Spring has sprung across most of country, the birds are chirping, the flowers are opening, the trees are starting to bud, and the piles and piles of useless crap stored in my basement has to be thrown out.
Being frugal by nature my first instinct when offered anything free has always been “sure I’ll take it, I know I’ll be able to find a use for it sometime”. Well...from years of experience (and encouraging from my wife) I’ve come to the realization that actually NO I probably won’t be finding a use for most of the antiquated junk in my basement (you never know when you’ll need 2 extra toasters and 4 VCRs...).Over the weekend I’ve come to the conclusion that even if an opportunity did arise that required one of the items I’ve accumulated over the years I wouldn’t be able to find it in a timely manner amongst all the other boxed “treasures”.
In order to reclaim some shelf space in the basement I basically have 3 options:
1.Take few trips to the dump (this requires a very long and frustrating wait in my city).
2.Donate all I can to second hand stores (won’t get rid of it all and will require a lot of trips)
3.Sell what I can – garage sale.
Well based on my frugal nature I think it’s obvious what I’m going to do...a garage sale. I’ve never had one before but I’ll give you an update on how much I make. My hopes aren’t really that high but to quote an experienced garage saler friend of mine “you’d be amazed at all the useless crap people will buy”.
Monday, May 14, 2007
Friday, May 11, 2007
Dividend Growing Stocks – III
JNJ
- Dividends issued to shareowners every quarter since 1944.
- Dividend raised each year for 44 consecutive years.
- Sales have increased each year for 73 consecutive years.
- Double digit Earnings increases for 21 consecutive years.
- Current yield of 2.65%
- Estimated 2007 P/E of 15.4
- 44% of sales outside of North America
For more information on the company please follow the link to their website.
"Johnson & Johnson, through its operating companies, is the world's most comprehensive and broadly based manufacturer of health care products, as well as a provider of related services, for the consumer, pharmaceutical, and medical devices and diagnostics markets. The more than 250 Johnson & Johnson operating companies employ approximately 121,000 men and women in 57 countries and sell products throughout the world."
- Dividends issued to shareowners every quarter since 1944.
- Dividend raised each year for 44 consecutive years.
- Sales have increased each year for 73 consecutive years.
- Double digit Earnings increases for 21 consecutive years.
- Current yield of 2.65%
- Estimated 2007 P/E of 15.4
- 44% of sales outside of North America
For more information on the company please follow the link to their website.
Wednesday, May 9, 2007
Questrade - Review
Well I used my Questrade account yesterday for the first time so…now that I’ve had a little field experience actually using it I think I’m ready to give it a proper review. However, I would just like to point out that there are four different trading platforms available but the only one I’ve used and thus the only one I’ll review is the WebTrader platform.
The WebTrader platform is similar to the online platforms of the big banks however it is not as slick or user friendly.
POSITIVES:
-has decent charting tools for those of you interesting in technical analysis
-CHEAP TRADES. I can’t really over emphasize this. This is the real positive of Questrade. When you sign up you can chose from 2 different accounts:
1. $0.01 a share (minimum fee of $4.95)
2. a flat fee of $9.95 a trade (unlimited shares)
I chose option 1. However, if you were a real day trader into penny stocks option #2 would save you a huge amount of money compared to the fees charged by the big banks.
NEGATIVES:
-No online help
-No research reports
-No online information on the fundamentals. Ie- P/E, P/B, revenue growth, earnings estimates etc...
-Screen layout is not as user friendly as the big banks
-Functionality is lacking compared to the big banks. ie- If you click on “positions” it shows you the securities that you own but you can’t click on them to get a quote, or click on them to sell them. The WebTrader does of course let you get real time quotes and sell securities but you can’t simply click on your positions. Instead you have to select “stocks” and then enter the information for the stock that you want to sell.
-Unlike the big banks you can’t just select “CDN” or “U.S” when buying securities you have to put in a period and the short form of the exchange that the security is listed on ie- Toronto = .TO Venture = .VN. I don’t really have a problem with this except that there is no online help outlining what the short forms are for the exchanges. However, if you do a symbol lookup it will display the security in the proper form ie-ZED.VN
-WebTrader does not catch errors on the fly. For example, when I put in my buy order for ZED I put in just "ZED" however, I should have put ZED.VN. I didn’t know my order wasn’t valid until I looked in my account history and beside my order status it said “rejected”
-Cannot built portfolios of stocks to create a watch list.
