Stock Trading Thursday and Portfolio Update 6 September

Just a short post this morning on some of the trades I made during the market session on Thursday.

SELL 130 shares of CGX @$32.45 = $4,208.51 (after fees)

I bought CGX on 10 August @$30.92 = $4,029.59

Total Profit = $4,208.51 - $4,029.59 

= $178.92

Why sell CGX now? During the day the stock continued to go down so I wanted to lock in my 5%. I guess I just have a hard time believing in the theatre chain business with all the streaming and online demand options available for consumers. I saved a further $16 by selling it when  did. Big deal I know.

I then re-deployed the money from the sale of Trevali Mining and Cineplex into;

BUY 60 shares of ATD.B @$65.85 
BUY 80 shares of TOY @$50.51

Gambling Portfolio Update

I now hold 6 positions in this account;

ATD.B

ACB

LNR

OTEX

QSR

TOY

ACB and LNR at the moment are down 8% and 5% since I bought them. My FOMO cannabis trade has so far landed with a thud. If we get a NAFTA deal by Friday or at worst 1 October, then I believe LNR will take off. I will hold patiently until we see some sort of a resolution. Are these all great companies and worthy of a hold or a trade? I don't know exactly, that's why I speculate and gamble on some stocks.

We now own one of the biggest convenience store/gas station operators in the world that just reported outstanding earnings so I bought that news. I like to buy companies with revenues and earnings increasing year over year. ATD.B is doing that. It is just a matter of time before it busts out to new highs and the market assigns a new rating based on it's latest report.

Long term I also like software developers, fried bread and burgers (I don't eat them) and an outstanding children's toy manufacturer and entertainment company. The last two companies are trading well off their highs.

"If you want to buy stocks why do you want them to go up in price?"

- Warren Buffett

My RRSP

Today I initiated a small 40 share position in Dollarama (DOL).

Why? It's on sale and everyone I talk to says it's done.The Americans and Chinese are going to kill this company with tariffs and maybe a move North by another chain of stores selling cheap junk.

That might happen but I like the company and it just seems to keep spitting out cash. Where do you go to buy gift bags, Hallowe'en junk, envelopes and other assorted odds and sods for the house or birthday parties? Yep, Dollarama. Most people love these stores and I highly doubt they're going away anytime soon or that consumers are going to stop shopping there. My problem is trying to get through the cash and lining up because of all the people in the way.

I'm a bit of a contrarian so I ignore all that negative talk and bought a few shares because I love the company. I put it in my RRSP and will continue to add to it to compliment all the DG stocks I own. I need to balance my retirement account with some high quality growth stocks. DOL helps me accomplish that.

My Wife's RRSP

I bought 35 shares of MTY Food Group (MTY) for my wife's retirement account.
I probably paid too much for the company, that's why I stuffed it into a RRSP. I will be less likely to get shaken out of the position by holding it there.

I love this company and I have to constrain myself from falling in love with it. It owns 70 quick service restaurant banners consisting of over 5,469 locations. Most of their banners are in food courts in all the major malls across the country. I myself don't mall shop much but when I do I eat at the food court. We all do. MTY just makes money and then invests that free cash flow into gobbling up other franchises. 

Just yesterday they announced the purchase of Sweet Frog Frozen Yogurt for $35mil. Sweet Frog consists of 332 restaurants and generated $92mil in sales during the last 12 months.

They paid $32 mil for a chain of frozen yogurt restaurants in the US that generated sales of $92 mil last year. SAY WHAT! Outstanding buy for MTY and increases their international presence and cash flow. Let's look at some numbers;

Beta: 0.75

ROE: 21%

Forward P/E: 20

EPS Growth: 12.5%

Revenue: $295M, per share =13.2

Debt: measly $292mil
Forward Dividend: 0.99%
Payout Ratio 12%

Price Paid: $61.20

52 week high: $61.49

Using Cash on Growth Stocks

This is a blog on investment strategies to grow money. Lately I've been buying and supplementing all my accounts with nothing but low yield growth stocks. I now own CSU, OTEX, QSR, DOL, MTY, TOY, ATD.B, LNR and ACB.

I have others on my radar that I provided here.

I ONLY USE MY RETIREMENT MONEY TO BUY STOCKS. I VERY SELDOM SELL THEM UNLESS MANAGEMENT GETS STUPID!

Looking for Saving Ideas so You Can Invest? 

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.

If you want to read more about the theory and methodology of some of Canada's professional investment/portfolio managers then you need to pick up a copy of the book 'Market Masters'. Robin Speziale conducts interviews with these top money mangers using a set of pre-arranged questions. This will give you a real insight into how others invest money and how they think. A must read!

What companies did you buy or sell today, if any?