Portfolio Update: August 2010

Here’s the monthly portfolio update.

The TFSA is currently holding the following stocks (Aug 31 closing price):

(A Tax Free Savings Account is an account where your capital gains are exempt from taxes)

  • TSE:GPX Great Plains Exploration (Oil & Gas)
    o Average Price: 0.50  Value: 5000 x 0.335 = $1675.00
  • TSXV:ATK Atikwa Resources (Oil & Gas)
    o Average Price: 0.08  Value: 10000 @ 0.060 = $600.00
  • TSXV:REL Reliable Energy (Oil)
    o Average Price: 0.347  Value: 8000 @0.335 = $2680.00
  • TSXV:IPT Impact Silver (Silver)
    o Average Price: 1.083  Value: 5000 @ 1.09 = $5450.00

Market Value: 10405 + 27 in Cash = 10432$

The Non-Registered account is currently holding the following stocks:

  • TSE:SPE Spartan Exploration (Oil & Gas)
    o Average Price: 3.01  Value: 2000 x 2.80 = $5600.00
  • TSE:MEL Midway Energy (Oil & Gas)
    o Average Price: 2.92  Value: 1000 x 2.95 = $3190.00

Market Value: 8790 – Margin Used: 2654 = NET: $6136.00

BTI Portfolio Value: 16568$

YTD Results from January 1 2010

TSX at start: 11866 @Aug 31: 11913 Change: +0.4%

BTI at start: 12936 @ Aug 31: 16568 Change: +28.00%

M/M Results from Aug 1 2010

TSX at start: 11713 @ August 31: 11913 Change:  +1.7%

BTI at start: 15588 @ August 31: 16568 Change: +6.28%

HELOC Portfolio Performance

The HELOC portfolio is basically a non registered account with money borrowed from my home equity line of credit. *Please take note* that this is money I can afford to lose. The impact of losing this money would be equivalent to skipping a lump sum payment on my mortgage for 1 year. I will use the bank’s “Performance” tool for the monthly results because it takes into account deposits and withdrawals. Now that you’ve called me crazy and shook your head, on to the results:

*because I did not have time to prepare this portion of the post yesterday, I took the snapshot this morning, so it does not accurately represent yesterday’s closing prices. It still gives a good idea.

For the purists amongst you, here’s my sector diversification (pun intended):

For the record, my outstanding balance on the HELOC is 18500$, so basically I am up about +450$ so far.

Monthly Review

When it comes to the monthly results, this time I nailed you Mr. Market thanks to my silver’s performance. My yearly advance is largely intact, of course this can change in a heart beat if we get fat fingered given the negativity out there. I am optimistic for year end results regarding my BTI portfolio and looking forward to some excellent results from my faithful Energy and Silver stocks.

The HELOC portfolio will sooner or later morph into preferably pure dividend payers as the $6.95 per transaction promotion deadline gets closer. The plan is to simply use the bank’s money and have Mr. Market pay for the interest and the principle so it won’t really be part of Beating the Index mandate come 2011. In all cases, I am still looking for great results by the end of the year for this one.

In retrospect, selling Fortuna Silver (TSE:FVI) proved to be a hasty decision and I lost some nice potential profits. On the other hand I do not blame myself for selling because I needed to keep a foot in and a foot out of the market in order to buy back on any days with triple digit losses. It is extremely important to keep reserves on hand or else I would not be able to take advantage of such opportunities. Remember, I love to buy when there’s blood out there and my stock trades’ records speak volumes about this. Talk about a vampire approach to the markets (I’ve been watching True Blood, had to mention vampires!)

The results could have been much better had Great Plains Exploration (TSE:GPX) moved like I was expecting it to. GPX is being punished as a junior producer by its high debt and low market oil prices. I am still confident in GPX’s fundamentals as they raised their oil weighting above 60% and continue to drill a number of Cardium oil wells which will be a game changer given positive results and increasing reserves. The next operational update will have a lot to say.

August was one heck of a ride, how did your portfolio fare?

Related posts:

  1. Portfolio Update: March 2010
  2. Portfolio Update: April 2010
  3. Portfolio Update: June 2010
  4. Portfolio Update: May 2010
  5. Portfolio Update: 2010 Results