The pros and cons of opening a margin account with online commodity broker TD Waterhouse

When I first open my broker account at TD Waterhouse in 2008, I didn’t apply at the time for a margin account, just a regular cash account. It’s only in December 2010 that I decided to bring in margin to my broker account. At the time I open my margin account, my non registered Canadian stock portfolio had a value of over 72 000$. The 72 000$ portfolio brought in 43 653.66$, 60% value of my non registered portfolio value. In the following, I will try to explain the pros and cons of a margin account, for what I had experimented so far.

What’s a margin account?

A margin account is cash generate on the value of the investment portfolio. In my case, a 72 000$+ portfolio value had generated a 43 653.66$ margin account. You can see a margin account as money that the bank borrows you according to the value of your portfolio, perfect to trade commodities online.

A margin account can only be hold outside a register account, outside a RRSP and TFSA. A margin account can be hold in Canadian and US dollars, as long as it’s non registered, there’s no problem. Both of my Canadian and US non registered account have the margin account in.

The pros of a margin account

A margin account brings more flexibility in the way an investor can handle its investments. As for my part, my margin help me to extend my portfolio and invest in different companies that, if it wouldn’t be for my margin, I wouldn’t have been able to invest in. In my case, margin bring in diversification to an existing already diversify portfolio.

Say hello to extra cash!

A margin account does also bring in extra cash. The cash generate by the margin account can be use at any purposes. It can be withdraw or transfer to a credit line or credit card as payment.

Low interest rate: 4.25% at TD Waterhouse

Currently, the interest rate on my margin account is of 4.25%. This means that the interest I pay on the money I borrow from the margin is of only 4.25%. Nice!

Margin account as credit solutions: no minimum payment is required

A margin account is not like a credit card or a credit line. Interest money is being add to the money that been borrowed on the margin every month, but no minimum payment on the margin account is required, as long as the broker account is in good standard.

The cons of a margin account

The money available on the margin account is as volatile as the portfolio you hold. This mean that the money generates by the margin will vary on a daily basis.

The risk of a margin call

If on a certain day, your portfolio loses a lot in value, it could significantly decrease the value of the margin account. Such case could result in a margin call. A margin call is when your broker calls you to say: hey bro, you own money on your margin account! Simple is that.

Bye bye stocks!

But here’s the tricky part: in case of an extreme situation, it could happen that the broker, at its own discretion, decide to sell some of your assets to cover the money borrow on the margin. TD Waterhouse had been very clear on that part. By extreme situation, we could imagine something similar to the 2008 stock market crash. It happens in 2008, and it could happen again. Such eventuality needs to be taking into consideration and it’s something you should always keep in mind while borrowing money on a margin account. The risk is always there and exists; no matter how strong can appear your investment portfolio.

For that reason, use part of the margin account money, not more than 30%-40%, to pay off some debt could be a good solution. In case of an emergency, funds can quickly return on the margin account. And of course, ultimately, paying off debt using real cash instead of margin account money would be the best solution of all.

So far, I had been lucky with my investment choices and I never got stuck in a situation where I absolutely needed to sell my assets in order to cover the margin account. But never say never. I am currently using 41 000$ of my margin account money. 5 000$ went to pay a credit line, the rest had been invested. This mean that I am playing 36 000$ on money that is not really mine and I that I don’t physically hold in real cash. Dangerous? Yes, it is. But knowing where the money is, I don’t have any fear, but I certainly know I cannot go deeper on my margin account usage.

For that reason, I am currently following the stock market on daily basis. I had in many occasions used my margin money on “day trading”. Making quick gain on money that I don’t have had been too tempting. I did some day trade, made a bit of profit. The overall experience had satisfied my taste of danger and I won’t be day trading on margin anymore. Persistence could make me loss all I had build so far. Sometimes, experiences are required to understand what really mean to have a net worth of more than 80 000$.

