Limit Selling BLU

BLU is one of my best performing stocks currently, but I have decided to do something unusual.

I am going to sell 46% of my BLU stock when it hits $8.25 CDN per share.

I bought the stocks months ago for $3.49 per share, so if I sell roughly half of my shares I will get back my initial investment in the stock (plus a tidy profit) and my remaining shares of the stock I can then just "let it ride".

Imagine for example you had purchased 1000 shares for $3.50 each ($3500 worth) and you wait until it is worth $8.25 per share, at which point you sell 500 shares for $4,125...

So you just made a profit of $625, got back your initial $3500, plus you get to keep the other 500 shares, to see if the shares continue to go up in value.

My issue, part of the reason I am doing this, is because I have a sizable chunk of my portfolio in BLU (a bit too much really) and I would rather take my profits from that and put that money into some ETFs so I am diversifying my portfolio more.

...

And my stocks just sold. In less time than I needed to write this blog post my stocks of BLU sold for the price I was asking for, using a Limit Sell of $8.25. And the value of the stock price just got pushed up. It started the day at less than $8.

 

What is a Limit Sell?

A limit sell is when you set a minimum price you are willing to sell the stocks for.

Earlier today the stock was hovering around $8 even, but I wanted to sell for $8.25 or more so that I am guaranteed to make a profit off my sale. (Buying/Selling at Market Rate is for suckers.)

So I set up the Limit Sell and put a 90 day extension on the sale, so that even if it doesn't sell today (which it did), it could still sell tomorrow or any time within the next 90 days for my asking price.

The beauty of doing a Limit Sell is that there are suckers out there who are buying at average Market Rate who will pay your asking price (either as a Market Buy or a Limit Buy), even if it is more than what they are bidding, so long as the Average Price of their purchase averages out to a number matching their Limit Buy (etc).

Thus if your Limit Sell is within a certain range (5% more than asking price or less) of what people are bidding, you can usually sell your stock for a higher amount than what it is actually worth because there will be other people selling their stock for less (5% under the normal price), but the value of your stocks will be bundled together and sold to the buyer.

Like I said above... Buying/Selling at Market Rate is for suckers.

If you're good at math you can easily just buy/sell everything for between a margin of 3 to 5%.

Thus if you want to buy $1000 worth of stock, but you make a Limit Buy for 3% less than the value of the stock chances are likely you will still make your purchase because your purchase will be bundled together with other people looking to buy versus other people looking to sell (at market rate or a limit sell).

And later when it is time to sell for a profit, you do the same thing, but in reverse - asking for a higher price that is 3% to 5% above market rate.

Thus you can potentially make a 6% to 10% profit off a stock, trusting that it is popular and volatile enough to make up the difference.

What is the downside to Limit Buying/Selling?

Sometimes your purchase or sale doesn't get done. Nobody matches the price you are asking, even when bundled together and averaged. This is why I like the 90 day extension when doing such buys and sales. Someone might not buy/sell it within the 7.5 hour long trading day at the TSX, so it is better to wait and see if it buys/sells the next day/etc for your asking price.

So the downside essentially is that you're either not making the trade at all, or you have to wait longer than expected.

In which case you can always cancel the trade before it happens within the 90 day period if you change your mind. Then you've lost nothing but time spent waiting.

Myself, I would rather be patient and gain an extra 6 to 10% on my investment just by being patient.

So what about BLU?

I am going to sit on the stock now. Let it ride. I have already made a profit on it. I want to see what happens next to the stock. Maybe years or decades from now I will sell it. Or maybe the company will be taken over by a bigger corporation. Should be interesting to watch and see what kind of profit I can get out of it now that I have already made back my initial investment.

Gold, Silver, Copper and Nickel Stocks Worth Researching

AYA is a gold and silver mining company in Canada.

CMMC deals mostly with copper, as the name "Copper Mountain Mining Corporation" implies.

CNC (Canadian Nickel Company Inc) deals with nickel, obviously.

Now what I want you to look at is the nice upward curves these stocks have. AYA and CMMC have sharper curves, but I fully expect these stocks to go up in value as demand for gold, silver and copper continue to rise thanks to the electronics industry.

The price of nickel meanwhile has been steadily rising since 2016 and is expected to continue to become a hot commodity into the 2030s.

