Recent Portfolio Activity

It has been a crazy couple weeks on the the stock markets across the world. Are we in a recession? Are the trade wars between US and China causing investors to pull out for the market? I believe some investors fear that we are in a recession at this time. I do believe the impact of the US-China trade wars are having the most impact on the markets at this time.

Margin Account Activities

Sales

On August 7, I mentioned that I made a trade inside my margin account involving Telus Corporation (T.TO).

After making the purchase at $47.10 per share, I put in a stop limit order at $48.10 per share. The stock has been under a little pressure over the last week as the stock recently missed earning expectations.

On August 14, I decided to cancel the stop limit order around noon and replace it with a trailing stop limit order at a lower price. By using a trailing stop limit order, I get to lock in some gains and at the same time possibly gain some more if the stock rises in value.

The stock seemed to go sideways for over a week, which is normal. The sell order was filled at $47.60 per share. The profit from the trade was immediately sent to my line of credit. I was looking for a larger gain but decided to lower the sell price due to the falling stock prices. As I was only taking the profit out, I could use the capital from the sale towards investments.

The money "borrowed" from the trading account was returned.

This sale decreases my annual dividend income by $675.00.

For disclosure, I am long Telus Corporation (T.TO) in my TFSA.

Purchases

The markets went down a lot over a couple of days. I wanted to take advantage of this by buying stocks at a lower price. Buying a stock at a lower price, results in a higher starting yield as price and yield are inversely correlated. The higher the starting yield means money working harder for you.

On August 15, I put in limit orders on 2 stocks I was looking to increase my position size and further grow my dividend income.

First Purchase

On August 15, I purchased 50 shares of Bank of Montreal (BMO.TO) at $92.00 per share for a total cost of $4605.12 including commissions.

Currently, Bank of Montreal pays a dividend of $1.03 per share quarterly, or $4.12 per share annually. This purchase adds $206.00 to my annual dividend income. The yield on cost for this purchase is 4.47%.

This purchase is not eligible for Bank of Montreal's next dividend on Aug 27, 2019, as the record date is August 1, 2019.

This purchase brings total number of shares in Bank of Montreal to 85 shares.

Second Purchase

On August 15, I purchased 45 shares of Canadian Imperial Bank of Commerce "C.I.B.C" (CM.TO) at $98.00 per share for a total cost of $4415.11 including commissions.

Currently, C.I.B.C pays a dividend of $1.40 per share quarterly, or $5.60 per share annually. This purchase adds $252.00 to my annual dividend income. The yield on cost for this purchase is 5.71%.

This purchase will be eligible for C.I.B.C's next dividend payment which is expected October 28, 2019, to shareholders on record of September 26, 2019. This is listed on their investor relations page as future notice that is subject to approval of board of directors.

This purchase brings total number of shares in C.I.B.C to 110 shares. I recently added shares of C.I.B.C twice with in they past 3 or 4 months.

TFSA Account Activities

Sales

Continuing with markets going down over the period as per above, I decided to take action in this account as well. I noticed Dream Office REIT (D.UN.TO) was trading close to my adjusted cost base per share. Dream Office REIT has reduced their distribution a few times over the past 4 years. The distribution as remained at $0.083333 per unit monthly, or $1.00 per unit annually.

So, I sold my 168 units of Dream Office REIT at $26.41 per unit for a total net proceeds of $4431.69 from the sale. My adjusted cost base was $4489.30. Therefore, the net loss is $57.61 excluding distributions.

This sale decreases my annual dividend income by $168.00.

Purchase

On August 15, I purchased 25 shares of TD Bank (TD.TO) at $71.57 per share for a total cost of $1794.29 including commissions.

Currently, TD Bank pays a dividend of $0.74 per share quarterly, or $2.96 per share annually. This purchase adds $74.00 to my annual dividend income. The yield on cost for this purchase is 4.124%.

This purchase is eligible for TD Bank's next dividend which is expected to be declared on August 29, 2019.

This purchase brings total number of shares in TD Bank to 45 shares.