It takes some dangerous experience to be able to appreciate. 80 000$ is not a million, but I am not running for the million either. On the long run, a 100k will be as fine as a million. It doesn’t take me more to be happy, just to know I have money to quit my job whenever I want and go job free for a little while if I really want to: the feeling is priceless. But of course, that won’t happen now. Especially not now.

One last thing: if considering margin account, never use it fully. Maximizing a 30% usage should be more than enough. Remember that money is not yours and, despite being monopoly money, it’s real money that your discount futures broker may request you one day to pay off.

Is that it? DNI Metals. Inc. (DNI) to start an important nickel production in 2015... or not?

Robert Gibbens, a freelancer for the Montreal Gazette had reported some terrific news for our DNI Metals. Inc. (DNI)... In an article title Dumont nickel project slated for 2015 startup posted on June 7, 2011, Gibbens provides a good overview of what the upcoming months will be for DNI Metals. Inc. (DNI).

During last week, for the moment DNI Metals. Inc. (DNI) reached the 40 cents per stock, I regret not selling. I had to say goodbye to a 400$ profit. I didn’t know at that time, but I now know. I did not sell my investment hold in DNI Metals. Inc. (DNI) because Dumont nickel has an important project on its way, somewhere in the northeast of Rouyn-Noranda. You must read the article. Interesting, but however, it’s not exactly clear if the project is related to DNI Metals. Inc. (DNI). In the article, Gibbens never used the exact and full company name of DNI Metals. Inc. (DNI). So when it come to that “Dumont nickel” name in his article, it’s not 100% sure that the article concern DNI Metals. Inc. (DNI). But it’s probably is... or not?

Royal Nickel Corp. (RNX) and DNI Metals. Inc. (DNI)?

Also, I don’t quite understand the relation between Royal Nickel Corp. (RNX) and DNI Metals. Inc. (DNI). The Globe and Mail also report on Royal Nickel Corp. (RNX). In the article, the Globe mentions Dumont nickel as well, but never DNI Metals. Inc. (DNI)... this is quite confusing because before, DNI company name was Dumont Nickel Inc. (DNI)...

Very very confusing! In their Web site, DNI Metals. Inc. (DNI) only name one property located in Quebec province: their Louvicourt Property. Louvicourt is involved in diamond and DNI doesn’t seem to be very involved in it, meaning nothing new had emerged recently from this project.

After reading and reading again all of the articles above, I came to the conclusion that DNI Metals. Inc. (DNI) is probably not involved in any Royal Nickel Corp. (RNX) project after all. I know, confusing.

Yellow Media Inc. (YLO): what’s going on?

Well, to this question, I could answer by using Linda McCurdy, President and Chief Executive Officer of K-Bro Linen Inc. (KBL), own words: “In order to be successful, a company must have a vision.” (K-Bro Linen Inc. (KBL) Annual Report 2010, p. 6). What seem to be happening in the case of Yellow Media Inc. (YLO) is that their lack of vision for the long run had literally killed their stock.

Until recently, I was a proud shareholder of Yellow Media Inc. (YLO). On May 3, 2011, I made the painful decision to sell my shared of Yellow Media Inc. (YLO) at 4.65$. In the selling adventure, I had lost 300$ of the dividend money reinvested in the DRIP. So I had been lucky enough to not actually lose my original investment (in real money coming from my very own pocket).

In 2009, I was a young investor and YLO high dividend yield of more than 10% was extremely attractive. YLO stocks (at the time, they were units under a .UN ticket) were cheap. That’s how I decided to invest 2 224.47$ in Yellow Pages. From 2009 until May 2011, I had enjoyed YLO high dividend. And of course, the dividend was reinvested each month to provide me more shares.

On May 3, 2011, I decided to sell the totality of my holding in Yellow Media Inc. (YLO) for a market value of Yellow Media is of 2 602.56$. In this sell, I had loss 305.46$. A 305.46$ coming in from the reinvestment of the dividend earn each month. I attempt to focus on this part not to be too much disappointed. It’s summer after all and really soon I will be turning 31...

