Archive | May, 2013

CSCO- Limit sell hit today!

30 May

CSCO buy on my part was due to quick jump in share price on May 15th, I bought at its day high early in the morning thinking it’ll keep on going up from there on out.  That did not transpired, so I held this stock for a couple weeks with depressed prices.  I wanted a quick profit to offset my penny stock loss of $34.61.  So today my limit sell hit today @ $24.55, I walk away with $35.00 profit.  Unfortunately, I missed out on $10 gain as CSCO went above my sell limit.  With the 15 days I held CSCO, the interest will eat into my questionable trades.

Nope, I didn’t blog about these two stocks before as they are just for play with my new dollar trades at Virtual Brokers.

Details below for a better understanding of what went down!

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When I get bored…

26 May

Right ThumbWhen I get bored…

I take naps to pass the time, sometimes a little too long.

I go on my smart-phone to kill time.

I try to smooth out my hangnails, but it just makes it worse over time.

It is time for me to stop wasting time and start utilizing time to better myself.

 

 

Virtual Brokers Trading Platform Breakdown

21 May

For the last while, I got my Virtual Brokers Margin account up and running.  For 1 cent per share trades, I’m happy with their executions.

Here is my basic trading platform for Virtual Brokers, please click on the screen below to see my comments within:

Virtual Brokers Trading Platform

My One Year Anniversary with Capital One Mastercard

17 May

My total cash reward for the year is $217.66 just for spending on my Capital One World Aspire Cash Mastercard.

Here is my breakdown:

Bonus Sign Up:  $100
1% earned for my total spendings:  $79.74
0.5% bonus 1 yr anniversary:  $37.92
Total Cash Reward:  $217.66

This means I spent $7,974.00 over the course of the year on my Captial One Mastercard.  Spending responsibly on your credit card can be quite rewarding as you can see.  Some personal finance gurus say credit cards are evil, use cash only… that’s the best way to limit your spending habits.  But with cash, you’re not getting rewards and you’re not keeping a detailed track record of your expenditures.

I am 100% pro credit card!  Just as long as you spend within your limits and pay off your balance on the due date!

Most of my gas/groceries purchases were made on my MBNA Smart Cash Mastercard.  It is only recently, I’ve been putting some of my gas/groceries charges through my Capital One.  I took out $8000 balance transfer from my MBNA Mastercard to take advantage of a promotion rate of 0% for 6 months.  If I put any purchases on that card, I will incur interest.  For the first month, I did not know this and put through some charges.  Now they will charge me interest on those purchases until I repay my full $8,000 loan to them.  Which is BS, since I paid more than the minimum balance to pay off those purchase charges.  But the way the balance transfer works, is if you put any purchases on that card, it will incur interest until your balance is paid in full.  So right now, I’m paying a few dollars in interest for my purchases, but no interest on my 0% transfer balance of $8,000.  Lesson learned!

Capital One Year Rewards

Whilst the market is up, Goldcorp is down!

17 May

WTF, is wrong with gold for the last few months?  People are falling out of love with gold!!  Simple as that.

Last time, I bitched about Gold, it went up the very next day.  Maybe, if I do it again, it’ll have a little run up the market?

Through all these years, I’ve never been a fan of Gold.  What does gold represent to make it such a high commodity?  When I think of Gold, they are used mostly to make jewelry, bars and coins… but I guess there are other things that require a spec of Gold in them.

But what made me buy into Goldcorp?  It was the monthly 5c dividend.  I should have known better.  I shouldn’t have let the price lure me in.

Now, I am down almost 20% on Goldcorp.  This is quite disturbing as I have 200 shares in this company where it has for the better part been a little lackluster.

I will continue to hold till I see green again.  But I can always bitch about it to make myself feel better.

Averaged Down on BTE.UN

13 May

Today, I decided to average down on BTE with another 100 shares @ $38.73…  That’s a $2.00 per share drop in a matter of three days.  Shitty deal for me, but sometimes, you need to have the bigger prospective.

The reason why I bought more shares. 1)  My trading cost is low.   2)  Attractive yield at 22 cent per share.  3)  Price of BTE is on sale.

This may take months before it recovers, but I have had several other stocks in similar situation that have turned out for the better.  Timing is of the essence.

Added 100 @ $40.75/share of BTE.TO on Margin

9 May

With my new Virtual Brokers account up and running, I decided to take on a margin position for BTE.TO.  I am, of course, attracted to their monthly dividend of 22 cents per month with a yielding rate of 6.50%!  Their financial seems to be strong and it all checks out.

What is BTE.TO?  Their full name is Baytex Energy Corp.  Yes, it’s another oil/gas producer!  It is in a slump like all other companies in the sector.  That’s why I’m jumping in now than later.  Might as well catch the wave and ride it out.

Once my position in Suncor is in the positive territory, I sell out for a small profit and seek better alternatives to increase my portfolio.  I’ve been holding since mid-February 2013 and it’s been giving me nothing but losses up to my eyes.  We shall see how this plays out.

My Virtual Brokers account has been set up with my equities transferred from Questrade.  Questrade charged me $125 + $6.25 (GST) for transfer out fees.  Virtual Brokers will reimburse me $131.25 within 60 days.  But why so long?  To make sure, I stick around?

Side Notes:  Virtual Brokers does really charge you as they advertise!  No more paying extra ECN/Exchange fees that Questrade was charging from time to time!

