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Yes, that's right, it's the poorest performing portfolio of 2012, courtesy of Jasonturbo
Edit: Wow lol 7,686 shares of YNG traded today, at an avg price of say .26/share, thats a whopping 1998$ traded today lol. Not my favorite thing to see.. but it beats a sell-off any day of the week.
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Originally Posted by jasonturbo
Follow me on Instagram @jasonturtle if you want to feel better about your life
I've been looking into buying a bunch of preferred shares of CIBC lately for long term/retirement purposes in my RRSP portfolio.. looks like a good 6% annual return. I looked up the pro's (relatively high return) and cons (low volume trading, low/no potential for major fluctuations etc.) of preferred shares.. just wondering if anyone else has any other insight into these types of investments? ..
I read that it also fluctuates in the same way bond prices do .. but I'm not too sure how that would happen, or even IF that would happen.
I've been looking into buying a bunch of preferred shares of CIBC lately for long term/retirement purposes in my RRSP portfolio.. looks like a good 6% annual return. I looked up the pro's (relatively high return) and cons (low volume trading, low/no potential for major fluctuations etc.) of preferred shares.. just wondering if anyone else has any other insight into these types of investments? ..
I read that it also fluctuates in the same way bond prices do .. but I'm not too sure how that would happen, or even IF that would happen.
funny, i was looking at the same thing on friday!
i assume they are purchased through one's regular trading account (RRSP, TFSA, margin account), but what about the low, low volume, how will they be filled (or are they not fully subscribed and the banks still hold them for purchase?)
but, with any fixed income security, i.e. a 6% yield, if interest rates go up, your real return decreases, thus, your value decreases.
i would have to look at it more, but if you hold to maturity (if they had a buyback date) it wouldn't matter (assuming there is a buy back date & price - as i say, i haven't looked into the details much).
you're right, though, a nice chunk of your portfolio should be a nice safe, pay to wait instrument, and i think there are few finer than a 6% Cdn bank preferred!
i assume they are purchased through one's regular trading account (RRSP, TFSA, margin account), but what about the low, low volume, how will they be filled (or are they not fully subscribed and the banks still hold them for purchase?)
but, with any fixed income security, i.e. a 6% yield, if interest rates go up, your real return decreases, thus, your value decreases.
i would have to look at it more, but if you hold to maturity (if they had a buyback date) it wouldn't matter (assuming there is a buy back date & price - as i say, i haven't looked into the details much).
you're right, though, a nice chunk of your portfolio should be a nice safe, pay to wait instrument, and i think there are few finer than a 6% Cdn bank preferred!
Prefs. have their own symbol just like anything else traded on the markets, TD for isntance has the following:
Take for instance the "O" portfolio, this is TD's most basic perferred share type and is based around financial performance of the bank itself.
Target dividend yield is 4.7%, but you can likely expect a slight better return than that, expect to see 5%+. Volatility wise, in the last 52 weeks has been roughly 10%, somewhere between a low of 24.xx and a high of 26.xx. Not bad when you consider the world was going to end last October lol. Daily volume on this stock is somewhere in the neighborhood of say 50k shares/day. So unless you have 1.3M worth of prefs. you likely do not need to worry about the low volume traded any given day.
Other prefs. offered by TD will be based off of things like commodity prices (They offer two portfolios built on precious metals), indices, or specific sectors.
The reason these are less volatile is strictly due to the high dividend rate.
Now, getting away from big banks, there are corporations and other funds that offer prefs. some with fixed prices and dividend rates, such as DFN with it's roughly 10% dividend yeild as a common share holder, or 3.75% (I think) as a preferred share holder.. the common share holders assume all the risk for a greater return, the prefs. are subject to a much lower yield, but have the advantage of a fixed share price and low risk.
I would say that picking up prefs. is probably a wise thing for anyone to do who wants some diversity. I am not a prefs. stock guru, there is likely fixed price options out there from major banks, and the issuing authority typically always has additional stock certificates they can issue.
