Does Montreal Supermoon = super investment portfolio time?

It’s been one of those weeks! Stressful and absolutely awful. I never went on so much market stress of my entire life! This time is very different of what I live in 2008 when I went down on my first ever mega stock crash. None can compare a stock crash to a natural disaster of course, but the negative effects on investor is the same: stress, stress and a lot of stress. Nothing that I cannot handle, but still! It’s insane!

I was under the deep impression my portfolio was going to go through the first post-traumatic Japan tsunami week without having to deal with too much lost inside my portfolio... I was so sure to be able to make it that I even place 2 investments: 100 new stocks of DH and 380 stocks of WEQ.UN... I am sure, but I still needed to be careful. But worst part is that this is far from being over! I had been carefully following the after of the Japan tsunami. I find it very arrogant from the US officials to go out and make public declarations over the situation in Japan. The US had been responsible for so much devastation in the word. For once, they should shut their big fat mouths and let the Japan government talk for itself. I taught the USA were going to be different under Barack Obama. Well, I was all wrong. It’s still the same arrogant country.

Despite the situation in Japan, my portfolio had performed extremely well and from what I saw so far, I think that my overall portfolio might had gain between 3 to 5 000$ today! This driving me right through the 155 000$! 200 000$, be ready, I am coming soon! Well, this is all very exciting at this time, but without exactly knowing what’s going to happen next in Japan, the infamous uncertainty of Gordon Pape remains and well, you know what Gordon Pape said: SELL, SELL, SELL! lol... This is making me laugh soooo much. I especially like my “Gordon Pape calling it quits”. I am selling out Gordon Pape right here on my blog.

I still have plenty of years in my hand (well, I hope). And it’s not exactly the case for Gordon Pape. So when Gordon Pape announced that investor should take advantage of the latest stock gains to sell and make some money of it, I don’t know if Gordon Pape was thinking of what he was going to do for himself as a senior very old investor, or if he ever had in mind the warrior princess of the stock market out there (LOL)!

Whatever had in mind Gordon Pape, I don’t know, but what I know is that, despite the horrible stress, I just don’t see myself selling, cashing out the money and walking away. Just like that. No no no.

I am still not over the stupid column of Gordon Pape. I think we wrote what he did because of his senior age. But this upset me in a strange way. As a public financial figure, the message should be more of “a invest wisely” rather than a rage sell me out. If every single investor begin to sell, the effects could be disastrous. And that’s what upset me. I am not against selling stocks, I am against selling in period of uncertainty.

The responsibility belong to the investor to sell or not, depending the level of confident in the market. I didn’t sell in 2008 and it’s not anytime soon I will... But it takes some of an unconscious mind to be able to handle such things. My mind is very conscious, I understand the risk I am taking, but I had been a buy-and-hold investor since I started investing in 2005. I don’t fear that much for different reasons. Surviving the 2008-2009 stock crash while being able to recover from money lost, well, just that may have just make me a stronger buy-and-hold investor. In my condition, the worst that can happen is that a couple of investments of mine getting sell because of a margin call without the call. Such event would represent right there the loss of 27 000$. Would it kill me? No, but it would certainly be a good call for my brain to become fully conscious for the first time ever in 30 years of life on Earth.

I am having that really strange feeling that I might be able to hit the 200 000$ in assets by the end of 2011. Or it could be just the Supermoon effect.

Fire detector and hope for the Toronto stock market

Lately, a lot had been going on and I got a crazy situation at my place involving a fire detector. We got an inspection today. And yesterday, I test my fire detector and it wasn’t working. I change the battery, it’s still wasn’t working! In a rush, I went to see if the concierge was at home... but she wasn’t there! What was I going to do? In my mind, I was afraid of getting a fine because this was an official inspection with the municipality.

Anyhow, in the morning of yesterday, I tried to see the concierge but she wasn’t there. So I did several places to get a fire detector and I didn’t get one. I went to work and after work, went buy a fire detector. Buying a new one was for me the only thing to do since I was at the last minute to fix this. And I was scared of getting a fine of what so ever. They are very good at doing so in Montreal!

