This morning, the temperature is of -28 Celsius Degrees in X town of New-Brunswick! Very cold! See for yourself:
In this cold Sunday morning, what can I do better than checking over my investment portfolio? Seem like TD Waterhouse system is down this morning. I have to say, it’s been a long time since I wake up at 8am on a Sunday morning, so I don’t know if this is normal or not. But I know for sure that TD Waterhouse usually performs maintenance in their system around midnight Eastern Time every Saturday night.
Anyway, I don’t need to access my portfolio in order to discuss the topic of this morning.
So far, everything is great financially speaking. Otherwise it’s another story, but I won’t talk about the other stuff for now, at the exception that my father is very sick. It’s been a week now and he has a hard flue to get over. It’s the reason why I am not sleeping in this morning. It’s the only reason why lol.
It would have helped me to have access to my portfolio because I wanted to look at my troublemaker stocks. The profile of a troublemaker stock? I name troublemaker stocks the stocks that are not stable in value. Usually speaking, those pay a high dividend yield (it’s the reason why I got enroll in them at the first place).
A high dividend yield does not equal a high quality stock.
That’s something I learned among the way. A stock should never provide more than around 8% in dividend yield. After the 8% mark, it’s an exaggerate dividend yield payment that could potentially caused damage to the company in bad economic time like we are in right now.
Beginning of 2011, the only thing I wanted was to increase my dividend earning. And in order to do so, I simply invested in companies who were paying a high dividend yield. It wasn’t exactly a good decision because I had experimented capital loss in term of holding.
In my portfolio, I want it all. I want a good dividend payment, I want to experiment grow inside my portfolio and I also want a portfolio that won’t decreased in term of value. Having it all represent a lot of work. And it also mean not being scared of restructuring your portfolio when you are been giving the opportunity to do so by the stock market. We’re going to discuss of all those things. Interesting? Oh yeah for sure.
In my non-registered portfolio, here are my troublemaker stocks:
EnCana Corporation (ECA)
Canfor Pulp Products Inc. (CFX)
New Flyer Industries Inc. (NFI)
Rogers Sugar Inc. (RSI)
Colabor Group Inc. (GCL)
Data Group Inc. (DGI)
Kinross Gold Corp (K)
EnCana Corporation (ECA)
In 2010, I initially invested 5 946.88$ in EnCana Corporation (ECA) in my non-registered portfolio. I also hold EnCana Corporation (ECA) in my RRSP broker account. Currently, the closed to 6k invested worth half of it. I invested in EnCana Corporation (ECA) when its stock value was somewhere around 30$. Back in the time, I taught that ECA was going to hit it old 60$+ value. You can imagine how excited I was following my investment in ECA. Since that time, ECA increased a little bit in value but in the recent months, EnCana Corporation (ECA) had decreased in value to reach as low as 17 buck per stock.
There’s a demand for natural gas, it’s just that it’s being sell at very low price. EnCana Corporation (ECA) has good gas reserved and had made many improvements to their business. ECA has also been for a little while a Derek Foster stock. So all those combines together, I think it would be a mistake to sell ECA at this time because ECA can easily trade back again at 20$ per stock, if not higher.
While investing in stock, I always invest for the long term. Hopefully, ECA will recover and hit back the 30$+ once the economy get better – one day.
Canfor Pulp Products Inc. (CFX)
I am naming here Canfor Pulp Products Inc. (CFX) as a troublemaking stock but it’s not really. The stock market is a very hard place to be. I am naming here CFX as troublemaker stock because in the past week, CFX title had been volatile. However, Canfor Pulp Products Inc. (CFX) quickly rebound. But at the time it crash, I really taught oh nooooooo not another troublemaker. LOL. That’s really what I taught. But I always like CFX and continue to happily hold it in my portfolio. I invested in Canfor Pulp Products Inc. (CFX) in January of the year 2011. Since that time, CFX grow in value. Lately, CFX decreased in value. I actually hold it at a lower price that I bought it.
CFX is an interesting BC company that manage business in the wood, forest industry stuff like that. It’s reliable. The dividend payment is good. I don’t have any problem at holding CFX and I would recommend to anyone to just stick-and-hold. After all, you’ll have some problems to get a better quality stock in that sector.
Canfor Pulp Products Inc. (CFX)? A bit of troublemaking but I still like it.
