Mr. GIC $60,000 and counting

[selkirk]

Mr Gic..

update Sept. 30, 2003

Portfolio

Saxon small cap $5000 invested at $17.237 to buy 304.536 units.
$13.77X 304.536 = $5298.92


Summit Reit (smu.un) 500 shares (purchase price $14.98/yield 10%) divs=$1083.75
$16.92X500= $8460

Manulife Financial 300 shares ($45.95) divs= $308
$39.03X300=$11709

Manulife MFC Jan $45 Calls 3 contracts $1.00 $300 credit

TD 400 shares $464 divs,
$38.24X400= $15296

TD Jan $42.50 Calls 4 Contracts .25/.35 400X.25=$100

500 BFI Canada Income Fund BFC.un$10.97
divs= $728
$14.06X500= $7036

Dundee Reit D.un 400 shares X $20.50= $8200

Encana $47.50 P 2 contracts Jan $1.65/$1.80 200 X $1.65=$330

CP 4 $27.50 Oct Puts $1.70/$1.80 400X1.70 = $720

CGI (GIB.a-TSX) 8 contracts $7P Jan (.25/.35) credit $200

CIX 4 contracts put $14 April (.90/$1) $400 credit

BCE 3P contracts Jan $25 (.75/$1) $225 credit

TRP Jan $24 P 4 contracts .95 400X.95= $380

cash = $5772.73

Total portfolio value= $61, 772.65

XIU 300 shares were called off me in September for $41, currently trading at $42.50 at the time they were around $41.50-$41.75. may by back the shares that track the TSE/SP 60 later.

with the proceeds $12,300 bought 400 shares of Dundee Reit D.un for $8200 $20.50 a share. it pays over 10% and is trading at its NAV, not bad for a reit in Canada. Rest of the money from the XIU sale went to cash.

Updated Dividends the portfolio paid out from July/September for a total of $590.45 dividends went to cash.

also updated the prices, note in the total did not count the options written against the total, will do that in another update. all of them look so far to expire worthless.

portfolio is up over 20% since its beginning in April 18, 2002 not bad for a conservative portfolio, and beating the one year GIC of 2.5%.........

will write another put on an oil company in the coming months. will see how Encana put works out for a few weeks first. the put will probably be on Cdn. Natural Resources which is trading below 6PE, cheap......

thanks
selkirk

thanks
selkirk

 

[DOGS THAT BARK]

:toast:

 

[selkirk]

DTB good luck with those China stocks, own a few now myself, and will post about one energy play in China trades on Toronto. by the way congrats on another great year in golf.

will not write or do any trades until probably December. will not write CNQ since it is not acting well and ECA may be put to me, just above the strike price $47.75cdn. no one seems to like oil/gas stocks trading under 8 PE :shrug:
These Cdn. companies face a stronger Cdn. dollar and oil may go off a few dollars.....still seem cheap.

CP puts $27.50 OCT expired worthless, will look at writing $32.50 CP April hopefully for a better price. Also wish to write TRP $25 cdn. put April for .60, will have to wait.


Mr Gic..
update Oct 25, 2003

Portfolio
Saxon small cap $5000 invested at $17.237 to buy 304.536 units.
$13.77X 304.536 = $5298.92


Summit Reit (smu.un) 500 shares (purchase price $14.98/yield 10%)divs=$1083.75
$16.92X500= $8460

Manulife Financial 300 shares ($45.95) divs= $308
$39.03X300=$11709

Manulife MFC Jan $45 Calls 3 contracts $1.00 $300 credit

TD 400 shares $464 divs,
$38.24X400= $15296

TD Jan $42.50 Calls 4 Contracts .25/.35 400X.25=$100

500 BFI Canada Income Fund BFC.un$10.97 divs= $728 $14.06X500= $7036

Dundee Reit D.un 400 shares X $20.50= $8200

Encana $47.50 P 2 contracts Jan $1.65/$1.80 200 X $1.65=$330


CGI (GIB.a-TSX) 8 contracts $7P Jan (.25/.35) credit $200

CIX 4 contracts put $14 April (.90/$1) $400 credit

BCE 3P contracts Jan $25 (.75/$1) $225 credit

TRP Jan $24 P 4 contracts .95 400X.95= $380

cash = $5772.73

Total portfolio value= $61, 772.65

thanks
selkirk

 