And believe it or not, the detector I bough yesterday evening was not working either! I couldn’t make it work. In the evening, the concierge was not there either! I wake early this morning. Canadian Tire open at 8am so I went, and make sure the fire detector was working before leaving. After what, I got back home and went see the concierge. I was told it was ok but they were going to set a fire detector of their own... WOW! My problem is that I am so not good with my hands; I couldn’t install the new fire detector on the wall...lol...

That’s the incredible boring story that kept me running yesterday and today morning... Currently, I left the new fire detector on my counter and the old detector is on the wall. Before I left, the old detector work, but it was beeping beeping and than nothing well, that detector need to be change that’s for sure.

Despite reader comments, you won’t ever get me wrong... We are lucky here in Canada to have a fantastic stock market and it belong to small investors to take advantage of it. My non registered portfolio is close to 109k. I know my level of debt is high, but it’s not at the point where I cannot handle it. My newest investment in WesternOne Equity Income Fund (WEQ.UN) had done very well. I had done a good profit within a few days of holding the stock. Remember I purchase 380 stocks at 5.40$? Well, currently, WEQ.UN is at 5.67$. When I made this new investment, I knew it was a good one.

When readers send me their trading suggestion, I will do my search on the company of course, I will do my best but I have to say, my readers send me several very good investment. Just to name a few: DGI.UN, EIF, WTE.UN, STB, etc... All of those had performed very well. When I strongly believe that a company can be a nice fit for my portfolio, I won’t spend too much time at watching, I will buy, even at credit. I find it very cheap of some readers to say some stuff like, you are trading just to impress your readers. That’s not true. I write about what I do with my money to share my investment experience. I had been doing so since 2007. If I had been trading more lately, it’s because I have more credit facility due to my margin. While reading about EIF, I wanted to invest in it immediately. The company seemed to be so interesting. I wouldn’t wait for new cash to invest while money was available right there in my margin. So far, the overall investment experience had been positive and that’s what I want to let my readers know about. It’s not about showing it all and wanted to impress the whole wide world. I may sound something like pretentious sometime but it’s because I have faith in the companies I invest in and I pretty sure that, despite the situation in Japan, there’s hope for small investors like myself. There’s no place for calling it quit. My non registered Canadian portfolio is now at 109 039.78$ (that being 20 minutes ago...). GO! Now going for another day at work and I am already over it.

The new power is gas, according to the Globe and Mail

The following article from the Globe and Mail could explains EnCana magic gains of yesterday. This mean EnCana could continue to gain in value.

I am now at 151 121.80$

I didn’t calculate my portfolio and debt for quite some time. My RRSP had suffered the most from recent international events. My overall portfolio is at 158 655.56$. My dividend income (prospective one of course, including current gains) 7 533.76$. My debt level is at 71 773.63$. The interest own on debt: 3 534.33$. I can imagine a worth net of 83 347.60$, after including the dividend earning....

My investment portfolio on date of March 16, 2011

Savings:
303.57$

Non registered Investments:
Stocks and Units investment portfolio
Sprott Inc. (SII): 4 375$
Timminco (TIM): 92$
Blue Note Mining (BNT): 46$
Bank of Nova Scotia (BNS): 6 164.27$
Hanwei Energy Services (HE): 90$
Methanex Corporation (MX): 2 831.47$
Fortis (FTS): 3 455.03$
Pembina Pipeline Corporation (PPL):
9 570.30$
Just Energy Group Inc. (JE): 9 535.89$
Yellow Media Inc. (YLO): 2 487.76$
Pengrowth Energy Corporation (PGF): 2 700.40$
Enbridge Income Fund Holdings Inc. (ENF): 6 121.47$
Corby Distilleries Limited (CDL.A): 3 451$
Davis + Henderson Corporation (DH):
6 317.84$
Premium Brands Holdings Corporation (PBH):
3 382.08$
EnCana Corporation (ECA): 6 458.13$
iShares S&P/TSX Capped REIT Index (XRE): 2 176.02$
Horizons Gold Yield Fund (HGY.UN): 1 930$
Canfor Pulp Products Inc. (CFX): 1 670$
New Flyer Industries Inc. (NFI.UN): 2 351.70$
Capital Power Income L.P. (CPA.UN): 1 860$
Exchange Income Corporation (EIF): 2 030$
Rogers Sugar Inc. (RSI): 1 584$
Student Transportation (STB): 1 316$
Colabor Group Inc. (GCL): 2 364$
TMX Group Inc. (X): 3 756$
Data Group Income Fund (DGI.UN): 3 968.28$
TD Toronto Dominion (TD): 2 068$
K-Bro Linen Inc. (KBL): 2 042$
Westshore Terminals Invest Corp (WTE.UN): 4 512$
Horizons BetaPro COMEX Silver Bull Plus ETF (HZU): 4 402.50$
WesternOne Equity Income Fund (WEQ.UN): 2 036.80$