Anyhow, this being said, since May 3, 2011 YLO stock continuously lost some important value and it’s seem like it’s not over yet. Currently, today on June 7, 2011, 12:40pm, Yellow Media Inc. (YLO) is trading at 3.36$. Despite the catastrophe, YLO high dividend yield of more than 18% (as shown in the trading information provided by TD Waterhouse) remains.

While facing my own stupidity for dividend hunger, my best recommendation for you would be to hold YLO is you did not sell before because there’s a tinny little chance that the stock may go up to 4$.

The temptation of investing in high dividend yield companies provider only may be high, but must be avoid. A company that pay an 18% yield cannot have an executive team who has a lot of common sense. It’s good to give, but a company need to have a cash flow and absolutely need to have good reserve to face difficulties and anything that could present among the way.

With all of my money invested in stock, I am certainly not a good example of what should be a good investment portfolio. Someone with common sense will have more than 550$ in savings in its banking account but there’s some temptation I cannot avoid. Like having everything on the stock market for example. Sexy and dangerous.

This being said, remember: always focus on high quality stock instead of dividend yield. Because in any cases, it take more than a 200 000$ investment portfolio to be able to live on dividend distribution. It takes a lot of money. And once you have the money, will you really gave up on your working live? Because in a way, not having a working life, is like not having a life at all, especially while being single. I guess it’s the girl in me who’s talking right now. This meaning if you are a single, rich and handsome man, don’t hesitate to write me an email ok?

The money is in the linen, K-Bro Linen Inc. (KBL) knows about it

Lately, I received the Notice of annual general and special meeting & management information circular of K-Bro Linen Inc. (KBL). I had been holding K-Bro Linen Inc. (KBL) since March 2011. I first invested in K-Bro Linen Inc. (KBL) after reading SP Brunner review of KBL. She wrote a good review about the company and I knew KBL would be a nice fit in my investment portfolio. I didn’t hold anything related to the Services sector. Adding KBL in had brought some diversity in my assets.

K-Bro Linen Inc. (KBL) has location plants in Victoria, Vancouver, Calgary, Edmonton, Toronto and Quebec City. For 2010, K-Bro Linen Inc. (KBL) revenue increase of 18.9%, to establish itself at a very respectable $104.5 million. K-Bro Linen Inc. (KBL) payout ratio is of 49.5%. KBL dividend yield is of 5.058$, 1.10$ annually per stock. KBL dividend is paid on a monthly basis.

K-Bro Linen Inc. (KBL) is specialized in the sector of services. The company provide laundry and linen services in Canada for hospitals, hotels and other related commercial sectors. K-Bro Linen Inc. (KBL) 2010 annual report is quite interesting. It’s containing information that clearly shows that K-Bro Linen Inc. (KBL) is a well established company.

K-Bro Linen Inc. (KBL) is one of those companies you can hold in time of insecurity like the one we live in right now. Their dividend so far had been steady. I initially invested 2 034.99$ in KBL back in March 2011. Currently, my investment worth 2 180$, for a profit of 145.01$. This represents a return of more than 7% within less than 4 months. Absolutely amazing! KBL won’t be of any help is your looking for spectacular gain. But what KBL is able to bring in is stability in the value and a reliable dividend. Both of those 2 are difficult to get these days on the Toronto stock market.

HOD is going up, and all the other... down

Today is really not a good day for the stock market, despite the beautiful weather in Montreal. But the weather really has nothing to do with it anyhow... I was expecting a bad market condition, but still, when hitting on a bad stock market, it’s always hard. HZD is down, HOD had gain around 2%, and is currently staying at 6.30$. That’s good, but it’s still far behind from my original 6.65$. Oh, and guess what? DNI IS DOWN!!! My DNI Metals (DNI) is down of 19%....???

