Gordon Pape's Enerplus Corporation (ERF) is a stock for losers

I received another paycheck this week and I have available exactly $1 110 in fresh new cash at my disposal for investment purposes. For some people, this could feel like a ridiculous low amount of money, but for me, that’s quite amazing to have the privileged to have more than a 1k available to do whatever I want with it. As an individual, like anybody else, I am capable of the worst and the best of anything. But the perfection in me had made myself so sexy perfect that I am able to save save save hundreds and hundreds of dollars every single month of my so enjoyable life. But don’t take my every word. Living in Quebec province for a proud patriotic Canadian like myself can be the desert. The sorrow of my life is to be stuck in a place that I don’t want to be, to be stuck in a place that elected Pauline Marois government. I want my life to be perfect and as a perfect Canadian, I want to be able to feel that I belong to a patriotic environment and it’s truly not the case while living in Montreal. Here in Montreal, I am nothing. I am a Canadian living in Bosnia.

So for all of you that have still the choice, for all future university students that might be reading me, think twice before even thinking to move to Quebec province. You’ll be tax more on your living and on top of that, you may not be able to graduate on time. See what I am talking about? Quebeckers are dangerous people and are able of the worst. They have ruined the economy of their province and now, they are looking forward to make of their own shit a country of their own – very good for them. But be aware that everything you acquired in Quebec doesn’t have any real values in the Canadian world. Corruption is the country of Quebeckers and you are way better to stay outside of it and stay as far as possible from anything related to Quebec government. Quebec is poison.

This being said, I am not in depression, I am not an alcoholic, I don’t do drug, I don’t prostitute myself. I won’t let Quebeckers kill me, but instead, I play hard. Very hard. LOL

I am staying strong, you know the drill – you know the chick anyway. And now come the real exciting part. Forget about all the Quebec shit. Now is coming the real interesting part. The reasons why you are reading my every word and the reason why you belong to me: what my next investment will be like? (I hope you liked the “you belong to me” part, because I really did).

Ok, so we first talked previously about getting my pretty hands on some awesome Emera Inc. (EMA). A reader recently suggested Cervus Equipment Corp (CVL). Apparently, this investment is hold by the Mister Jean-François Tardif. I don’t know if its true, I didn’t make any research but, what I do know is that Cervus Equipment Corp (CVL) could certainly be a new comer in my portfolio. Maybe not now, but later. CVL seems to be a good investment, the chart is nice and steady, not all over the place. The dividend is reasonable. 

Cervus Equipment Corp (CVL) is a much better choice than Gordon Pape’s poor stock pick Enerplus Corporation (ERF). In December of last year (2012), Gordon Pape wrote an article about this stock, saying that you know, you could have half of your portfolio in boring stuff like a GICs and sort term bonds and the other half could be invested in high dividend givers. 

Gordon Pape is actively promoting Enerplus Corporation (ERF). I am telling you this from the heart: look at the chart. On the long run, the chart is all ups, downs, even worse than the index. Enerplus Corporation (ERF) is all over the place, with no constancy and no direction. This is exactly the kind of investment you absolutely have to avoid. We are facing recession worldwide, this is not the time to play your money on the stock market. It’s time to build a strong portfolio with stuff you won’t have to never worry about. Now is the time to invest in quality stocks. And Enerplus Corporation (ERF) is not a quality stock. Its quite very scary that Gordon Pape came with that investment idea.

Gordon Pape is not protecting the middle class investors who are the vast majority of who are his readers. In time of insecurity, investors have to focus on quality. That’s something that is really hard to do when a so call financial guru is telling us that Enerplus Corporation (ERF) could be a good stock to any portfolio. With that level of inconsistency, Enerplus Corporation (ERF) seems to be very sensible to the volatility of the market. And while facing volatility, recession and whatever else, you need soldiers, you’ll need stocks that will protect the value of your portfolio. The soldiers are really hard to find. 

At first, because of its 8+% dividend yield, Enerplus Corporation (ERF) could appear appealing to middle class investors. But wake up. And shake it up for at least once in your life. Don’t be a fool, escape from the high dividend yield trap. Most of the time, the real soldiers, the quality stocks, offer a yield of less than 6%. Why is that? Well, companies sometimes are trying too hard to make themselves appealing to investors. In recent years, dividend investing had become fashionable. Most of the time, high dividend payers = what I have name among the way “troublemaker stock”. Over time, the capital invested in troublemaker stocks decreased in value and overtime, the company often struggle and reduced its dividend payment. When that happens, the stock often loses in value. See the big pictures?

