Quebec singer Paul Piché is an enemy of the Canadian nation

I had problem to wake up this morning as it was the Francopholies and the weekend of the Grand Prix in Montreal. It was fun, at the exception of the show of Paul Piché. For his last song, Paul Piché decided to show off his love for Quebec nation by singing “un Québec souverain”, which mean for a Quebec as a nation. What the F***! Francopholies had some financial difficulties and I hope Canada will cut all subventions to the Montreal event. A real shame for the French New Brunswicker girl that I am. I am a New Brunswicker, not a Quebecker. Readers have to understand that. I am not a cheater like those Quebeckers. I am the real deal, not an enemy of the Canadian nation.

This demonstration of Paul Piché is really unfortunate. Paul Piché, among with Claude Dubois, has one of the most beautiful voice of Quebec. Paul Piché is a real talented French Quebec singer. But his Quebec patriotism demonstration at the really end of his show was disgusting. In the beginning of the show, I even saw Eric Lapointe in the backstage! He was laughing and seems to be quite happy to be there. It was the second time I was seeing Eric Lapointe. First time was in the early beginning of his career, while I was still a teenager and he was still unknown, he did a show in my little hometown in New Brunswick. Last night, I was right in front of the stage, despite I arrived pass 9pm, because I was working. If I will have known I will have to endure such humiliation, I wouldn’t go to the Francopholies yesterday. Anyhow, I won’t go to any other show of the Francopholies. That’s really all. And one day, I will escape from Quebec province forever.

Major crash today on the TMX stock market, my investment portfolio is suffering

My non registered investment portfolio went to a value of 112 875$ (of previously today) to 112 477$. Here’s the actual numbers:

Margin account money being used: 41 398.61$
Non-registered investment portfolio value: 112 477$
Margin account money being non-used: 20 348.42$

That’s what the numbers are looking like for now. From the 41 398.61$, a 5 000$ had been deposit on a credit line. At anytime, the 5 000$ can go as payment on the margin account, to decrease it to 36 398.61$. Next week, I am waiting for 2 paychecks. I should be receiving a total of 1 000$. That 1 000$ will definitively go on my margin account. It will decrease it close to below 40k.

If I want to, to really decrease my margin account usage, I could sell my holding of TMX Group Inc. (X), cash in a profit and leave the money (close to 5 000$) on the margin account. But it won’t happen that way. I think my portfolio may be able to handle another 200-300 TSX points loss if it have to happen in the next couple days.

Despite today bad market condition, my Horizons BetaPro NYMEX Crude Oil Bear Plus ETF (HOD) and Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) did not gain enough in order for me to sell them at profit, so I didn’t sell them. I left home in middle of the afternoon to enjoy the beautiful weather and I knew anyhow that this Friday was not going to be the day of my selling of HOD an HZD. That it happens now or on a later date is not what really matter. What really matter at this critical point is to be able to remain in control of my margin.

Margin investment is risky. It’s especially is in a bad market condition that I am able to see more of the danger of margin investment now, unfortunately. But there’s nothing I was not aware of. In the previous post, I explain what I will be doing if it happen that the TSX loose more points in the next couple of days. I will be doing what I had explained in that post if I have to. Also at TD, I also have a 1 000$ paid on another credit line type - RRSP loan. I could eventually transfer the money over my margin account in case of extreme necessity. Eventually, I could bring in more than 11 000$ on my margin account, 6 000$ in cash, and the rest in asset. It could eventually become a solution. But the real solution would be to eventually become debt free. Eventually but certainly not for now.

Sexy margin account 911: what to do to protect your asset

The TSX is facing close to the 13 000 points. Can it go any lower? Maybe. I don’t know. But what I do know for sure is that my portfolio is strong enough to go through this. I of course transfer the 5 000$ available of my credit line to my margin account. That bring my margin account usage to 36 000$. Currently, my non-registered portfolio is down to 112 875$.

My portfolio is strong enough to support what’s going on right now, but if the TSX go through another 100-300 points loss, I may at a time received a margin call or – even worst, TD Waterhouse could eventually sell part of my asset without me knowing. Anyhow, I am the one who wanted this and now, my margin is sexier than ever... Sexy like hell.

Some of my assets like BNS, X, PPL, ENF, EIF, SII and a couple other are still doing well. SII is exceeding the 8$ per unit, which is very good. NFI.UN, DGI.UN and a few others are not doing that well. However, I do not regret any of this. What’s going on at this time is a phase in which the market realize what’s going on in Greece and once pass, it will get better. In any way I want to sell my precious asset.

If the situation gets really bad, I could eventually transfer the holding of my TFSA into my non registered account in order to add to the portfolio. But even there, we are only talking of 4 000$. Still, that’s money, and a 4 000$ could add to the value of my margin account.

Transferring asset from the TFSA to the non-registered margin account is an extreme solution. But still, it’s a solution. I don’t plan to precede with the transfer of my TFSA holdings to my margin account unless the situation gets desperate. That meaning a TMX loosing another 200-300 points.