Conclusion

My plan with the Telus trade in my margin account was to not to hold for very long and take the profit and put on line of credit. I took a smaller profit than I was looking for due to the prices of stocks falling in value that I wanted to purchase.

These 3 purchases are all Canadian Banks.

The yield on cost on all 3 purchases is north of 4%. The starting yields are all higher than the yield of the broader market.

I have invested a lot of money in Canadian banks the past several months. Canadian banks are known to be some of the best and financially banks in the world. Then banks are traded on both the Toronto Stock Exchange and New York Stock Exchange. My purchases were all done on the Toronto Stock Exchange. 

I will update my investing spreadsheet in earlier September with these transactions. 

Disclosure: Long T.TO, BMO.TO, CM.TO, TD.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.

Recent Sale

 On October 1, 2018, I purchased 100 shares of Telus Corporation (T.TO) inside my margin account.  I purchased with the attention of selling covered calls.  A covered call is when you sell (or write) a call option when you own the corresponding number of shares for said contract.

When selling covered calls, the individual is obligated to sell their shares at or on expiration date.  For this obligation, the seller of the call option is paid upfront an option premium.  The option seller gets to retain this premium regardless if the stock moves up, down or sideways.  If the price of the stock is $0.01 above the strike price at expiration the option will be assignment.

The initial cost basis of the shares is $4743.30.

Total dividends received = $109.00
Total Options received = $78.10 ( $44.05 and $34.05 on 2 trades )
Option Assignment Fee = $24.95
Strike Price = $48.00

When a covered call is assignment, the premium is added to the proceeds of sale resulting in a larger capital gain or capital loss for tax purposes.

When the covered called is not assigned, the gross proceeds of sale is the premium received and the outlays and expenses is the commission for the option trade by your brokerage.  The adjusted cost basis is $0.00.


Summary:

Net profit on assignment = # of contracts * strike price * 100 shares + net premium - assignment fee
                                         = 1* $48 *100 + $34.05 - $24.95
                                         = $4809.10

For total return we use all the money received

Total return =[ (net profit on assignment + other premium received + divys )  / ACB on purchase]  - 1
                    = [($4809.10 + $44.05 + $109.00)  / $4743.30]  - 1
                    = 4.62%

The total return is not that high. In the past month, T.TO increased to over $50.00 per share and then retracted to mid $49.00.

Telus currently pays an quarterly divided of  $0.545.  This option assignment reduces my annual dividend income by $218.00 

I will update my investing tab spreadsheet in early May to reflect this transaction.


Disclosure:  - Own 24 shares of T.TO in my TFSA
                        - Long T.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.

Recent Sale

     A position that I have held for a few years yield north of 6% annually and paid monthly.  Was it a REIT, ETF, or a regular stock? The position was the Horizon's Natural Gas Yield ETF.  The ETF had fallen on difficult times due to lower natural gas prices.

The investment objectives of Horizons HNY are to provide unitholders with: (i) exposure to the price of natural gas futures hedged to the Canadian dollar, less the ETF’s fees and expenses; (ii) tax-efficient monthly distributions; and (iii) in order to mitigate downside risk and generate income, exposure to a covered call option writing strategy. (Source:  Horizon's ETFs )

The downside of owning an ETF is that you have to pay management fees unlike owning a stock.  This cuts into your returns.  Although the yield was high, the price of the ETF traded below $13 for many months.  The monthly distribution is also different every month.

HNY.TO has increased in value recently, so I decided to sell my position at a profit.  Although HNY.TO provided income their is not much in terms of future growth.  The owned 121 units in my TFSA, that is currently shown in my portfolio.

This sale reduces my annual dividend income by approximately $80.00 per year. I say approximately as the distribution amount varies month to month.

My investing tab spreadsheet will be updated in early December to reflect this sale.

Disclosure: I also owned 337 units of HNY as part of a savings project.  I sold out of this position as well.