It happen that Gordon Pape hold some Enerplus Corporation (ERF) stocks in his very own portfolio. As a senior citizen, it’s very an inappropriate investment that Gordon Pape has made in ERF. So don’t follow Gordon Pape every investment moves. I am way soo much better for explaining EVERYTHING to you.

Super stuff like those that I hold below ARE good investment picks. But don’t ask Gordon Pape too much. He won’t give all of those great stuff, but I will:

K-Bro Linen Inc. (KBL)
Westshore Terminals Invest Corp (WTE.UN)
WesternOne Equity Income Fund (WEQ.UN)
First Majestic Silver Corp (FR)
TransCanada Corp (TRP)
Canadian National Railway Co (CNR)
Enbridge Inc. (ENB)
Agrium Inc. (AGU)
Canadian Utilities Limited (CU)
Bank of Nova Scotia (BNS)
Methanex Corporation (MX)
Fortis Inc. (FTS)
Pembina Pipeline Corporation (PPL)
Enbridge Income Fund Holdings Inc. (ENF)
Corby Distilleries Limited (CDL.A)
Davis + Henderson Corporation (DH)
Premium Brands Holdings Corporation (PBH)
iShares S&P/TSX Capped REIT Index (XRE)
Exchange Income Corporation (EIF)
TMX Group Inc. (X)
Claymore Gold Bullion ETF (CGL)
Emera Incorporated (EMA)
Healthlease Properties Real Estate Investment Trust (HLP.UN)

The very only good investment pick I ever got from Gordon Pape was Firm Capital Mortgage Investment Corporation (FC).

You could think that the stock market is not a place to be for hot chicks (!!) or middle class or lower investors, but in my 5 years of investing in stocks, I only got richer among the way. And fact is, if you have the intelligence to ONLY and EXCLUSIVELY invest in high quality stocks and forget about stupid stuff like Gordon Pape’s Enerplus Corporation (ERF) and forget that high dividend stocks even exist, well, you’ll be on your way to become a millionaire at a very early age.

Personally speaking, I am not perfect, I got adventurous, a made money, lose money, but I had been able to equilateral ! the whole thing among the way. Now at a sexy 32 year old, I try to get myself on track and focus on quality stocks. And that’s why I have the privilege to announce you that I will soon get my pretty hands on some Emera Inc. (EMA) stocks so be ready.

The retirement calculator of TD Canada Trust

It’s still looking good for now. My non-registered is popping up on the $124 400. I gave a quick look at my stocks, everything seem to be fine. CHR.B is giving me awesome profits. I will take them as long it will last.

TD Canada Trust has a fun calculator tool. I adore online calculators. They let you imagine all kind of scenarios.... Like what if I make a 15% (!!!) per year from my investment, how I will have when I 45, 55 or 65?

I would qualify myself as being a good investor and in control but sometimes, I get adventurous and I guess at a point, even “good” investors can turn bad. Take for example Jean-François Tardif. He used to rock out the place. And now? His JFT Strategies Fund (JFS.UN) closed its first year on the market, the year 2012, at -6% or something like it. WHY?

Jean-François Tardif simply stops trying. He’s not as hard as he had been on himself because he no longer has Eric Sprott as boss. Now millionaire and on a more relax lifestyle, Jean-François Tardif is simply letting it go. And I am going to explain to you why we should all be doing the same: LET IT GO.

To be able to understand, we need to move back on that retirement calculator thing from TD Canada Trust.

First, play the game for real. Enter all the information needed in the section 1. About you.

Me: I am 32. I would to retire – let say 45.

I earn about 43k annually before tax.

NEXT.

2 – Retirement plan

How many years of retirement are you saving for? I enter 40.

How much income will you need for your desired retirement lifestyle? I enter $25 000.

If you expect to receive additional income after you retire, please enter it: I enter 0. But at a point, I guess at 67+, I will qualify for a small Canadian pension.

NEXT

3. Savings and investments

RSP accounts

How much have you saved? I enter $38 097.97

How much do you regularly contribute to these accounts? I enter 0 because I no longer contribute to my RRSP.