Another option would be to sell what I hold in my US account and transfer the money to the Canadian margin account. At the current time, I only hold Sprott Physical Silver Trust ET (PSLV) in my US broker account. The investment currently worth more than 2 600$ US. I could eventually sell my PSLV units and transfer the US money into my Canadian margin account. This could be another extreme solution. But I wish it won’t go through that point.

The best thing to do at this time is to hold and see what’s going to happen on Monday.

Strong morning opening for Horizons BetaPro NYMEX Crude Oil Bear Plus ETF (HOD) and Horizons BetaPro COMEX Silver Bear Plus ETF (HZD)

Those who tell me I should sell and cash in a capital loss were totally wrong! There will be no capital loss on those 2. The market being so volatile, it’s basically possible to make money out of ETF whose value increase when the stock market value decreases.

Horizons BetaPro NYMEX Crude Oil Bear Plus ETF (HOD) kick in the morning at +3% and Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) at +4%. Currently, HZD is among the top TMX gainers.

But will the gains will be enough to sell at profit? That’s what we are going to see, I am staying in front of my laptop in this beautiful Friday just for that reason. In order to make a profit, I need to sell HOD at +6.65$ per unit and HZD at +7.79$... Crazy. But I will certainly not gamble with my money ever again. My punishment for day trading? Having to stay inside while the day is absolutely beautiful... Seek for yourself... Absolutely perfect summer day.

These days, the stock market is not good at all. My value had decreased of several thousands of dollars. But once the market rebound, I will be doing a lot better. I can handle a non official capital loss as long as my asset remains there in the market, I am safe (more or less). Selling now will be catastrophic and it’s truly not an option. The only 2 things I want to get rid of ASAP are Horizons BetaPro NYMEX Crude Oil Bear Plus ETF (HOD) and Horizons BetaPro COMEX Silver Bear Plus ETF (HZD). If it’s not good for today, I can still wait to sell those 2 at profit. And at profit only.

I had received some hot dividend distribution payment recently: Fortis Inc. (FTS): 31.03$, Group TMX Inc. (X): 40.40$ and Horizons Gold Yield Fund (HGY.UN): 10.84$. No DRIP for those little ones, so for once I was able to “cash the dividend”! The precious cash is greatly needed to pay off the interest own on the margin account money, among other. Extra cash is always welcome.

High quality investment is the key, keep following Derek Foster

Finally, New Flyer Industries Inc. (NFI.UN) closed today session at -5.90%, which is better than the 10% anticipated. I am still holding NFI.UN as well as everything else in my portfolio. I was happy to see First Majestic Silver Corp (FR) going up again. For a little while, FR was around 17$ per stock again and I taught oh no... I can handle the market volatility, but I prefer when things go my way. I cannot command the stock market, but at least, at the end, I know I can get what I want. First Majestic Silver Corp (FR) closed June 9, 2011 session at 18.21$. Not bad at all. I plan to hold this one until I can sell at a very high price.

My silver investment went up again. My Sprott silver investment is absolutely terrific. Both Sprott Physical Silver Trust UTS (PHS.U) and Sprott Physical Silver Trust ET (PSLV) are doing great. My investment in the Sprott Physical Silver Trust UTS (PHS.U) in inside my TFSA. I had invested in some units when the price was at something like 15$. So as long PHS.U do not go below 15$, I will be all good. 

As for my investment in Sprott Physical Silver Trust ET (PSLV), I had made my first investment in it when the unit’s price was at its highest, 22$ US. I invest again in Sprott Physical Silver Trust ET (PSLV) when the units were just a bit more than 16$. So now, a mix of units at 22$ and 16$ equilibrate the whole thing and I don’t regret my last investment in PSLV. It’s actually pretty cool to see my investment growing like that. Silver will gain value again, but at a much slower pace as before.

I had been thinking about it and I find that selling my stocks of Yellow Media Inc. (YLO) was the right thing to do. I reinvested the money in a highly profitable company: Exchange Income Corporation (EIF). Just like YLO, EIF paid a monthly dividend and its chance to grow is better than what it is for YLO. I had been happy with YLO for a while but at a point, YLO was no longer a good fit. A similar situation happens to me with Superior Plus Corp. (SPB). At a point, I could no longer stand the investment in my portfolio. What I had learned from the experience is something I will try to improve myself on: focus on quality holding instead of dividend yield.

Quality holding will grow in value over time and on top of that, quality holding increase their dividend overtime. Despite reading Derek Foster books over and over again, as well as his newsletters, I really needed to experience all this by myself and wake up. Problem being that following Derek Foster strategy is just too easy. The stocks had been picked, everything had been explained. Very very well explains. So there’s no doubt and no failure possible. But that’s it? I mean come on! Well, dividend investment is very easy and keeping it simple is what can become difficult for the long run.

In my case, I did not fail, not yet. It’s just I have a taste for adventure. When your First Majestic Silver Corp (FR) stocks will be kicking the 25$, you’ll thanks me. When you’ll be selling TMX Group Inc. (X) at more than 45$, you’ll thanks me even more. Making money online is difficult, but making money on the stock market can be quite easy and losing money on bad investment like Yellow Media Inc. (YLO) is even easier.