Stock Flip of the Day

Just a short post on a stock flip I made today.

SOLD EFR.TO @ $2.40
BUY TGOD.TO @ $3.01

On July 15 I paid $2.57 for 1600 shares of EFR = Loss of ($272)
Today I bought 1500 shares of TGOD @ a total cost of $4515.

In another account I had bought and sold TGOD. I bought in a lot cheaper than I bought and sold it before but I like it even better here. Here is my previous post published on 22 March.

TGOD - New Stock Purchase

So far my PF has managed to turn green with 5/6 stocks turning positive.

As soon as one of these buys has not been performing as expected I let it go. My timing has been off and it's time to go find out why. This happened with PEY and EFR.

Selling ASM and locking in that gain has proved positive. All the energy plays have turned up.

I now hold BTE, CLIQ, CPG, ERF, LMC and TGOD.

Will update the dollar value at the end of trading Friday which here in Canada is a long weekend so I'm sure it will be a light day.

Watchlist

Stocks I like include; BIR, CFP, CFW and GUY.

These stocks represent tremendous value when compared against their 52 week highs, I get my list of stocks from perusing the 52 week low lists throughout the week. I then compile what I'd like to buy once the stocks start showing a volume breakout to the upside.

Try not to sweat it and keep in mind if you miss a stock, there is always another opportunity. Always keep a list of stocks you'd purchase with new money.

I heard this the other day from Bob Moriarity ( I never buy what he buys)

"an avalanche always starts at the peak and never in a valley"

That's why I don't buy stocks making new highs. It's too hard to track where they're going from the top. Most of the time back down the mountain.

Having said that NOT all stocks wallowing in the valley break to the upside and climb the mountain. It's just easier to see on a chart where they've been before.

All the best and here's to making money speculating in the markets. Cheers! 

Swapping Guyana Goldfields for Leagold Mining

Just a short post on why I sold Guyana Goldfields for Leagold Mining yesterday.

I have to start by saying that my blog is about documenting my journey and strategies to grow money. It's not about you coming here to consume some new content I've created.

I'm not creating anything new here. I'm buying and selling stocks for what I hope to be capital gains. It is not meant for you to do the same but rather what I'm doing.

When you look at the overall market and those sectors that have been beaten down, where is the profit to be made?

I forget anything making new 52 week highs.

Right now I see energy, uranium, lumber and weed stocks providing that value for profit potential. This is a gut wrenching ride of timing the market. Not for everyone. I don't day trade or use margin. I just buy and sell when I see the conditions right.

I am wrong or sometimes sell too soon. I lose but I try to limit my losses.

These trades are usually never meant to last no more than weeks at a time.

I try and then redeploy the proceeds somewhere else.

I talked about my frustration with GUY.TO last week. The stock is value priced but still not participating with the rest of the gold sector which has been on fire for a couple months.

I have no idea what is going on with Guyana Goldfields internally. All I can tell is the market likes better companies. I decided to sell it for a 5% loss and buy LMC.TO instead.

I am really hoping that Leagold Mining will continue moving higher.

Why Leagold Mining?

• insider buying from 3-11 July
• positive analyst reports
• only became a company in April 2018
• small producer with 4 mines operational

This is my leveraged bet in the gold sector right now. GUY will probably move higher now that I've sold, who knows. It's what usually happens.

I bought 2000 shares of LMC @ $2.14 

I only invest a maximum of $4K in each stock pick

I'm looking to exit anywhere around $3

I will update all my positions again at the end of the trading week.

Until then take care and have a great week in the market.

Trading Portfolio Update

The portfolio finished in the green by the end of trading Friday. I maintain 6 positions and holding most throughout the week with only one trade completed.

Only 2 of the current stocks I hold are in the green with 4 in the red since I bought them. My timing has been off just a little but overall I'm still in the money but it has been a lot of work. My biggest disappointment has been GUY a gold stock that has lost money while most of the sector has taken off. I may look to cut it loose next week.

