Friday, June 8, 2012

Looking like a good summer to buid the portfolio

I've go to get out of here in a moment. My VW Jetta TDI is ready for its 15,000 km oil change, etc. If you are interested in the diesel-burning Jetta, I  posted some comments here: Long Term Ownership Review: 2011 VW Jetta TDI.

Now, for some fast remarks on the market.

With the market down, my worst performing investment trimmed, my income is theoretically down. I say theoretically as the DRW I sold hasn't delivered a dividend in the past two quarters.

On the most recent testing of the bottom, I've done a little careful buying. I picked up a few hundred shares of Sun Life Financial (SLF). The ScotiaBank has SLF as one of its picks in its Income Portfolio. On dips the stock offers a yield of seven percent or better.

I also grabbed a bit of Cathedral Energy Services (CET). It has been offering yield of about 5.6 percent. This dividend, or so I understand, is fairly safe. At this time, CET seemed to be a good stock to own. Enjoy the yield and wait for the return of the good times in the oil patch. From what I've read, CET could double in price. If it does, I'll sell at that point and move on to something more conservative.

This bring me to Penn West. I don't particularly like this stock, and I own more than I'd like to admit. I'm not terribly worried in the short term and so I keep averaging down my costs. I got into Penn West through the back door. The large, former trust merged with Canetic in which I had stock. When PWT gets into the low $13 range, I always like to buy a little. Like CET, when the eventual oil patch turnaround arrives, I'll be ready. In the meantime, I'll have the yield. No hard reason, but I am not as confident in the PWT dividend as the CET.

Just a quick note on past picks: my REM is up today by about seven percent, my AUSE is down by about eight percent and my ZUT is up more than eight percent. Overall, my portfolio is still in the black for 2012 but barely. Soon, I'll have to remove $15,000 to live and the total value of my portfolio may drop into the red for the year.

As to questions posed recently, I must find the time to answer.


p.s. Forgive the typos and such, must post without proofing.

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