Rogers Sugar Inc. (RSI) and Colabor Group Inc. (GCL)
Recently, I took care of Rogers Sugar Inc. (RSI) and Colabor Group Inc. (GCL). I had close to 2k invested in RSI and GCL. I considered having too much money invested in those 2 trouble companies. Luckily RSI and GCL had gained in value recently. That allows me to partly sell RSI and GCL. I still hold RSI and GCL in my portfolio. RSI and GCL may be volatile and be troublemakers, but I still have enough consideration for them to still hold them in my portfolio. I reinvested the money collected this way in Canadian Utilities Limited (CU) and Veresen Inc. (VSN).
Data Group Inc. (DGI)
The only reason why Data Group Inc. (DGI) is from my troublemaker stock is that I initially invested in DGI stocks when they were at 6$+ each.
Currently, DGI is at 4.89$. I have hope that DGI will gain in value. The dividend yield is of more than 13%.
The company declared a couple of months ago that it will be able to continue to pay this kind of dividend. Since I have a DRIP, the dividends earned from DGI are being automatically transformed into stock. This will certainly played in my favour on the long run. And one DGI rebound, I would to sell a bit of what I hold in them.
I don’t like the capital loss that I am currently experiencing with DGI, but that’s part of the game. Don’t expect all of your stocks to be that extra good investment. Like never.
Kinross Gold Corp (K)
I used to have some stocks of Yellow Media Inc. (YLO) in my portfolio. I was fortunate enough to sell my stocks at what I remember being a bit more than 4$ per stock. That was just before YLO become trading for a few pennies. Selling YLO was the best decision I ever made. Following my sell of YLO, I reinvested the thousands of dollars collected in Kinross Gold Corp (K).
Selling my stocks of Yellow Media Inc. (YLO) was the best decision ever, but reinvested all of the money in Kinross Gold Corp (K) wasn’t.
At the time, gold was cool and I didn’t have invested that much in gold. At the time, K was considered a Strong buy by some analysts (they probably don’t worth sh*it) lol. When it come to finance, never trust no one, especially not anyone from BMO Bank of Montreal (BMO).
My invested in Kinross Gold Corp (K) decreased in value because they are having problem with a gold mine they have in Mexico or somewhere. Very frustrating. But that’s part of the game when you become an adventurous investor.
Derek Foster Canadian stock picks were amazing. PPL, CDL.A, ENF, etc. I made thousands of dollars from Derek Foster picks and I probably own him more than just kind words on my blog but that’s all what he’s going to get from me anyway. Lol. All this to say that everything was much better for me when Derek Foster was an investor oriented over his own stock Canadian market. But now, from what I understand, he exclusively holds US stocks and I find it so frustrating. Why in the world an invested like Derek Foster would say F U to the Canadian stock market and exclusively invest in US stocks? WHY? I would like to know why Derek Foster says F U to the Canadian stock market.
LOL. ;)
So here I am, trying to pick stocks for myself and it’s working....... kind of well overall.
Personally speaking, my goal is to boost the Canadian stock market from my little savings and you know, just be there, make a fortune from my stocks in a crazy style.
The only reason why I did not experimented capital loss in the overall value of my portfolio is 2011 is because we, Canadians, have the best stock market of the world. It’s the only reason why.
Overall, my experience with stocks had been very positive. My non-registered portfolio is at 116k+, my dividend income had been of 7k in 2011 and it will probably be the same if not a bit more for 2012. Everything is going fine, but it required a lot of work just to follow all of those stocks. It was my decision to have an X-LARGE portfolio and I don’t regret it. Not at all, even while holding troublemaker stocks.
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17 comments:
I believe Derek Foster is investing in US stocks as since they were hammered by recession. He finds better value right now.
Companies like Johnson &Johnson, Coco-cola, Pepsi, Walmart and Phillip Morris provide better international exposure. THey are dividend aristocrats (i.e. over 25 consecutive years of dividend increases). As far as Canadian companies, I believe Fortis is the only one that has done this.
I do believe Derek Foster will invest in Canadian stocks when he can invest at cheaper prices. There are lots of good Canadian companies that pay dividends still.
Wow, this is a good explanation.
It's probably what Derek Foster would answer if I would have asked him the question instead of bitching in his back lol :)
Be careful with Encana. Most of there production was hedged (or pre-sold) at much higher prices until the end of 2012. If the price of natural gas doesn't recover over the next year you should expect their profits to take a big hit in 2013 and beyond.