Money management is crucial if one wants to stay in the green and not let one position drag things down. If there is no interest or momentum behind it, let it go and buy something moving up.

YES, this is timing the market!

Current Stock Picks

Baytex BTE (0.25)
Alcanna CLIQ (3.3%)
Crescent Point CPG (1%)
Energy Fuels EFR (2%)
Enerplus ERF (0.8%)

Guyana Goldfields GUY (4.9%)

Totals = (0.88%) ($221)
Traded PEY ($239.98)
Traded ASM  $830.03

$369.05

As you can see, even with so much red on the screen you only have to be right once and your PF makes money. 

I thought I bought ERF at the bottom but it is sliding further down. You have to watch these stocks like a hawk for a reversal. Never lose more than 10%, cut losses early and just sit on cash until you find something else to trade.

This current list had a $500 swing from ope to close just on Friday so give it time. ERF alone gained 7.6% on Friday, almost recovering all losses. It also traded well above it's daily volume which tells me some buying interest is coming into the stock.

Another big mover on Friday was CLIQ. It was up 6% and 37 cents on almost double the daily average volume. I bought it on July 16th so it's taken 2 weeks to finally get green. I think it keeps rising from here and looks like a longer term hold. Booze and weed should do well as trading stocks.

I'm holding $1,306.71 in cash right now. This also changes with every trade made. All totals listed include trading costs. I use Scotia iTrade as my platform to move money and make trades.

Posts I've Published This Week

Fear, Investing and Gambling in the Stock Market

Hunting for Profits in a Volatile Market

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

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 based on 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!

Looking at Income Investing?

All retirees should be income investors. My opinion.

Please pick up a copy of Henry Mah's new book 'Your Ever Growing Income'

What stocks did you buy or sell this week?

Hunting for Profits in a Volatile Market

I try and look for stocks that have been beaten down and then are ready once again to resume what I hope to be a rise off the bottom.

Right now I have $26K spread out over 6 positions. They are;

Baytex BTE 
Alcanna CLIQ
Crescent Point CPG
Energy Fuels EFR
Enerplus ERF
Guyana Goldfields GUY

Canadian energy and lumber stocks have been beaten down. Is this the right time to be buying? I have no idea and these positions are swinging anywhere from $500-$750 a day.

I thought that GUY was worth a punt with gold moving higher but it looks like I may have picked the only gold stock that's not participating. The upside is huge here if it can back to it's high for the year.

I also like to only commit $4K per trade and sell if the position loses 10%. I may have to rethink that strategy as uranium is swinging violently from day to day.

Watch Cameco CCO as it is plunging to new lows if you're looking to find profits in this space.

Obviously I eliminate all stocks making new highs because who knows where they go from there. At least looking at stocks 50% below their 52 week highs we have the potential to get back there. Maybe, maybe not.

This is where I look for profits and how I screen stocks.

Take Your Losses Early and Move On

I never hang on to losers and hope they get back to where I bought them. I accept I picked a dog and redeploy the money int something else.

BUY Peyto PEY @ $4.30 - SOLD @ $4.08 = (239.98)

Some might just wait until PEY made some money for you. I'm just too impatient. It is a character flaw that I'm constantly working on.

BUY Avino Gold and Silver ASM @$ 0.83 - SOLD @ $1.01 = $950.00

Total Profits = $710.02

ASM just moved so fast to the upside that I wanted to lock in that gain and not get greedy. Could it move higher? Sure, but taking 22% in a couple days is never a bad idea and helps preserve capital gains. That's the name of the game here.

It's not just losers you have to cut loose but also those picks that aren't moving at all in either direction. Volume has dried up for whatever reason.

Don't let others push you off your positions or listen to experts on TV before you make a move.

Random Thoughts

I've been watching Canfor CFP for a sign it might be making a comeback. It seems the company is just getting smaller and trying to conserve cash. The stock is making wild swings but I do believe Canadian lumber stocks could offer great value just like gold stocks did this time last year.

