During the few stocks the stock markets have made huge swings in both directions across the entire world. From the oil price ware between brought on by Russia and Saudi Arabia to the World Health Organization has declared the Coronavirus a pandemic.
The Cononavirus has caused many countries to take drastic measures including banning incoming flights from hot zones. Sections of different countries are taking drastic measures from cancelling schools, banning social events of all types over a certain amount of people and governments announcing shutting down for weeks. Major sporting leagues such as NHL, NBA, WHL, AHL and MLB have suspended their seasons to protect the health of their players and fans.
Recently, Canada has another major issue to deal with major rail blockades that were setup causing shutting down major rail routes across Canada. This causes shortages of all different things from propane to consumer goods. The federal minister of Crown-Ingenious Relations and the British Columbia minster of Indian Affairs met with the hereditary chiefs of the Wetʼsuwetʼen first nation in Northeastern BC.
Individual companies have changed out they do things such has limiting interactions with their customers or clients to help prevent the spread of the virus.
I never saw people panic like this over a virus.
Almost all my positions are now in negative territory. Anyone who has bought investments in the last several years have lost money. Best thing to do is not sell and ride it out.
I had some money I could put to work in my margin account. It was not much, but I felt I could make a position of average down a position.
I have owned Enerplus for several years. This company has fell out of favor with investors the last few years due to the major oil crash that started in 2015. Enerplus is an energy producer headquartered in Canada. Enerplus has increased their activity in the United States due to a better environment to be in the oil and gas business. Enerplus has reduced their activity in Canada due , in part, to regulations and other things making it difficult to conduct business and make a profit.
I owned 558 shares of Enerplus at the time of the purchase. The company had to reduce its dividend due to low oil prices and switching form an income trust to a corporation in Canada in 2011.
On March 10, my limit order was filled to purchase 170 shares of ERF.TO at $2.93 per share for a total cost of $503.30 including commissions. I now own 728 shares of Enerplus Corporation.
Enerplus pays a monthly dividend of $0.01 CAD per share. This purchase adds $20.40 CAD to my annual dividend income. The yield on cost for this purchase is 4.05%.
I have had the DRIP turned on for a few years but the wasn't enough to purchase a whole share. With the stock falling in price, I will see drip shares start to appear in my account in the next few days.
Would I had purchase shares if I had not have owned shares already? I would of definitely would of put my money elsewhere as their are lots of good opportunities in the markets at this time.
This purchase reduced my average cost base per share by over $4.00.
This stock was recently featured on BNN's market call a month ago, which you can watch here.
I am down a lot on the stock, so I will continue to hold for now.
I will update my investment tab spreadsheet in early April to reflect this purchase.
Disclosure: Long ERF
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.