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Originally Posted by jasonturbo
Follow me on Instagram @jasonturtle if you want to feel better about your life
I would suggest you go to this website to read up on preferred shares: PrefBlog
It has a lot of information on what factors you need to know before you choose preferred shares. Personally, I would just buy an etf to prevent or reduce the risk of redemption of preferred shares (eg. stock redeemed on preset date at 25.00, and you bought for 26 thinking you could collect the dividend indefinitely).
An alternative is to have an account with one of the big 5 banks as they occasionally have new issues of preferred shares as they tend to give you some capital gains on top of getting the actual issue rate.
If you were to buy a preferred share, I wouldn't look at anything rated below pfd-2 for your portfolio as they would be below investment grade.
My current pfd holdings include GWO-P and FBS-C (tickers on google finance), as I got them through TD waterhouse at the issue price.
Hey, since dividends are being discussed, does anyone have anything negative to say about Chorus Aviation (Jazz Air)?
The dividend is not preferred or guaranteed, but it's 20% right now (I liked it better at 50% when I first bought some) . I am so tempted to go BIG into this and basically get a second salary in dividends. It seems like a decent bet for dividends plus capital gains, although going in all the way is probably a risky move.
$ May 14, 2012
Yukon-Nevada Gold Corp. Announces $7 Million Private Placement
$ Vancouver, BC -- May 14, 2012 -- Yukon-Nevada Gold Corp. (TSX: YNG) (Frankfurt Xetra Exchange: NG6) (the "Company") announces that the Company has negotiated a $7,000,000 non-brokered private placement to sell up to 30,434,782 units (the "Units") at a price of $0.23 per Unit. There is no finder's fee payable on the private placement.
Each Unit will consist of one common share (a "Share") and one share purchase warrant (the "Warrant"). The Warrant can be exercised to purchase one additional common share (a "Warrant Share") at a price of $0.40 per share within 36 months of closing of the private placement. If the closing price of the Company's shares is at or above $0.75 per share for 10 consecutive trading days, the Company may accelerate the expiry date of the warrants on giving 30 days' written notice to the Warrant holders.
In accordance with securities legislation currently in effect, the Shares, the Warrants and the Warrant Shares will be subject to a "hold period" of four months plus one day from the date of issuance.
The proceeds of the private placement transaction will be used on the Company's Jerritt Canyon Mine and for general working capital purposes.
Yukon-Nevada Gold Corp. is a North American gold producer in the business of discovering, developing and operating gold deposits. The Company holds a diverse portfolio of gold, silver, zinc and copper properties in the Yukon Territory and British Columbia in Canada and in Nevada in the United States. The Company's focus has been on the acquisition and development of late stage development and operating properties with gold as the primary target. Continued growth will occur by increasing or initiating production from the Company's existing properties.
Nothing like shareholder dillution...
Lots of red again today... Options market is starting to look as safe as the bond market.
Edit: QE3 already!!! FUUUUUCK!!!!
Last edited by jasonturbo; 05-14-2012 at 08:31 AM.
How much lower can the market go, thats the question.
An interesting side note for YNG, if an institution is willing to pick up 7M worth of common stock at .23 per share.. that to me indicates that institutions out there see value in YNG... you have to know as the interested company that if the stock is trading at .27 and news come out about dillution it's quite possibly going to drop to the price you are purchasing the shares for anyway.. so why do it?
Another interesting point is that even though they have lined up the private placement, it would seem to me that they have not yet actually initiated it.
Meh... we'll see what happens I guess... this is probably the worst day for commodities since 2008 that I can remember.
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Originally Posted by jasonturbo
Follow me on Instagram @jasonturtle if you want to feel better about your life
With the market down across the board, any buying opportunity?
I am thinking about going in URRE again. Maybe grab 30K@.7x
I was having some URRE regret yesterday lol
With commodities as soft as they are right now and URRE likely having to seek some form of private placement well before they resume production, you could be looking at a lengthy hold before you are able to sell at your desired price.
Just sayin URRE Is a risky play, they are 100% uranium, have zero cash flow, and are looking into Q2 2013 to resume production... Possibly later. Having said that, huge potential upside!!!
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