Keep watching the market for a possible entry point.

I try and have no more than 5 trades going at the same time.

I'm NOT a day trader, if anything Momentum trader. I look for unusual upward spikes in volume after a stock has bottomed.

I bought Enerplus at it's 52 week low yesterday of $8.21

Like I said earlier, it seems there is no interest in energy stocks right now. If and when we get a turnaround in sentiment these stocks offer great potential.

I'm not interested in what anyone else says or does, I just watch and act on what the market is telling me.

I have to trim one position to get back to five.

Alcanna might be it as it's done nothing and I'm down 2.6%

I have $1,316 in cash in my trading account. Lots of red on paper.

I'm hoping for a turnaround day today going into the weekend. I may do nothing. Who knows.

I will update my positions and profit/losses tomorrow. 

Fear, Investing and Gambling in the Stock Market

I invest in income producing stocks inside my RRSP and rarely touch them now that I've decided on the right mix for my wife and I.

When I blog about my exploits in the stock market I'm just documenting what I'm doing and trying to be as transparent as possible while doing it. You don't like it or don't do that, well good for you. Take your troll show somewhere else and maybe you'll find your doppleganger elsewhere. 

The fact is we all make mistakes and have different strategies. Most of us suck at saving and investing. It has been reported that Canadians owe $1.75 for every $1 we make. Now, that sucks.

How do we get ahead?

This short clip called Mark Cuban's Guide to Getting Rich .

Please don't confuse this with get rich quick schemes. It's not. It just might help some with guidelines.

One of the rules he talks about is gambling with 10% of your money which is what I have been doing with my portfolio. I post updates on Monday and at the end of trading Friday.

When I make a trade, I will try and update my blog on what I'm doing. 

He also talks about investing most of your money in an index. All I've done is taken that allocation and invested in individual DG stocks for retirement. I have pension income that is indexed so I don't bother with bonds or preferred shares of any kind.

You do things differently? That's great. 

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

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 based on 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!

Looking at Income Investing?

All retirees should be income investors. My opinion.

Please pick up a copy of Henry Mah's new book 'Your Ever Growing Income'

How is your week going so far?

My Trading Week

On the 15 of July I decided to try and speculate in the stock market. I used $26K and bought into 6 positions. I sold one of the positions at a 5% loss and rolled the money into a different stock.

I am trading here to generate some capital gains. The PF gained 2.1% on the week.

Here is the breakdown which includes trading fees.

Stocks Held

Alcanna CLIQ - 650 shares @ $6.15, closed ($ 5.97) ($126.99)

Avino Silver and Gold Mines ASM 5000 shares @ 0.83, closed 0.91 up $340

Baytex Energy BTE 2100 shares @ $1.91, closed ($1.88), ($73)

Crescent Point CPG 1000 shares @ $4.04, closed $4.07 up $20

Energy Fuels EFR 1600 shares @ $2.57, closed up $2.58 up $6

Guyana Goldfields GUY 4000 shares @ $1.26, closed $1.36 up $390

Total Gains

As you can see 4/6 were green and I'm up $556 on the trading week.

I sold Peyto Exploration and bought CPG. I lost $226 on that trade. It lost 5% in only a couple days. I decided to sell nat gas and buy a more oily stock moving up.

I'm only just getting started here but I still believe the positions established have a ways to go. I'll have to be a bit more patient.

Posts I wrote this week

Flipping Stocks for Capital Gains

Why I Just Bought Baytex Energy

New Buy - Avino Silver and Gold Mines

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

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 based on 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!

Looking at Income Investing?

All retirees should be income investors. My opinion.

Please pick up a copy of Henry Mah's new book 'Your Ever Growing Income'

What stocks did you buy or sell this week?

New Buy - Avino Silver and Gold Mines

Just a short post on another junior position I initiated this week and my timing was pretty good on this particular stock. On Wednesday 17 July, I bought 5000 shares of ASM @ 0.83.