Now I’m really considering transferring my RRSP over to Virtual Brokers now.  Here is my today’s trade on margin:

BAYTEX ENERGY CORP BUY CAD 100 $1.00 40.750 ($4,076.00)

Diversification

7 May

Diversification is great and all, if you want to climb your way up slow and steady. For me, I invest in bigger chunks depending on my risk tolerance to that one particular stock. I’m not saying this strategy is for everyone but I have invested in a few stocks that have certainly leap further than the rest of the stocks.

Currently, Bank of Montreal (BMO.TO) and Chemtrade Logistics (CHE.UN.TO) are two of my largest holdings in my portfolio. My main objective was create a steady stream of income from these two stocks. To date, I have collected in dividends of $1066 from BMO and in distribution of $2602 from CHE.UN. The uncapitlized return of my stocks is 8.78% ($4221.77 of $48059.23).

Google (GOOG) is my third biggest holding. I orignally bought 50 shares of GOOG, half of the shares were on MARGIN. My main objective was price appreciation. Shortly after I bought into GOOG, share prices went below my buy in price. I was in the red for a couple of months. This wasn’t a good feeling, but I stayed true to my objective. When GOOG finally climbed out of its depressed share prices, I sold half of my holdings that were on MARGIN for mere $100 gain. To date, my uncaptilized return of GOOG is 39.91% ($6,115.30 of $15321.95).

Ok, I bought these three stocks roughly around the same time in Spring/Summer of 2012.

What if I wanted to diversify and buy a whole bunch of stocks in equal parts?
Let’s I have $65,000 to invest, I want to buy 10 stocks in equal parts.

1) BMO and CHE.UN uncaptialized return would be 8.78% ($1141.40 of $13000.00).
2) GOOG uncapitalized return would be 39.91% ($2594.15 of $6500.00)
3) Seven miscellaneous stocks can go either way up or down… averaging let’s say 5% ($2275.00 of $45500.00)

My cost of trading would be 7x more. I would have to find seven other stocks to fill out my portfolio. Maybe, some of the stocks I don’t really want to put in my portfolio, but I am forced to because I wanted to be diversified.

Let’s compare the two strategy in uncapitalized return:
3 stocks vs 10 stocks
$10,337.07 vs $6,010.55

So is diversification better in this scenario  Or is it wiser to pick the RIGHT stock accordingly to your risk tolerance?

In hindsight, if I were to pour everything into GOOG, I would be in a better scenario don’t you think?  But with everything, what are you willing to risk?

Executed PBI from my TFSA

6 May

This morning, I set out what I pre-determined to do:  Sell Pitney Bowes!  No regrets, no emotions involved in this trade.  

I walked away with a profit of $19.34.  If I had sold PBI when it dropped dramatically, I would have incurred a $150+ loss.  I am happy to walk away from this stock.  Good riddance.

Trade Summary in my Questrade TFSA:

BUY:  107 shares @ 15.17= $1623.19 + 5.45 (commissions)
SELL:  107 shares @ $15.45= $1653.15 – 5.17 (commissions)

Look at the commissions for Questrade, this was supposed to be a $4.95 per trade commission.  But they added SEC fees on top of that to nickle and dime my profits.  

If I had this account in my new Virtual Brokers account, I would have paid only $2.14 for two trades.  I am still waiting for Questrade to transfer my stocks over to Virtual Brokers in my Margin account.  They’ve been hassling me why am I transferring my account over to another brokerage.  I’ve told them my reasons why through emails and a phone call.  How many times do I have to make myself clear on this subject that I WANT TO TRANSFER MY ACCOUNT OUT!

My reasons for transferring my account out:

1) Lower commissions
2) Lower margin rate
3) Real time quotes

Questrade reasons for making me stay:

We value your business greatly and would like the chance earn your business. As a consideration, we are willing to offer you 10 commission free trades.  I understand you are concerned about the interest rates and commissions. I have checked your account and see you are not very active as a trader and do not normally leverage your position. The interest rate would not impact you based on your past history. We do offer a lower commission package if you are more active trader with a data package (our commission page is 95 cents to 6.95 with the advanced data package). For most clients,purchasing a few shares on occasion the commission is not a large impact their returns.

Conclusion:  Well, the reason why I don’t trade or use margin as often is because of the higher rates.  They didn’t even address my real time quotes as they know they can not do this.

Time to sell Pitney Bowes

4 May

Pitney Bowes is a recent buy for me as I was lured by their constant yield and low P/E ratio.  I had extra money in my TFSA and I bought this without much thought…

On April 30th, Pitney Bowes took a double digit percentage tumble in the stock market when they announced their earnings report.  Their first quarter net income drop 58% compared to last year’s results.  They also slashed their high yielding dividend in half from 38c to 18c per quarter.  First off, mailing equipment is a dying business as electronic mail is more world wide acceptable in this digital day and age.  I should have known better!!

A day before their announcement, I was thinking of selling out Pitney Bowes at a profit of $100+.  But as always, I didn’t pull the trigger.  Luckily for me, I didn’t sell on the big drop that Tuesday.  Since then, share price has been steadily climbing out of its despair depths and above my buy in price.  It is time for me to sell Pitney Bowes.  I do not want to lose money on this one especially in my Tax Free Savings Account where I can not claim any capital loss.

April 29-May 3, 2013

April 29-May 3, 2013