Portfolio Update: January 2012

Here’s the monthly update for the BTI portfolio for January of 2012. The HELOC portfolio is basically a non registered account with money borrowed from my home equity line of credit. I will use the bank’s ‘Performance’ tool for the monthly results when possible because it takes into account deposits and withdrawals. On to the results:



YTD Results from January 1 2012

TSX YTD performance:??+4.16%

BTI YTD performance:??+7.20%

Monthly Review

First, you might have noticed that my Questrade accounts have been removed as they are undergoing consolidation (transferred to be merged with other accounts at my bank). The year is off to a good start but to be honest with you, I am not impressed with the ROI so far as it is impacted by carrying positions that have not quiet recovered yet. To be realistic here, NAE will not be recovering anytime soon so I am simply keeping it for the dividend and until an opportunity appears to pick up more at an attractive price. ONR, what the heck am I still doing with ONR? The company doesn’t have any operational issues but it’s the gas that’s killing it and even though they are drilling for oil this year it won’t be enough to increase their liquids weighting substantially. This one is a tax loss candidate for sure as I do not believe natural gas has any hope in 2012.

Hyperion and Marquee have been coming along nicely, now if only REL can follow up. I am hoping it will as their next operational update is anytime now and I expect some good news coming out of Manitoba. XDC has been quiet but I expect them to roll out some new drilling rigs during H1-2012 and remain on track for an increase in CF this year if they keep a high utilization rate. TOL in my opinion deserves to go higher and I think it will be rewarded by the market in February for the next operational update if the results are consistent. Right now, there’s a turnover of investors in TOL as it has returned some handsome profits for those who have been holding from the low $2s.

The plan this year is to sell way before May and wait for the summer opportunities. I am not making the same mistake as last year. Even if Greece is solved, there are still other EU countries waiting to get their 5 minutes of fame in the news. This, theoretically, should provide some opportunities in the market this year. Furthermore, any black swan events such as a sudden Israeli attack on Iran will wreak havoc on stocks as oil prices explode higher. In any case, there’s no way the market will return a high % this year unless the FED goes into massive printing again. The trick is I have to reach a decent ROI first so that I can comfortably snipe at opportunities for the rest of the year, call it my objective for 2012!

How is your portfolio doing so far this year’