In two days the stock is up 13%. Silver is on fire right now and has broken out. It could reverse trend just as quick and all gains evaporate. Right now, all volumes seem to be spiking and so far the futures are all pointing higher for another massive day on the markets.

Why pick ASM?

All the silver stocks are displaying strong upside moves and I also looked at FVI, EDR and FR. I believe these can still be bought but again be wary of a trend reversal.

ASM has a 52 week high of $1.60 which would represent almost a double from my buy price. For the last two days the average trading volume has increased 6X. This is a beautiful momentum set up to harvest some nice short term gains.

ASM also announced production results recently and actually produced less silver, gold and copper than they did last year in Q2 2018.

So why is it spiking in price?

They are finally profitable after years of losing money but just barely.

I didn't buy it for it's fundamentals. I bought for it's increased market action on a rising stock price. That's it.

I wrote about that particular strategy here.

I believe along with the rising silver price that the market believes ASM will reach it's 2019 targets.

Right now ASM has broken through it's 200DMA which occurred on the 16th of July.

Short term I really like this stock to reach resistance of $1.15 which is where I'll look to take profits.

This is not for everyone and you could lose all your money doing this. I am gambling in a separate trading account to harvest some capital gains.

That is all.

Read the post below I wrote from August of 2018 for more of the rules I follow.

How to Win at Stock Picking When You're Wrong

Why I Just Bought Baytex Energy

I can remember a couple years ago telling another forum member that I would like to buy BTE under $5. He said "Don't worry you'll get that chance, patient".

There has been many chances in the last 5 years or so to flip this tock for short term gain but I never bothered.

It was once a $45 stock. According to Bruce Campbell it will never again get that high. He was recommending it at $2.52 back in January.

Eric Nuttall talked about Baytex as a go to name in the Canadian Oil Patch last November when it was at $5.40.

If oil could get to between $45-55 and stay there you could make a lot of money on Baytex.

Everybody including Josef Schacter has been calling this a buy for a couple years now. I've just been watching the market response and for money to roll in to take a punt.

Today I did and bought 2100 shares at $1.91

So I bought Baytex for under 2 bucks. WOW!

If it doubled from here I'd be a happy gambler.

If you would have held this stock for the last 10 years you'd be down 77%.

Market Cap: $1B
Beta: 1.63

ROE: (10%)

Forward P/E: 15.5

EPS Growth: 68.2%

Revenue: $1.27B, per share =2.93

Debt: $2.1B
Price Paid: $1.91

52 week high: $4.50

The stock continues to trend down as of this writing so I could have got in cheaper had I waited later in the day. However, I've thrown my chips into the middle so we'll see what hand I'm dealt.

There is tremendous upside opportunity for a lot of these oil names in Canada. I said yesterday they were being thrown away. Today I'm glad I bent down and picked this one up. It's just too cheap to keep being ignored but I'll have to be patient.

It could also move lower from here. It closed the day @ $1.87

I now own PEY (2%) and BTE (1.3%) as trading stocks.

Do you own any energy names? If so, which ones?

Flipping Stocks for Capital Gains

Just a short post on 3 speculative stocks I bought yesterday. My intent is to hold short term and hopefully flip them for capital gains.

I bought PEY.TO, GUY.TO and EFR.TO

Peyto Exploration

Price Paid: 1000 shares @ $4.30

52 week high = $12.44

I don't know what's going to get these Canadian energy names going but the upside potential of these positions can be huge. Almost a triple to get back to its high for the year. Oil is trending up but investors seem to be just throwing these stocks away.

Big bump up today of 6% on high volume is why I jumped in to establish a position. Double the avg. daily volume and comes with a 6% dividend.

Might have to be patient with this stock but I like the potential here. If it goes down 10% from here I'll let it go.

Energy Fuels

Price Paid: 1600 shares @ $2.57

52 week high = $5.38

Again, a double from here just to get back to it's high for the year. Uranium in the news a lot after it was announced that the U.S. will no longer restrict imports of uranium into the country. Maybe this will force local producers like EFR to get their costs of production down and get competitive in the uranium space.