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 Sale

         I have owned Dream Office REIT since 2013 inside my margin account. Dream Office REIT was formerly Dundee REIT. The REIT recently reported earnings during the last week.

• Net income  for Q2 2018 was $25.386 million compared to $32.521 million for Q1 2018, which represents a decrease of 21.9%.
• Net income of Q2 2017 was $34.556 million. The 2018 Q2 net income represents a decrease of 26.5% from same 3 month period of 2017.
• The diluted funds from operaton (FFO) was 0.40 for Q2 2018 compared to 0.46 for Q1 2018, which represents a decrease of 13.0%. 
• Diluted FFO of Q2 2017 was 0.53.  Therefore Q2 2018 FFO of 0.40 represents a decrease of 24.5% for the same 3 month period. 

      The distribution has been decreased a few times over the past couple of years. The distribution on Feb 2016 was $2.23992 per unit annually and then was  decreased 33% to $1.50 per unit annually starting March 2016.  The distribution was again decreased to $1.00 per unit annually on Aug 15 2017 payment date.  The second distribution represents another decrease of 33.3%.  Overall, the distribution was decreased by 55.4%.

        As shown above, the REIT has a couple of tough years.  With interest rates rising over the last year and the recession in Alberta started in late 2014 effected their bottom line. In fact, during the recession the office vacancy rate in Calgary, Alberta was around 33%.  That was like entire floors of office buildings were vacant.  Although Dream Office REIT did not have a large portfolio of Alberta properties, it did affect them. The REIT did sell some Alberta properties over the last couple of years. 

    On Aug 9, I sold all 631 units of Dream Office REIT inside my margin account. When you own units of a REIT, some of the distribution payments are in the form of Return of Capital. The return of capital is substracted from adjusted cost base and therefore gives you a bigger capital gain or smaller capital loss when you sell.  My capital gain is $2113.76 which included the ROC up to end 2017.  So the ROC on distributions received in 2018 will not be known until a tax slip is generated the end of March 2019.  So the capital gain will be even higher that the current $2113.76.

   This sale also pays off my margin loan of approximately $9600 at 7.2% interest rate.  That interest rate is not a typo.

    This sale decreased my annual dividend income by $631.00.  

Disclosure:  Own 168 units of Dream Office REIT inside TFSA

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 Sale

     A stock that has been in the news the past year is Bombardier. What does Bombardier do as a company?

Bombardier Inc., together with its subsidiaries, manufactures and sells transportation equipment worldwide. The company operates in four segments: Business Aircraft, Commercial Aircraft, Aerostructures and Engineering Services, and Transportation. The Business Aircraft segment designs, manufactures, and provides aftermarket support for Learjet, Challenger, and Global business jets. The Commercial Aircraft segment designs and manufactures a portfolio of commercial aircraft in the 60- to 150-seat categories, including Q400 turboprops; the CRJ700 regional jets; and C series mainline jets, as well as provides aftermarket support services. The Aerostructures and Engineering Services segment designs and manufactures aircraft structural components, such as engine nacelles, fuselages, and wings; and provides aftermarket component repair, overhaul, and other engineering services. The Transportation segment offers a range of products and services in the rail industry, including trains, subsystems, system integration, signaling, and e-mobility solutions. The company was formerly known as Bombardier Limited. Bombardier Inc. was founded in 1942 and is headquartered in Montréal, Canada. (Source: Yahoo Finance) 

     Bombardier received a loan from the government in the past year.  This outraged a lot of people as they believe it is corporate welfare.  The company struggled enormously during the last few years which lead to them eliminating their dividend a couple of years.  Bombardier was getting behind on orders, which lead to disgruntled customers.

    I owned shares in BBD-B.TO for a few years at a price of $3.60 per share.  Over the past couple of years, the company struggled and this has been reflected in the stock price. The stock fell to $0.72 per share but has slowly rebounded.

    The stock has shown some upward momentum due to the issues with Boeing and the US government.  The US government wanted to impose a tariff of appromiately 292%.  Bombardier has a surprise win in a trade dispute with Boeing over the sale of it's C-Series passenger jets to Delta Airlines.  You can read more about the story here.

