Tag Archives: BMO

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?

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Planning on a Sleepy Portfolio

4 Oct

What would happen if I just didn’t do any trades for the year 2013?  At the end of the year, I’d have to withdraw from my Scotia and Questrade brokerage accounts for my upcoming down payment.  Just by keeping my stocks, I’d have a monthly flow of dividends and distributions coming my way.  Not to mention the potential of price appreciation or depreciation within the year.  Most likely, I see the prices of my stocks going up with a big question mark for CLF though. Here’s a break down of my current holdings:

Ticker Dis/Div Comments
BPF.UN       235.20 This is my superstar!
IPL.UN       450.48 Very strong contender!
CHE.UN    2,172.00 Invested lots, hope it appreciates.
KEG.UN        96.00 Classy dining unit trust.
BMO    1,152.00 Lagging behind other Canadian Banks.
CLF       250.00 This is my loser stock!
REI.UN       552.00 Newly aquired, it better go up!
WYN        92.00 Aquired for price appreciation mostly.
Total  $4,999.68 If I kept all my stocks for the year!

It’s time to get back on track again!

20 Sep

Zombie state, midnight, don’t know quite what to say.  Selling out has been a real blow to me for the past few months.  It’s time for me to face the reality of the losses and move on.  I’ve been stagnant in the stock world.  Work these days doesn’t give me a whole lot of time to think about stocks.  Maybe it’s a good thing since the few stocks I own are slowing climbing out of its hole and churning out some profits.  Sitting on a pile of cash waiting to be deployed.  I waited too long since the market has been on the upswing in the last while.

An update on my portfolio, it’s a little lighter and I’ve gotten rid of the bad seeds.  Time for me to add some good paying dividend stocks or even a unit trust.


Cliff Natural Resources struggled in recent months, the bottom was at $32.00 per share.  I was thinking of averaging down, but in the end, I didn’t want to endanger my portfolio with a beat up company.  Since then, it’s been trying to make its way back.  I’ll be holding onto this one for a while since it’s in my QT RRSP account.  Lesson: If the company is down, but it’s still a good company.. take a risk and buy some.

As always, I tend to sell out.  From the beginning, Google struggled in the weeks that followed my buy in price.  It went down and down and all I was seeing was red.  So I set out a sell limit at $620.00 for half of my shares.  For weeks, I didn’t really paid attention to my portfolio. Low and behold, it met my price and bam, it sold.  Now, Google stands tall at $100 above my sell out price.  Lesson: Give it some time, keep the good ones close by.

For BMO and Chemtrade Logistic, I’ve wagered big on them in terms of shares.  Yet, I haven’t seen much price appreciation from them. Finally, BMO raised their dividend to $0.72/share after so many years.  While other banks have been steadily raising their dividends year after year.  I should have bought into Royal Bank, but it’s the choice I made.  Chemtrade pays a monthly $0.10/unit.  So I’ve been collecting $181.00 each month.  I’ll continue to hold and wait.  Lesson:  Be patient to those who rewards you monthly or quarterly.

As for my lone penny stellar stock, it’s has fallen from its high of $4.50 per share.  I could have cashed out and walked away with a wonderful big fat wallet, but I had hopes of it going all the way to the big boys.  That’s not the case.  Lesson:  Sometimes, it’s best to cash out before it comes crashing down.

I regret selling out my other unit truss, they have flourished to no end in sight.  I really had some good ones that I let go time and time again.  Sometimes, I just have that itchy finger to push the sell button.  Lesson:  Long term has its advantages in unit trusts where steady stream of income and price appreciation are not too far off in the distance.

One more thought, I don’t think I’ll ever listen to anyone about stocks anymore that’s where I got into trouble.  I think I do best on my own with my own style of investing.

Averaged Down a Day too Early

8 May

Opps, I didn’t make a post on my buy trades from yesterday:

BOUGHT:  BMO- 200 shares @ $57.00, dividends $210 per quarter (accumulated 300 shares)
BOUGHT:  CHE.UN- 420 shares @ $15.71, distribution $150.10 per month (accumulated 1510 shares, my largest position to date!)

As you can see, today would have been better to average down.  Bad news is always around the corner.  My gains from previous months have been wiped out, I continue to stay the course and not panic.  Anyways, I’m going to be holding on these stocks for a while.  I’m not going to panick and start selling like everyone today.  It’s always a bummer watching your recent stock buys go down.  It is what it is.

Busy Monday!

30 Apr

QUESTRADE MARGIN
SOLD:  BMO.TO @ 58.13, profit of $23.10, 0.4%
BOUGHT:  RCI.B.TO 200 @ $36.85; CLF 100 @ $62.23; AAPL 10 @ $583.70

QUESTRADE RRSP
BOUGHT:  POT.TO 100 @ $41.81

QUESTRADE TFSA
BOUGHT:  COS.TO 300 @ $21.68

Hello BMO again!

13 Apr

It’s Friday the 13th!

This morning, I wake up to see all red blinking across my portfolio.  Such a huge difference from the previous trading day.  Could this be an opportunity for me to buy something on the down low?  Since I have $8082.70 sitting in my Questrade Margin account, I decided to buy BMO!  I only bought 100 shares as a precaution if it sinks below my buy in price, then maybe I’ll pick up another 100 shares to average down.

April 27th is their ex-dividend date.  Payout is at 70 cents per share.  From observations, a dividend stock climbs a bit higher than normal before the ex-dividend date.  Reason being is that investors buy in near the dividend date to jump on board to collect their dividend.

April 13th
BMO:  100 shares @ $57.80

PS.  In my Questrade RRSP account, I hold BMO 100 shares @ $60.60.  A paper loss of $281.00.

Downsizing my number of stocks!

24 Feb

Time to re-evaluate my stock portfolio.  Truth be told, I have a few stocks working at too many different ways.  If I had invested 100 shares instead of 40 shares of Mastercard, I’d be sitting on a $6458 profit!  But really, do I want to tie up so much money into one stock?  Not really, but on the other hand, all my other little stocks are tying up my money with losses or with little gain. 

Who’s on my chopping block?  These are companies that have not performed to my expectations.  Free up some cash and invest into ONE stock. 

  1. 100 shares of BMO:  Current loss of $254.95, quarterly dividends -> sell at breakeven
  2. 200 shares of MFC:  Current loss of $234.95, quarterly dividends -> sell at breakeven
  3. 500 shares of POT:  Current loss of $339.50, quarterly dividends, overweight -> sell at $1000 gain
  4. 110 shares of PGF:  Current loss of $69.85, monthly dividends -> sell at breakeven
  5. 100 shares of ECA:  Current gain of $204.05, quarterly dividends -> sell at $250 gain