Took a Detour in Finance

After my shares of Mullen Group were called away in my trading account, I thought I would take a gamble and try to make a quick trade.  See, my trading account is currently within my margin account. When I make a trade in the trading account all the money stays in the trading account.  

I "borrowed" the amount of balance in my trading account  to make a trade that I was expecting to be completed really quick.

I purchased 558 units of Boston Pizza Royalties Fund (BPF.UN.TO) for $6.82 per unit for a total cost of $3811.34 including commissions. I set a limit order to sell within a few days at $7.10 per unit.  The unit price went on a downward spiral a few weeks and even fell below $6.00 per unit.  

Due to the COVID19 pandemic their business lost lot of money as their were lockdowns and social distancing rules for businesses to follow.  Boston Pizza felt this very early in 2020 and as a result, Boston Pizza Royalties Income Fund suspended their distribution.  The fund made an agreement that they will not pay a distribution prior to October 1.   

Fast forward to October 2.  Trading of the fund was halted on the stock market during an announcement.  The fund announced that they will start to pay a distribution starting the end of October.  Shortly after the trading was resumed the price of the fund shot up over a dollar and some.

The sell order was actually filled at $7.20 per unit on October 2.  The proceeds of sale were 4010.07 including commissions.  

So, I made a profit of $198.73.

Also, in the first week of October, I received dividends from Roger's Communications Class B and Restaurant Brands International.  Between these 2 positions, I received $168.17 in dividends..

I received a GST rebate check from federal government of $112.75 on October 5. 

So, I decided to make  a detour from my current plan.  The current plan was paying myself 12% to savings to get up to $2000.00 balance.  While doing this, I was paying 15% of income on my line of credit.

Detour

I used the $168.17 in dividends, my GST rebate check of $112.75 and the profit of the trade $198.73  and decided to write a check for $750.00 to purchase more shares of Bank of Nova Scotia (BNS,TO) directly with the transfer agent. Since I am short by $270.35.

The detour will consist of paying myself 15% to investing and 12% to savings. I will make a line of credit payment if any money left over at the end of a month.  If the $750 is reached and my savings is not up to $2000.00, the I will then revert back to paying 15% income on line of credit.

When buying shares directly through the transfer agent, the investor does not get to choose the price of the shares. The shares, which will include fractional shares. are purchased on a set day set out by the company (Bank of Nova Scotia).  The new shares will be purchased on the dividend payment date for October.  The most recent closing price of BNS shares is $56.18, which means the stock is currently yielding 6.41%.

Disclosure:  - Also own BPF.UN in TFSA 

                    - Long BPF.UN, BNS.TO