Recent Buy – EQX

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A quick update on a recent purchase in my portfolio. This round is a new position in my portfolio.

Although I have been pulling back from the Basic Materials sector since the sector has grown to a big part of my overall portfolio, I find some good lucrative businesses to invest in, as the sector still remains one of the most undervalued sectors of the economy. I initiated a new position in Equinox Gold (EQX.V).

I bought the company in two tranches, first in May and the second earlier this month. I own a total of 2,000 shares with an average cost basis of C$1.05.

Recent Buy Decision

  • A company chaired by Ross Beaty, a legend in the mining sector. Ross Beaty is a serial entrepreneur, who has started, run, grown and sold a series of successful businesses over the past few decades. While the management team is young, Ross’ leadership should guide this company to a successful outcome. In addition, Ross’ first successful company was also called Equinox, and he has indicated that he wants sandwich his career with two companies with same names.
  • His success has resulted in fortunes being made by many investors and I intend to join that club with this investment. Betting on smart, successful entrepreneurs with a proven track record make this a relatively safer speculation. While Ross has built his career in the silver sector, he has turned his attention to gold on this company. Ross thinks that gold mining is more lucrative in current environment.
  • The company owns resources in US (Castle Mountain, California) and Brazil (Aurizona); while owning some other assets in other countries including Ecuador, Canada etc. In fact, last night it was announced that Equinox will spin off its copper assets to create Solaris Copper.
  • The company is on a fast track to start producing gold. Aurizona is on track to start pouring before the end of the year. The resource estimates show that this will be a producing mine for decades to come.
  • The company also intends to grow substantially to become a major mid-tier mining company via acquisitions with its $200M debt facility.

For more details, see Equinox Gold’s corporate presentation.

Full Disclosure: Long EQX.V. Our full list of holdings is available here.

3 Recent Buys – BIP, CU, FIH

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A quick update on a couple of recent purchases in my portfolio. For this round, I added to existing positions.

  • First purchase: I added 48 shares of Brookfield Infrastructure Partners (BIP.UN.TO) @ $50.00. There’s been significant pullback lately and after waiting a long time to add more shares in this, I finally got the opportunity. I had a lowball offer sitting open on this company for a while and it was triggered yesterday when the stock fell below $50.00 mark. The stock currently yields close to 5% and is a dividend grower, while providing excellent infrastructure exposure around the world. BIP has a 10-yr dividend growth track record. The 1-, 3-, and 5-yr dividend growth rates are 12.5%, 10.8%, and 11.7% respectively.
  • Second purchase: I added 50 shares of Canadian Utilities (CU.TO) @ $32.92. The utilities sector has been in pressure as the interest rates are rising providing investors with better risk-free return. However, I think this presents a good opportunity to buy companies in this space currently. The current yield is hovering close to 5% and the company has a long track record of increasing dividends year after year. In fact, it occupies the top spot in the Canadian Dividend All Star list, with a 46-yr dividend increase streak.The 1-, 3-, 5- and 10-yr dividend growth rates are 10%, 10.1%, 10.1%, and 8.6% respectively. Not bad at all for a 5% yielder!
  • Third purchase: I added 100 shares of Fairfax India Holdings (FIH.U.TO) @ US$17.20. This was the third iteration of purchasing and I am far from being done accumulating this company. The company provides a great way to invest in India and has plenty of great investments already for a 3 year old holding company. I wrote about this company in the past here. No dividend from this company — the company follows the Berkshire Hathaway model and all funds are reinvested.

Full Disclosure: Long BIP.UN.TO, CU.TO, FIH.U.TO. Our full list of holdings is available here.

Recent Buy – FNV

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A quick update about a purchase in my portfolio last week. As I’ve outlined in the monthly Outlook posts, there are a few opportunities that are still undervalued. While it may come as no surprise, regular readers will observe that I am still very bullish and overweight in commodities and precious metals. While this is a sector that I have been thinking of trimming possibly since it has grown to an outsized position, I cant help but add some shares in high quality companies when I get the opportunity.

Last week, after a slight miss in earnings, I managed to pick up a 50 shares in Franco Nevada Corp (FNV.TO) at C$87.00. The company pays an annual dividend of US$0.92, which adds US$46  to my annual income stream (a div increase is expected next quarter).

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Recent Buy – IPL

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A quick update on a purchase in my portfolio earlier this week. As expected, the stock market’s decline had a wide implication on already depressed stock prices where I see good value. I decided to take the opportunity to add more shares to an already decent sized position.

Earlier this week, I decided to add 100 shares in Inter Pipeline Ltd (TSE:IPL) @ CAD$22.70. This purchase price locks in a 7.4% yield adding C$168.00 to my annual passive income stream.

I just listed all my Recent Buy Decision during my last purchase a couple of weeks ago, so I will link to that post instead of rehashing the details.

What do you think of this purchase? Share your thoughts below.

Full Disclosure: Long TSE:IPL. Our full list of holdings is available here

 

Recent Buy – IPL

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A quick update on another purchase to wrap up January 2018. This time, its a purchase adding to my dividend growth portfolio after a long time. Its been hard to find value in this market, except in the basic materials sector. However, as I mentioned in the Outlook for 2018 post, I am looking to pull some money off the table as I have overextended in this sector of the economy — with my investment portfolio sitting close to 50% in that one sector. I am still bullish on the sector, but looking to deploy funds elsewhere in the economy, and I have been looking at related commodity plays.

For this purchase, I have looked at the energy sector and decided that I could use with some more exposure and increase my annual dividends from an existing company in my portfolio. Continue reading