This article was originally published on EspaceMicroCaps
Author: Philippe Bergeron Bélanger aka Darrrk on our discussion forum.
ON 15 SEPTEMBER LAST, I LAUNCHED THE CHALLENGE TO REACH $ 1,000,000 IN MY SAVINGS ACCOUNT TAX-FREE (TFSA), FROM HERE 2023, FROM A CAPITAL OF $ 101,622. AS PROMISED, MONTHLY UPDATES ALLOW YOU TO FOLLOW THE EVOLUTION OF THE CHALLENGE.
During the month of November, I conducted a single transaction: the sale of 2,500 shares (new total = 32,950 shares) at a price of $ 0.85 in Microbix Biosystems Inc. (MBX). As mentioned in my last article, this transaction has been conducted to achieve my goal to maintain 5-10% of my portfolio in cash. I still believe in the potential of MBX and I look forward to the annual financial statements which should be available by the end of the month December.
At the end of the month of November, the market value of my portfolio amounted to $ 114,937 for a return of 14.9% compared to the end of October. Many of my positions have performed very well, including MBX (+ 22%), Xpel Technologies (DAP.U; + 20%) and International Barrier Technology (IBH; + 31%).
Here are the yields of the various indices from 1St November to 30 November 2014:
- TSX Composite = + 0.9%
- S & P500 = + 2.5%
- Russell Microcap = - 0.5%
- TSX SmallCap = - 0.4%
After one and a half months of standstill, my portfolio has made a great leap in the positive territory. This type of movement is common for an investor focused in his best ideas; its positions move during announcements of results or in anticipation of such ads. Since my two most important positions are DAP and MBX, it is normal that I outperformed the market when my bets are fair.
A final word on our favorite Exchange: TSX Venture. Lost 3.6% in November, and with the fall of the oil under the $ 60 price reached a historic low of 653.78 points (649.86 points during the session) Friday December 12. This is to say that the index has already lost 11.9% in December and is trading at levels never seen, even during the financial crisis of 2008-2009. Why? TSX Venture is the Canadian stock market of choice for junior mining companies related to energy, two sectors in difficulty currently. It is our favourite stock exchange because the underperformance of the index led a flight of capital to other exchanges or asset classes and we now see many opportunities in nonbonded companies in natural resources.
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