Conclusion:

     I believe rise in the stock price will not continue.  As Bombardier is unable to meet the production dates with some clients, the company will be negatively affected.  Therefore, the stock price will likely reflect the negative events that the company deal with.

     Last night, I put in a stop limit order to sell my 1000 shares of BBD.B.  I sold 1000 shares of BBD.B at $3.95 per share.  I only received one dividend why being a partial owner of BBD-B.

    I will attempt to put the money back to work for me in the next couple of weeks.

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 Sale

         

    On March 25th, I wrote about WestJet Airlines Ltd, which you can read about here.  In that post I stated that I might sell my shares of WestJet Airlines Ltd  (ticker symbol:  WJA.TO).  I set a trailing stop limit order on March 29 and the order got filled at $22.96.

Click to Enlarge

     The trade summary indicates I made total gain of $68.92.  The sale of the shares occurred on March 29, so I was the owner of the shares on the record date for their most recent dividend payment on March 31.  I received 2 dividend payments from WJA.TO while I owned the 140 shares. WJA.TO currently pays a $0.14 per share quarter dividend. so I received $39.20 in dividends.

Total Return = Total Profit / Money in
                      = ($68.29 + $39.20) / $3140.04
                      = 3.42%


    Airline stocks are very volatile as lots of factors affect their bottom line. When people choose to fly, they more than often compare ticket prices of airlines and the time of day of departures and arrivals.  WJA is based out of Calgary, Alberta which is headquarters of a lot of oil and gas companies.  With the economy of Alberta in an ongoing recession for over 2 years, the airline had to reduce the amount of flights and add more flights and destinations elsewhere to maintain their bottom line.

    WJA closed Friday March 31 at $22.80 per share. The stock is down  0.52% over the last 6 months. 

      If the stock falls below $22.00 per share, I will strongly considering buying the stock again.  WJA has a long track record of profitability and will grow their revenues as they add more destinations and more flights to their arsenal.

      I will update my investment tab spreadsheet shortly to reflect this sale.

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 Sale

     Several months ago, I purchased 100 shares of Manulife Financial Corporation on the Toronto Stock Exchange. The ticker symbol is MFC. I purchased my shares at $18.61 per share.  Since I have owned the shares, the price of the stock has fallen to below $17.00 to above $19.00.  I attempted to sell cover calls, but the premium was not high enough to justify writing a call.  With my brokerage, there is an option assignment fee of $24.95.  Some brokers have no option assignment fee, while other brokerages have higher option assignment fees.

     Manulife Financial Corporation, together with its subsidiaries, provides financial advice, insurance, and wealth and asset management solutions for individuals, groups, and institutions in Asia, Canada, and the United States. It offers various health and individual life, and individual and group long-term care insurance through insurance agents, brokers, banks, financial planners, and direct marketing. The company also provides pension contracts and mutual fund products and services; various retirement products to group benefit plans; and annuities, single premium, and banking products, such as deposit and credit products to Canadian customers, as well as non-guaranteed, partially guaranteed, and fully guaranteed investment options through general and separate account products. It distributes wealth and asset management products through insurance agents and brokers affiliated with the company, securities brokerage firms, financial planners, pension plan sponsors, pension plan consultants, and banks. In addition, the company is involved in the property and casualty reinsurance business; and run-off reinsurance operations, including variable annuities, and accident and health. Further, it provides planning software platform that enables financial advisors and institutions to help clients make financial planning decisions; manages timberland and agricultural portfolios; insurance agency, investment counseling, portfolio and mutual fund management, mutual fund dealer, financial reinsurance, and mutual funds marketing businesses, as well as investment management, advisory, and dealer activities. Additionally, the company holds and manages oil and gas properties; holds oil and gas royalties and European equities; and develops and operates hydro-electric power projects. Manulife Financial Corporation was founded in 1887 and is headquartered in Toronto, Canada.  (Source: Yahoo Finance)

       On October 13th, I put in a trailing stop limit order of $0.05 stop and and offset of $0.01.  The stock was trading at $19.01 at this time.  This means my starting point is $18.96. So selling point reached $19.13 yesterday before it filled.  That means the price of the shares went up to at least $19.18.  Due, to being in an low interest rate environment, this stock will struggle in price appreciation as the fixed income portion of their instruments are affected.

