Portfolio Update: October 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 (October 31 closing prices):

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


Market Value: $11,350 + $239 in Cash = $11,589

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


Market Value: $4085 + Cash: $25 = NET: $4,110
BTI Portfolio Value: $15,699

YTD Results from January 1 2011

TSX at start: 13,443 @October 31: 12,252 Change: -8.85%

BTI at start: 24,926 @ October 31: 15,699 Change: -37.01%

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:



For the record, I am up about +$10,000 so far if I sell everything at the closing prices above.

Monthly Review

It’s obvious that 2011 will not see a repeat of 2010’s stellar performance the way things are going. On top of ALL the black swan events (aliens from outer space would have completed the list) there is 1 stock that has decimated my portfolio: SkyWest Energy. I do not expect to always pick winners but the loser in this case had a higher than normal weighting so it hurts. The whole merger deal smells fishy; I still do not understand why this management is giving away the company for peanuts. Talk about a royal shaft for shareholders. SKW is the stock that did not recover following last month’s drop and its impact shows on my numbers. On the other hand, I should have been more thorough with the big picture instead of just focusing on the asset base. One thing is for sure, this management team is black listed and I learned more than one valuable lesson. I am still sitting on my shares in order to vote AGAINST the merger knowing full well that it might not change a thing in the end.

Another month, another update except that I missed last month’s update simply because I stopped looking at the market during that period. At that time I was visiting job fairs looking for a new job and noticed how much demand there is in IT which baffled me when everyone was talking about the end of the world. But the??European??storms are not yet behind us, a new one that is potentially much stronger is coming ahead this month through Italy except that Greece and its attention deficit disorder is fighting tooth and nail to stay in the spotlight for who knows how much longer as their prime minister plans to hold a referendum on Europe’s bailout. Talk about gambling on a disorderly default!

You might have noticed I added Xtreme Coil Drilling to the portfolio but I won’t be discussing it at all since all I see right now is a repeat of October’s fear driven selling frenzy. So I might as well sell it. RTK is another one exiting the portfolio as it would be a shame to watch a %30 profit melt even though I totally believe these guys will be going higher on the back of 2 mega wells at Inga, BC. I guess I learned my lesson: when the global picture worsens, even if psychologically only, better clear some cash as the selling will be indiscriminate making way for new opportunities.

Hows your portfolio doing and where do you see this market going in light of all the debt drama in Europe?