Portfolio Update – Up 1.14% in December 2013

My portfolio balances at close of trading on 31st December were:

Ticker

Price (C$)

Price Change

Percentage

Industry

POW.TO $ 31.80

-1.58%

0.0%

Finance, Insurance – Life & Health
TCK-B.TO $ 27.61

7.98%

0.0%

Basic Materials, Mining & Metals – Specialty
DII-B.TO $ 40.34

8.44%

6.3%

Consumer Cyclical, Home Furnishing
IFC.TO $ 69.30

3.20%

0.0%

Finance, Insurance – Property and Casualty
CCA.TO $ 47.91 n/a

8.7%

Consumer Cyclical, Broadcasting
LB.TO $ 46.91

-0.89%

5.9%

Finance, Financial Services – Diversified
BRK-B $ 125.87

1.86%

9.7%

Finance, Insurance – Property and Casualty
Money Market Fund $ 123.80

0.08%

0.0%

Cash Equivalent
Cash    

69.4%

Cash
Total    

100.0%

 

Overall my portfolio is up 3.00% since last month. Excluding cash contributions the portfolio is up 1.14%.  For comparison my TI Index is up 0.62%, the DOW is up 3.05% and the TSX is up 1.69%.

My investments are up and performed well against the TI Index, but poorly against the TSX and the DOW.

Winners this month include Teck Resources (TCK-B.TO) which is up 7.98%, Dorel (DII-B.TO) up 8.44%, and Intact Financial (IFC.TO) up 3.20%. (Note: I sold Teck and Intact a few days ago due in part to these advances.)

There were no losers.  Performance was diluted by the large cash position I am holding pending transfer*.

Let’s take a look at my value stock portfolio.

Ticker Cost Basis 11/29/2013 Price Now Gain This Month Gain Total
LB.TO $44.30 $47.40 $46.92 -1.01% 5.91%
CCA.TO $48.25 $48.04 $47.98 -0.12% -0.56%
DII.B $41.01 $37.20 $40.46 8.76% -1.34%
BRK.B $112.48 $116.53 $118.56 1.74% 5.41%
TCK.B $27.03 $25.57 $27.23 n/a 0.74%
POW.TO $26.20 $32.39 $32.10 n/a 22.52%
IFC.TO $58.60 $67.16 $69.00 n/a 17.75%
FTT.TO $22.89 n/a $23.56 n/a 2.93%
XRX $8.90 n/a $9.80 n/a 10.11%
Average 2.34% 7.05%

In summary, my value stocks are up 7.05% since purchase, and up 2.34% this month.

*I am still in the process of moving money to my TD Direct account.  These funds are currently in transit as cash.  I will use these funds to restore my bond holdings once the transfer is complete.  In addition to those funds have 28% cash which I can use to add new positions as prices fall.

Screen Shot 2013-12-31 at 4.28.45 PM

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.

Portfolio Update – Up 0.74% in November 2013

My portfolio balances at close of trading on 30th November were:

Ticker

Price (C$)

Price Change

Percentage

Industry

POW.TO $ 32.31

5.59%

6.5%

Finance, Specialty
TCK-B.TO $ 25.57

-8.35%

6.0%

Basic Materials
DII-B.TO $ 37.20

-3.38%

6.0%

Consumer Cyclical
IFC.TO $ 67.15

3.31%

6.7%

Finance, Insurance
LB.TO $ 47.33

1.70%

6.2%

Finance, Diversified
BRK-B $ 123.58

2.89%

6.9%

Finance, Insurance
Money Market Fund $ 123.70

0.08%

42.8%

Cash Equivalent
Cash

19.0%

Cash
Total

100.0%

Overall my portfolio is up 2.65% since last month. Excluding cash contributions the portfolio is up 0.74%. For comparison my TI Index is up 0.91%, the DOW is up 3.48% and the TSX is up 0.26%.

My investments are up moderately.  They performed well against the TI Index and the TSX but not the DOW, which is on a tear.

Winners this month include Power Corp (POW.TO) which is up 5.59% (it was up over 5% last month too), and Intact Insurance (IFC.TO) up 3.31% (also up over 5% last month).