This is a pure gamble on my part based on how beaten down this stock has been. It sold off from $3.98 last Thursday which was quite the dramatic drop. I believe it was a knee jerk reaction and am looking for it to regain that back on a bounce.

If it drops a further 10% from here I'll let it go.

Guyana Goldfields

Price Paid: 4000 shares @ $1.26

52 week high = $4.70

A gold stock lagging an uptrend sector. The best time to buy a stock is when it's down like this (my opinion).

It would have to triple in price just to get back to it's 52 week high. That is an amazing amount of profit potential and what I look for in trying to flip a stock.

Will it get there? Dunno. It is lagging the sector, but just announced positive results and the market seemed to like it. I would sell at $2 if it got there and let it go if it dropped back to 90 cents.

Thoughts on the Trading Day

All the positions lost money for me today. Still, I'm glad I'm in at what I consider great prices based on market action.

They are all trending up on higher than average volume and moving off their bases. I am only looking to hold them until September - MAX!

I hope NOT to have to sell sooner.

This is no different than one going to a yard sale and buying some tools, taking them home and selling them the following weekend for more than you paid for.

I'm buying these stocks as gambling positions only. This is NOT investing. This is buying and selling for capital gains.

I am hoping to not get BURNT by the market.

Wish me luck!

Do you flip stocks for capital gain?

How I Save for an Emergency

I don't have an emergency fund and have never had one. I just could never afford to start and maintain one. Too busy trying to pay the bills, have a life and help raise kids.

I never really understood where most people could find that kind of extra cash to put away for an emergency.

I have used money put away for life insurance, RESPs and home ownership funds. Ontario used to have a program back in the 70's called the RHOSP - registered home ownership savings plan. I tapped that account when I heard they were going to unwind it. I only had a few bucks in there anyway. It was never used for it's intended function.

Point is, I could never ever not touch those supposed savings accounts. I just didn't have the discipline. Something other than an emergency always came up so poof, there goes that money.

The next thing you know, guilt sets in and you give up. At least this is what happened in our case.

Buying a house pretty much puts the damper on that strategy. If you don't believe me try and convince your spouse that you need to also do this. There just was never enough money left.

You might have heard about this strategy a lot from a late night bleach blonde personal finance guru from the U.S.A. She constantly pounds the table on this. I haven't watched in years but I'm sure she still does.

I have also found out that the emergency never really shows up. It just doesn't. Buying winter tires for your car is NOT an emergency.

What else to do?

Home Equity Line of Credit

This is what I use when I need money fast for whatever comes up. I prefer this to emergency savings accounts because;

• costs zero dollars to set up
• interest rates on borrowed money is so cheap
• I would rather invest my money in stocks than save it
• HISAs - high interest savings accounts pay a shitty rate

HELOC is perfect to meet your needs if anything comes up plus you can make interest only payments.

The other beautiful thing about these gifts for owning your own house is you can use the money to pay off other spending mistakes you have already made.

Higher interest payments on credit cards or god forbid, department store cards. My HELOC rate is slightly over 4% on a secured account.

INVEST your money don't SAVE. It just doesn't work, like budgets and diets don't work.

THEY ALL JUST DON'T. If they did there would only be one choice. The reality is there isn't.

Get your money working for you in an investment account as soon as you can afford it and never worry about an emergency that will never happen. Let us pray!

I never bother with an emergency savings account. Go apply for a secured HELOC on your house. Much better option. My opinion and just what I do. 

What are your thoughts on saving for an emergency? Do you have a HELOC?

All The Money in the World

I watched the movie with Christopher Plummer in the lead role of American Businessman J. Paul Getty last night.

What a trip.

Getty amassed his fortune in the oil business during the depression. The movie was based on true events about the kidnapping of his grandson in Italy during the 70's.

The grandson J Paul Getty III died in 2011 at 54 yrs. old due to complications from a drug overdose earlier that left him a quadripalegic.