However, DNI still at a good 0.27 cents. Do I regret not selling DNI when I could had sell it at 40 cents and bring in more than 400$ in profit? Yeah... just a little bit. Just to make things worse, I wake up late, I did not prepare my lunch for the week, I did not clean, did not wrote anything new on HubPages for centuries. I am so lazy. :0)

My new blog have that cool title Beauty Queen Next Door and the domain address is beautyqueennextdoor.com. Isn’t nice? I am going now outside, my life is misery. DNI Metals Inc. (DNI) is down of 19%. Talk about a market plunge, my marvelous DNI. I love you.

Be ready: the selling of Horizons BetaPro NYMEX Crude Oil Bear Plus ETF (HOD) and Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) might be on its way

Quiet weekend spend at doing some quiet things. I worked at my usual weekend job, than on Saturday night I went see the latest X-Men, very fun to watch. At my weekday job, I am received bonus points and one reward we can get is free movie tickets. That’s what I usually buy. I just bought 2 other ones for this month of June, but because of Post Canada strike, I may not get them anytime soon. Some awesome Hollywood Blockbusters are on their way for the summer, among them the new movie of Woody Allen.

I did not update my investment portfolio value for a little while and that was more or less wanted from my part. Lately, I did not feel like updating it for many reasons. I had been focusing mostly at trying to sell HOD and HZD at profit. Those said I should sell now and loose whatever were very wrong. I cannot predict the future, but what I know is that the economic situation in Europe is not getting better. The US data shown that the recovery from recession may take longer than anticipated. All those factors combined together make a good stock market condition in order for me to sell at profit my units hold of HOD and HZD. So everything is going to take place slowly, but certainly. And selling my holding in HOD and HZD will be a big +, it will help me to decrease my margin account usage. It’s still at this time under control.

Some readers comments make me feel real mad, like the ones saying to sell “now” Horizons BetaPro NYMEX Crude Oil Bear Plus ETF (HOD) and Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) (and will conduct me right to a capital loss), but some other bring a smile to my face and make me laugh. Of me of course, but also all this thing about my money blog. Like life is really all about money right lol... I got that reader commenting my margin account usage. Here’s the comment, post on the entry of June 1, 2011:

“Sunny, I remember when your followers where suggesting margin account and you wanted to stay away from it. You have to be very careful with margin. If you want to pay off some margin, think about selling HZD along with another of your silver holding. Why, because you`re not making any money on it, what you win on one, you lose on the other, so why not sell some of each.

I understand markets are volatile, but if silver does go down (which would make HZD go up), you would be losing on the gain you would`ve made on HZD, but you could buy some silver shares cheaper than today`s price. If silver goes up, you will lose money on the silver shares you sold, but you would be saving the money that you would be losing on your HZD. (Ex. if you would`ve sold HZD and PSLV yesterday, today you would`ve lost the gained from HZD, but you also wouldn`t had lost money on PSLV, so really you weren`t losing anything)

So why not sell some Pslv and HZD; and if ever HZD does reach 8$, you will be able to rebuy PSLV at around 14.50. If it doesn`t you would stop losing money on HZD and cancelling your gains on other silver investments.

Sunny, this is the last time I will bug you with this, but think about it. This is a solution to get out of your trade, pay off some margin and you`re not losing any money.

I`ve told you before, when you`re betting for silver and against silver, it`s like going to Las Vegas and betting 2,500 on Vancouver winning the stanley cup and 2,500 on Boston winning. At the end, you won`t make any money but you will be paying interest on the money borrowed. I think you`ve noticed that in the last month.”

What amazes me most is when I am getting a comment and by that comment, you know that it can only be a long time reader. Like wow... Each time, it blows me away. Like people really reading this s. Oh lol... Of course, I know people read, but in that specific comment, it’s a reader who had following it all since I started the margin thing. That was way back in December 2010! See what I mean?

I started the margin account in December 2010 following a reader suggestion, Dividend Lover. At that time, the idea was to use part of the margin account money in order to pay debt at a higher interest rate. During the last quarter of 2010, noting that I had all those debt, I wanted to do something in order to decrease the interest money needed to be paid on all of my loans. That was the goal. My investment portfolio was doing very well, more than I could ever imagine. Selling part of my portfolio just to pay some debt was out of the question. The margin account idea was about paying off debt, it wasn’t money to be use to invest more, or even worst, money to use to do the day trading on... This is actually very funny knowing how much I was scared of opening a margin account at the first place. I think I may have expressed the scary feeling extremely well by writing because the commentator did not forget that one...