       Currently, MFC is paying an annual dividend of $0.74 per share.  That means my annual dividend income has been reduced by $74.00.  

 Summary:

Initial Price  = $18.61
# of shares = 100
# of dividend payments = 1
amount of dividend payment = $18.50
Sell Price = $19.13

Profit = # of shares *(Proceeds of Sale - Initial Cost) + Dividends
          = (1907.70 - 1865.95) + $18.50
          = $60.25

Return = Profit / Initial Cost
            = $60.25 / $1865.95
            = 3.23%

My return is 3.23% in just over 4 months.  If the stock falls below my previous entry price, I would strongly consider purchase shares again.  I will update my investing tab spreadsheet in early October to reflect this sale.

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 be NOT 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 Sale

In the past, I purchased 350 shares of Sherritt International in my margin account at $2.12 per share. Sherritt International has mines located in Cuba, Madagascar, and Canada.

Recently, the results for for the Q2 which ended Jun 30 were released a little while back. The resulting adjusted Q2 loss was $0.39 per share. The combined adjusted operating cash flow was -$0.12 per share. Both of these numbers were also negative for Q1. You can get a rough idea of the company struggling, by the fact sheet (courtesy of investor relations).

With the company struggling due to the price of nickel and the over supply of nickel, the company filed to have the maturity dates moved out on their debentures and these extensions have been approved. You can get more information on this issue by clicking here.

With the company struggling  for the foreseeable future and the fact they do not pay a dividend currently, I decided to  unload my shares at 350 shares at $0.82 per share. The cash as a result of this sale can be better used in a company that pays dividends.

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 Activity

   I have not wrote in a while.  I bought back my call option in QSR and then sold the 100 shares.  I ended up doing a mistake in my account by clicking on sell inside of buy to cover the 100 shares and ended up with 2 contracts instead of one.  I owned only 100 shares so this would make the second contract a naked call. So the 2 contracts were averaged out and bought to close. I then sold my 100 shares of QSR on their own.
   I recently wrote a covered call in TD bank with a strike price of $56.00 and an expiration date of Apr 15.  The activity on the options exchange in Canada is very low, so it makes it difficult to trade options on most stocks.  As I am not with Interactive Brokers, my commission is rather high making in more difficult to trade options in this manner.
    I recently sold 3 cover call contracts in the etf XDV.  The premium, without commissions, was $0.75 per contract.  The option is April 15 2016 with a strike price of $21.00.  Right now the call option is in the money.  If the price of the stock remains above $21.00, my 300 units of the ETF will be called away.  I will come out with a small profit not including the distributions that were collected while holding the units over the past several months.
      On Mar 15, there was some weakness in the stock price of QSR again.  So I sold a Apr 15 2015 $48 put option for a premium of $64.05 including commissions.  If the price of QSR stock stays above the strike price I get to keep the premium and do not own the stock.  If the price of QSR falls below the strike price, I may be assigned the option.  If assigned, I will have a reduced cost basis for the stock.  Selling a put option allows an investor to get paid while waiting for the price of the stock to go down.
     QSR is a very volatile stock although the underlying businesses that make up the company, Restaurant Brands International, are Burger King and Tim Hortons.  Up here in Canada, Tim Hortons is a staple as 8 out of every 10 cups of coffee are served by Tim Hortons.  Burger King is not very busy up here in Canada for some reason.  There is a lot more McDonalds then Burger King here in Canada.  Some parts of Canada are in a recession or starting to go to a recession, people still want their coffee. 

