The Transparent RRSP: Post #7

Actions Taken the Week of February 13th
  • Bought 50 shares of Global Real Estate Dividend Growers (ticker: GRL.TO) at $7.74 per share on February 14th
  • This cost me $387.00 plus 0.50 cents commission

I now have $147.60 remaining in my RRSP left to invest. If I don’t find anything cheap enough to invest in, I’ll probably wait until my next regular deposit of $150 in the first week of March before I can afford to buy another stock.


 

grl

GRL’s Price History Chart on freestockcharts.com

 

I personally like the newness of this stock. The lowest it’s ever been is $7.30, so buying it 0.44 cents above that seemed like a good deal to me, especially if it goes up from here. It’s possible this can still go down to the $5 area. Stocks tend to test major price points of $5 multiples. If this doesn’t go down, then the first target area would be around $10 where there’ll be some profit-taking and then some more buying before going up even more.

I really liked this chart; although I will admit that my entry was aggressive and possibly premature. What I’d love to see this stock do is continue to trade in the $7.50 to $8.00 range. If this consolidates for another month or two in this area, you can bet I’ll be buying more shares before it breaks out. What’s also great is that this stock pays a monthly dividend of 0.05 cents per share.

7 thoughts on “The Transparent RRSP: Post #7

  1. I wondering if you have a play book for your Transparent RRSP if you do where one could read it or fined it, as a chess playing addict I always looking long term investment as, Opening game Mid game .Endgame. What strategies are used in each part as RRSP mature. Are you taking higher risk at opening game to take advantage ( time, compounding ) reduce risk in mid game, move to fixt income like Bonds or the likes in the end game?

    Ps, CNR Generating the the most intense battle of FEAR / GREED / COMMON-SENSE what will prevail?.

    Steve,

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  2. Hi Steve!

    I don’t have a play book other than what I’m openly posting for the Transparent RRSP. I’m happy that you’re following along. Great question!

    Yes, you can say that my early-entry strategies are higher in risk with less factors to confirm an uptrend. However, the reason I get in early is that I feel that if I get a stock cheap enough, trends won’t matter. Low stock prices + time + compounding will lead to better long-term growth, with the regular additions of dividend income.

    If there are new pattern setups within these securities, I will scale in and buy more shares, so you can say that’s more of a mid-game strategy. As time goes on this year, I will explore and write about tax strategies and exit strategies to consider at retirement.

    As for your CNR swing strategy – best of luck! It had a nice correction early February, so it’ll either resume upward or trade sideways for a bit before launching upwards again – given that the market and related sectors keep uptrending to support this stock. We shall see what prevails!

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  3. Global Real Estate Dividend Growers may call themselves dividend growers but they have not grown their dividend. They’ve paid the same $0.05 monthly distribution since inception in Sep 2015. As their yield is north of 7% I’d say there’s a better chance of a dividend cut than an increase. This may be a good trading stock but not a stock to recommend for dividend investors. I’d call it high risk.

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  4. My primary hope with this stock is that I got it at a low enough price that when the time comes to sell it in 30 or 40 years that it’s at a sweet profit! My second hope is that the dividends go up from here.

    For some investors, cutting a dividend is a reason to exit and they’ll look into the multiple reasons that will point to a company in trouble. Just like a falling stock price is bad for company. I, on the other hand, am attracted to cheaper stocks. Stocks go down in price for so many reasons–a dividend cut, lawsuits, flawed products, etc. The less I know, the easier it is for me to make decisions. I’m all about charts first because I love profits and I’ve done very well in that regard. I like sectors second because I like to diversify the portfolio and the sector helps to support the stock. GRL adds a real estate element to the portfolio. The dividends are great too!

    You make a good point that if they cut their dividend again, this stock could be in trouble. But I ask, what do you base that sentiment on? Is it based on trends in real estate?

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  5. High yield low growth equities tend to fall out of favour in rising interest rate environments. This may be part of the reason this stock is down 22.5% in price returns since inception in Aug 2015. The administrators of the fund, Middlefield Group, have not been adverse to distribution cuts in the past with other funds they manage and dividend cuts do tend to lead to further price drops. Sorry to be negative, I do hope this works out well for you! I’ve done well in unrealized capital gains with two Canadian REITs PZA.UN and BPY.UN but I bought them primarily for portfolio diversity and dividend growth. I’m a long term buy and hold DGI. That’s my bread and butter, I seldom trade anymore.

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  6. My comment would be” If you live by the sword you die by the sword” if you buy a stock based on technical analysis you should be guided by that in managing it,if you buy it on fundamentals then you should be managing it on that basses unless it blows up, then you go into crises management mode,dose not matter why you buy it.When you buy a stock for a reason and that reason despaired you have no reason to own that stock. My apologies if my comment are not relevant.

    Steve,

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  7. I tend to agree with you, Steve. You and I are both technical analysis practitioners, so yes, I do understand where you’re coming from with that. I’ve been burned in the past, getting out of positions early due to fundamental information that made me doubtful. Some investors, however, are able to successfully marry the two strategies. I like to keep things simple for myself and I make it clear that my strategies are very rough and basic. What I think is most important is that people invest for reasons that work for them, their goals, and according to their investor personalities.

    Bernie raises valid points, but it’s clear his strategies are based more on information and it’s great that it’s worked out for him. I appreciate both of your willingness to share your thoughts and ideas. And yes, I do hope it works out for me too, Bernie, lol! Thank you.

    I’ll be honest, it was a lot easier for me to encourage people to just save and invest while being vague and private about my own successes and failures. However, it was starting to bother me. For years, I read a lot of articles and blogs where writers are more willing to discuss things in hindsight, and even cherry pick the trades that they talk about. Being ‘transparent’ takes a lot of nerve because I’m exposing to others the uncertainties that come with investing. Whether this experiment fails or succeeds, my biggest hope is that it encourages new investors to be bold and give wealth a try. I also hope that more portfolio/fund managers can do the same thing with being more transparent. A big criticism of the financial industry is that it’s not transparent enough. It’s one of my criticisms too, so now I’m putting my actual money where my mouth is. Wish me luck!

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