolio. The latter is all in USD dollars. On the Canadian portfolio sheet, I take the sum of the US portfolio balance converted to CAD and the Canadian portfolio balance to give a total portfolio balance.

As of November 30 , the total value of the portfolio is $129876.08. This is a 2.26% increase over last month's total.

The dividend increases increased my annual dividend income by $1.92 CAD. This is equivalent of investing $54.86 of my own money at 3.5%.

The portfolio is estimated to produce $5541.56 CDN in dividend income over the next 12 months. This is an increase of $113.49, or 2.09%.

I updated my investing tab spreadsheet.

Disclosure: Long all aforementioned stocks

Please Note: Positions in Restaurant Brands International (QSR.TO) and Intertape Polymer Group (ITP.TO) pay dividends in US dollars. Brookfield Renewables Partners (BEP.UN) pays distributions in US dollars. My investment tab spreadsheet displays the Canadian dollar equivalent within 15 to 20 minutes of real time.

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.

Recent Purchase

    When it comes to investing in the market, an investor has to try to look for opportunities as prices vary one day to the next.  Some times they purchases will turn out to be good and others time not.  When you purchase  a stock at a lower price you are lower your possible losses and introducing a margin of safety.

   I had some cash on hand in my margin account and was looking to put it to work.  I have not added any cash to this account in several months.

Purchase

Their was a run up in the stock price for the big 5 banks, so I did not feel comfortable adding to my positions at this time.  Also, Enbridge is a large part of my portfolio so that was not an option at this time.

I added to my purchase of Cineplex (CGX.TO). 

Cineplex Inc., through its subsidiaries, operates as an entertainment and media company in Canada and internationally. It operates through three segments: Film Entertainment and Content, Media, and Amusement and Leisure. The Film Entertainment and Content segment operates film theatres; and provides food and in-theatre amusement services, as well as rents theatre and digital commerce. The Media segment provides in-theatre advertising services; and designs, installs, and operates digital signage networks, as well as offers advertising on networks. The Amusement and Leisure segment operates and distributes amusement, gaming, and vending equipment; and operates social entertainment destinations comprising gaming, entertainment, and dining facilities, as well as facilitates tournaments, leagues, and gaming ladders for the competitive gaming community. The company operates theatres under the SilverCity, Galaxy Cinemas, Scotiabank Theatres, Cineplex Cinemas, Cineplex VIP Cinemas, Famous Players, and Cinema City brands. As of October 21, 2019, it operated 165 theatres in Canada, including 6 theatres and a VIP Cinemas in Saskatchewan. Cineplex Inc. was founded in 2003 and is headquartered in Toronto, Canada. (Source: Yahoo Finance)

The stock has been struggling over the past few years.  The theatre portion of the business has been dealing with declining attendance for decades. Cineplex makes alot of money at the concession stands. We all have been shocked by the price of popcorn and other snacks at the concession stands. 

Cineplex and other theatres have to complete with online streaming services such as Netflix.  People now can more easily by big screen TV such has 52 inch size.  The old TVs of that size were extremely heavy to difficult to move around in a house.  People can buy stereo systems that can give you the sound of like being a theatre.  Most people will still prefer to go to the movies, but they go way less often due to the cost.

Cineplex was been in recent years converting from a movie company to an entertainment company.  An example is the Rec Room part of their business.  Rec Room is a destination for "eats and entertainment" for adults in various cities.  These cost a lot upfront to build, so this will have a negative effect on revenue for a few years.

I added to my position in Cineplex with a purchase of 60 additional shares.  I purchased the 60 shares on November 5 at $22.33 per share for a total cost of $1344.96 including commissions. 

Currently, Cineplex pays a monthly dividend of $0.15 per share, or $1.80 per share annually.  This purchase adds $108.00 to my annual dividend income.  The yield on this purchase is 8.03%.

Conclusion

I previously purchased 100 shares of Cineplex at $43.85 per share for a total cost of $4389.95. These 100 shares were purchased on August 4, 2017.

The adjusted cost base of the combined 160 shares is $35.84 per share.  

