Cineplex - New Stock Buy

In my last post, I documented my trading history of GoEasy. I took the money from that SELL side trade and bought Cineplex. The stock has been beaten down from a 52 week high of $42.79 to yesterday's close of $30.40.

Earnings were announced on 13 August and profit was up an astounding 1,670% in Q2. Revenues were up 12% compared to the same quarter a year ago. It looked like a no-brainer to me so I bought the stock soon after the announcement.

The stock went from $28.96 ---> $30.92 where I bought it. It seemed like positive momentum had firmly set in and the stock was set to come off it's lows in a big way. Not so fast. I got hammered on the trade as the stock plunged 6% in price from where I bought it and finished the trading day @ $29.10.

I had completely got the buy point wrong. It was not enough for me to force a sale but I was definitely upset at my timing. I own 130 shares of CGX @$30.92. The stock closed yesterday @ $30.40. I'm still down but have recovered most of my loss due to bad timing.

This will force me to hold the stock until I get into the green and make money on this trade. The stock yields 5.9% while I wait.

I also own OTEX and I'm up $33.50 on 75 shares. I still only commit $4K on each trade.

What Happened

When it comes to the Stock Market nobody knows anything. A company reports great earnings numbers and the market hammers the stock. I don't day trade and I don't sit in front of my computer all day watching the ticker. I try and do my homework ahead of time before I decide to buy a stock. These are all short term trades for my Gambling Portfolio.

In the case of Cineplex I can now only guess that the market didn't like the fact that they had expected more revenue than they got. Even thought the numbers were an improvement, they wanted more. The greedy bastards. I am hoping now tat the stock gets revised by analysts and is upgraded. That is the only thing that is going to save this trade for me. Patience is now a must so I can make money in the short term.

New Strategy

Gold and Oil stocks continue to move lower and represent a poor area for trading and trying to make money. All the momentum seems to be in growth stocks. I have formulated a list of stocks I would consider buying with cash from future trades. 

Growth Stock Watchlist (as of 7 August 2018)

RBA

WTE

DSG

MTY

ATD-B

TOY

TC

DOL

Since I compiled this list the total PF is up $177 on an equal amount of 5K invested in each position. I don't do analysis of individual stocks and whether they are a good fit for you. These are trading stocks for me and may be long term holds for you. I look to time the market and make money in my unregistered trading account. I also don't know anything and I'm not an expert on trading stocks. My system is wonky at best and probably not suitable for you. It's just what I do with my play money.

I NEVER USE MY RETIREMENT MONEY TO TRADE IN AND OUT OF 

STOCKS!

You can look at our retirement holdings here.

Investing and Saving Ideas You Can Use NOW!

If you are looking at ways to save money this new book The Cashflow Cookbook can help you find some savings to then use to invest.

If you are having trouble getting your financial house in order and organized then you need to read Worry Free Money. 

If you are further looking for portfolio ideas then you might find my review of The 6-Pack Portfolio a way for you to get started on your investing journey. All of our retirement money is invested in this manner. We just hold more than 6 positions.

All 3 of these books written for Canadians by Canadians.