Despite all of the negatives I’ve mentioned above overall I’d say my Questrade WebTrader account is O.K but not great. What I would suggest to anyone thinking of switching over is don’t close your account at the big bank as Questrade literally offers no research or reports. I plan on using this account to buy securities that I don’t plan to hold forever (ie- any cyclicals) and will continue to use my big bank trading account to purchase securities that I plan on holding forever. In my mind $30 is a reasonable amount to pay for the features and security I get from trading with one of the big 5.
The WebTrader platform is similar to the online platforms of the big banks however it is not as slick or user friendly.
POSITIVES:
-has decent charting tools for those of you interesting in technical analysis
-CHEAP TRADES. I can’t really over emphasize this. This is the real positive of Questrade. When you sign up you can chose from 2 different accounts:
1. $0.01 a share (minimum fee of $4.95)
2. a flat fee of $9.95 a trade (unlimited shares)
I chose option 1. However, if you were a real day trader into penny stocks option #2 would save you a huge amount of money compared to the fees charged by the big banks.
NEGATIVES:
-No online help
-No research reports
-No online information on the fundamentals. Ie- P/E, P/B, revenue growth, earnings estimates etc...
-Screen layout is not as user friendly as the big banks
-Functionality is lacking compared to the big banks. ie- If you click on “positions” it shows you the securities that you own but you can’t click on them to get a quote, or click on them to sell them. The WebTrader does of course let you get real time quotes and sell securities but you can’t simply click on your positions. Instead you have to select “stocks” and then enter the information for the stock that you want to sell.
-Unlike the big banks you can’t just select “CDN” or “U.S” when buying securities you have to put in a period and the short form of the exchange that the security is listed on ie- Toronto = .TO Venture = .VN. I don’t really have a problem with this except that there is no online help outlining what the short forms are for the exchanges. However, if you do a symbol lookup it will display the security in the proper form ie-ZED.VN
-WebTrader does not catch errors on the fly. For example, when I put in my buy order for ZED I put in just "ZED" however, I should have put ZED.VN. I didn’t know my order wasn’t valid until I looked in my account history and beside my order status it said “rejected”
-Cannot built portfolios of stocks to create a watch list.
Despite all of the negatives I’ve mentioned above overall I’d say my Questrade WebTrader account is O.K but not great. What I would suggest to anyone thinking of switching over is don’t close your account at the big bank as Questrade literally offers no research or reports. I plan on using this account to buy securities that I don’t plan to hold forever (ie- any cyclicals) and will continue to use my big bank trading account to purchase securities that I plan on holding forever. In my mind $30 is a reasonable amount to pay for the features and security I get from trading with one of the big 5.
Tuesday, May 8, 2007
ZED
I tried out my Questrade account yesterday and bought a very small initial position (less than 1% of my port) in a small company (ZED) that trades on the Venture Exchange. For those of you unfamiliar with the company here is an excerpt from the “about us” section of their website:
"Zedi (TSX Venture: ZED) specializes in production operations management, delivering systems and services that help oil and gas producers to better manage people, assets and information. We help our clients to increase earnings from production, decrease operating costs, best utilize human, physical and fiscal assets and mitigate compliance risk."
Here are my reasons for buying:
-over 90% of their revenues are reoccurring
-their main market (small to intermediate oil/gas trusts) has been under pressure recently.
-projected 2007 P/E of 12
-projected 2008 P/E of 7.7
-top line growth of 35%-40% a year.
-very little debt – current ratio of around 5
-trading at 2X book (I think this is cheap considering they are primarily a software company)
-I like their core business.
-I like their technology.
-37.1 million in revenue and a market cap of only 91 million.
-For two years in a row, Zedi has ranked in Deloitte's Technology Fast 500: a ranking of the fastest growing technology, media, telecommunications and life sciences companies in North America, based on revenue growth.
I just want to point out that this is a very small company (91 million market cap) that trades on the venture exchange and as such is much higher risk than companies I usually invest in, so anyone considering buying it should first of all do their own research but also be aware that it is going to be quite volatile. If you would like to know more about the company here is a link to their website.
This was the first time I have used my Questrade account so I'll give you an update tomorrow on what I like/don't like about the account.