Actually, I did pay part of my debt using my margin account. I had paid my 5 000$ credit line using my margin account money, remember? But that was all... Why? Well, I quickly began to use my margin account money to invest following that...

The idea of Dividend Lover was great, it’s just me who became... an investor freak lol..... (that one is really funny isn’t?). But hey, the temptation was way too high. Imagine, opening a margin account brought in a 65 000$ in monopoly money (I just loveeeee to name the money brought in by the margin monopoly money). Fact is, monopoly money IS REAL MONEY and I CAN DO WHATEVER I WANT WITH IT.... WOW... Think about it: 65 000$!!! Youhou!

In live, I don’t care about my look, I don’t care about the clothes I wear. I don’t care about jeweleries, expensive restaurants, going out in night clubs, going away in vacations... I DON’T CARE. I really don’t. That’s what’s best about me.

But what I do care about, however, is investment. When I started to invest in stocks in 2008, I never had a doubt in my mind, I knew I was going to rock the investment game and I did (this being said, from my own perspective of course). I started just before the 2008 stock crash, I invested 5 000$ in Sprott Inc. (SII) and shortly after, the title was crashing to less than 5$ per stock. Despite the stock crash event, there was still no doubt in my mind, I knew I was going to win and I did. I received special dividend after special dividend of Sprott Inc. (SII). The SII title went back up, as for most of all of my holding. I totally recover from the 2008 stock crash without any problem because I knew I was able to go somewhere by investing in stock. This is the story of my first stock investment that I like to repeat over and over again.

As a small investor, I want to be able to take advantage of all of the possibilities being offered on the stock market. So when the sky is giving me 65 000$ my slapping its finger well... I WILL TAKE THE MONEY and INVEST IT. Or just part of it...

Dividend Lover was kind enough to comment on this blog of mine and he really did the best he could to put me back on track. Message had been kind of a: remember, you said you were going to use your margin money to pay off debt... That was a beautiful message coming from his part. Full of a common sense that had left me alone among the way.

Always from my point of view, so far, my investment adventure went well, but no matter how well it went so far, I am EXTREMELY aware that the market is volatile, the situation in the USA is still fragile and in the old Europe, the situation is catastrophic. That’s why lately I had been working on myself in order not to invest more and not to do any more day trading. Because if I continue, I could severely burn myself. I am aware of the danger and I understand the risk. I always did, it’s just at a point the stock market over excited me, it got inside me deep in the brain. I don’t have any excuse, but I am “just” 30 years old after all ok. Young bitch and money = BORDEL. :0)

The major event that mark the over excitement was when the TMX Group (X) announced the merger of equals. You don’t know how at first I was happy about the merger. I was open to all the possibilities that a merger could brought in. New capital money for the Canadian stock market, a growing perspective. More money meaning stocks gaining more value. More value = more profit. MORE $$$. WOW!!!

But I am now against the merger because I don’t want a French of France to be in control of the proudest thing the Canada possess: it’s very own exchange. I don’t like Xavier Rolet. I don’t like him at all.

Once the over excitement took control of my whole body, I did it, I purchased 100 stocks of the magnificence TMX Group Inc. (X). That when the merger project had been officially announced, a couple of months ago. I had a good feeling at that time about the merger of equals and getting some stocks of X in my portfolio was not a luxury, it was a necessity. And it was a good thing. I had cash in the dividend, my investment gain in value and will probably continue to gain in value.

I am not a genius, I am just a girl who like to listen to herself and no one else. 