He became as fucked up as his father with his drug use while his father lived until 70 yrs old after cleaning up his life.

The movie is aptly titled because all the money in the world could not save this family from the disease of drug abuse and ealy death.

Starting with the old man who became just a Scrooge type miser in the end. It was all about the money in life and in the end while accumulating huge wealth died alone holding a painting.

The family is always struggling with the curse of making bad life decisions and early death and tragedy.

Getty sold his oil interests to Texaco for $10B and at his death the family trust went into the hands of his grandson's mother Abigail Getty Harris.

It is now worth $2B and in the hands of Gordon Getty the 4th oldest child. (Google the family for more info). He has his own problems of course but he has so far lived to be 81 years old. 

While the movie was based on the kidnapping of Junior III you can come away with some money and life lessons given out by Getty during the course of his crazy elderly years.

"Anyone can get rich but being rich takes work"

OK. he says being rich you have to work at living like a rich person and falling into the abyss. Getty says you have to learn this when without money nobody cares about you.

I dunno,  think for most it is pretty hard to get rich so they never get to learn how to BE rich. I think for most they would like to try anyway.

The guy was an art nut. Enough to start a museum in New York bearing his name. He believed in buying tangible assets that remained constant. People change but material possessions stayed the same. He liked thatabout things. He had a lot of stuff.

"If you can count your money, you don't have a billion dollars"

It's an arrogant I'm rich AF statement. He owned estates in England and California. He had billions but still died alone was cheap as fuck. He even had pay phones installed on site so guests or family members had to pay for any long distance phone calls.

My Final Lesson Learned

All the money in the world doesn't mean happiness, love, family or exempt from early death, drug abuse and tragedy.

This family just abused themselves with drugs and women. They had nothing meaningful to do with their lives it seems. I guess when you are a trust fund baby like Paul the third, life is just meant to be fucked up. I can't imagine his mother who worked tirelessly on his kidnapping to live long enough to see him overdose and become tied to a wheelchair. So f'n sad and what a waste of a fucken life!

People who have everything really have nothing. The Gettys were and are rich AF but man they have and have had big problems. Just like poor people.

The old cliche holds true, that all the money in the world won't save your kids or buy you all the happiness in the world.

We all have to find our happy, that's all that matters. The Getty family was far from happy. I hope this new generation can find some.

Having said that, I have no sympathy for people who still abuse drugs and their entitled lives. Pfft!

How to Keep It Simple Stupid

I'm talking about the principle of keeping it simple stupid as it pertains to investing. I just read a blog post from Ryan Lewenza over at Turner Finacial on his definition of KISS and this is my counter argument on the points he has made on the subject.

First of all the whole argument can be summed up in whether you believe in modern portfoio theory (MPT) or you don't. I don't and don't really give a fuck about it. I don't buy bonds, preferred shares, mutual funds or their ugly step sister ETFs. It's just me.

If you are a professional money manager and you are charging fees to hold a client's hand then you need talking points to justify why you do the things you do. Song in there I think. Anyways. This is where you follow MPT, buy ETFs and always mutter on about KISS.

It's like that's the only strategy out there. NO it's not but highly effective keeping the herd in line when they start to want to stray. I've been straying and following different paths before I settled on my path.

I DIY my own portfolios, I don't pay fees and I just buy common dividend paying equities. Does it get any more KISS than that? The hard part and it really is hard is holding on and letting it work it's magic.

Of course you can pay someone to do this for you. They call it 

'The Balanced Portfoio'

Here is my take on the points presented.

Balance

You need bonds in your portfolio on those days when your stocks are going down. Why would anyone with a small semblance of brain cells invest in 10 year government bonds paying 1.5% interest? Those seeking balance and poor returns is who?

It's just razzle dazzle in my opinion. I don't invest in them or any bond proxy funds and ETFs for simplicity and or convenience. You are left paying fees to the fund manger and fees to hold the fund or ETFs. Balance at Turner Financial usually means 40% allocated to a mix of bonds/preferred shares giving you a 3.5% yield on your fixed income side.

