Recent Trades – CLF, IMG, KMI

I completed a few trades over last week and decided to club them together into one post. Here’s my recent activity on my positions.
Closed: iShares 1-5 Yr Laddered Government Bond Fund (TSE: CLF)
I decided to reduce my exposure to bonds from my portfolio. At the end of 2013, after combining my portfolio with my wife’s, I figured that our combined portfolio needed some rebalancing. Before this transaction, our combined portfolio had a bond allocation of 16.8%. After this transaction, our bond exposure is down to 13.30%.
Addition: IAMGold Corp (NYSE: IAG, TSE: IMG)
This is purely a speculative play and a hedge. IAMGold cut its dividends recently and currently this is the only position in my portfolio that does not yield anything. However, instead of selling like others, I am holding on and in fact adding to my position. IAMGold is one of the most efficient mining companies and still manages to do well compared to its peers. It is also attractively valued, trading well below its book value. Why own IAMGold? I have multiple reasons – (a) it is an inflation hedge, (b) it provides me with some hedge against a stock market drop, (c) it is attractively valued trading well below book value and very low debt (0.17) and (d) it could possibly be a target of acquisition.

Addition: Kinder Morgan Inc (KMI)
I added to my position in Kinder Morgan Inc (KMI). I had started with a small position earlier in the month and have increased it after some weakness in the market over the last few days. After this transaction, I own 60 shares giving me $98.40 in annual distribution income from KMI. I want to add more to this position and will be looking for weakness in the market/stock to pull the trigger.

 

2 thoughts on “Recent Trades – CLF, IMG, KMI

  1. Good morning R2R,
    It looks like we may have a very nice sell off today. What I wouldn’t give for a 5% sell off in US markets……sadly it’s unlikely. But two percent would be great! Your moves make sense. I think gold and emerging markets will both come into fashion later this year. Have a great day my friend.
    -Bryan

    • Good morning, Bryan,
      I am hoping for some selloff as well. Its hard to buy more in these market conditions. Moreover, the Canadian dollar has fallen by about 5% over the last couple of months…so, I have to take that into consideration as well.
      I am just glad I invested heavily in teh US market over teh last 2 years when the CAD$ was on par with US$.
      Like I said, I continue to hold gold in the form of equity as a hedge, but it is purely a speculative play at this point. I am still looking into emerging markets and looking for a good entry point.
      Thanks for stopping by and the comment. Have a great day and a great weekend.

      regards

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