CNC is one of the biggest nickel producers in the world, and if you want to research more about their company I recommend visiting their website:

canadanickel.com/investor/news-releases/

The point I am trying to make is that these are Canadian companies which are performing very well, and I believe they will continue to perform well during the next 20-30 years as demand for their precious metals continues to grow.

And demand means more profits, which means their stocks keep going up. Right now their stocks are quite affordable too. $3 to $10 per share is very reasonable.

I bought AYA back in July when it was less than $9 per share, and now it is close to $10.

CMMC and CNC haven't moved much since I purchased them, but I am confident they will go up gradually over the long term. I look forward to checking in on these stocks in July 2022 and seeing how well they've been doing since the time I purchased them. Or 5 years from now. Or 10 years.

 

 

Gold Shortage Coming

Both Ivanhoe (IVN) and Kirkland Lake Gold (KL) are smart bets in my opinion.

Why?

Because demand for gold is going up, and both of these stocks have a proven track record.

China is a growing economy and their thirst for gold jewelry is skyrocketing, but so is the demand for consumer electronics (which uses gold in the microchips).

The global demand for gold continues to grow. This is a supply and demand issue. There simply isn't enough gold to go around, but there are two Canadian companies which are plentiful with the stuff.

Nor are these the only gold mining companies I have invested in. There's about 20 different mining companies I have invested in, with many of them dealing with gold, silver, copper, rare earth metals, lithium, and basically anything that is useful for making either batteries or for electronics.

Because that is something else that people often forget. Our consumption of electronics goods continues to soar, globally, and those electronics need metals that are hard to find and mine.

Which means they end up being valuable and the mining companies extracting them from the earth are likewise profitable and worth investing in.

I am also invested in companies which deal in mining exploration, which means they are dealing with finding new places to mine such metals, and then sell their finds to the government or mining companies for a hefty profit. 

And like always, I only invest in those companies with a proven track record, and I am investing long term.

 

Energy Stocks

Algonquin Power (AQN) and Ballard Power (BLDP) are two energy stocks worth researching and investing in, in my opinion.

AQN has nice steady growth over the past 5 years, so definitely a strong contender.

You can see a blip from March 2020 for the start of the pandemic, but it had a very quick recovery.

This is a company which will continue to grow in my opinion, as they are expanding into renewable energy production and solar/turbine energy production is going to become a huge business during the next 30 years. Definitely a smart long term investment.

Nor are they limited by that. They are already a huge company that deals in both production, transmission and distribution of energy across Canada and the USA.

Ballard Power meanwhile is really banking on renewable energy. Hence the big spike in their stock price during the past year, followed by a calmer period.

BLDP as you can see has lots of room to grow, having gone from $2 per share 5 years ago and is now over $20.

I wouldn't be surprised if BLDP was worth $100 to $200 per share by the end of the decade.

Buying both of these stocks to me is a no-brainer. You buy both and you hedge your bets.

There are other energy stocks to consider, but I haven't seen any yet that are performing like these two.

Nor am I worried about BLDP's upward blip. That to me is a sign that this stock is ready to go even higher.

It will be interesting to come back a year from now or 5 years from now and see how well these stocks are doing.

I put my money where my mouth is. I bought both of these stocks, and I believe you should too while they're still affordable.

HAPPY INVESTING!

Cielo Waste Solutions = BioDiesel & the Future

Cielo Waste Solutions is a Canadian company that owns the patents on how to convert various types of garbage into biodiesel.

The value of their stock has shot up within the last year by a crazy amount, and I expect this company to keep growing as they expand their operation across Canada and the USA.

The graphs on the right show the stock valuation for the past 5 years and the last year, respectively.

Normally I only show one graph, the one for the last five years, but the value of the stock in the last year is the one you want to be looking at.

Ignoring the steep climb at the beginning, what you are seeing is a steady increase in the stock's value. It may be only worth $1.24 per share right now, but at the rate it is climbing it will be worth $2.50 six months from now.

And I expect it to keep going up in value over the next 10 to 20 years, although it should taper off at some point.

My point is that now is the time to buy this stock and then hold it for the next 10-20 years.

Buy it now when it is relatively cheap and then see what happens in the next 20 years.

I wish I had bought this stock when it was only 4 cents per share, but whatever. Hindsight and all that.