Disclosure:  Long TD, QSR and XDV

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 Transactions

   I have held Killiam Properties in both my margin account and TFSA.  On Feb 10, I sold the 115 units of Killiam Properties inside my margin account.  Prior to Jan 2016, Killam Properties was a corporation, which paid a monthly dividend.  This monthly dividend was eligible for the dividend tax credit for Canadians if you are a Canadian citizen.  Killam Properties changed it structure to a REIT, with shareholder approval, to help align itself with other companies in the Real Estate space.  They now pay a distribution.
   I have held this stock for a few years inside the margin account.  The dividend was only raised once , in recent years, as the company seems to be buying a lot of properties due to the low interest rate environment.
   I own units in XDV, which is the iShares Canadian Dividend Select ETF.  As the stock was trading below my cost basis I decided to put money to work.  On Feb 10, I purchased 60 units at a total cost of $1190.61 including commissions.  On Feb 11, I purchased 1 unit of this same ETF at $19.28.  Therefore I now own 300 units of XDV, which pays a monthly distribution.  The commissions consist of ECN fees only as my broker offers commission-free ETFs.

Disclosure:  I own KMP.UN inside TFSA

Disclosure: Long KMP.UN, XDV

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 Sale

    I recently wrote about buying an energy company inside my TFSA, which you can read about here.  The company has fallen on hard times due to the low price of a barrel of crude oil for the past year.  With the price of the stock low I decide to try to profit a small amount.  Enerplus pays a monthly dividend, but I bought on the ex-dividend date. So I will not be receiving the dividend near the middle of January inside my TFSA.
   
    On January 4th, I sold the stock for a small profit. The sell price was $5.02 per share, which was filled when the stock price reached my limit price.

Summary:

ACB = $760.71
Sell Price = $5.02 per share
# of shares= 160
Proceeds of sale including commissions = $798.04

Profit = $798.04-$760.71
          =  $37.33

Return = $37.33/$760.71
            = 4.91%

Disclosure: Long ERF (in margin account)

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 be NOT 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 Sale

        I have own a certain stock for a while. This stock has cuts it dividend a few times since I became an owner. This company is Just Energy (ticker Symbol JE) , which trades on both the TSX in Toronto and the NYSE.
       
         Just Energy is a Canadian Energy Management solutions provider involved in electricity, natural gas, solar and green energy. A part of their business is providing customers with long term fix pricing.
     
          I have dripped this stock inside my brokerage account  for a while acquiring more "whole" shares. I acquired 152 shares alone though dripping of this stock.  I sold all my shares of JE on Oct 2,  via a market order, for a total of $6476.45.

 The stock was above my cost basis. So why did I sell? Just Energy used to be an income trust and then changed to a corporation. JE has a high dividend payout ratio which is sometimes over 100% and company did not grow very much. This company has many negative earnings reports over the past several quarters.  The run up in the stock is possible due to  a private holding company is buying up a lot of shares. 

SUMMARY

Initial Cost  (Adjusted Cost Base ) including commissions = $5997.31
Proceeds of Sale including commisions  = $6476.45

Profit = $479.14

 I sold to lock in profits.  

     My adjusted cost basis was approximately $7.88 per share. I wanted to sleep well at night  so holding 761 shares was too big of a position and having too high of an ACB made it an easy decision to sell. If I plan to own this stock in the future it will not be a big position.

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 Sale

       During the last little bit, I decided to sell a position. I sold the position for some small profit taking and to get my out of being on margin. I was heading out of the city on Friday and I didn't want to have any surprises such as the market tanking. Although the major crash happening this past Friday was real unlikely, I did not want to worry about.
     
       On September 21, my limit order was filled. I sold 50 shares of Restaurant Brands International at $50/per share for 50 shares.

    I initiated this position on May 26, that you can read about here. Restaurants Brands International is the parent company of Tim Hortons and Burger King. As most of us know Burger King is a worldwide fast food restaurant chain that competes with McDonalds in this space.  Tim Hortons is a fast food chain with most of their restaurants in Canada.