[selkirk]

Mr Gic..
update November 30, 2003

Portfolio
Saxon small cap $5000 invested to buy 304.536 units.
$18.77X 304.536 = $5716.14


Summit Reit (smu.un) 500 shares (purchase price $14.98/yield 10%)divs=$1275
$17.65X500= $8825

Manulife Financial 300 shares ($45.95) divs= $308
$41.45X300=$12435

Manulife MFC Jan $45 Calls 3 contracts $1.00 $300 credit

TD 400 shares $592 divs,
$40.95X400= $16380

TD Jan $42.50 Calls 4 Contracts .25/.35 400X.25=$100

500 BFI Canada Income Fund BFC.un$10.97 divs= $881.12 $15.70X500= $7850

Dundee Reit D.un divs = $219.99
400 shares X $23.20= $9280

Encana $47.50 P 2 contracts Jan $1.65/$1.80 200 X $1.65=$330


CGI (GIB.a-TSX) 8 contracts $7P Jan (.25/.35) credit $200

CIX 4 contracts put $14 April (.90/$1) $400 credit

BCE 3P contracts Jan $25 (.75/$1) $225 credit

BCE 3 P contracts May $28 ($1/$1.10) $300 credit
TRP Jan $24 P 4 contracts .95 400X.95= $380

cash = $6828.09

Total portfolio value= $67,314.23

since I have time now, and Holiday season is probably going to ever more chaotic than normal; well time to update the portfolio.

dividends covering October-December have been added $755.36 to cash. updated the stock prices. wrote a BCE put $28, note have not counted the options against the value, the BCE option would be -$300.

most of the options are set to expire CIX $14Jan p is trading $15.50, TRP $24 P Jan is at $28, BCE $25 P Jan just below $29, CGI 7P is around $7.50cdn.

Encana is trading near the strike price, going to keep and hope it expires, TD and MFC should both expire if not will add the amount to cash and look for another financial.

going to sell the trusts if they go on another run, BFC.un, SMU.un have done great but believe can sell them and get something better or by them back lower. will wait Bank of Canada may lower rates if this happens they can go higher.
will keep D.un

thanks
selkirk

 

[selkirk]

Mr Gic..
update January 13, 2004

just to update some of the options. the options do not expire until next Friday so if anything happens will change these however most look to expire except one.

MFC $45 call, GIB.a $7 puts Jan, BCE Jan $25P, ECA $47.50 Jan p,TRP Jan $24, all look to expire worthless. TD Jan $42.50 will be excercised since it has traded above this price for some time.

TD 400 X $42.50=$17000 added to cash.

Also wrote MFC July $47.50 calls for $180 credit

bought 400 BTE.un Baytex energy yields over 16%, many of these income trusts are getting rich however believe this one should do 15% for the year if oil/gas prices hold.

TD $42.50 P July 3 contracts $1.15 for $345 credit

have to much cash on hand in this market but cannot find to many cheap blue chips on the TSX, may put some in funds. will sit in cash for now.

Will buy something in February.

Portfolio
Saxon small cap $5000 invested to buy 304.536 units.
$18.77X 304.536 = $5716.14


Summit Reit (smu.un) 500 shares (purchase price $14.98/yield 10%)divs=$1275
$17.65X500= $8825

TD $42.50P July 3 contracts $1.15/$1.30 $345 credit

Manulife Financial 300 shares ($45.95) divs= $308
$41.45X300=$12435

Manulife MFC July $47 Calls 3 contracts $.60 $180 credit

400 BTE.un $11.05 = $4420

500 BFI Canada Income Fund BFC.un$10.97 divs= $881.12 $15.70X500= $7850

Dundee Reit D.un divs = $219.99
400 shares X $23.20= $9280

CIX 4 contracts put $14 April (.90/$1) $400 credit

BCE 3 P contracts May $28 ($1/$1.10) $300 credit

cash = $19933.09

Total portfolio value= $67,314.23

 

[selkirk]

Mr Gic..
update January 20, 2004

well did not wait for Febraury, purchased 200 shares of CIBC CM $68.05 and then wrote 2 July $72.50 calls for a credit of $220.