TOTAL: 107 145.94$

Tax-free savings account (TFSA):
EnerCare Inc. (ECI): 18.81$
Dumont Nickel Inc. (DNI): 460$
Sprott Physical Silver Trust UTS (PHS.U): 3 108.96$
Cash: 1.96$

TOTAL: 3 589.73$

RSP investment portfolio:
Sprott Canadian Equity Fund: 7 316.83$
Claymore Gold Bullion ETF (CGL): 4 245.28$
EnCana Corporation (ECA): 3 213$
Emera Incorporated (EMA): 6 389.76$
Cash: 94.56$

CIBC Dividend Growth Fund: 569.47$
CIBC Emerging Markets Index Fund: 399.17$
CIBC Monthly Income Fund: 1 052.98$

Energy and Base Metals Term Savings (Indexed term savings):
503.46$
Natural Resources Term Savings (Indexed term savings):
502.06$

GIC National Bank: 1 251.85$
GIC Plus TD: 500$

TD Canadian Bond, TD Monthly Income, TD Emerging Markets, TD Energy, TD Precious Metals, TD Latin American Growth, TD Entertainment and Communications, TD Dividend Growth, TD U.S. Mid-Cap Growth: 1 110.90$

Maritime Life International Equity Fund
(Templeton): 642.45$
Manulife Simplicity Growth Portfolio: 923.71$
Maritime Life CI Harbour Seg Fund: 1 098.35$
Maritime Life Fidelity True North Seg Fund:
1 077.45$
Manulife GIF MLIA B World Invest: 627.94$

Great-West – various: 1 834.72$

RBC Canadian Dividend Fund: 569.48$
RBC U.S. Mid-Cap Equity Fund C$: 1 994.19$
RBC Global Resources Fund: 1 225.94$
RBC O'Shaughnessy International Equity Fund: 623.61$
RBC O'Shaughnessy All-Canadian Equity
Fund: 1 200.23$
RBC Global Precious Metals Fund: 988.45$

TOTAL: 39 955.84$

Social Capital at Desjardins Membership share
for 3 accounts: 40$

Savings + Stocks, units, mutual funds + Tax-
free Savings account + RRSP + Online Income
(86.72$):
151 121.80$

My debt situation on date of March 17, 2011

9 298.94$ at a low interest rate of 4.75% (RRSP credit line rates) = 441.70$ in annual interest

4 900$ at a low interest rate of 4% (credit line rates) = 196$ in annual interest

7 914$ on a TD Canada Trust credit card at a low interest rate of 4.9% (result of a credit card balance transfer) = 387.79$ in annual interest

7 700.56$ at low interest rate loan at 5.50% (student loan) = 423.53$ in annual interest

5 000$ at 8.75% (credit line) = 437.50$ in annual interest PAID OFF

10 000$ at 7.27% (credit line rates) = 727$ in annual interest

31 960.13$ at a low interest rates of 4.25% (margin money coming from TD Water house): =
1 358.31$ in annual interest

TOTAL: 71 773.63$

TOTAL in annual interest: 3 534.33$
[In date of March 16, 2011]

Gordon Pape calling it quits

I read that a small earthquake had hit Montreal today around 1:30pm. At 1:30pm, I was at work, but I didn’t feel anything of the earthquake.

