The month of Nov 2014 is now behind us. During the month of November, the price of a barrel of crude oil continued to drop. This drop in price has a big effect on my portfolio due to the weight on the energy sector in my portfolio. On November 27, OPEC met in Vienna and decided not to cut production. The price of crude kept falling after this and his roughly $66.00 a barrel.
I completed a trade in Precision Drilling early this month, which you can read about here. Since I exited my trade, the stock price of Precision Drilling has fallen a lot due to the falling price for a barrel of crude oil.
Shares added due to drip
2 shares of ERF @ $17.11 for a total of $34.22
1 share of KMP @ $10.74
My cash position is large right now, and I am actively looking to employ some of that cash in investments in December.
As
of Nov 30, 2014, the value of my portfolio stands at $75950.89. This is
an increase of 4.291% over last month. Although my energy stocks
dropped, the other stocks I currently own have increase in value. I
also contributed some cash to my portfolio.
I have updated my investment account tab above.
Disclosure: Long KMP, ERF
DISCLAIMER
Sunday, November 30, 2014
Saturday, November 29, 2014
Weekend Reading - November 29 2014
Dividend Mantra recently published an article title Is Managing A Large Dividend Growth Stock Portfolio Time Consuming. I agree with Dividend Mantra, you need to do a lot of research up front for positions before you make an initial purchase. Depending on level of risk of an investment, an investor has to follow the news and financial reports when it comes to an investment with a higher level of risk.
Sharpe Trade published a few articles this week that I found were good. Sharpe Trade is a new website that aims to educate people about the capital markets. There are several people involved in this site, including 2 that are very active in social media over the years. Brad B, aka Pulling Myself Up, wrote an post on "Dividend Growth Rate: How Growing Income Beats Inflation". Dan Shy, wrote a educational post about the dividend payout ratio.
Asset-Grinder wrote about his 6 month anniversary with his blog. Asset-Grinder is making great progress in terms of page views and different visitors from all over the world.
Liquid, over at his Freedom Thirty Five Blog, wrote a post about Change. Newcomers need to become financially aware and learn about investments. The more they learn now, the better they are at making better financial decisions in there future. The past can not predict the future, but if you want to understand where you are at financially and where you want to go, a good starting place is to track your own finances to find out where your money is going.
My Own Advisor posted on his blog a post about titled, "Stop Worrying, Make Your Portfolio Safer, and Choose Better Investments. ". An investor can definitely sleep better at night if they have safer investments. I have a few high risk investments in Just Energy and Enerplus. These 2 companies are do struggle a lot and this is reflected in their share price. With the price of a barrel of crude now in the sixty-five dollar a barrel range this will greatly affected the bottom line for Enerplus. OPEC has stated that they will not meet again for 6 months after meeting this week. I do not worry about my investments in Emera or Scotia Bank.
Disclosure: Long JE, ERF, EMA, BNS
Photo Credit : www.cafepress.com
Saturday, November 22, 2014
Recent Trade
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| Image 1 |
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| Image 2 |
This last 2 week I made a quick trade. I did not expect to be in and out so quick. To be honest, I was surprised the trade moved in my favor.
I purchased 300 shares of Precision Drilling at $8.75 on November 13, whose ticker symbol is PD.TO Yahoo Finance.
Precision Drilling Corporation is Canada's largest
oilfield services company and one of the largest in the United States.
Precision also has a growing presence internationally. Precision
provides contract drilling, well servicing and strategic support
services to customers. Precision supplies on-the-ground expertise -
people, equipment and knowledge - to provide value to our customers on a
daily basis. - Investor Relations
The last quarter ended on Sept 30 and the also recently announced a dividend increase of 17% to their fourth quarter dividend. Some highlights of their recent earnings release are:
- Revenue in the 3 months ending Sept 30 increased from $488.45 million in 2013 to $584.59 million, which represents a 19.7% increase over last year.
- Revenue in the 9 months ending Sept 30 increased from approximately $1.463 billion in 2013 to $1.732 billion, which represents roughly an 18.4 % increase.
- Net earnings increased 79.4% from the 3 months ending Sept 30 as compared to the same time in 2013. Net earnings increased 19.4 % from the 9 months ending Sept 30 as compared to the same time in 2013.
- Diluted Earnings per share in the 3 months ending Sept 30, increased form $0.10 per share to $0.18 per share, which represents an increase of 80.0% increase. Diluted Earnings per share in the 9 months ending Sept 30 increased $0.43/ share in 2013 to $0.50/ share in 2014, which represents an increase of 16.3%
- Average contract drilling rig fleet in 3 months ending Sept 30, 2014 was 335 which represents an increase of 2.8 %. This is the same for the 9 month period ending Sept 30, 2013
I sold my shares at $9.02 on November 17, as my limit order was filled.
Summary of transaction
Cost of shares = 300* $8.75 +$4.95 commission
= $2629.95
Proceeds of Disposition = 300*$9.02 -$4.95 =$2701.05
Profits = $2701.05-$2629.95 = $71.10
Total Return = Profits / Investment
= $71.10 / $2629.95
= 2.703 %.
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| Click on image to enlarge |
Over the last few months, Precision Drilling as seen it's share price decline due to ongoing world events that cause people to fear certain types of companies. These events include such things as Ebola and what is going on in Ukraine and Iraq . The price of barrel of oil has dropped a lot and is currently as $76.72 a barrel, according to www.stockhouse.com. As the price of a barrel of crude oil drops it will eventually lead to a slow down in the oil and gas sector.
Photo Credit : Image 1 www.precisiondrilling.com
Image 2 www.calgaryherald.com
DISCLAIMER
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