Saturday, August 18, 2012

Rise of a Millionaire Portfolio Update: Sold CHL.A and BYD.UN, Bought BCI

After a nice 2 week vacation and a sudden career change, I’m back to focused saving and investing. The good news is I will be making slightly more money than I was at my old job, but at the expense of an increase in fixed costs. My savings levels will probably be similar to what they have been since the blogs inception. I now live in Calgary Alberta where I landed an entry level position in the transportation and shipping industry. The last month has been tremendous and exciting; I could not have predicted what happen.

Maybe it was the different air but even on vacation, I had to make a rare move in my portfolio. It was made out of a realization that I wanted a full position in one of my favorite new stocks. I sold 2 cyclical companies that were doing well for me – booked +20% gains on both. They were Canadian Helicopters Group - HNZ Group and Boyd Group Income Fund. I still believe these companies are above average businesses but I needed to free up cash to add to New Look Eyeware, a stock I could imagine holding through any environment. I also pickup up 5 shares of Coast Wholesale Appliances, a cheap cyclical with an 11.3% yield currently. This makes it easier to follow and the broker I have makes these small buys economically feasible for me. I may do this with other stocks I want to own, but don’t have the money to buy. I generally hate selling stocks to raise cash with any regularity.

New Look Eye Ware fits the bill of being an underfollowed company with great fundamentals for steady growth and an exceptional track record. It trades at a fair multiple though not cheap, and currently has a dividend yield of 6.5%. The balance sheet is easily managed and they are focused on steady growth, opening a hand full of stores each year. Revenues at New Look are very solid mostly coming from employment group benefit plans and other types of insurers. They easily made money during the financial crisis and continued to focus on improving their business long after.
Another big investment move I made over the last month was selling out all of my non registered mutual funds. Good bye high MERs! I’m due for a cash inflow any day of about $3600 which I plan to put to work over the coming weeks. Currently I have a small RRSP mutual fund worth about $800 dollars – I’m just going to leave that.
You can expect more posts in the coming weeks of all my new buys and portfolio updates.
Quote: New Look Eyeware


Margin Account
Company Name # of Shares Market Value
Westshore Terminals  135 $3,516.75
Saputo 129 $5,674.71
Asian Television Network 2750 $7,177.50
Allied Properties REIT 94 $2,937.50
Imperial Metals 316 $2,881.92
Black Diamond Group 260 $5,454.80
K-Bro Linen 123 $3,413.25
Computer Modelling Group 196 $3,561.32
SNC Lavalin  53 $1,982.73
Bird Construction 204 $2,884.56
New Look Eyeware  100 $923.00
Arc Resources 119 $2,814.35
Total $43,222.39
TFSA Account
Company Name # of Shares Market Value
New Look Eye Ware 44 $1,246.05
SIR Corp 105 $1,386.10
Alaris Royalty 80 $1,896.00
Asian Television Network 469 $1,224.09
Coast Wholesale Appliances 5 $18.50
MTY Food Group 109 $2,124.31
Total $7,895.05
Cash on Hand (approx) Total $3,600.00
Margin Amount (approx) Total $3,500.00
Margin Account Total $43,222.39
TFSA Account Total $7,895.05
RRSP Mutual Fund (approx) Total $800.00
Total Invested Assets $55,517.44

4 comments:

  1. Congrats on your move to Calgary! I live just up the road in Airdrie.

    You may be pleasantly surprised on living expenses. Income taxes lowest in the country, only GST, insurance is cheaper, etc. Which means one thing more disposable income.

    ReplyDelete
  2. Thank you very much! Oh great im in okotoks right now but moving into the city sept 1. I will be living cheaply with roommates and its less expensive then living in BC was. I could always work on the rigs too

    ReplyDelete
  3. I took a look at Coast Wholesale Appliances on my site today.

    Susan

    ReplyDelete
    Replies
    1. I sold my small position.. Noticed an article referencing the high goodwill balance on the BS. Something i missed in my initial evaluation.

      Delete