So good so far, but I am truly aware of the risk, once again. I know and I understand. That’s why I won’t invest again for a little while, not until I sell HOD and HZD at profit, at least. The risk would be to become too confident and trade trade trade. But I am never over confident, only sometime over excited. I am just happy to have good readers. I did not respond to the glorious comment. What could I have answered anyway?

My top stock performers of the time: who they are?

Despite a TSX down of 37 points, some holdings of my non registered investment portfolio are performing very well. Among my blockbuster stocks, we find: Pembina Pipeline Corporation (PPL), Methanex Corporation (MX), Fortis Inc. (FTS), Enbridge Income Fund Holdings Inc. (ENF), EnCana Corporation (ECA), Bank of Nova Scotia (BNS), Canfor Pulp Products Inc. (CFX), Westshore Terminals Invest Corp (WTE.UN), TMX Group Inc. (X), WesternOne Equity Income Fund (WEQ.UN), Just Energy Group Inc. (JE), Premium Brands Holdings Corporation (PBH), iShares S&P/TSX Capped REIT Index (XRE), K-Bro Linen Inc. (KBL), Corby Distilleries Limited (CDL.A) and Student Transportation (STB).

Here they are, my top stock performers with their respective profit:

Pembina Pipeline Corporation (PPL)
Initial investment value: 6 537.81$
Current value: 10 875.06$
Profit: 4 337.25$

Methanex Corporation (MX)
Initial investment value: 1 626.80$
Current value: 3 132.23$
Profit: 1 505.43$

Fortis Inc. (FTS)
Initial investment value: 2 680.66$
Current value: 3 512.81$
Profit: 832.15$

Enbridge Income Fund Holdings Inc. (ENF)
Initial investment value: 5 748$
Current value: 6 373.25$
Profit: 625.25$

EnCana Corporation (ECA)
Initial investment value: 5 980.49$
Current value: 6 546.82$
Profit: 566.33$

Bank of Nova Scotia (BNS)
Initial investment value: 5 680.46$
Current value: 6 237.03$
Profit: 556.57$

Canfor Pulp Products Inc. (CFX)
Initial investment value: 1 516.65$
Current value: 1 896.18$
Profit: 379.53$

Westshore Terminals Invest Corp (WTE.UN)
Initial investment value: 4 631.99$
Current value: 4 996$
Profit: 364.01$

TMX Group Inc. (X)
Initial investment value: 4 245.34$
Current value: 4 524.80$
Profit: 279.46$

WesternOne Equity Income Fund (WEQ.UN)
Initial investment value: 2 061.99$
Current value: 2 337$
Profit: 275.01$

Just Energy Group Inc. (JE)
Initial investment value: 9 175.87$
Current value: 9 416.99$
Profit: 241.12$

Premium Brands Holdings Corporation (PBH)
Initial investment value: 6 925.91$
Current value: 7 154.60$
Profit: 228.69$

iShares S&P/TSX Capped REIT Index (XRE)
Initial investment value: 2 106.37$
Current value: 2 303.84$
Profit: 197.47$

K-Bro Linen Inc. (KBL)
Initial investment value: 2 034.99$
Current value: 2 220$
Profit: 185.01$

Corby Distilleries Limited (CDL.A)
Initial investment value: 1 545$
Current value: 1 660$
Profit: 115$

Student Transportation (STB)
Initial investment value: 1 301.50$
Current value: 1 358.07$
Profit: 56.57$

Currently, PBH is still exceeding the 17$ per stock. This had been the case for the past couple days. I had been quite pleased with WTE.UN, WEQ.UN and CFX, among my latest investments, and currently on my top stock performers.

I had been holding PPL, FTS, ENF.UN, MX, ECA and BNS for a really long time. They are among the first stock investments I had made and they are currently among my top of the top performers. I first I started investing in stocks in 2008.

Lesson I learn from 4 years of stock investment: over time, good quality stocks pay a steady dividend and continually gain in profit, no matter of the market conditions.

PS: DH could had been from the list as well.

The Toronto Venture Exchange prince is doing it again: DNI Metals (DNI) reached 39 cents per stock

Please, DNI Metals (DNI), don’t stop the party!