This is why it is important to be researching new stocks regularly and then when you see one that looks like it has great potential then you buy it up.

Even a small investment, $100, would have gained a person 2500 shares of CMC back when it was 4 cents per share. That 2500 shares would now be worth $3100, and possibly $6000+ within the next 6 months as the company expands its operations.

Companies which make electric vehicles, hydrogen vehicles, vehicles that run on green fuel... These are the future. Likewise any company that makes those fuels is similarly the future. Any of these Green Tech companies that are small now will be worth a fortune 10 to 20 years from now.

 

Drone Delivery Canada Corp = A Darling Stock for the Future

 I purchased Drone Delivery Canada Corp (FLT) back when it was $1.13 per share, but I suspect it will be worth a lot more by 2030 or 2040.

Drone Delivery Canada Corp is a tech / software company that makes drone delivery software and drones, and I foresee that this is the way of the future.

Just looking at their stock valuation, which was $0.14 per share back in July 2016 versus now when it is hovering around $1.36 or $1.37 per share, and you see that upward trend going on. When major delivery companies switch over to automated drones to make deliveries, cutting out most of their delivery staff, that is when I expect this stock to skyrocket.

Most packages are quite small and using drones to deliver the packages saves on fuel and personnel costs, and electricity and drones are relatively cheap.

Furthermore, Drone Delivery Canada Corp is already a $300 million company. I fully expect it will be worth over a billion in less than 5 years. Several billion by 2030.

You will note that the value of Drone Delivery Canada Corp has gone through two plateaus, but this doesn't worry me. I bought the stock when it was relatively cheap, and I would be quite happy to hold onto this stock until it is worth $50 per share - which I am confident it will eventually reach, although it might take 20 or 25 years to reach it.

At some point I might even buy more of FLT stock, but only after I have developed a well rounded portfolio of various diverse stocks.

Stock Tip - Pay Attention to the CDN-USD Exchange Rate

A VALUABLE STOCK TIP FOR CANADIANS

Only buy American stocks when the Canadian dollar is at par or above parity with the US dollar. (This usually happens when oil prices are really high.)

Let's say you buy $1000 worth of Google stock when the CDN dollar is on par with the US dollar. Then you wait 2 years, the Canadian dollar drops in value by 20%, but Google might go up in value by 20%. You sell it for 1000 x 1.2 x 1.2 = $1440 CDN thanks to the ever changing exchange rate.

So you just got a return of 44% for a 2 year investment in a stock that is pretty much guaranteed to go up.

However let's pretend you did the opposite... Let's say you bought the stock when the CDN dollar was down in value, and sold the stock when the CDN dollar was up in value and on par.

So 1000 x 0.8 x 1.2 = 960 CDN.

See the problem? Even though the stock went up in value by 20%, you still lost money because of the changing exchange rate.

And this is why Canadians should NEVER invest in American stocks unless the exchange rate is in your favour, and you should only sell when the exchange rate benefits you selling for a bigger difference.

Unless of course you like losing money even when your stock goes up. You'd have to be a bit soft in the head to not pay attention to the exchange rate.

 

 

What is a Darling Stock? Three Darling Stocks to consider buying

What I call a "Darling Stock" is essentially one that has a nice upward curve, measured over a 5 year or 10 year period.

Shown here I have picked out 3 stocks which I consider to be "Darling Stocks".

1. Kirkland Lake Gold Ltd (KL)
2. Park Lawn Corp (PLC)
3. WELL Health Technologies Corp (WELL)

Each of these stocks exhibit the things that I am looking for in a stock that I find desirable. That nice upward curve in value.

I can forgive the occasional dip in value (eg. due to COVID pandemic) if the stock recovered quickly from the dip and is still on the upwards trend.

Let's start with Kirkland Lake Gold...

It is a gold mining operation, obviously, but what I like about gold mining is that it is pretty immune to recessions. Whenever there is a recession many people put their money into gold, which causes the price of gold to skyrocket. Thus even if there is a recession gold mining operations tend to be making a lot of money.

Nor is this the only gold mining company I have invested in. I have invested in other gold companies, as well as companies that deal in silver, copper, and the mining of precious minerals usually used for batteries.

I expect battery usage to increase dramatically during the next 25 years so a company like NEO Battery Materials Ltd (NBM) is also a sure bet in my opinion. Go look at the curvature on NBM stock and tell me you don't think it is worth putting at least some $$$ into.