Other retirement savings and investments

How much have you saved? I enter $125 488.61 (non registered account + TFSA values on date of December 31).

How much do you regularly contribute to these accounts? I enter $1500 – Monthly. (realistic savings of 1k per month AND reinvestment of the dividend earn, $500. Even there, we could say $650 instead of $500, for a total of $1 650...)

4. Rate of Return

How much do you expect to earn on your investments annually, as a percentage?

I enter 6%

RESULTS:

Your Retirement Savings Goal is: $563,114

You are projected to save: $637,959     You will have a surplus of: $74,845

With that scenario that is quite realistic, I will be able to retired at 45 and I will still have a surplus of more than 74k. You need 7%, 8%, 9% or 10% in annual results on the stock market to be able to make it happen. In this case, I did not even enter any possible pension income that I will probably receive once I hit 67.... So that’s quite impressive, isn’t?

Lesson learns: you can be easy going, not to say lazy, like Jean-François Tardif on the TSX angel stock market. A 6% annually as income is quite realistic goal. You don’t have to try really hard. The early retirement dream is really that simple and easy. You really had to read this post tonight just to find out that yeah, money easy with the Dividend girl and Jean-François Tardif (sorry buddy, but I do really like u that much :0)).

In other words: TAKE IT EASY.

Little Miss Sunshine is hitting on the block: hello 124k non-registered portfolio

Whenever the TSX goes up, generally speaking, my portfolio also increases in value. This time is no exception. My non-registered portfolio is at a very good $124 313.24. I got a nice hair cut and I have my coloration done this evening. I was in need of a beauty fix. Now that I look pretty again, I don’t know what I am about to do next. Sorry, I cannot write no more, I am getting tired.

Black Diamond Group Ltd (BDI) and the Dividend Girl effects

As usually for a Saturday, I got up late, but this time extremely late, at 2 pm. I moved quickly when I realized than I spent more than half the day on my beauty sleep. I got ready to go outside and check my lottery tickets (I haven’t won ANYTHING, one more time), I stop by my favorite bakery oh lala (I am soon about to post this Montreal wonder), I talked to my mom and hit by a Second Cup to make a change. And here am I. I couldn’t believe when my mom told me how cold it is in New Brunswick. For tonight, a temperature of ... are you ready... -29°C had been announced!!! It’s going to be cold. My dad is already fishing on the lake! ALREADY? Yeah yeah. I wasn’t expecting it would be so soon, but only in about 2-3 weeks from now.

One of the few benefits of being in Montreal is that the weather is usually not too cold during the winter. At least not as cold of where I am coming from! Where I come from, you know how to survive on less. You ate the fish you catch on the lake and you kill little birds to feed yourself. LOL Remember the picture of the kill little bird? Those pictures still make me laugh on date of today.

I don’t like winter too much but what I do enjoy all year long is to blog about my usual blabla and also, well you know, is to invest in stocks whenever I have a chance. It took me quite a while to invest in stocks. I started investing while being a young and sexy 25 year old. In 2005, I started investing in GICs. And later on, I started investing in mutual funds. It’s actually only in 2008, while being a 28 year old chick, that I started investing in stocks. And now at 32, I am sexier and richer than ever before.

The reading of Derek Foster’s The Lazy Investor changes my life for... the best. I got richer on Derek stocks. From 2008 to 2012, it hasn’t been easy. First of all, my guru decided to quit the stock market, sometime I believe in 2008 or 2009 it was. That event left me alone with my dream of becoming financially independent. In 2008, the stock market went crazy, I went crazy (lol), got laid off, got hiring again and so on. Luckily, because I am sooooo damn good looking, my income increased years after years. And because I am good looking I never too much problems finding work. At a point, I was even working just 25 hours on my main job and a few hours more at another job on the weekend. I wasn’t earning much but I still was able to find a couple of hundred here and there to feed my portfolio. 

At this point of the journey, I realize this: why should I dream of living on $1 000 dividend income a month or so while I can earn 40k+ a year only by working at a job? Well the point is, the ultimate goal is to live from the dividend I earn, but as long I will have the chance to be on the work field and earn good money, I won’t quit the employment world. Fact is, it take a lot of money to be able to live from dividend. While being on the work force, building a dividend income is a way to protect ourselves from a laid off. A dividend portfolio is there to help you become independent of your employer.

