Portfolio Update: July 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 (July 29 closing prices):

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

tfsa snapshot july 2011

Market Value: $14,110 + $105 in Cash = $14,215

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

non-registered snapshot july 2011

Market Value: $7985 + Cash: $25 = NET: $8,010

BTI Portfolio Value: $22,225

YTD Results from January 1 2011

TSX at start: 13,443 @ July 29: 12,945 Change: -3.72%

BTI at start: 24,926 @ July 29: 22,225 Change: -10.83%

M/M Results from July 1 2011

TSX at start: 13,300 @ July 29: 12,945 Change: -2.66%

BTI at start: 23,654 @ July 29: 22,225 Change: -6.04%

HELOC Portfolio Performance

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:

heloc snapshot 2011
heloc performance july 2011

For the record, my outstanding balance on the HELOC is now $23,000, so basically I am up about +$14,952 so far if I sell everything at the closing prices above.

Monthly Review

Even though YTD results are a far cry from last year’s outstanding return, I am still ahead of the TSX on my HELOC account. Unfortunately, I cannot say the same thing for my BTI portfolio yet, it’s a matter of time before SkyWest Energy moves back up. Sustained oil prices at this level will fuel its rise by the end of year. I still believe that well into Q3 the juniors will start their recovery.

July was just another month of weakness, we’re in the summer and I am enjoying it to the max as we have gotten some very nice weather lately. No stress on my holdings at all since I have bought into these companies based on an investment thesis and I closely follow-up with management for each of my holdings.

Is this the low point of my portfolio for the year? Possible, as long as oil and gas prices remain in stable range, my portfolio will more than recover. I am still looking for double digit returns in 2011 for both portfolios. Oil and Gas aren’t going anywhere anytime soon and as long as we avoid double dipping this year, the end result I expect should be satisfactory.

The US debt deadlock seems to be on the way to a solution as I write this. This is really not surprising since it was just not reasonable for a government to trigger an economic crisis willingly. This might explain why I did not proceed to sell any position or take any precautionary measures. I actually had 2 orders that did not fill on Friday because the volume was so low.

Palliser Oil and Gas was my latest addition and as usual I am early to the party. That’s fine as I only took very small positions that I hope to increase slowly. It’s all déjà vu as PXL was a very profitable investment in 2010 and I am looking for a repeat performance this year.

We are in the last chapter of the summer and while investors can still focus on Italy, Spain or any of the lovely Mediterranean countries, that too will pass as they will all be bailed out. Am I too optimistic? Maybe, I am definitely not pessimistic and there’s no dooms day scenario on the horizon for me. This is how the market functions, it’s up and down and as long as you stay the course, you’ll make it out alive.

How is your portfolio doing so far?