Yep, the Toronto Venture Exchange prince is doing it again! DNI Metals (DNI) reached 39 cents per stock and that’s happen just NOW! If I would be selling my holding in DNI Metals (DNI), I will be cashing in a 400$ profit! Having DNI reached 26 cents per stock had been spectacular. Having it at 35 cents took my breath away and having it at 39 cents well... unexplainable. But that’s nothing.

Lately, a lot had been said on DNI Metals (DNI) and I am very sure DNI is full of potential and once the potential reveal, DNI will probably go much much higher. Not bad for a 2009 initial investment of even less then 800$.

In other words: I am seriously kicking some a :0)

My strong stock holdings make it possible: margin account management for dummies

My non registered investment portfolio is down to 117 000$, which hurt of course. But at this point, I still have 68% of my margin account money available once I transfer the 5 000$ amount of my TD credit line to my margin account. I just complete one of those transfers as for now, from my TD credit line to my broker margin account. Following the market closing session, I will transfer again the money from my margin to my credit line, in order to avoid the close to 9% interest rate of the credit line...

I could go through a rough market day without doing such transfer. Never say never, but I don’t think I will ever get a margin call, for the good reason that my non registered portfolio is too complex for that, in the sense that it’s quite diversify. I own very strong holding that’s able to support easily the margin account.

Here are the companies that figure among my very strong investment holding. In this illustration, I am using the data collected on May 20, 2011:

Bank of Nova Scotia (BNS): 6 258.43$
Methanex Corporation (MX): 3 077.64$
Fortis (FTS): 3 560.96$
Pembina Pipeline Corporation (PPL): 10 447.29$
Just Energy Group Inc. (JE): 9 655$
Pengrowth Energy Corporation (PGF): 2 812.20$
Enbridge Income Fund Holdings Inc. (ENF): 6 093.75$
Corby Distilleries Limited (CDL.A): 1 720.10$
Davis + Henderson Corporation (DH): 4 149.36$
Premium Brands Holdings Corporation (PBH): 6 972$
EnCana Corporation (ECA): 6 585.20$
iShares S&P/TSX Capped REIT Index (XRE): 2 320.78$
Canfor Pulp Products Inc. (CFX): 1 874.76$
Capital Power Income L.P. (CPA.UN): 1 919$
Exchange Income Corporation (EIF): 7 157.40$
Student Transportation (STB): 1 373.60$
TMX Group Inc. (X): 4 450.06$
Data Group Income Fund (DGI.UN): 3 991$
K-Bro Linen Inc. (KBL): 2 235$
Westshore Terminals Invest Corp (WTE.UN): 5 020$
WesternOne Equity Income Fund (WEQ.UN): 2 280$
Atlantic Power Corp (ATP): 1 473$

TOTAL: 95 426.53$

In a perfect world (or in a perfect portfolio :)))), all of the stocks that I hold would be strong holder, but it’s not the case. My Sprott Inc. (SII) investment does not appear among my strong holding. I had invested in Sprott Inc. (SII) since 2008. I had experimented SII volatility and for that reason, they don’t appear in my strong holding. In the last couple years, the SII stock value went from 10$ to less than 5$, and then to 9.96$ it’s highest for the last 52 weeks to the current less than 9$... That’s what I call extreme volatility but I cannot help it, I like Sprott Inc. (SII), their special dividend for 2010 had been awesome and SII is a box full of surprises...

On May 20, 2011, the 100% of my non registered portfolio worth 119 724.08$. More than 79% of my portfolio is invested in what I consider as being my strong holders. That’s how I had been able to manage my margin account usage. If my margin account exists, it’s partly because of those strong holding. No matter how bad the stock market can be, my strong holdings are able to support to volatility without too much trouble. Of course, I realize that 79% of strong holding is not 100%. For that reason, I monitor my portfolio on a daily basis. Also, I plan to sell my stocks of TMX Group Inc. (X) as soon as their situation will be stabilized. A sell and profit made on X will help to significantly decrease the margin usage.