Some parts of my portfolio did very well today! Surprise for EnCana Corporation (ECA) who hit the 32.13$! A little while ago, I had invested in 200 stocks of EnCana Corporation (ECA) at 29.59$. Since my investment in ECA, I find the title had problem to go up again. It’s probably not anytime soon that ECA is going to hit the 65$ per stock like it use to be, but at least, the increase of today show that ECA worth the try. I could sell my EnCana Corporation (ECA) and pay off a major part of my margin facility and make a profit of more than 500$. Feel appealing, but it’s not anytime soon that I am going to sell my precious EnCana stocks. EnCana can do much more better than just a 32.13$ per stock! Just give EnCana the chance it’s deserved, and you’ll see, I may be right. Maybe.

In his latest column title More uncertainty!, Gordon Pape warns investors about a possible index loss of 5 to 10%. Well, that’s nothing compare to the 2008 stock crash. My philosophy being: if I had been able to get out intact (or almost lol..) of the 2008 stock crash, my portfolio – now even more diversify than before – is going to support a 5, 10, 15, 20 or even 30, or 35% loss. TD Waterhouse had made a huge mistake by publishing Gordon Pape article in their pages. It’s actually giving me the idea of changing of online broker! Never taught about trading at 4.99$ with CIBC instead of 9.99$ commission fee of TD Waterhouse? Hummm... Interesting but TD had done a lot for me.

Investors should know better than just cashing the cash and running away out like chickens of the stock market with their money in their pockets! In period of uncertainty, it’s time to hold and stick to what you believe in. And myself, I certainly do not believe in Gordon Pape!

The world we live in is full of uncertainties. There will always be conflicts. There wars going on in different places of the Earth. It’s just we don’t hear about all of them in the news every day or don’t pay attention to them. In his article, Gordon Pape focuses of course, on the Japan tsunami disaster and the problem going on in Libya. Arabic people had decided to join their forces and call a revolution. This step is necessary. It’s not because a country want to get a democracy of its own that its time to sell investments and call it quick. Mentality need to be completely reverse. More than ever, it’s time to support the economy. In his article, Gordon Pape is screaming to small investors: SELL, SELL, SELL! Uncertainty is part of life. If an individual cannot support it – like it seems to be the case of Gordon Pape – well, my opinion would be: don’t invest at all! Stay home stuck in bank GICs.

To sell or not is the investor choice. In many occasions, while facing some lost, I decided not to sell my valuable assets. In most cases, the decision had pay off. My most famous example would be my 2008 investment in 500 stocks of Sprott Inc. (SII). Just before the stock crash of 2008, I made my ever first stock investment at 10$ per stock, 5 000$ value. Following the crash, Sprott Inc. (SII) got a hard hit and went from 10$ to under 4$... Imagine... My first stock investment, and I was already ruined... Back than, I was 28, all the time of the world. I was hurt, but I knew the market was going to recover. I never doubt about my investment in Sprott Inc. (SII). 2 years later, Sprott Inc. (SII) had hit closed the 10$, had paid many times dividend and special dividend. I mean, I win and will win again on the long run. This is all what investing in stock is about for me: investing in trust. I have the same level of confident in most of the companies that I invest in. That's why it's not anytime soon I will be selling piece of my portfolio just for the heck of selling.

Japanese are so self-efficient, they almost already fix their nuclear problem. Nothing is totally fixed yet, but at the speed things are improving, I am very tempted to say that we are going to have a resolution very soon. In order words: don’t sell your stocks because of a possible major Japanese nuclear eruption. We have to believe in those people and stop being as selfish as Gordon Pape. The stock market is more than just a place where to make (and sometime loose) money. It’s about being connected to something bigger than what you can actually imagine. That’s why I am so into the London-TMX merger. The possibilities are endless. But many of the banks CEOs, sitting comfortably on their millions, are not willing to open the possibilities. Of course not.

