The Blue Portfolio or buy and hold DRIP SPP Portfolio

[selkirk]

way back before the internet was common place ie. 1994 and when it was started 1999.

would get a share certificate from someone and then sent it away and would buy shares on a monthly sometimes quarterly basis.

was a good way to slowly build up positions and no commissions and dividends were reinvested for free. would like to point out that commissions even for small trades were $35-$50 cdn. so free was better.

these are my biggest holdings to smaller, the overall portfolio would be 2nd or 3rd biggest in term of value...will list my trading portfolios later.

trade on Toronto, and cdn. $ though they trade in US except, rei.un, cgi, and fap

1. biggest holding
Rei.un 23.95 high 23.97 low 17.97 yield 5.76%
the biggest retail reit in Canada, bought back in 1996-1998 avg. cost then $12.75, use to yield over 12.5%
well run but getting fully value. short term hold.
like the yield and get a 3% when div reinvested.

2. BNS Scotiabank high 61 low 46.51 close 60.99
yield 3.21% this is a great bank, and gives me a chicken way to play South America and still have a great retail cdn. retail banking. also no exposure to US which I have enough of.... divs will go up..
again hold

3. CM CIBC high 82.47 low 65.05 close 82.46
bought some shares recently at 65, the cdn. banks are going up on a daily basis, this was an underperforming, problems in the US and poor results in 2008. however the last three earings reports have been good, and the bank is improving.
hold.

4. FAP high 7.62 low 5.06 close 7.08
this is a closed end fund that invests in Australia and Asia, use to be 75-25% now that is reveresed more of a play on Asia debt. 75% of the debt, 70-80% debt is in US dollars so good for cdn. investors who want some us exposure.
has made me 8% since I owned it, very volatile, use to pay 7 cents a month now 5 cents.
weak buy.

5. BMO bank of montreal high 65.71 low 54.01 close 61.31
the results have been improving similar to CIBC, they have made a major purchase in the US so betting even more in the US midwest. like the play, believe this will do well, so this bank and CIBC have US exposure.

note: Royal bank or TD did not have drip/SPP plans or they would have been bought to, cdn. banks are great long term investments, and every cdn. should have them, and US investors good way to play cdn. economy.

should note most of the banks are buys at 8-12PE and you should sell or reduce (or not buy ) when PE of 15-18/19 PE. most of the banks are trading for 14PE., it they go up another 10% would trim positions and hold....note: they are on a great run....most of them are up 5-10% in the last two to three weeks.


thanks
selkirk

 

[selkirk]

6. Enbridge ENB high 59.03 low 46.03 close 57.38 yield 3.42%
this is a great pipeline company, the divs are increased and has been the best pipeline performer over 5 years, 10 years, ect. 10-15% per year on average, regret did not buy more, will slowly increase my position, always seems fully priced and not cheap, but this pipeline should continue to grow.

should note : in 1998 hated TRP and preferred enb, trp cut the div in half and the stock fell from 20 to 8. enb was far better. however bought back in trp when they improved operations at around 18 and have been buying all the way up to 32. so enb in drip/spp and trp in my trading accounts. trp raised div now for 11 years in a row.

both are holds short term, long term buys.
there is a danger of more US regulations which will add cost to any new pipelines.

7. CGI closed end fund high 19.75 low 14.55 close 19.57 yield 5.11%
this is a closed end fund and was doing great until 2008 and then got shot, over double up from those lows. a leveraged way of playing the cdn. equity market. for the most great/good performance until 2008, where they dropped the ball.
will not increase my position, will keep it the same.

8. BCE high 36.74 low 28.84 close 35.80 yield 5.50%
I bought a large amount of bce back in 1998-1999, from 75-84 was my biggest play, simple they owned a large amount of Nortel and you were paying next to nothing for the biggest telephone company in Canada. the stock shot up to 120-124, and got out.....
then bought back in at 38 and wrote covered calls, and tied up capital for a few years, and made around 3%.

the stock underperformed because monty bought ctv (broadcaster) for 1 billon more than it was worth (written off)

and then blew 8 billion or so for a money losing long distance company that went bankrupt in less than 2 years, that took skill.

the next ceo cleaned up the mess but should have competed better in wireless, did an average job.

however new ceo from telus has come in and the numbers have been good.

bce is a decent company however there is more competition in wireless for the big three rogers, telus ,and bce, Canadians have some of the most expensive wireless bill in the world.

counting the div 5.50% can see overall returns of 8-10% going forward. slow groth but steady.
hold will buy around 34.

9. SU Suncor high 44.51 low 29.91 close 44.48
bought this in 1999 along with a few friends, many did not buy any more shares. avg cost 45. though since then the shares split twice, so have 4-1 share. avg. cost now at around 11-11.50

yield .90%

I like the cdn. oil sands and have been increasing my position slowly, after they purchased petro canada. the deal is working and pca has provided cash flow and savings.
if you believe in 80 oil then cnq, and SU are buys, at 60 oil these are dead money.
will add to my position.

thanks
selkirk