Between yesterday and today, I had enough time to rethink my position in Colabor Group Inc. (GCL). I had been holding GCL in my portfolio since February 2011. Since that time, I was holding more than 200 stocks of GCL, which I consider being too much in today’s market condition. Today, I sell some stocks of GCL at 10.82$ and 10.80$. It felt very good to do so. I saw GCL going upside down within a matter of just a couple of months.
I still own some Colabor Group Inc. (GCL) stocks in my portfolio, but I do not hold 200+ stocks anymore. I was getting tired of GCL and now was the perfect time to sell a few bunch of GCL.
I reinvested the money coming from the sell in Canadian Utilities Limited (CU). I bought some CU stocks at 61.20$ and I was very pleased. Boost by my investment, Canadian Utilities Limited (CU) closed this Friday session at 61.38$.
Canadian Utilities Limited (CU) nicely completes my collection of blue chips. I am happy and very release. Holding too much of a troublemaker stock like GCL had created an unhealthy financial portfolio stress. Fact is, no matter how much a portfolio is diversified, no matter on how many blue chips I hold, I am always exposed to the market volatility. Knowing that, I think it’s important to reduce the whole thing to a minimum of risk by trying to avoid small caps with a high dividend yield. At a point, I don’t want to have to worry about my portfolio, my holding, my margin account situation, etc.
Today I took a first step in reducing my portfolio stress. I reduce my portfolio stress and... also my dividend income. However, knowing that I mostly invest in a non-registered account because of my margin, I don’t mind reducing my dividend income. Not at all.
I had experienced the small cap high dividend payer stock in Superior Plus Corp. (SPB), Yellow Media Inc. (YLO) and many other. All troublemaker stocks. Now, I want to establish my portfolio for good. No more trading, just lay back, enjoy the dividend income and I will be done. Once establish, I won’t be trading as much as I had done in 2011. Or should I say, I WILL TRY not to trade that much.. lol..
I just realized now, I had placed today my first investment of 2012!
And there’s many more to come! (See, it’s very hard to control those kind of impulses).
Following what, it seem like my non-registered portfolio is now at 115 947.38$. Quite good!
Next thing coming up is my RRSP contribution.
If you did not like the stock, why not sell all of them.
ReplyDeleteBecause there's still a possibility of grow for this stock. The company acquired many companies, they have received a loan from the Fond de la solidarité. And GCL closed Friday session on the high.
ReplyDeleteMy original investment in GCL was more than 2k - which is way too much money on the same spot for this volatile title.
I saw GCL title going as low as 8$. It was scary. I am on the good road to hit the 200k, but for that, I need to take control of my portfolio.
This is not being unbalanced, it's a trade move made of a great deal of common sense.
1. Funny you would invest in Colabor and not BCE. Isn't Colabor a company from Quebec like BCE.
ReplyDeleteI invested in the stock because at the time, beginning 2011, the only thing I wanted was to boost my dividend income.
ReplyDeleteAs for BCE, I don't like to buy stock with a history. All that Teacher thing acquisition around BCE, I didn't like it. Just like POT has an history of wanted to be acquire by another company. I try to stay away from stocks having an acquisition history.
X is the exception, as I saw the possibility to win big when X get acquire, but it's been more than 6 months now and the whole thing is not doing well.
Better stay away from stocks who have an acquisition history.
sunny , a known fact is if yu follow the teachers ,you cannot lose, they are the most powerful group in the country and i wouldn't hesitate at acquiring anything they own or did own even if it was in timbucktoo....i now am a shareholder of Maple Leafs.
ReplyDeletesunny , a known fact is if yu follow the teachers ,you cannot lose, they are the most powerful group in the country and i wouldn't hesitate at acquiring anything they own or did own even if it was in timbucktoo....i now am a shareholder of Maple Leafs.
ReplyDeleteI fail to see how Colabor qualifies as a trouble stock, you paid 11.77 per share on feb 3, 2011. You collected 1.08 in dividend during the time you held it. So you haven't lost money on it, actually made a little bit of money on it. In the meantime, you have stocks like SII, DGI, and NFI, ECA, K, PSLV where you lost between 30 and 45% and have greater amount invested as you had in GCL.
ReplyDeleteThe accountant
Sunny, I see you haven't done a update of your portfolio as of dec 31. Also I have notice instead of giving the quantity, you just say you sold or bought some. Is that because you don't want people to know your gains or loss in the future.
ReplyDeleteThe accountant
I haven't update my portfolio because it involve a lot of work from my part since it's being done all manually and I hold a lot of different investments and it's quite long.
ReplyDeleteDoing one update now could be a great idea.
Sunny, you make me laugh out loud, your priceless , the BCE is so rock solid for many years , the capital is pretty darn safe and at your age, that is what your looking for. i was wondering , how do u keep up with so many stocks?
ReplyDeleteYou can laugh as much as you want Ruth, I really don't care. BCE is not a good investment.
ReplyDeleteFollow the advices of that stupid guy who name himself as being an accountant, go for it. We'll see if you'll still be laughing when you'll lose money by following the advices of some complete idiots.
Yeah, I'm the stupid one.
ReplyDeleteI told you about HZD, but you taught you knew better but at the end you took the loss. Betting agains silver while your portfolio was loaded with silver stocks.
All you're doing is buying stocks with no plan. And like Ruth and others have told you, you own way too many stocks that you can't even control them. Owning lots of stocks doesn't mean diversification. There's 1500 companies listed in the TSX and that didn't prevent the TSX from losing 11% this year and all your stocks didn't prevent you from losing even more.
You think GCL is a trouble stock when you haven't even loss any money on it. Yeah I'm the stupid one. I know more about your portfolio than you do. You can't even calculate the loss of your portfolio.
You think 2011 was worse than 2008, again you're dreaming. In 2008 companies like AGU which you think is a blue chip went from $110 to $30 (yeah, you read that right). We'll see how safe your stocks are the next time that happens. If there's one thing for sure, it will happen again; it could be this year or in 5 years from now. So you can sit in front of your computer and enjoy your stocks go up for years at a time, but with no asset allocation to protect you, you will lose it much faster when a crash like 2008 happens again.
Six to 9 months ago, you where bragging how good you where and not anytime soon you would see ECA under 30$ and here it is under 20$. Yeah, I'm the stupid one.
You're the one buying SII for a special dividend, and I'm the one that had to tell you that you had bought it too late for the special dividend. And since then, you're down like 40% on that stock. And you think GCL is your trouble stock and you think I'm the stupid one.
On one hand you say you didn't lose money this year and on the other hand you say you where stressed from your stocks. Why would you be stressed if you didn't lose any money. Because they went up and down. Last time I checked, that's what stocks do.
There's someone that's not too bright, and I think it's pretty obvious who that is.
The accountant
what i found most interesting is the accountant's list of pluses and gains...i counted at least 16 plus and 28 minus. some of the losses were huge. i will admit to making mistakes on 3 stocks which i have lost and i dont like that number. there is nothing wrong Sunny in someone pointing out a portfolio that needs a bit of change. by the list , you are losing and is that without all those interest charges too. i have learned i hope by my mistakes and i sure like someone to give me opinions....your a good sport to print all of this...i sure give u that but you deserve to make money.
ReplyDelete