In other words, when it comes to finance, be careful to whom you’ll be listening to. Don’t trust the fool who suggest selling when a storm is about to hit hard, don’t trust the CEO bank pigs, the ones who don’t want of the London-TMX merger. All together, they are all the same, losers willing to make themselves important. Selling stocks in period of uncertainty is for LOSERS. Will you be part of them? I won’t, but I will be ready for the storm and, if it has to happen, a margin call. I AM READY! :0)

Welcome again Davis + Henderson Corporation (DH)! 100 new stocks of DH in my portfolio

To be continued soon!

Welcome WesternOne Equity Income Fund (WEQ.UN), 380 stocks of WEQ.UN in my portfolio

More about WesternOne Equity Income Fund (WEQ.UN) coming up soon!

The effect of the Japan tsunami on my investment portfolio

Devastation continues in Japan and my prayers go to the victims. The TSX got through a very hard time today, especially this morning. Despite all, I took the decision to move forward with my investment project. I even inject 5 000$ that was available on my line of credit over my margin, in order to avoid any sell stocks coming from TD Waterhouse.

Here's the thing: I use margin in my broker account. If my portfolio looses too much value, my margin could turn into the negative. Following what, TD Waterhouse could sell some of my most valuable assets without any warning. But even there, it was my choice to use margin and no matter how bad is the situation at this time, I do not regret my choice. I think my portfolio will go through the Japan tsunami and its consequences without too much trouble, but I could be wrong. And that’s why I had transferred a 5 000$ cash in my broker account today.

Just a couple of minutes ago, Stephen Harper announced that Japan nuclear crisis poses no radiation risks for Canadians. No risk for Canadians, but there could be a risk for the economy worldwide and I guess no one can really tell what’s going to happen next. How the Canadian stock market will react to Japan radiation? We had an example of the reaction just today: an awful and legitimate reaction. But still, I believe it’s not time to sell, it’s time to invest wisely. Good portfolio will be able to make it, and other not. I had gone through the 2008 stock market without any trouble because of 2010 awesome result. What I learn was essential: It takes bad years to have good ones. The years will pass, no years will be like 2008 and no years will be like 2011. But what matter is the long term. As long there’s human life there’s hope for a better financial future. And at this time, that’s really what I am hoping for. For life to continue, and the market to be good for me in the years to come. That’s part of the reason why I decide to trade today. Because my life goes on.

I am just hoping that things will get stabilize quickly in Japan, not much for the market, but for the human lives involve in the tragedy. How much money you can make from the stock market does not matter when human kinds suffer.

And the only reason behind is that my investment project is for the long run. I like to invest, I had been doing so since 2005 and I started investing in stocks back in 2008. Six years of investment had changed my life for the best. I couldn’t imagine myself selling all out or going a few months without investing. I would be bored.

Today had been a great day for my dividend income. Here’s what I received today in dividend:

Corby Distilleries Limited (CDL.A): 28.28$
Data Group Income Fund (DGI.UN): 32.52$
Pembina Pipeline Corporation (PPL): 56.55$
New Flyer Industries Inc. (NFI.UN): 19.49$

Total: 136.84$

That’s more in what I earn in a day of work for sure at this time. With what I currently earn in dividend so far and what I will probably earn in dividend for the next couple of months, well, I am now at the equivalent of 600$ in dividend income per month. That’s good, but I would like to double the amount by investing more of my own cash in the following months/years.

Now that the stock market is close, I transferred 5 000$ from my margin to my credit line. Will I have to pay interest on the 5 000$ transfer that I did today? I don’t know, but that would be a good question to ask TD and I think I am going to call them right now...

Tomorrow, I will transfer 5 000$ from the credit line to my margin and I guess I will be doing this scheme every working day for the next couple of weeks. Why? Well, it’s to avoid any critical situation. My stocks are my most precious possession. I won’t allow anyone to sell them. 5 000$ is not that much, but it’s all that I have available as fund to save me from an eventual disaster. That’s the price that needs to be paid while investing on margin.