November and December were great months
Past two months were fantastic with great buying opportunities.
I'm fairly happy with just about all the purchases I made there. VIC, SRV, BPF, EAT, YLO etc. I don't know if I'll see share prices that low in the future though. I'm hoping they might fall back down. Right now I'm making monthly purchases based off of my monthly RRSP deduction from my salary, and based on dividend streams from current investments.
As mentioned on the Financial Webring Forum I also made some preferred share purchases of BAM.PR.J and YPG.PR.B (YPG being the parent company of YLO). These preferreds due to what I believe was tax-loss selling fell to absurdly cheap prices which made their tax-efficient yields approach 12% which is crazy in my opinion for what I feel are low-risk tax-efficient investments. That doesn't even include the future capital growth (since these are retractable preferreds meaning they'll be bought back in the future at $25.00 per unit). Also thanks to Hymas for some of his educating postings on the forum's preferred thread. Although I'm not a subscriber to his newsletter I do read his blog and forum postings. I usually ignore preferred's as I'm much more interested in common shares for future growth. But couldn't help reading some of the outrageous price activity that occurred on some with these 2 in particular. Since then their prices have rebounded back up, so no new purchases planned but will keep holding these 2 for their safer income streams.
I made a small purchase of Strongco (SQP.UN) today at $1.41. This company over-extended itself in 2008 and got squeezed by their creditor's into suspending their dividends. They took a loss in their last quarter (paper-loss only though with them doing write-downs on their inventory, still cash-positive). I think it's a good purchase based on my belief that by 2nd quarter of 2009 they'll get back into black, and eventually have earnings of 50 cents per share or more for the 2009 year. So at their current share price it's very enticing. I don't expect them to do well in 4th quarter 2008 or 1st quarter of 2009, but I think that lowered expectation is already baked into their cheap share price.
I'm fairly happy with just about all the purchases I made there. VIC, SRV, BPF, EAT, YLO etc. I don't know if I'll see share prices that low in the future though. I'm hoping they might fall back down. Right now I'm making monthly purchases based off of my monthly RRSP deduction from my salary, and based on dividend streams from current investments.
As mentioned on the Financial Webring Forum I also made some preferred share purchases of BAM.PR.J and YPG.PR.B (YPG being the parent company of YLO). These preferreds due to what I believe was tax-loss selling fell to absurdly cheap prices which made their tax-efficient yields approach 12% which is crazy in my opinion for what I feel are low-risk tax-efficient investments. That doesn't even include the future capital growth (since these are retractable preferreds meaning they'll be bought back in the future at $25.00 per unit). Also thanks to Hymas for some of his educating postings on the forum's preferred thread. Although I'm not a subscriber to his newsletter I do read his blog and forum postings. I usually ignore preferred's as I'm much more interested in common shares for future growth. But couldn't help reading some of the outrageous price activity that occurred on some with these 2 in particular. Since then their prices have rebounded back up, so no new purchases planned but will keep holding these 2 for their safer income streams.
I made a small purchase of Strongco (SQP.UN) today at $1.41. This company over-extended itself in 2008 and got squeezed by their creditor's into suspending their dividends. They took a loss in their last quarter (paper-loss only though with them doing write-downs on their inventory, still cash-positive). I think it's a good purchase based on my belief that by 2nd quarter of 2009 they'll get back into black, and eventually have earnings of 50 cents per share or more for the 2009 year. So at their current share price it's very enticing. I don't expect them to do well in 4th quarter 2008 or 1st quarter of 2009, but I think that lowered expectation is already baked into their cheap share price.
posted by Rick | 11:08 AM
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