One of the other factors I consider when buying stocks is the issue of potential. A company which mines materials for batteries is increasingly in high demand.

Likewise gold, which is traditionally thought of as being used for jewelry, is also used for making computer chips... And the world is rapidly expanding the number of computer chips it needs, but we only have a finite amount of gold available.

I also have a hunch that at some point we will start using silver (or electrum, which historically is a mix of silver and gold) for making computer chips because the price of gold will be so high that computer chips manufacturers will start considering using silver or electrum to solve their problems instead of pure gold.

Thus a gold mining company like Kirkland Lake Gold with a strong record of increasing in value is a solid investment in my opinion.

Park Lawn Corp is a company that deals with funerals and human remains. Every time someone dies, they need to buy a plot of land in a cemetery and they need to buy a casket. This is essentially a real estate company for the dead.

Babyboomers are currently in their 60s and 70s... And a lot of them are currently thinking about dying and buying up cemetery plots. Some of them will have their cemetery plots purchased after they died, or will delay until they know they are sick and dying.

While there is a blip in the value of PLC stock at the start of the pandemic, it becomes pretty clear that they recovered quickly and their profits continue to be solid as Babyboomers (and people in general) continue to die.

What I am banking on with PLC is the idea that lots of Babyboomers (and people in general) will be dying during the next 25 years, and every time someone buys a casket, arranges a funeral, buys a cemetery plot via PLC then the company is making money.

Now the value of their stock isn't rising as quickly as Kirkland Lake Gold (or the next example below), but it is still delivering with a solid increase in price over time.

I fully expect PLC to continue to rise in value, with stocks being worth at least $75 per share by 2030, and possibly as much as $150 per share by 2040.

Do I feel bad about making money off of people dying? Nope. Because someday it will be my turn to die and I want to enjoy my retirement knowing that I made smart investments when I was younger. What I am really making money off of is the cycle of life and death that happens to us all.

Speaking of life... Let's talk about healthcare.

Or in this case the electronic records of healthcare. Everything is being digitized these days and in recent years there has been a huge upsurge in governments and private clinics outsourcing their digital records to companies like WELL Health Technologies Corp (WELL).

This is another example of how I foresee the future going.

All medical records, dental records, eye exams, etc... They will all be digitized and various select companies will be in charge of those digital records and the cybersecurity surrounding them, as people will definitely want their records kept private.

What you will also note with WELL is that there was only a tiny blip during the pandemic and then the stock soared in value - likely because they were needed to track medical records of people who had COVID tests and also COVID vaccination records.

Even before the pandemic WELL had that nice upward curve, and thus made it a smart buy, but during the pandemic you will notice the price of the stock shot up like crazy.

When the pandemic is eventually over (assuming it ever ends...) my suspicion is that those medical records are going to be needed continuously as governments and people realize that they are now reliant upon the digitization of medical records. There is no going back to paper.

Plus digital records are greener than using paper records, so there's that benefit too.

In my opinion WELL will continue to grow in value. By 2030 I believe it will be worth $50+ per share and will be a massive corporation. Buying it for $7 per share will feel like peanuts compared to what it will be worth just 9 years from now, or 19 years from now.

Let's pretend you have $3000 to invest.

If I were you I would take $1000 and put it into all 3 of these stocks... Then just sit and wait. Don't sell for at least 9 years.

By 2030 I suspect that $3000 investment will be worth $12,000. At least that.

You could leave your money in a bank savings account and let it accumulate interest, but that interest would be peanuts when you look at the interest rates banks are paying you. Complete peanuts. Food prices are going up due to inflation faster than bank interest rates.

Hello Canada! Why aren't you investing in the stock market?

Hello Canada!

Why aren't you investing in the stock market?

Is it because you have no money and/or no knowledge of how the stock market works?

Or is it because the big banks (eg. TD Waterhouse) are charging $9.99 to do one trade, which is a ridiculous fee when you consider that the trade is being done by a computer and not an actual person?

Well, I have good news!

#1. You can skip the fees by signing up for a Wealthsimple account for free

And they only charge 0.5% as an account management fee for accounts under $99,999, or 0.4% for accounts valued at $100,000 or more. Which means that if your account is quite small the fee is actually ridiculously small.

