Recent Sell – ADM, SBUX

BuySell

A quick update on three sales in my portfolio. Both companies below are still great companies to hold for the long haul, and I may consider re-initiating a position in them during the next cycle. In addition, part of the reason for also selling is to move some of these funds towards passive investing as I want to reduce my number of holdings and focus on a smaller group of companies.

Archer Daniels Midland (ADM)

A dividend champion that I’ve held since 2013. The food/commodity business is a tough sell and there are some very good bullish and bearish cases for holding this company. However, the company has continued to increase payout ratios over the past few years as it wants to grow its dividends, just for the sake of record. This is not the right move imo, and I will look for a better home for my investment dollars.

Total profit (including dividends): 32.8%. 

Holding period: 4.5 yrs

Starbucks Corp (SBUX)

This is one of those investments that has traded sideways for me. With the founder Howard Schultz stepping down from CEO position, the spark has gone from this stock. However, the company is still functioning pretty well. I am not as confident in the growth story of this company as I was a couple of years ago. I have decided to exit this position, esp this late in the market cycle and re-evaluate in coming months/years.

Total profit (including dividends): 9.2%. 

Holding period: 2 yrs

What do you think of these sales? Let me know with a comment below.

Recent Sell – Hive Blockchain Technologies

A quick update on a sale in my portfolio.

Last month, I opened a new position in a little known company that has seen a tremendous interest in investors and seen massive gains. The company in question is Hive Blockchain Technologies (HIVE.V). I indicated in my purchase post that I broke all my rules and took a gamble with this investment. It’s a company that I did not know much about and the financials were also a bit murky when it IPO’d — still it was a play on investor psychology and momentum and I decided to take a gamble. I knew there was a dearth of blockchain related companies in the capital markets and the risk/reward scenario was good enough for me to take the risk. That risk paid off as I witnessed a 200+% return in just over a month.

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Recent Sell – Critical Elements Corp

A sale in my portfolio after a while. It is always hard to sell when things are going well. I was faced with this conundrum last week, but decided that it was time to take my profits and enjoy the fruits of my patience in a microcap stock that I owned for just over a year.

I sold 4,800 shares and closed my position in Critical Elements Corp (CRE.V) at C$1.01.

There is nothing wrong with the company whatsoever and still provides one of the most promising and lucrative deals in the Lithium space. The Rose project in Quebec is one of the best upcoming projects out there and the company has done a great job. In addition, the company also has an offtake agreement with Helm AG, which makes it an ultra secure play in the space. However, the returns were tempting enough for me to take my profits after the recent rally.

I bought shares over the course two months in May and June of 2016 in three separate tranches. Average cost basis was C$0.61. So, this trade netted me a neat 61% total return.

Total Profit: $1,776 (61%)

Holding Period: 12-13 months

Full Disclosure: Our full list of holdings are available here.

Recent Sell – New Gold Inc

NGD

This will be another quick update on a sale in my portfolio.

Last week I shared opening a new position in New Gold Inc (NGD.TO). I saw an opportunity after the stock price was down 35% after management announced delays in Rainy River project and shortfall in liquidity. The stock was over-punished and I figured it was due for a quick bounce. Right after I bought, New Gold stock bounced 10% which was good but I wanted to see how management was going to navigate going forward.

Yesterday, it was announced that the company was selling its 4% gold stream in the El Morro project to Goldcorp (GG) for $65M. This is a much better deal for Goldcorp than New Gold. However, it seems that investors in NGD like the news (uncertainty is a bigger evil than bad deals, it seems) and the stock price popped further. I decided to cash out and take my profits after holding the stock for just a few days.

To summarize: I sold 1,000 shares and closed my position in New Gold Inc (NGD.TO) @ C$3.95.

Total profit: $511 (14.86%)

Holding period: 8 days

Full disclosure: Our full list of holdings is available here.

Recent Sell – Seg Funds

As part of my new(ish) employment changes, I was offered a retirement matching plan. The catch was that I had to choose from a pool of segregated funds offered by an insurance company. These funds come with high management fees but in order to not leave money on the table, I decided to make regular contributions. I originally documented this in this post.

Once a year, I am given a freebie to withdraw funds and move them to my other self-directed retirement accounts, and I decided this was as good a time as any. I sold my positions in the following two funds. Going forward I will be repeating this move each January, so that my overall expenses fees remain low.

  • US Equity Index Seg Fund
  • International Equity Seg Fund

I will continue taking advantage of this benefit from my work and regular contributions into these funds will continue as usual on a monthly basis.

Full disclosure: Our full list of holdings are available here.