"Zedi (TSX Venture: ZED) specializes in production operations management, delivering systems and services that help oil and gas producers to better manage people, assets and information. We help our clients to increase earnings from production, decrease operating costs, best utilize human, physical and fiscal assets and mitigate compliance risk."
Here are my reasons for buying:
-over 90% of their revenues are reoccurring
-their main market (small to intermediate oil/gas trusts) has been under pressure recently.
-projected 2007 P/E of 12
-projected 2008 P/E of 7.7
-top line growth of 35%-40% a year.
-very little debt – current ratio of around 5
-trading at 2X book (I think this is cheap considering they are primarily a software company)
-I like their core business.
-I like their technology.
-37.1 million in revenue and a market cap of only 91 million.
-For two years in a row, Zedi has ranked in Deloitte's Technology Fast 500: a ranking of the fastest growing technology, media, telecommunications and life sciences companies in North America, based on revenue growth.
I just want to point out that this is a very small company (91 million market cap) that trades on the venture exchange and as such is much higher risk than companies I usually invest in, so anyone considering buying it should first of all do their own research but also be aware that it is going to be quite volatile. If you would like to know more about the company here is a link to their website.
This was the first time I have used my Questrade account so I'll give you an update tomorrow on what I like/don't like about the account.
Monday, May 7, 2007
Compensation of Financial Advisors – A Middle Class Rant V
Here is my submissions for the Canadian Tour of Personal Finance Blogs:
There are many posts out there on the high commissions/fees charged by both financial advisors and mutual fund companies. Almost all of these posts slam the high fees charged with no mention of the benefits that financial advisors do offer for some. Personally, I have mixed feelings on the compensation of financial advisors. For knowledgeable amateur investors like you and me their fees do seem ridiculous. Many amateur investors (myself included) shudder at the thought of paying 2% annually to a financial advisor or mutual fund manager. However, I would argue that isn’t the case for the majority of society. We shudder at the 2% fees in the same way a plumber would shudder at paying $80 an hour for someone to replace his faucets. There are many, many people out there who have absolutely no interest in finance or investing and as a result don’t find 2% to be an unreasonable fee to pay for advice on a subject that they know nothing about and have no interest in learning. The mere mention of a P/E ratio or dividend yield is enough to make many peoples eyes instantly glaze over and roll back in their head. If you don’t believe me start talking about the fundamentals of the stocks on your watch list at your next social event or family dinner and see how many people are just sitting there trying their best to be polite and seem interested. As further proof many people I talk to think that an RSP is an actual product. When I’m talking to them I say “that’s great you’ve started an RSP what did you buy?” and in 99% of the cases they respond with a funny look on their face and say “what do you mean what did I buy? I bought an RSP” and most of the time they aren’t interested in hearing that an RSP is basically just a sheltered investing account.
I have friends with zero interest in investing and they think that the fees they pay on their mutual funds and to their advisors are very reasonable as their returns handily beat the savings rate of banks, which is where their money would be if it were not for the advisors. Many of my same friends find it absurd that I’d pay $30 for an oil change or $80 and hour for the services of a plumber. I think the fees argument can be made for almost every profession. If you are in a profession be it amateur or professional you are going to have a hard time paying for something you can do yourself.
Personally, I have the biggest problem with real estate fees... 5% commission to basically just get my house listed on MLS?! that’s $10,000 on an average $200,000 home. Most people that I know who have purchased a house in the last 5 years found it themselves on MLS and then called their agent to simply arrange the viewing. Upon purchase some generic stock forms are filled out at the real estate office and then the lawyers take if from there. Now that was $10,000 well spent...To me that’s absurd!
Disclosure - I’m not a Financial Advisor.