That and he took advantage of a high canadian dollar to get them even cheaper. I have done the same and had a great year last year.
The accountant.
You forgot a few trouble stocks like PSLV, SII, PGF and JE.
Sunny, that is a lovely amount in dividends and you still have JE yet to come in...what percentage do u take in cash for yourself..as you wouldn't want the drip on loser stocks.. the article is also very interesting..i hold RSI bought at $5.32 , they talked about this stock on tv...always stays in the $5 range. i think the problem area for the gold was NIgeria.
Anonymous , did you not tell me about coke being $99 at 1998 and would you see that as a good buy now. i am not interested in it but wondered what you thought of it. Also i think BCE has rising dividends as doesn't Enbridge?
KO (coke) was a better buy 3 years ago at 40$. If you want stability, KO is a good long term hold, just not a home run stock. Of course when you go for a home run stock, you can also strike out. I would rather pay in the low 60's for it even though it will more than likely trade higher in 3 years from now as they keep growing their revenues.
If I might add, I prefer PEP (pepsi) and JNJ over KO right now. They have a better yield and are a little cheaper.
The accountant
I don't know what to think about ECA anymore. I invested a great deal of money in this stock. Maybe even too much.
Interesting to hear your view about US investment.
SII could have make the list of troublemaker stock. PGF is doing kind of ok. JE is volatile, it could have make the list. PSLV and PHS.U are troublemaker stocks too. I forgot about those last 2 because they are not companies but are silver stuff. Silver is sooo volatile. It's awful. It wasn't like that back in November 2011. Missing the old good days...
I am not the biggest fan of RSI has I find the title doesn't grow in value and is very volatile. The value is not even stable.
I am registered to a DRIP for everything that I hold. my dividend money is getting reinvested. For what is being leftover, I apply it on my margin or credit line.
Thanks for your contribution.
ECA, Silver, SII are examples of trying to hit a home run and being 1 strike away of striking out. Investing is not only about making money, it's sleeping good at night and not second guessing your choices. I can't predict whether or not we'll get another crash and PEP or KO will lose 30% of it's value like it did in 2008, but I am pretty sure it won't stay there and I don't have to worry whether they will cut their dividend. Pepsi and Coke are leaders in the beverage market, but Pepsi is also a leader in the snack market.
US stocks are best held inside your RRSP as they are not taxed favorably compared to canadian dividend. Also, if held in non registered account you have to keep track of currency exchange on buy, sell and dividends and could also have to pay tax on capital gains on currency gains.
As for ECA, your guess is as good as mine. Prices are very low and all we hear about is new natural gas discoveries which is not helping. At these prices, it's not profitable to produce natural gas unless you have hedges like ECA and you would think that companies would reduce their production which would eventually help prices.
The accountant
on the business chanel they were saying that natural gas in the states is like the arabian oil fields and the americans are not using it. the natural gas stocks are in big trouble , warm winter too doesn't help. i was lucky in taking advantage of the higher Canadian dollar for a US trade , am up on Sea Drill. don't know Sunny about our Pengrowth and Just Energy, i sold 200 pengrowth at $11.20...but still have 400 of the damn stock.
Sunny, why would you have a drip on Pengrowth , it is up and down like a yo yo...it doesn't make a cent for us. I heard the advisors talking about JE ,,,they said the contracts will be up in a year and it will be even tougher for this stock.,. maybe the dividend is just too high for growth. i have done better with the expensive stocks...am up on BCE and Enbridge.
I don't understand why you have to sell a stock just because it is down. Why can't you buy more to average down? You just trading one piece of paper for another. No guarantee it will go up either.
I have ECA ,and K too and I will buy more in the future to average down. My RSI at 3.27 will be fine. My MFC 10.41 is fine too.
the confused
coke was never 99 dollars. I had it for 15 years and it was never than high.
LTD-N has been a great stock. Special dividend every december and a fashion show for those interested in that sort of stuff.
the confused
I continue 2 hold ECA & CVE acquired thru the CP breakup. I view them one holding as selling off the dribs & drabs of the breakup recouped my initial investment, ECA &CVE positions r bonus 2 me.
I partly sell RSI and Colabor because those 2 are not constant in their value and I was getting very annoyed by the 2k I hold in each of them.
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