If I lose the stock in July the return counting div, option is 9.6%, a good return for 6 months. If not the stock yields 2.93% and trades at less than 15X earnings. not a cheap bank but a good holding.


Portfolio
Saxon small cap $5000 invested to buy 304.536 units.
$18.77X 304.536 = $5716.14


Summit Reit (smu.un) 500 shares (purchase price $14.98/yield 10%)divs=$1275
$17.65X500= $8825

TD $42.50P July 3 contracts $1.15/$1.30 $345 credit

Manulife Financial 300 shares ($45.95) divs= $308
$41.45X300=$12435

Manulife MFC July $47 Calls 3 contracts $.60 $180 credit

400 BTE.un $11.05 = $4420

500 BFI Canada Income Fund BFC.un$10.97 divs= $881.12 $15.70X500= $7850

Dundee Reit D.un divs = $219.99
400 shares X $23.20= $9280

CIX 4 contracts put $14 April (.90/$1) $400 credit

BCE 3 P contracts May $28 ($1/$1.10) $300 credit

CIBC $68.05 200 shares $ 13,610

CIBC 2 July $72.50 calls $1.10/$1.35 $220 credit

cash = $6543.09

Total portfolio value= $67,314.23

 

[selkirk]

one more option SLF July $34 P 3 contracts $1 for $300 credit.
Sunlife is a very good financial stock to own, the Clarica insurance takeover (merger) is going well, they may buy CI funds 2nd largest in Canada, good foreign operations.

only problem is with their US mutual fund company MFS, however MFS performance should improve...of coarse would have said the same thing last year.

trades at $36.10cdn.

thanks
selkirk

Portfolio
Saxon small cap $5000 invested to buy 304.536 units.
$18.77X 304.536 = $5716.14


Summit Reit (smu.un) 500 shares (purchase price $14.98/yield 10%)divs=$1275
$17.65X500= $8825

TD $42.50P July 3 contracts $1.15/$1.30 $345 credit

Manulife Financial 300 shares ($45.95) divs= $308
$41.45X300=$12435

Manulife MFC July $47 Calls 3 contracts $.60 $180 credit

400 BTE.un $11.05 = $4420

500 BFI Canada Income Fund BFC.un$10.97 divs= $881.12 $15.70X500= $7850

Dundee Reit D.un divs = $219.99
400 shares X $23.20= $9280

CIX 4 contracts put $14 April (.90/$1) $400 credit

BCE 3 P contracts May $28 ($1/$1.10) $300 credit

CIBC $68.05 200 shares $ 13,610

CIBC 2 July $72.50 calls $1.10/$1.35 $220 credit

SLF July $34 P 3 contracts

cash = $6843.09

Total portfolio value= $67,314.23

 

[DOGS THAT BARK]

Wish I had expertise to work options and understand them like you do Kirk. Had guy in office building that did them for years and I swear one could have done well by going opposite of most his takes. Scared the hell out of me and I swore to never dabble in them but do understand they can be very effective hedge if used correctly from watching you thru course of the years. They are quite facinating but out of my scope of savvy.

 

[selkirk]

DTB most of them work out, the first option I wrote was a covered call, to this day I tell myself I made 25% in six months on the play, but could have made a lot more, screwed up. Someone made a great deal more 250%.

ussually have one or two that I regret writing a year, but most expire worthless and provide a portfolio with cash flow.

most of the options in this portfolio look good, except MFC is in the money by .50 may regret writing that one.

