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October Update

Ever since maxing out my tax advantaged accounts, I’ve been looking for a way to keep making some purchases within these accounts.

In an earlier article (here), I was debating on what diversification method I would use within my RRSP. I appreciate all the feedback I’ve received and have decided to go with a hybrid solution which is:

  • Keep the FTN position as is.
  • Use it as a ”money market” or ”cash pile” and dig into it whenever a good opportunity presents itself.

Update

I’ve already began making changes. Here are some of them.

I’ve sold 150 FTN shares and used them to purchase 53 ENF shares while they were down this month. This is a new position in my RRSP. (I own 59 shares of ENF already in my TSFA.)

I’ve sold some of my small shady positions and gathered all my accounts loose change to purchase 38 shares of Sienna Senior Living Inc (SIA). Pretty straight forward, it focuses on buying senior homes in Canada. I’ve been watching this company for a while now and decided to make the move. This is – to me – an obviously good extra long-term play. It goes well within my ”aging population” focused portfolio, with the likes of Park Lawn Corp (PLC) and Savaria (SIS). SIA currently offers a 5% dividend yield and 3% DRIP discount.

Warning! Risky Business Ahead…

I was looking for both diversification and strong short-term value plays. The plan is to generate wealth within the accounts themselves and use this bump to diversify and strengthen existing positions. I did something risky (and don’t suggest anyone do this.), I went where I tell everyone not to go. Penny stocks.

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In my RRSP, I sold 200 shares of FTN and purchased 11,200 Shares of Imagin Medical Inc (IME) at $0.19/share. They focus on developing a very promising endoscopic bladder cancer technology. Their outcome timeline is as such:

Screenshot 2017-10-28 17.28.33.png

The plan here is to keep for a few months and see where it takes me and, depending on news, maybe longer. The profits won’t be returned to my FTN position, but rather will serve to initiate new positions and diversify. Probably focusing on some US stocks such as Omega Healthcare Investors (OHI), Abbvie (ABBV) or United Postal Service (UPS) depending on the prices at the moment. Heck, if I’m lucky maybe all of them, depending on the profits provided by Imagin Medical (IME).

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In my TFSA, I did something even more radical. I sold my entire Boralex (BLX) position, 239 shares. I purchased 13,300 shares of Far Resources Ltd (FAT) at $0.405/share. This is a lithium mining company (lithium is hot now, again) and they have just gotten news that new samples contain very high-grade lithium. They expect more positive news shortly and have purchased even more land to dig in. The plan here is to at least double my capital. Once I sell, I will rebuild my Boralex (BLX) position (239 shares), whatever the price. What is left over, probably around $4-5,000 will go into one of two things:

  • Option 1: Average down existing positions depending on prices at the moment.
  • Option 2: Building new positions in stocks I have mentioned before here, such as Saputo (SAP). Focusing mainly on Canadian companies here, since it’s my TFSA.

I know… This is risky stuff! I’m scaring myself! I’m not a fan of penny stocks at all. But these are two companies that are greatly undervalued and present an almost guaranteed return (I know, nothing is ever certain!). I have done quite a bit of research before diving in and feel very comfortable doing so.

Let me know what you guys think of this madness!! Am I going insane, or am I insanely genius??

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Cheers!

-DI

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Dividend Investor View All

Money Lover, Dividend Growth Investor, Youtuber, and Blogger!

9 thoughts on “October Update Leave a comment

  1. Interesting play for sure. Lots of activity going on this month for you with the buys and sells. Not a fan of penny stock either but will be interesting to see how it plays out for you. I like the stocks you mentioned about buying though with the proceeds. Especially have had my eye one ABBV and should have bought when it was in the $70 range. Missed my change and it doesn’t like to fall below $90 anymore. Oh well, an entry price will come again. Thanks for the update. Good luck!

    Liked by 1 person

    • Thanks! I need the encouragement haha! Well, $FAT is already up to $0.475 (+17%) in about a week and IME is currently at a standstill. I used to be big into pharma notably Gilead when they had their Harvoni breakthrough but have kept away since then. I think $ABBV is well positioned within the business and could be a good long term play/exposure to pharma. Cheers!

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    • Actually I never touch penny stocks usually haha! This is just me going slightly insane. For the pharma, I don’t follow along too much now since selling GILD back in around 2014 or so. As a sector I think it will fare well in the future and try to aim for a well rounded company with good financials, well placed for Dev or Acquisitions such as ABBV as mentioned. Can’t really say I’ve dug too deep on CELG though.

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  2. Sometimes penny stocks pay off. I know a lady (she’s in her 60’s now) who bought a few penny stocks decades ago with some profits from her business enterprise. She had very little knowledge of the stock market, and they just happened to do very, very well. She’s now a multi millionaire! She was a very good business woman though and would likely have ended up wealthy regardless. Good luck with your investments!

    Liked by 1 person

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