Cheers,
MCM
There are many posts out there on the high commissions/fees charged by both financial advisors and mutual fund companies. Almost all of these posts slam the high fees charged with no mention of the benefits that financial advisors do offer for some. Personally, I have mixed feelings on the compensation of financial advisors. For knowledgeable amateur investors like you and me their fees do seem ridiculous. Many amateur investors (myself included) shudder at the thought of paying 2% annually to a financial advisor or mutual fund manager. However, I would argue that isn’t the case for the majority of society. We shudder at the 2% fees in the same way a plumber would shudder at paying $80 an hour for someone to replace his faucets. There are many, many people out there who have absolutely no interest in finance or investing and as a result don’t find 2% to be an unreasonable fee to pay for advice on a subject that they know nothing about and have no interest in learning. The mere mention of a P/E ratio or dividend yield is enough to make many peoples eyes instantly glaze over and roll back in their head. If you don’t believe me start talking about the fundamentals of the stocks on your watch list at your next social event or family dinner and see how many people are just sitting there trying their best to be polite and seem interested. As further proof many people I talk to think that an RSP is an actual product. When I’m talking to them I say “that’s great you’ve started an RSP what did you buy?” and in 99% of the cases they respond with a funny look on their face and say “what do you mean what did I buy? I bought an RSP” and most of the time they aren’t interested in hearing that an RSP is basically just a sheltered investing account.
I have friends with zero interest in investing and they think that the fees they pay on their mutual funds and to their advisors are very reasonable as their returns handily beat the savings rate of banks, which is where their money would be if it were not for the advisors. Many of my same friends find it absurd that I’d pay $30 for an oil change or $80 and hour for the services of a plumber. I think the fees argument can be made for almost every profession. If you are in a profession be it amateur or professional you are going to have a hard time paying for something you can do yourself.
Personally, I have the biggest problem with real estate fees... 5% commission to basically just get my house listed on MLS?! that’s $10,000 on an average $200,000 home. Most people that I know who have purchased a house in the last 5 years found it themselves on MLS and then called their agent to simply arrange the viewing. Upon purchase some generic stock forms are filled out at the real estate office and then the lawyers take if from there. Now that was $10,000 well spent...To me that’s absurd!
Disclosure - I’m not a Financial Advisor.
Cheers,
MCM
Friday, May 4, 2007
Canadian Tour of Personal Finance Blogs
I’ll be participating in the second Canadian Tour of Personal Finance Blogs on Monday May 7th. This time around the event has been generously hosted by The Money Diva. If you have a moment you might want to check out her blog as well as the other participants.
For this tour I’ll be ranting about the compensation of Financial Advisors. However, it’s not your usual "fees are too high" rant...it’s a rant with a twist...tune in Monday to find out.
Have a great weekend.
For this tour I’ll be ranting about the compensation of Financial Advisors. However, it’s not your usual "fees are too high" rant...it’s a rant with a twist...tune in Monday to find out.
Have a great weekend.
Thursday, May 3, 2007
Retirement Nest Egg May 1 - 2007
Retirement Nest Egg at the close of May 1, 2007.
-Up 1.5% from last month
-Up 10% in 2007
TRP - 4.32%
ABX - 3.65%
CSH.UN - 3.56%
GWO - 4.77%
PFE - 4.28%
POW - 4.12%
BA.UN - 0.40%
L – 4.12%
UNS - 2.77%
GZ - 2.89%
TD – 12.65%
EIT.UN - 2.99%
JNJ - 3.58%
MMM – 4.04%
O'Shaughnessy’s Global Fund - 4.03%
American Growth Fund - 1.06%
CDN Value Fund - 3.85%
Small Cap Growth Fund – 4.09%
Chou Associates Fund - 10.84%
Health Science Fund - 0.91%
Bond (9% yield) - 5.45%
Money Market Fund - 11.64%
Basically there were no major changes in my portfolio composition this month. The 1.5% increase in my networth was due to dividends and share appreciation as no contributions were made this month.
-Up 1.5% from last month
-Up 10% in 2007
TRP - 4.32%
ABX - 3.65%
CSH.UN - 3.56%
GWO - 4.77%
PFE - 4.28%
POW - 4.12%
BA.UN - 0.40%
L – 4.12%
UNS - 2.77%
GZ - 2.89%
TD – 12.65%
EIT.UN - 2.99%
JNJ - 3.58%
MMM – 4.04%
O'Shaughnessy’s Global Fund - 4.03%
American Growth Fund - 1.06%
CDN Value Fund - 3.85%
Small Cap Growth Fund – 4.09%
Chou Associates Fund - 10.84%
Health Science Fund - 0.91%
Bond (9% yield) - 5.45%
Money Market Fund - 11.64%
Basically there were no major changes in my portfolio composition this month. The 1.5% increase in my networth was due to dividends and share appreciation as no contributions were made this month.
Subscribe to:
Posts (Atom)