It’s unfortunate, but the situation in Europe is what made things a bit more complicated for small investors using margin account. The insecurity in Europe brings volatility to the stock market and it’s not the ideal situation for margin account users. Despite the difficulties, I am confident I will be able to survive to another stock market crash. But this involve from my part a couple of things: the discipline of not trading for a little while, looking forward to sell at profit Horizons BetaPro NYMEX Crude Oil Bear Plus ETF (HOD) and Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) in the immediate and later on, to sell TMX Group Inc. (X) and First Majestic Silver Corp (FR). Following the payment of all my living expenses for the month of June, I have a 930$ left available and the payment will go on my margin. This will bring the section of my margin account money that is not in use to 69%. Not too bad.

Also, another thing I forgot to add to this is that I may be looking forward to sell part of my investment hold in Sprott Inc. (SII) – about half of it – and reinvested the same money in something strong, like TransCanada Corporation (TRP) and something else. At this time, I don’t think it will be anytime soon that I will be able to sell at profit some of my Sprott Inc. (SII) stocks. However, no drama, Sprott Inc. (SII) has announced lately a 3 cents dividend that will be paid by the end of June. Nice! This is of course part of Sprott regular quarterly dividend (like 30$, yeah!).

I am amaze by my ability to save money. Lately has been even better because I really ground myself on not buying food outside. I eat before going out and bring my lunch to work and a snack. The only thing I buy is a Second Cup coffee on my way to work. I cheat a couple of times of course outside the Second Cup coffee, but the money spend was quite low. And despite everything, I am satisfied with my investment portfolio.

I said I regret my day trading activities previously – that’s how I got stuck with Horizons BetaPro NYMEX Crude Oil Bear Plus ETF (HOD) and Horizons BetaPro COMEX Silver Bear Plus ETF (HZD). Some commentators had been obsessed by it (or by me? lol), saying I should sell HOD and HZD like right now, without cashing any profit. Well, those commentators can simply GO TO HELL.... lol... It’s not a good advice to say ok, you have this and this in your portfolio, you mess up young lady with your day trading, now pay, sell and lose money. Yeah yeah yeah. So far for 2011, the only elements I sell and loss on it was Superior Propane Corp (SPB) (the title was way too volatile for me despite being hold by the mountain lion hero) and Yellow Media Inc. (YLO). When it come to Yellow Media Inc. (YLO), I did not lose the original money coming out of my pocket, just around 300$ from what got reinvested in a DRIP. And when it come to SPB, I lost around 300$ in real f money. Those lost are nothing considering who my strong holdings are. A 600$ lost over a 160 000$ portfolio is nothing at all. I decided to bring in HOD and HZD in my portfolio, and I am the one who will decide when to sell and I will see those 2 at profit ONLY. That might be hard to accept for some readers, but that’s how it works around here on the Dividend Girl Blog.

Get to know what you want. I want money. I think that part is clear, at least.

DNI Metals Inc. (DNI) pushing it to the top: DNI closed June 2, 2011 session at 35 cents

This June 2011, I am celebrating my 2 years as investor of DNI Metals Inc. (DNI) and I could not be happier. DNI Metals Inc. (DNI) is seriously kicking in some wonderful profit. The new prince of Toronto Venture may be able to go even higher once new development related to its operations in Alberta will be made.

I could cash in a profit of more than 300$ if I sell now, but holding is better for now, no matter how fat I am on the margin. As long as I can, I will hold DNI as all the other that I am holding for now in my portfolio.

Looking good for TMX Group Inc. (X), who almost closed at 45$. I am making serious good profit here too, but I am willing to hold. I could possibly sell those X stocks at 48$. When time comes, I will be selling and making a good amount of cash that will stay and remain on the margin. It’s just a matter of when and it could happen following June 20, X meeting regarding the merger of equals. Of course, I will vote against the London Stock Exchange merger of equals. With me, Xavier Rolet can say goodbye to his merger project.