Summary:

Initial Cost with commissions: $2430.12
Proceeds of sale including commissions: $2494.88
Dividends Received :  $6.19

Profit = $2494.88-$2430.12
          = $64.76

Total Return without dividends = $64.76/($2430.12)
                                                   =  2.665%

Total Returns with dividends = ($64.76+ $6.19 )/$2430.12
                                                = 2.920%

    QSR will pay another dividend in the first week of October. I am not able to know for sure what the dividend will be as dividends are paid in US Dollars and would have to convert to Canadian dollars. As from my summary above, dividends increase the return on investment.


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 Sale

     I recently made a purchase of Restaurant Brands International. Restaurant Brands International (ticker symbol QSR on both TSX and NYSE) is the company that was created by the takeover of Tim Hortons by Burger King. 

    Over the last couple of days there was some upside with the share price. Although Starbucks is a premium coffee, 8 out of 10 cups of coffee in Canada is sold at Tim Hortons. Starbucks, McDonalds, Second Cup, and Tim Hortons all compete for customers in the coffee shop space.  As some of the stocks in my portfolio have been beat up such as Enerplus and CN Rail, I decided to take profits from this position.
     I was watching my brokerage account, as I am off this week, and placed a limit order of $50.15. The order was filled right away at $50.23. The difference in price is the quotes in my brokerage are delayed up to 15 minutes for stocks trading on Canadian Exchanges.

Summary of  Investment:

# of shares : 40
Duration of Investment : 3 days
Initial Investment : $48.85*40+$5.09 = $1959.09
Proceeds of Sale : $50.23*40-$5.09 = $2004.11

Profit = $2004.11-$1959.09
           = $45.02

Total Return = Profit / Initial Investment
                       = $45.02/$1959.09
                       = 2.298%

This sale reduces my annual dividend income by $16.00, as the current yearly dividend appears to be $0.40 per share.

EDIT: My brokerage account trading summary on May 15 at night, saying purchase price is $48.85 instead of $48.84 . The numbers have been adjusted above.

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 Sale - Trade Closing

I recently wrote about a trade in which I purchased 2 contracts of TD in Canada at $54 strike price.  I paid a premium of $0.85 per contract with a May 18, 2015 expiration date.

On Friday, the stock showed a little strength and this was enough to push the value of the option upwards. My limit order (Sell to Close) was filled at $1.25 per contract.

Summary:

Initial Investment : 2 contracts *$0.85/contract*100 shares +$11.95
                              = $181.95

Proceeds of Sale = 2*1.25*100-$11.95
                            = $238.05

ROI = Profit/Initial Investment
        = ($238.05-$181.95)/$181.95
        =  30.83%

Click to Enlarge

This trade was in my TFSA, so I pay no taxes ever on this profit.

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 Trade - Sale

In January, I wrote about purchasing 600 shares of Sherritt International at $2.40 per share. Sherritt International has resource based company with operations in Canada, Cuba and Madagascar. Sherritt International is involved in the production of nickel, cobalt, oil and electricity.

On February 26, my limit order went through for the sale of the 600 shares at $2.60 a share.

Initial Cost:  $1446.00 including commissions
Proceeds of Sale : $1554.00 including commissions

Profit = $1554.00-$1446.00 = $108.00

ROI = $108/$1446.00 = 7.47%

Click to Enlarge

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 Sale

     I recently wrote about  a purchase of Boston Pizza Royalties Income Fund (BPF.UN) in my margin account.  I also own 234 units in my Tax Free Savings account that I have owned since March 2010.

       This fund pays a distribution monthly at the end of the month.  In Canada, the rules for income trust were changed in 2011, after the announcement on Halloween 2006 by the finance minister at the time, Jim Flaherty. Companies that would remain as an income trust would have to pay a SIFT tax.  The SIFT Tax stands for the Specified Investment Flow Through tax. You can read more about the SIFT Tax here.  With income trust having to pay this tax, it meant it has less profits to pay out to unit holders.  This was the reason why the distribution was reduced a few years ago.  A lot of companies switched back to a corporation setup prior to this tax coming into effect.

