Getting out of emerging markets

I have been disappointed by the performance of my emerging markets ETF (XEM.TO) and am concerned that the performance of emerging markets will not be strong (e.g., China). I also want to have some exposure to the US Technology sector, which seems strong. There is not Technology ETF in Canada, but the Nasdaq is very heaving weighted to tech and can be bought using a Canadian ETF (ZQQ.TO).

  • Sell XEM @ $26.58
  • Buy ZQQ @ $35.88

Update

A month after this trade it seems to have been a good call. The ETF is sold is down 4% and the one purchased is up 1%. That’s a 5% gain.

Screen Shot 2015-11-30 at 10.13.10 PM

Additional Update

Two months after this trade it is still a good call, but marginal. XEM is down 1.5% and ZQQ is down 1.0%.

Screen Shot 2015-12-27 at 2.14.11 PM

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Selling Cogeco Cable

Cogeco Cable (CCA.TO) has been a good investment since I purchased it back in December 2013 for $48.25.  Today it is over $60.  That’s an advance of 25% in 4 months.  Not bad.  Even better, the stock has paid two dividends of $0.30, for a further 1.2% gain.

  • Sell CCA.TO @ $60.40

Selling Berkshire Hathaway

Berkshire Hathaway (BRK.B) has been a great investment.  I purchased it back in August 2013 for US$112.48 and it has advanced to over $128 today.  That at 14% gain.  But it gets better: the USDCAD foreign exchange rate has moved from 1.04 to around 1.10 today, for a further 6% gain.  That’s 20% in 8 months.

  • Sell BRK.B @ $128.20

Taking profits on Intact Insurance

Intact Financial (IFC.TO) is another stock that no longer meets my screening criteria.  As with Power Corp, which I am also selling, Intact’s price has risen so much that it is no longer good value.  This is good.

  • Sell IFC.TO @ $69.00

I originally bought Intact for $58.60 back on 13th May 2013.  During my period of ownership the stock paid three dividends each 44c.  The total gain was therefore $11.72 per share.  This is a gain of 20.0% in 8 months.  A good call.

Selling Power Corp

Power Corporation (POW.TO) is another stock that no longer meets my screening criteria.  This is because it’s price has risen so much that it is no longer good value.  This is good – I made a big profit!

  • Sell POW.TO @ $32.10

I originally bought Power Corp for $26.20 back on 25th April 2013.  During my period of ownership the stock paid three dividends each 29c.  The total gain was therefore $6.77 per share.  This is a gain of 25.8% in 8 months.  A good call.

Getting out of Teck Resources

Teck Resources (TCK-B.TO) no longer meets my screening criteria.  This is mainly due to a deteriorating earnings forecast.

  • Sell TCK-B.TO @ $27.23

I originally bought Teck for $27.03 back on 25th April 2013.  During my period of ownership the stock paid two dividends: 44.2c and 42.5c.  The total gain was therefore $1.067 per share.  This is a gain of 3.95% in 8 months.  A bigger gain would have been nice but this was still a good call.

Selling Finning

Finning (FTT.TO) has been a moderately well performing stock, up 2.9% since I bought it at the end of May.  However, the earnings growth forecast has fallen from 14% in May to under 7% today.  This means that the stock no longer meets my criteria as a core position.  It’s time to sell.

  • Sell FTT @ $23.56

I purchased the stock for $22.89, for a gain of 67c.  It also paid a dividend of 15.2c  during that period, for a total gain of 3.6% in 4.5 months (an annualized return rate of almost 10%).  This was a good call.