Thursday, 18 February 2016

New Purchase - High Liner Foods

Not long ago, I purchased 300 shares of High Liner Foods (HLF) at an average cost of $15.01 and sold soon after at $15.39, plus $36 in dividends.

Today I reinitiated a position at a much lower price; 15.7% lower to be exact.

Number of shares purchased
150
Price per share
$12.90
Commission
$9.95
Total cost per share
$12.9663
Total cost
$1,944.95
Annual dividend per share
$0.48
Initial dividend yield
3.70%
Increase in forward 12-month dividends
$72

It’s a relatively small company with a market cap of roughly $400 million CAD. Using the adjusted diluted EPS for 2015 of $1.14 USD (this company reports earnings in USD so that's about $1.56 CAD), the PE is $12.85/$1.56 = 8.2. The dividend payout ratio is $0.48/$1.56 = 31%. I get a graham price of $17 and a CAPE of 12. I hope management's plan to address the issues works out.


With this purchase, my 12-month forward dividend income stands at $10,554 per year.

Wednesday, 17 February 2016

Options Trades - GM

I believe GM is significantly undervalued but because I do not have much USD, I didn't buy shares. Instead, I bought a call option that gives me the right to purchase 100 shares of GM at $30 on or before September 16, 2016. This privilege cost me $181.21 (including commission).

Feb/16/2016 Bought 1 GM Sept 16 '16 $30 Call @ $1.75 ($11.20 commission + $0.01 SEC fee)

Thursday, 11 February 2016

New Purchase - BNS and NA

Today I bought some Scotiabank and National Bank:

BNS     20 @ $51.70  Yield 5.4%     Div +$56.00

NA       30 @ $35.80  Yield 6.0%     Div +$64.80

I also had limit orders on IPL (50 @ $19.80) and TD (20 @ $47.25) that didn't get executed.

This brings my 12-month forward dividends to $10,482. 

I'm probably going to transfer my 220 shares of BNS to Computershare and start DRIPing. At this time, I'm only doing this with Telus.

Wednesday, 10 February 2016

Sold WMT and CMI, Bought OHI and AXP

On Feb 8, I sold WMT and some CMI:

WMT

Nov 13, 2015, bought 50 shares @ $56.40
Feb 8, 2016, sold 50 shares @ $66.34
Capital gain $477.03, or 16.9%
-$98.00 in yearly dividends

CMI

Dec 8, 2015, bought 50 shares @ $90
Feb 8, 2016, sold 50 shares @ $98.60
Capital gain $420.00, or 9.3%
-$195.00 in yearly dividends

Both these were in TFSA so there is no tax on the gains.

On Feb 9, I did some bottom feeding and bought OHI and AXP.

AXP

55 @ $52.84
2.2% div yield
+$63.80 in yearly dividends

OHI
50 @ $27.55
8.28% div yield
+$114.00 in yearly dividends

Saturday, 6 February 2016

Options Trades

On February 5, Vodafone temporarily dipped below $30. I was surprised because their recent results were good, several firms have reiterated buys on the stock and they have restarted talks with Liberty Global. Since I already own 100 shares @ $30.00 each, I decided to sell a put instead of buying additional shares outright.

Sold 1 VOD Put July 15 '16 $30 Put @ 2.55 ($11.20 commission + $0.01 SEC fee)
Days Held (sell date to expiry): 160
Net Premium: $243.79
Annualized Return = ($243.79 / ($3,000 - $243.79)) * 365/160 = 20.1%


In my opinion, other companies who's share price does not reflect good financial results include GILD ($85) and GM ($28.50).