      My limit order of $21.55 was recently filled on Dec 22,2014. I also will collect the distribution payment at the end of the month in the amount $20.40 for the 200 units that I held .

Initial Purchase with commissions: 200 *21.23  + $4.95 = $4250.95
Distribution received     = $20.40
Proceeds of Sale = $21.55*200 -$4.95=$4305.05

Profit =$4305.05-4250.95+20.40
           =  $74.50

Total Return on Investment = $74.50/$4250.95
                                             = 1.753 %

Click to Enlarge

Disclosure: Long BPF.UN inside TFSA still

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 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 www.sherritt.com )

      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.

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

                         

Resent Sale

Over the last two to three weeks, one of the major stories was the purchase of Tim Horton's by Burger King. Under the new ownership structure, the new company will be a Canadian Corporation owned as follows: 3G Capital 51 %, Burger King 27% and Tim Horton's 22%. So, all current Tim Horton shareholders could combine to own 22% of the new formed company. I recently wrote a post about the possible purchase of Tim Horton's by Burger King . This post also tells you what choices the Tim Horton's investor have.

I recently sold my 100 shares in Tim Horton's in the last week.  This buyout by Burger King is highly leveraged.  So as I hear more and more people talk about this, I feel it would be better to sell the shares. For some reason the sale does not go through, the Tim Horton's stock price will drop probably in to the low $60's or high $50's.  Currently, as Tim Horton's is near saturation in Canada, they are basically a "cash cow".  I believe the cash from Tim Horton's will be used to help pay down the massive debt incurred to finance this transaction.  With the cash going to pay down the debt, then the dividend, if any, with the new company will no grow quickly.

Purchase Price:   $59.70
Commission on Purchase: $4.95
Sale Price  :  $89.25
Commission on Sale:  $4.95
Total Dividends received:  $96.00

Profit= 100*($89.25-$59.70)-2*4.95+96
          =    $3041.10

Return = Profit/investment
            = $3041.10 / (  $5970+$4.95)
             =   50.90 %   

I will continue to follow the news on the possible buy out of Tim Horton's by Burger King.

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 Sale

www.airlinesanddestinations.com

During the past week, Chorus Aviation Inc. announced its first quarter earnings for 2014.  Some of the highlights are as follows (www.newswire.ca) .

• EBITDA of $47.3 million, up 8.2 %
• EBITDA margin of 11.4%
• Operating income of $31.2 million, up 50.0%
• Adjusted net income of $20.3 million, up to 38.0%
• Adjusted  net income per share of $0.17 per basic share.
• $60.0 million early, partial repayment of 9.5 % maturing convertible debentures.

Chorus Aviation Inc also announced that they will be changing their dividend from a quarterly dividend to a monthly dividend in the 3rd quarter of 2014.

The first-quarter net income is down from  a year ago by 39.1 %.

Chorus Aviation Inc (The parent company of Jazz Air) has one major customer and that is Air Canada.  By law, Air Canada has to fly to areas even if it is not profitable. Usually these smaller airports are serviced by Air Canada Jazz as their planes are smaller.

I have decided to sell my shares in Chorus Aviation last week as I believe my entry point at $3.68, which you can read about here,  is higher than I would like. Airlines have to deal with rising fuel costs and inflation causing their customers to reduce their travel.  The sale of 1000 shares happened over two days so I had to pay commissions for each day.

Cost of Shares including commissions  : $3689.95
Proceeds of Sale including commissions: $3800.00
 Net Profit :  $110.05
Return of Investment: Net Profit / $3680.00 = 2.99%

The sell order for my shares was a limit order for all 1000 shares at once.  Since the complete sale happened over 2 days my commission for selling was $10.00 instead of $9.95. My broker has $0.01 per share cost with a minimum $4.95 commission and max $9.95 commission. The order went through as 500 shares being sold on each day so I paid $5.00 commission each day.

I will update my portfolio tab spread sheet in early June.


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