I find I learn more from the mistakes than the ones that worked out.

main problem I find with options is some people take large positions on certain plays. know someone who wrote a few NT puts when it is was at $100 cdn. he kept writing options to lower his cost.....big mistake.

only lost around $35,000 but could have lost everything, he just kept writing more and more on the way down.

never dollar cost on a losing position.

will soon add another fund to the portfolio and will not write as many calls, after all this is supposed to be a conservative portfolio that beats a T-bill/GIC.

thanks
selkirk

 

[selkirk]

will buy another fund, $3000 in the BNS dividend fund. This invest in Cdn. dividend paying companies. Like a few things about the fund for the small investor:

1. low mer 1.21%
2. no load
3. minimum is only $500
4. outperformed the market and has a good long term track record 10 year 11.45% 5 year 9.45% 1 year 23.84% compared to the market 10 year 9.95% 5 year 8.68% 1 year 20.15%
5. mostly invested in financials such as RY, BMO, TD,CM, SLF, NA, MFC, and power corp which for the most part consist of financials.

divs will not be reinvested the quarterly dividend (small) will be added to cash.

will calculate divs from Jan- March in a few weeks. along with an update of the value of the portfolio, hopefully should be over $70,000


Portfolio
Saxon small cap $5000 invested to buy 304.536 units.
$18.77X 304.536 = $5716.14

BNS Dividend Fund 110.3387 X $27.189 = $3000

Summit Reit (smu.un) 500 shares (purchase price $14.98/yield 10%)divs=$1275
$17.65X500= $8825

TD $42.50P July 3 contracts $1.15/$1.30 $345 credit

Manulife Financial 300 shares ($45.95) divs= $308
$41.45X300=$12435

Manulife MFC July $47 Calls 3 contracts $.60 $180 credit

400 BTE.un $11.05 = $4420

500 BFI Canada Income Fund BFC.un$10.97 divs= $881.12 $15.70X500= $7850

Dundee Reit D.un divs = $219.99
400 shares X $23.20= $9280

CIX 4 contracts put $14 April (.90/$1) $400 credit

BCE 3 P contracts May $28 ($1/$1.10) $300 credit

CIBC $68.05 200 shares $ 13,610

CIBC 2 July $72.50 calls $1.10/$1.35 $220 credit

SLF July $34 P 3 contracts

cash = $3843.09

Total portfolio value= $67,314.23

 

[DOGS THAT BARK]

Thought this might be of interest to you Kirk.

http://www.insurance-canada.ca/business/announce/SunLBeijing310.php

 

[selkirk]

thanks for the link DTB, Sunlife should do well in Asia, they are experts at retail insurance. They bought Clarica in Canada another insurance company and the merger has worked out well.

the only problem with Sunlife is MFS their US mutual fund company, which when there is news it is only bad. hopefully they can turn that division around the rest of the operations are run well.

the city mentioned in the article Tianjin has over 10 million people, there is only 35 million in all of Canada. Hopefully they can expand quickly in China

would rate slf and mfc holds but prefer slf to mfc even with MFS. not sure how MFC will do with their big merger in the months ahead.

thanks
selkirk

 

[Spock]

hey selkirk

I see u r doing fine as usual ..

sittin in the hotel in NYC .. had a Qs for my RRSP acct.

have started a position in Mawer New Canada in the RRSP ..
any comments about this fund ..

AIC funds are doing sxxx so have stopped any further buying in them ..

have Clarington Small Cap .. Fidelity Canadian Opportunities .. Talvest Global Health Care .. AGF International Stock Class ..
and now Mawer New Canada ..

wanted your views on the mix of this account .. I put in around $400 combined in the 5 funds monthly .. this account is thru my company . .they contribute 100% upto 4% of salary ..

Saxon am puttin in $500 per month .. 45% Saxon Small Cap .. 30% in World Growth .. and 25% in Saxon Stock .. I know u like Saxon funds overall ..

let me know what u think about the total RRSP portfolio ..

Cheers !!!
Spock

 

[selkirk]

Greetings Spock hope all is well, NYC must be nice this time of year, compared to colder climes. I am having a good year, on all fronts.

here are some of my thoughts on the funds you picked which are for the most part above average.

Clarington Small Cap great returns, higher MER than Mawer but great return, more volatile so should watch it.