I don't want at anytime my income to be fixed. I want a growing income that I believe is better gained through a portfolio of dividend growth stocks. Better in retirement and better to combat the ravages of inflation as you age and shit get more expensive and we all get more unstable. 

Balance is all part of the twaddle referred to as MPT. It's just not necessary for you to hold bonds or pref shares and pay ongoing fees that slowly eat away at your money.

Don't know how to manage your money. Go fucken learn. Libraries are full of people seeking knowledge. Yes, you can do this and it's fun keeping more of what you earn and save.

Why pay someone to lose your money for you. You will ask yourself that when the next recession hits. Just sit tight and enjoy the stocks you bought and do nothing. That's all your money manager will do when you go asking questions.

Diversification

This is the idea that you need to hold 40% of your money split between preferred shares and bonds of all types including, federal, provincial, real return etc. etc.

I don't hold any of those types of products. It also preaches to spread your money out throughout the world to reduce risk.

Of course I don't do this and also you have to believe in Modern Portfolio theory which I don't.

Asset Allocation

Hold different asset classes depending on your age, income and how many years you are away from retirement. I only hold Canadian DG stocks.

I'm doing just fine. I will live on the juice those dividends provide. To me, it doesn't matter what age you are just BUY STOCKS!

Hold them forever and only sell unless you have made a mistake.

In Sum

Just be careful who you take advice from and how they get paid.

In this case you pay an ongoing management fee + ETF fees. They will eat into your returns over time.

Some love this model of letting others do this for them. I am not a fan and would rather be a DIY investor and if I lose money then I'm not paying others to do it for me.

You can do this on your own. If you don't know how, then go to the library, pick up a book and learn. Now that's how you KISS!

How do you keep investing simple?
How do you define

CI Financial and Why I Bought This Stock

You bought a wealth management company that sells mutual funds that you hate and abhorr?

Right?

So, why CIX.TO?

It's pretty beaten up, still making money and compounding income at a great clip so far. 

After the financial crisis they cut the dividend 50% from 10 cents down to 5 cents. This was not unusual for a lot of companies at the time.

Since then they've slow and steadily raised that dividend to now 18.5 cents a quarter.

Let's look at some of the numbers;

High Stock Price - $35.05
Now - $21.77
Price Paid (200 shares) - $20.47
P/E - 9.17
ROE - 36%
Yield 3.3%
Payout Ratio - 43%
FCF - $625M

Revenue and Earnings growth continue to move up.

The fact is as much as I would never own a mutual fund, many people still do.
Don't buy the fund, buy the company.

The stock is still way off it's all time high and for me is considered a low yielder. If you are looking for something different that has been beaten up and may provide significant potential to grow revenue and thereby give you some capital appreciation, this is one that I decided is worth that punt.

I bought it for my RRSP.

It has really taken a hit in the last 5 years and investors have thrown it away and have gotten frustrated with it. That's why I believe it's cheap. I also believe most of the risk here is to the upside.

I love stocks that have raised their dividends for 10 years and are still trading at a single digit price to earnings ratio.

From Yahoo:

CI Financial Corp. is a publicly owned asset management holding company. Through its subsidiaries, the firm manages separate client focused equity, fixed income, and alternative investments portfolios. It also manages mutual funds, hedge funds, and fund of funds for its clients through its subsidiaries. The firm was founded in 1965 and is based in Toronto, Canada with additional offices in Vancouver, Canada; Calgary, Canada; and Montreal, Canada.

My Final Take

I'm hoping to juice my returns a little bit with a stock that is rising off it's 1 year bottom of $17. It has recovered nicely. In the meantime I will collect the dividends and be patient. If it recovers to $30 or higher I'll be a happy camper.

This is just what I have done and not a recommendation for you to buy this stock. Do your own analysis and research before making any buying decision. 

Would you buy CIX? What other financial wealth management companies do you own?