I did not see any hint of insider selling in the past 6 months or so. With the upfront cost of them expanding their business into new Rec Rooms and other areas away from the movie theatres.

I would of put my money in a stock with a lower yield, if I did not already own this stock.  

I will update my investment spreadsheet in early December with this purchase.

Disclosure:  Long CGX.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.

Trading Account Update: November 9,2019

As previously stated on this blog, that I have started a trading account with a balance below $1000.00.   I started to add $50.00 every two weeks but that has stopped due to a recent job loss.  The following table shows my stats from the start of 2016:

                               

                               # of trades :                        48
                               Total Capital added:          $250.00
                               Trading Acct Balance:       $3520.13
                               Average Drawdown:          $109.73
                               Average Loss:                    $287.20
                               Average Accuracy:            83.33%
                               Average Risk:                    $125.17
                               Average Reward:              $110.26
                               Average Risk/Reward :      1: 0.881

        I have been trading penny stocks, stocks, REITS and options.  Any dividends that will be received from this account will stay within the account. The accuracy rate is high. Does this mean that I am a super trader? No it does not.  The risk to reward ratio states of every $1.00 of risk there is reward of  $0.881.  Ideally, a trader should aim for a 1:2  risk to reward ratio which causes the accuracy rate to be lower.  I lost big on a trade as I did not put a stop in at the initiation of the PZA.TO trade.  The stock kept dropping and dropping, so I felt it was best to sell.   

      The drawdown above is inter-trade drawdown.  This type of draw down is the dollar amount the trade moves against you.  Why is it important to keep track of inter-trade drawdown?  It helps you know if you are picking good entry points.  It is normal for trades to have inter-trade drawdown. 

Note:  The trades are listed under the Trading Tab above with all the trades listed as of November 8, 2019

Note:  As of November 9, 2019, there is no active trades. 

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.

Dividend Income Update: October 2019

      

    The month of October 2019 is another month of dividend income landing in my accounts. Recently, I switched my pay yourself first model to concentrate a little on debt repayment.  The interest on debt is 7.16% plus the insurance on the debt.  I currently pay myself 10% of income from job(s) and non-registered accounts to my TFSA.  The TFSA income is staying within the account.  I will deviate the 10% to savings account instead of to TFSA if a large expense comes up like a dental appointment. 

Note:  All the dividends and totals below are in Canadian Dollars. 

       

 Non-registered Accounts 

• Bank of Nova Scotia (BNS) - 18.00 (Margin Account)
• Bank of Nova Scotia (BNS) - 40.59 (Transfer Agent)
• Bell Canada Enterprises (BCE) - $79.25
• Canadian Imperial Bank of Commerce "C.I.B.C" (CM)- $158.40
• Cineplex  (CGX) - $15.00
• Enerplus (ERF)  -$ 5.58
• Restaurant Brands International (QSR) - $65.73
• Rogers Communications Class B (RCI.B) - $100.00
  
• Shaw Communications (SJR.B)  - $19.75

Subtotal :  $502.30

TFSA

• A&W Royalties Income Fund (AW.UN) - $6.04
• Boston Pizza Royalties Income Fund   (BPF.UN) - $26.91
• Cominar REIT (CUF.UN) - $13.32
• Killam Properties REIT (KMP.UN) - $16.61
• TD Bank (TD) - $33.30
• TFI International (TFII) - $12.00
• Telus Corporation (T) - $13.50

Subtotal:  $121.68

Total = $623.98

    I received a total of $623.98 in dividend income for the month of October 2019.  This is the first time I ever received over $600.00 of dividend income in a month.  This represents a 22.0% increase from 3 months ago and 38.3% increase year over year.  The increase is mostly due to increasing my position in C.I.B.C and re-initiating a position in TD Bank over the past year.

    I received dividend / distribution income from 15 different companies.   

     I received $0.00 in option premiums within my investment accounts in October 2019.  

I will update my dividend income tab with the new amount.  I will include my option premium income also.  It is great to see money from passive income sources deposited into my brokerage account every single month.

How was your dividend income for October 2019?

Disclosure : Long all mentioned securities

Photo Credit: www.mipaq,co.za

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.