Plus right now if you join Wealthsimple, and use this link, then you get TWO free stocks to trade https://my.wealthsimple.com/app/public/trade-referral-signup?code=I30GVG *

* They don't give you the actual stocks, they give the cash equivalent of 2 free stocks after you deposit $100 into your trading account. The value of the stocks is random, but between $5 and $2500.

When I signed up I got a free Intel stock, which was valued at $69.10 CDN at the time, so for my $100 investment I already made $69.10. You do have to keep the funds in your account for a minimum amount of time in order to be able to cash out with it, but that is actually a silly idea because what you really want to do is invest it in a stock that will go up in value.

Furthermore, for each person who signs up using that link up above, I get 1 free stock too. So you can help support this blog by signing up too, and you get two free stocks, so this is a win-win situation for both you and me.

#2. You don't need to know anything about the stock market...

Because I am going to teach you!

Just subscribe to this blog, bookmark it, keep it on an open tab, and/or come back regularly for more stock tips.

Knowing nothing now isn't that big of a deal. What is important is that you LEARN how to invest in the stock market safely and get good returns on your money.

The Value of Shopify Stocks, 2016 to 2021

#3. Invest in Shopify

Why Shopify? I am going to show you why.

Shopify is a huge Canadian company which simplifies shopping for online stores. Shopping Simplified... = Shopify. How huge? It is a $250+ billion company. That's HUGE.

Every year people go shopping online for Christmas presents, and every year Shopify's stock goes up a lot during the Christmas holiday season - and the time period before and after Christmas.

So the lesson here is that if you want to invest in Shopify, you do it sometime in July, August or September... you wait for Christmas to come and go... and then you sell the stock sometime in January or February, when the stock will be worth roughly 40% more.

So if you invest $2000 now, by January or February the stock will be worth about $2800.

Or do what I do and just use the "Buy and Wait" approach.

The Buy and Wait approach is very simple. You're buying stocks that you think will go up in value over the long term. You buy them... and then you don't sell them for at least 5 years. Maybe 10 years. Maybe 20 or 25 years. You might never sell them. You might leave them to your children or grandchildren in your will.

Another thing I do is that I sometimes buy Fractional Shares.

This is the beauty of joining Wealthsimple. You don't need to pay $2000 to buy 1 stock of Shopify. Instead you can decide the amount you want to spend, as little as $1, and then buy a fraction of the stock. Not all brokerage companies allow you to buy Fractional Shares, but Wealthsimple currently allows people to do this with 14 specific stocks (10 American companies and 4 Canadian companies) which are pretty much guaranteed to go up in value.

The Canadian companies are:

• Shopify (SHOP)
• Royal Bank of Canada (RY)
• Toronto Dominion Bank (TD)
• Canadian National Railway Co. (CNR)

And the American companies are:

• Amazon (AMZN)
• Google (GOOGL)
• Apple (AAPL)
• Microsoft (MSFT)
• Facebook (FB)
• Netflix (NFLX)
• Tesla (TSLA)
• AirBnB (ABNB)
• Coinbase (COIN)
• Nvidia (NVDA)

 So for example, let's say you put $100 into your Wealthsimple account, Wealthsimple awards you with 2 shares - possibly worth about $25 each, and right away you have $150 in your account.

You take that $150 and you buy Fractional Shares of Shopify (SHOP)...

You wait until it goes up in value by 40% (to $210 CDN) and then you sell it and cash out.

Tada! You've made $110 and doubled your money in less than 6 months.

Or maybe you don't cash out. Maybe you wait 10 years and see what Shopify can do in the stock market. Which is my plan. I like the Buy and Wait approach.

I could sit on my stocks for decades and be quite happy to see my wealth grow. If I need to sell some stocks at some point because I want to buy a house (or a boat...) then that is my business. My choice.

#4. I only invest in what I call "Darling Stocks"

What are Darling Stocks?

Well, they're the stocks which have that nice upward curve to them. They're basically guaranteed to go up and keep going up. That is why I call them "Darling Stocks". They're very nice and I like them a lot.

They're keepers. You buy them, you keep them, and you make money off the dividends, and maybe you sell a few once in awhile because you need the money, but otherwise you sit on them and watch them multiply in value.

Want to learn more???

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