Losers this month include Dorel (DII-B.TO) down 3.38%, and Teck Resources (TCK-B.TO) down 8.35%.

Let’s take a look at my value stock portfolio.

Ticker Cost Basis 10/31/2013 Price Now Gain This Month Gain Total
TCK.B $27.03 $27.90 $25.57 -8.35% -5.40%
POW.TO $26.20 $30.72 $32.39 5.44% 23.63%
IFC.TO $58.60 $65.03 $67.16 3.28% 14.61%
LB.TO $44.30 $46.55 $47.40 1.83% 7.00%
DII.B $41.01 $38.74 $37.20 -3.98% -9.29%
BRK.B $112.48 $115.09 $116.53 1.25% 3.60%
FTT.TO $22.89 n/a $23.56 n/a 2.93%
XRX $8.90 n/a $9.80 n/a 10.11%
Average -0.09% 5.90%

In summary, my value stocks are up 5.90% since purchase (not including dividends, which are likely a further 2% to date), and down 0.09% this month.  The insurance companies are leading, resources lagging.  Dorel is troubling.

I am still* in the process of moving my S&P fund and my Bond fund to my TD Direct account. In the interim those finds are parked in a money market fund. I will restore my bond holdings once the transfer is complete. I have 17.1% cash which I can use to add new positions if prices fall.

*Why it takes over a month to move money from one registered account to another is beyond me.

Screen Shot 2013-11-30 at 10.49.43 AM

Portfolio Update – Up 1.50% in October 2013

My portfolio balances at close of trading on 31st October were:

Ticker

Price (C$)

Price Change

Percentage

Industry

POW.TO $ 30.60

5.34%

6.3%

Finance, Specialty
FTT.TO $ 24.04

1.82%

0.0%

Industrial Services and Supplies
TCK-B.TO $ 27.90

0.79%

6.1%

Basic Materials
DII-B.TO $ 38.50

3.89%

6.4%

Consumer Cyclical
IFC.TO $ 65.00

5.33%

6.7%

Finance, Insurance
LB.TO $ 46.54

4.09%

6.7%

Finance, Diversified
BRK-B $ 120.11

2.65%

6.9%

Finance, Insurance
S&P Fund $ 157.31

6.13%

0.0%

US Equities
Bond Fund $ 223.14

1.04%

0.0%

Bonds
Money Market Fund $ 123.60 n/a

43.9%

Cash Equivalent
Cash

17.1%

Cash
Total

100.0%

Overall my portfolio is up 4.24% since last month. Excluding cash contributions the portfolio is up 1.50%.  For comparison my TI Index is up 3.41%, the DOW is up 2.75% and the TSX is up 4.49%.

My investments are up but they performed poorly against the TI Index, the TSX, and the DOW.

Winners this month include Power Corp (POW.TO) which is up 5.34%, Dorel (DII-B.TO) up 3.89%, Laurentian Bank (LB.TO) up 4.09%, my S&P fund up 6,13%, and Intact Insurance (IFC.TO) up 5.33%.

There were no losers.

Let’s take a look at my value stock portfolio.

Ticker Cost Basis 9/30/2013 Price Now Gain This Month Gain Total
TCK.B $27.03 $27.68 $27.90 0.79% 3.22%
POW.TO $26.20 $29.10 $30.72 5.57% 17.25%
IFC.TO $58.60 $61.78 $65.03 5.26% 10.97%
LB.TO $44.30 $44.74 $46.55 4.05% 5.08%
DII.B $41.01 $37.50 $38.74 3.31% -5.54%
BRK.B $112.48 $113.51 $115.09 1.39% 2.32%
FTT.TO $22.89 n/a $23.56 n/a 2.93%
XRX $8.90 n/a $9.80 n/a 10.11%
Average 3.39% 5.79%

In summary, my value stocks are up 5.79% since purchase, and up 3.39% this month.

I am in the process of moving my S&P fund and my Bond fund to my TD Direct account. In the interim those finds are parked in a money market fund.  I will restore my bond holdings once the transfer is complete.  I have 17.1% cash which I can use to add new positions if prices fall.

