Portfolio Update: January 2011

Here’s the monthly portfolio update for the BTI portfolio which consists of 2 accounts: a TFSA account and a Non-Registered account.

The TFSA is currently holding the following stocks (January 31 closing prices):

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

Market Value: $17,599 + $385 in Cash = $17,984

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

Market Value: $19,945 ‘ Margin Used: $9,295 = NET: $10,650

BTI Portfolio Value: $28,634

YTD Results from January 1 2011

TSX at start: 13,443 @ January 31: 13,552 Change: +0.81%

BTI at start: 24,926 @ January 31: 28,634 Change: +14.87%

M/M Results from January 1 2011

TSX at start: 13,443 @ January 31: 13,552 Change: +0.81%

BTI at start: 24,926 @ January 31: 28,634 Change: +14.87%

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:

The YTD ROI for the HELOC portfolio is incorrect because the bank is using a final value of $31,945. I will update this graph once a new one is available. The ROI should be:

HELOC at start: 31,094 @ January 31: 32,307 Change: +3.90%

For the record, my outstanding balance on the HELOC is still $18,500, so basically I am up about +13,807$ so far if I sell everything at the closing prices above.

Monthly Review

January has been great for the BTI portfolio thanks largely to SkyWest Energy. I will be looking to sell SKW well into the 90s even though I strongly believe it is worth north of $1 easily.?? The next news release will decide where the stock price will end up. Reliable Energy could also play a part in increasing the portfolio value when they report on production figures from their latest horizontal wells targeting the Bakken. This could push REL above the 50c mark easily, so I wait. Delphi Energy (75%+ gas) is still languishing in the $2 range in the middle of a cold winter; can you imagine where it will be sitting in the middle of summer? It shouldn’t take long before I exit this position, even at a loss. It’s a shame since its NAV is close to $3!

The HELOC portfolio did OK in January compared to the index but I expected better. I failed to take advantage of several profit opportunities which is unforgivable. Hopefully, this gets rectified in February as other stocks hit profit targets. Also, Going forward I will no longer display the sector weighting graph because it is pointless as you can get a pretty good idea about it from my holdings.

Now the problem I have on my hands is the following: National Bank is supposed to roll out their flat rate $9.95 per trade for $50k+ net worth on February 1st. With my RRSP account, I am above $50k but my commission still shows $28.95 per transaction. This is something I need to clarify with them today as I hate to be ripped off when cheaper alternatives exist. I did not execute enough transactions back in January (to total 30 in a quarter) in order to extend the low transaction fees into February. If they fail to cooperate, I will liquidate and move the money to my Questrade accounts and it will be their loss.

How did your portfolio perform in January?