Recent Buy – FNV

BuySell

A quick update on a a recent purchase in my portfolio.

The recent strength in US$ has sent commodities and precious metals plunging, and with it all gold focused equities have taken a beating. This provided an ample opportunity to add to one of my core positions in probably the best company in the space. I added 50 shares of Franco Nevada (FNV.TO) @ CAD$79.90. FNV is a streaming and royalty company, with lucrative deals in the gold, silver and oil&gas space. The deal structure is so good, that Franco has to literally do nothing for the next 30 years and will have increasing revenue and will be able to pay a rising dividend to shareholders. Now that is a sleep-well-at-night kind of stock. Franco Nevada is also a dividend grower, having raised dividends for 10 consecutive years. Current yield is close to 1.5% and with this purchase, I add US$48 to my forward dividend income.

I also hold Franco Nevada for my daughter’s Nest Egg portion of portfolio. I will earmark 15 shares from this purchase for her. See further details on her portfolio here.

Full Disclosure: Long FNV.TO. Our full list of holdings is available here.

Recent Buy – IPL

BuySell

A quick update on a a recent purchase in my portfolio to close out the month of August.

I had put in a low-ball offer a few weeks/months ago, which got executed just before the market closed last Friday. In this purchase, I added 100 shares of Inter Pipeline Ltd (IPL.TO) @ $24.00. IPL is a pipeline company that I have been a shareholder in for a long time and continue to build my position over the years. I have doubled my position since the start of 2018 with these purchases. IPL now makes a substantial position in my portfolio and will possibly look at limiting any more build-up since I do not want to own too much portfolio concentration in a single stock. With a current yield of 7%, this purchase adds CAD$168 to my forward dividend income.

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

2 Recent Buys – BCE, XLY

BuySell

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

  • First purchase: I added 60 shares of BCE Inc (BCE.TO) @ $53.40. I’ve had my eye on the telecom sector for a while and after a lot of lowball offers that did not get executed, I decided to up my offer a bit and finally got filled. BCE owns interests not only in the telecom, but expanding heavily into the media & content business. With the stock yielding 5.6%, the purchase adds a nice $181.20 in forward annual dividends.
  • Second purchase: I added 2000 shares in Auxly Cannabis (XLY.V) @ $1.07. The company has recently undergone some transition and changed name from Cannabis Wheaton Income (CBW) to Auxly Cannabis. Auxly remains a great financier in the field of cannabis and has a great leadership team with Chuck Rifici as CEO. A sector in its infancy, there is immense chatter about buyout and large investment targets, esp with the large alcohol companies targeting Canadian LPs for marijuana-flavored drinks. I am a little disappointed with the price I paid since I was looking to add at $0.75, but my trade didnt get executed (missed it by $0.01), and the following day the stock rallied massively. Still think its a decent price and my ACB remains well under $1.

Full Disclosure: Long BCE.TO, XLY.V. Our full list of holdings is available here.

Recent Buy – EQX

BuySell

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

BuySell

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.