Fidelity Canadian Opportunities load fund with a good track record do not like the 2.58% MER but it keep up with the great results will be worth it.

Talvest Global Health Care the RSP version has a slightly higher MER 3.32% compared to 3.10%, basically this fund owns the big US drug stocks;comprise over 67% of the fund. what the sector does over time is what the fund will probably mirror.

AGF International Stock Class 2.90% MER owns mostly European stocks with some exposure to Asia. has had excellent return the last 1yr. 3 yr. time periods and have beaten out comparables.

Mawer New Canada is a good small cap fund that is less volatile than Claringiton. lower MER.

Mawer is for the most part a good fund family.
Saxon is one of the best fund companies in Canada, do not do much advertising however all 5 funds are above average, with low MER.


thanks
selkirk

 

[selkirk]

time to update the portfolio, dividends have been added to cash $191.25smu.un, MFC $63, BTE.un $180, BFC.un 159.375,d.un $219.60, CM $100

also Saxon small cap .7359 a share and reinvested at $18.453 was added to the units Dec 17,2003

the dividends cover the peiod of time from Jan to March.

portfolio update March 12, 2004

Start date April 16, 2004 $50,000
Portfolio

Saxon small cap $5000 invested to buy 304.536 units.
$20.76X 316.68 = $6574.29

BNS Dividend Fund 110.3387 X $27.189 = $3000

Summit Reit (smu.un) 500 shares (purchase price $14.98/yield 10%)divs=$1275
$19.15X500= $9575

TD $42.50P July 3 contracts $1.15/$1.30 $345 credit

Manulife Financial 300 shares ($45.95) divs= $308
$46.66X300=$13998

Manulife MFC July $47 Calls 3 contracts $.60 $180 credit

400 BTE.un $10.75X400 = $4300

500 BFI Canada Income Fund BFC.un$10.97 divs= $881.12 $18.50X500= $9250

Dundee Reit D.un divs = $219.99
400 shares X $25.40= $10160

CIX 4 contracts put $14 April (.90/$1) $400 credit

BCE 3 P contracts May $28 ($1/$1.10) $300 credit

CIBC $68.40 200 shares $ 13,680

CIBC 2 July $72.50 calls $1.10/$1.35 $220 credit

SLF July $34 P 3 contracts

cash = $4756.315

Total portfolio value= $75299.225

 

[selkirk]

just a small trade wrote 2 MFC (manulife $47.50 Oct 2 contracts for $1.50 which at the time was the bid.) $300 credit went to cash.

fixed some mistakes portfolio started in 2002 not 2004, and the MFC july calls are $47.50 not $47, they go by $2.50.

thanks
selkirk


portfolio update March 12, 2004

Start date April 16, 2002 $50,000
Portfolio

Saxon small cap $5000 invested to buy 304.536 units.
$20.76X 316.68 = $6574.29

BNS Dividend Fund 110.3387 X $27.189 = $3000

Summit Reit (smu.un) 500 shares (purchase price $14.98/yield 10%)divs=$1275
$19.15X500= $9575

TD $42.50P July 3 contracts $1.15/$1.30 $345 credit

Manulife Financial 300 shares ($45.95) divs= $308
$46.66X300=$13998

Manulife MFC July $47.50 Calls 3 contracts $.60 $180 credit

Manulife MFC Oct $47.50 Puts 2 contracts $1.50 $300 credit

400 BTE.un $10.75X400 = $4300

500 BFI Canada Income Fund BFC.un$10.97 divs= $881.12 $18.50X500= $9250

Dundee Reit D.un divs = $219.99
400 shares X $25.40= $10160

CIX 4 contracts put $14 April (.90/$1) $400 credit

BCE 3 P contracts May $28 ($1/$1.10) $300 credit

CIBC $68.40 200 shares $ 13,680

CIBC 2 July $72.50 calls $1.10/$1.35 $220 credit

SLF July $34 P 3 contracts

cash = $5056.315

Total portfolio value= $75299.225

 

[selkirk]

adding a TLM $75 sept put to the portfolio the $190 credit is added to cash. wrote TLM back in late Jan, when TLM was trading for $75.50-$77 cdn. got between $4.60-$5 for the puts.

