I was kind of expecting it, my Premium Brands Holdings Corporation (PBH) continue to lose money again today. And for me, it was the point of no return. I decided to sell all of my PBH shares. I am no longer holding to PBH inside my non-registered portfolio. I guess that tomorrow again, PBH will lose some more money. I didn't want to simply sit there and watch PBH falling down. I decided to sell everything, and I got in a nice capital gain that greatly helps to pay down my margin account. My margin account usage is now at $66 383.92 (I used to be on a 100k, and sometimes a bit more). My non-registered portfolio closed today session at $128 068.52. My net worth must be in the 202k, which is not bad. While being under a 16 000 points, you must find reward where you can find it.
I actually don't remember the last time when my usage of margin had been under the 70k. For me, this is just the natural way things had been done. A 100k margin was quite a big debt to hold on to. The stock markets are not going better. Actually, I cannot say if we are in a good or bad place right now. Its like we are in that big dark shadow that surrounds us.
If I sell all of my oil stocks: Enbridge Inc. (ENB), Pembina Pipeline Corporation (PPL), TransCanada Corp (TRP), Parkland Fuel Corp (PKI), I could have really little left to pay on my margin account. It's something I like to consider. I really don't like those oil stocks and I find it hard to believe that still today in 2018, and soon 2019, we keep exploiting oil. Its a resource we shouldn't have to rely on.
These days, the environment is the topic à la mode, but in the other hand, we are not cutting down on the planes that travel worldwide, we still have the Formula 1 events, which pollute enormously, and worst thing ever: we still have the Olympics. Calgary vote no to the Olympics in their city and common sense had won. We will never be able to save the world because no real action is being taken by our governments. Right now, we should shut down airplanes, no more travel for nothing, no more oil, no more anything bad for our environment. No more Olympics. But I doubt that the world has the intelligence to move forward in that direction. And personally, I am secretly thinking about selling my oil stocks. I want to go back to my old pure inspirations. A day will come when oil will have little value.
Yesterday, Cineplex Inc. (CGX) was experiencing some major loss. And today, it was the turn of another deep love of mine: Savaria Corporation (SIS). Today SIS drop down 18.78%. No worries for now, I am still experiencing gain on SIS. Will SIS do like PBH and drop again in value tomorrow? If so, I am going to sell!
I am now a bad ass investor.
Agellan Commercial Real Estate Investment Trust (ACR.UN) is now from my portfolio, I invested in a few shares for my TFSA portfolio. Welcome in my TFSA portfolio Agellan Commercial Real Estate Investment Trust (ACR.UN! Go go go and makes mommy proud!
Hi DG,
ReplyDeletePBH & SIS were great growth stocks, but you should learn to take profit when a stock moves too high and too quickly. I assume that you lost around $20 000 (opportunity cost) for not taking profit (lesson 1- take profit periodically).
At one point, PBH was your largest holding and represented around 25% of your portfolio. (lesson 2- diversify your portfolio properly). Avoid owning more than 5% in one stock or 20% in one sector (my prefer strategy is 2% in one stock and 10%-15% in one sector).
I own CGX in my portfolio, but the recent drop didn't impact my portfolio performance. When you own around 50 stocks, one or two stocks may take hit per year. But, you could minimize the damages using a good diversification strategy.
In my view, selling pipeline stocks is a bad move, at the same time owning oil & gas producers also a bad idea. Actually, Pipelines are essentially important to move energy from one location to another, but they are really hard to build. So, the assets those company already have are very valuable.
You could do better by simply focus on high quality blue-chip dividend growth stocks, and ignore the short-term market move..
You may not like to hear advises, you I thought it may help you....
Best Regards,
Oil is used for so much more than just making fuel for transportation. It is the source of polymers used to make plastics. It is used to make fertilizer, rubber for tires, pharmaceuticals, nylon, dyes, detergents, and so much more. It is still one of the most transportable forms of quick energy. We will continue to rely on oil products for transportation until a means of storing other types of energy is developed that is reliable, long lasting and easy or quickly recharged. This means batteries that can be quickly recharged and last long enough to get you as far as a gas powered vehicle can go.
ReplyDeleteHello dividend girl,
ReplyDeleteWhen you hold solid companies, you should sell on negative material info, not due to choppy market conditions. PBH went up more than $2/share today.
Carol
nice.
ReplyDeleteyou're going to need a lot cash available to pay taxes in April. though. And to fight the urge to buy other things with the freed up margin :P
PHB might recover, because they've announced today the intent to repurchase shares. this is why the stock was slightly up today
ReplyDeleteI have no problem with the fact that you weren't diversified and PHB was such a big position. Nobody gets rich being diversifie (or just buying blue chips) It's just when combined with the huge margin that I worried
ReplyDelete