Most folks know I’ve been busy with some family stuff over the past month, so unfortunately haven’t been able to post most. I promise more will come in the coming weeks (I’ve got a laundry list of topics to write about). Anyways, since a month and a bit has passed since I last wrote, thought I’d just do a quick run-down / update on some trades I did and why.
1) Bought More JAMBA (JMBA)
I haven’t been following Jamba much as it’s really just a flyer in my portfolio and don’t have that much invested. At $3 a share, it’s a play on the growing smoothie market with the company still increasing sales despite all the competition from other chains. Having not really paid attention, one day in June, I saw Jamba trading at $15 and thought I’d make it big, only to realize that they had announced a 5-to-1 reverse split. Usually a reverse split is considered somewhat bad news – but the company believes that the new stock price will make it more attractive to institutional investors. The reverse split ended up giving me an odd-lot number of shares – so I bought enough to bring me back to multiples of 100 allowing me to play with options in the future if I want to.
2) KEYReit (KRE.UN) – sold and bought other REITS (although maybe too early)
As followers of my blog will know, I had a dilemma when KEYReit received its buyout offer from Plazacorp. I ended up selling all my shares for just over $8 – which is about what I would have gotten on the day the deal expired. Just didn’t want to have to worry about the Plazacorp shares. To replace the REIT, I parked the funds in some other REITS:
- Dundee International Reit (DI.UN)
- Retrocomm Real Estate (RMM.UN)
- BMO Equal Weights REITs (ZRE)
I’m just parking them here – two are owned by a buddy of mine who writes on http://financiallyyours.ca/, and the other is just a standard REIT ETF. I prefer the BMO ETF for it’s equal weighting vs. a Canadian index REIT because it isn’t heavily weighted towards the big REITs like Boardwalk, Reitmann’s, etc. where I might as well just buy the individual REITs. I’ll take my time finding a REIT I like (like I did with KEYReit), but for now, this will give me a decent return. Unfortunately, I bought too early as REITs have taken a 10% hit in the past couple of weeks due to fears of rising rates. Rising rates mean high borrowing costs, less profit, potentially lower distributions. Rising rates also tend to move people’s investments towards bonds – higher return, and more safe. I’m not concerned about either as I’m investing in REITs for income.
3) Tesla (TSLA) – Sold more and protect profit
There’s been no shortage of good news for Tesla since I posted about investing in the company. From Consumer’s Reports top rating ever given to a car, expanding it’s supercharger network to cover the US and Canada by next year, or 90-second battery swap option, the great news keeps on coming in. However, so has the stock price, running up to a high of $130 in the past week – having gone up 62% YTD and 261% in the past year. While a great problem to have, the run-up has created a pretty big imbalance in our portfolios – representing a larger percentage than what I would like to hold. As a result, we’ve sold the rest of my wife’s holdings effectively cutting our holdings by 1/3. I’m also attempting to protect my profit by buying August 2013 $115 puts (for $6) in anticipation of market reaction in next week’s earning release. Of course, we know last time that didn’t work out so well for me – but I prefer to take the $6 hit than miss out on any further potential gains (everyone always hates selling too early). So far, it’s looking good as the stock is down almost 10% as I write this post.
4) Buy Vanguard Total Stock Index (VTI) for the wife
With the extra cash made from selling Tesla, I haven’t really found a good investment for my wife. I’ve added some new stocks to my own portfolio but couldn’t really find something on the safer side for her. So, I decided to take the lazy way out and just buy the Vanguard Total Stock index (VTI) – an ETF representing all U.S. stocks on the NYSE, AMEX, and NASDAQ. I’m pretty bullish on the US economy – there’s still some side effects of 2008, but it looks like the economy is getting back on track, slowly but surely and this is a great easy and painless way to get in on that – without having to monitor it closely. This ETF is also in the mom-in-law’s portfolio which I’ve been trying to get close to the Canadian Couch Potato Model Portfolios.
That’s it for now – I’ve got some new companies I’ve started to invest in, but I’ll leave the more detailed posts for those.