Tailsman is fully valued at $82 cdn. (well depends if oil stays high, still at $73.10 if it gets put to me, good value.

thanks
selkirk


portfolio update March 12, 2004

Start date April 16, 2002 $50,000
Portfolio

Saxon small cap $5000 invested to buy 304.536 units.
$20.76X 316.68 = $6574.29

BNS Dividend Fund 110.3387 X $27.189 = $3000

Summit Reit (smu.un) 500 shares (purchase price $14.98/yield 10%)divs=$1275
$19.15X500= $9575

TD $42.50P July 3 contracts $1.15/$1.30 $345 credit

Manulife Financial 300 shares ($45.95) divs= $308
$46.66X300=$13998

Manulife MFC July $47.50 Calls 3 contracts $.60 $180 credit

Manulife MFC Oct $47.50 Puts 2 contracts $1.50 $300 credit

400 BTE.un $10.75X400 = $4300

500 BFI Canada Income Fund BFC.un$10.97 divs= $881.12 $18.50X500= $9250

Dundee Reit D.un divs = $219.99
400 shares X $25.40= $10160

CIX 4 contracts put $14 April (.90/$1) $400 credit

BCE 3 P contracts May $28 ($1/$1.10) $300 credit

CIBC $68.40 200 shares $ 13,680

CIBC 2 July $72.50 calls $1.10/$1.35 $220 credit

SLF July $34 P 3 contracts
TLM Sept $75 P 1 contract $1.90

cash = $5246.315

Total portfolio value= $75299.225

 

[selkirk]

time to put some stops on, Reits and income trusts have taken a bit of a hit in the last two weeks in Cdn. Reits have performed worse in US.

so stops
300 BFC.un $17.25
300 smu.un $16.50

BFC.un is currently at $17.80 and SMU.un is at $17.

thanks
selkirk

 

[selkirk]

both stops were hit, put an order for 500 REI.un at $14.25 trading at $14.70.

REI.un is the biggest reit in Canada. shopping malls, nothing exciting but an 8% yield.

thanks
selkirk

 

[selkirk]

okay small update sold 300 smu.un, and 300 bfc.un and will buy 500 rei.un. Riocan is the largest reit in Canada using $15.23 closing price since it never hit my price.

will add another fund Saxon World Growth, in general do not like interanational mutual funds but this is 50% or more invested in the US and has a low mer 1.87MER and has a good overall track record. so hopefully the $5000 will make at least 10%+ in this fund.

thanks
selkirk

Start date April 16, 2002 $50,000
Portfolio

Saxon small cap $5000 invested to buy 304.536 units.
$20.76X 316.68 = $6574.29

Saxon World Growth Fund 293.39X 17.042= $5000
BNS Dividend Fund 110.3387 X $27.189 = $3000

Summit Reit (smu.un) 200 shares (purchase price $14.98/yield 10%)divs=$1275
$19.15X500= $9575

TD $42.50P July 3 contracts $1.15/$1.30 $345 credit

Manulife Financial 300 shares ($45.95) divs= $308
$46.66X300=$13998

Manulife MFC July $47.50 Calls 3 contracts $.60 $180 credit

Manulife MFC Oct $47.50 Puts 2 contracts $1.50 $300 credit

400 BTE.un $10.75X400 = $4300

200 BFI Canada Income Fund BFC.un$10.97 divs= $881.12 $18.50X500= $9250

500 Riocan REI.un $15.23 X500 = $7615

Dundee Reit D.un divs = $219.99
400 shares X $25.40= $10160

CIX 4 contracts put $14 April (.90/$1) $400 credit

BCE 3 P contracts May $28 ($1/$1.10) $300 credit

CIBC $68.40 200 shares $ 13,680

CIBC 2 July $72.50 calls $1.10/$1.35 $220 credit

SLF July $34 P 3 contracts
TLM Sept $75 P 1 contract $1.90

cash = $2756.315

Total portfolio value= $75299.225