My living expenses are quite low and I can put them lower so in case of laid off or whatever else, I will be able to survive. You have to think and act for the worst. That’s why it so important to have some savings. I had been smart enough not to enroll myself into a mortgage. I am not a home or condo owner. I don’t own anything if not this blog and my portfolio. Getting enroll in a mortgage is a trap. Your house or condo will never generate cash to live on, unless you rent it. With the actual market, owning a place doesn’t worth it, unless being already rich. A house or condo will always generate a bunch of expenses. And where are you taking the money from to cover it up? From your very own pockets, nothing elsewhere. A mortgage makes you a slave to employment forever. I have personally much better things to do than giving away my valuable money on a mortgage so a bank can take financially make money out of me and take advantage of me. NEVER. I rather be warm in a tiny one and half apartment located close to everything and everywhere.

Basically, you need to come with your own rules and live and fight for what you believe in. I guess you understand by now that I don’t believe in mortgages and home ownership. Unless you have big money and are a millionaire. But I am not a millionaire and I don’t blog for those who are and for those who are money freaks. Don’t ask me what I mean by money freak because I don’t really know. Ahah I never have been really into money. What I want is to be able to build something strong with what I have and with what I am able to save as money. Other than that, my life is not really money orienting more than that. I guess one day I will be finally taking those English classes lol.

But until that time, what I do know for sure is that my non registered portfolio closed Friday session at $123 702.67, -1.51%. A natural anti-wave of less than 2% is not that of a big deal. While investing in stocks, you need to be ready for everything. That’s why it took me so long before investing in stocks. It’s not an easy thing to be able to understand our wonderful TSX and understand what it’s all about.

And guess what, my Black Diamond Group Ltd (BDI) is up of closed to 3% increase in my portfolio! I really like it when my newest acquisitions just rock it on the stock market. You know, the usual stuff. 

My investment in Bombardier Inc. (BBD.B) is doing better. I am up of +0.8%... I just received in December my really first Bombardier stocks. This investment in a Quebec company is almost making a Quebecker out of me. The headquarters of Bombardier are located just downtown Montreal. One day, I will do peek peek some pictures and show you up some Bombardier stuff. But I guess you know what jet plane and tramway wagons look like anyway. Because that’s what Bombardier business is all about.

What my investment plan for 2013 is all about

In 2012, I took some risks my investing in companies like Bombardier Inc. (BBD.B), Veresen Inc. (VSN), Chorus Aviation Inc. (CHR.B), Keg Royalties Income Fund (KEG.UN) and Heroux-Devtek Inc. (HRX). But now that my non-registered is exceeding the 120k+ value, I am looking forward to add some more value in, more very great quality stock. Emera Incorporated (EMA) is exactly the kind of things I need to hold more in my non-registered portfolio. Next week is payday and I am looking forward to invest a couple of hundred in my Emera Incorporated (EMA). I know this Martitime company very well. I had been holding EMA in my RRSP portfolio for a couple of years now.

The Maritimes and Newfoundland and Labrador are very rich provinces, but the richness hasn’t been exploited to their maximum so far. In New Brunswick, the Tories are slowly killing our province. We haven’t been lucky in the past couple years, but we are fighter and we’ll get rid of the extremely poorly skill people like Bernard Valcourt one day. At a point, New Brunswickers are a bunch of suckers for voting such a creep. Anyway, while New Brunswick is living its poverty, other provinces are doing much much better, even while being under the federal authority of the Tories.

Right now, Newfoundland and Labrador is the place to be. I guess it is really cold there in winter too, if not colder than New Brunswick. No matter what, Newfoundland is booming. Federal government is giving millions and millions in form of a loan for the Lower Churchill River hydro-electric projects in Labrador to finally be. I have read about the Lower Churchill River project many times in the past and I always have a great feeling about it. Emera will directly benefit from it. If you have an interest on the Lower Churchill project, EMA is the only stock you can invest in to get an involvement in the project. Newfoundland provincial electricity company is owns of course by the province of Newfoundland and Labrador and the “company” is not on the stock market. But Emera is. And that’s why next week I will be investing in the fabulous Emera Incorporated (EMA). So be ready because I am.