Screen Shot 2013-11-01 at 11.51.17 PM

Portfolio Update – Down 2.80% in June 2013

My portfolio balances at close of trading on 30th June were:

Ticker Price (C$) Price Change Percentage Industry
POW.TO $ 28.22 -3.02% 6.8% Finance, Specialty
FTT.TO $ 21.65 -4.46% 6.6% Industrial Services and Supplies
TCK-B.TO $ 22.47 -18.85% 6.8% Basic Materials
DII-B.TO $ 36.70 -11.03% 7.0% Consumer Cyclical
IFC.TO $ 59.25 -3.42% 7.0% Finance, Insurance
LB.TO $ 43.94 -0.48% 6.8% Finance, Diversified
XRX $ 9.54 4.68% 7.4% Technology
S&P Fund $ 144.63 0.69% 13.4% US Equities
Bond Fund $ 220.71 -2.06% 33.5% Bonds
Cash 4.8% Cash
Total 100.0%

Overall my portfolio is down 2.80% since last month. There were no cash contributions. For comparison my TI Index is down 3.63%, the DOW is down 1.36% and the TSX is down 4.12%.

My investments have performed well against the TI Index, which was dragged down by gold and prices, and the TSX, which was dragged down by commodity price sensitive stocks (e.g., miners). It did not perform as well against the DOW.

Winners this month include Xerox (XRX) which is up 4.68% (partially due to a strengthening US dollar) and my S&P fund (again due to strong US Dollar).

Losers are manifold and include Teck Resources (TCK-B.TO) which is down 18.85%, Dorel (DII-B.TO) down 11.03% on poor bicycle sales, Finning (FTT.TO) down 4.46%, Power Corp (POW.TO) down 3.02%, and Intact Financial (IFC.TO) down 3.42%.  Also, Bonds are down 2.06% on fears that the US will reduce fiscal stimulus (i.e., bond buying).

Let’s take a look at my value stock portfolio.

Ticker Cost Basis 5/31/2013 Price Now Gain This Month Gain – Total
TCK.B $27.03 $27.69 $22.47 -18.85% -16.87%
POW.TO $26.20 $29.10 $28.22 -3.02% 7.71%
IFC.TO $58.60 $61.35 $59.25 -3.42% 1.11%
LB.TO $44.30 $44.15 $43.94 -0.48% -0.81%
FTT.TO $22.89 $22.66 $21.65 -4.46% -5.42%
XRX $8.90 $8.79 $9.07 3.19% 1.91%
DII.B $41.01 $41.25 $36.70 -11.03% -10.51%
Average -5.44% -3.27%

In summary, my value stocks have lost 3.27% since purchase, and lost 5.44% this month.  This monthly loss is greater than the 4.12% that the TSX lost, which is worrying.  However, I am a patient investor and this is a good time to add to my positions (using some of my remaining cash).

My bond holdings are at 33.5%, which is right on my target of 33.5%. I have 4.8% cash which I can use to add another new position if prices fall.

Screen Shot 2013-06-29 at 11.39.06 AM

Buying Intact Financial Group

ImageAnother company passing my basic screening is Intact Financial Corp. (IFC.TO).

Intact is the leading Canadian provider of car, home and business insurance.  Intact operates three brands:

  • Intact Insurance, focused on broker-sold insurance
  • Belairedirect, focused on direct insurance sales by phone or online
  • Grey Power, focused on drivers over 50 years of age

In 2011 Intact bought AXA Canada, which it rolled into its Intact Insurance line.

Screen Shot 2013-05-31 at 10.22.41 AMI have analyzed the stock using my usual procedures.  The results are as follows.

  • The P/E Ratio is 11.89, which is lower than the historical average of 13.00, and the Graham Number is $63.80
  • The Dividend Yield is 3.00%, and the coverage is 280%
  • Forecast Growth Rate is 11.88%
  • The Gordon Return (Dividend + Growth) is 14.88%
  • The Margin of Safety at current prices is -4%, which is low due to the low book value of $36.70.  The P/B RATIO IS 1.6.  However, I think that the  relatively rich P/B Ratio is justified by the strong growth forecasts.

I would have preferred the price to be a little nearer to book value, but I think the stock is well priced here.

  • Buy IFC.TO @ $58.60