Famous Antisocial Humans

MTY Food Group (CVE: MTY)

That finally my own analysis of MTY. I know some people are eager to see if my conclusion on the title has changed. Here are the assumptions that I sent (who knows, maybe you have best idea or it could help improve your designs):

• First, I noticed that, historically, the operating costs (admin, marketing, etc..) represent between 61 and 64% of sales (average 62%).
• The tax rate is between 30 and 32% with an average of 31%.
• Historically, quarterly sales following equation: Sales = 2.55 + 0.228 LTA-1. In this equation, LTA-1 represents the book value of long-term assets over the previous quarter. I do not use this equation to model MTY, but I noticed that the equation was thrown in my data. (Those who want to know the Rcarré of the equation is 88%)

Those are figures based on the past. For others,

• annual sales growth of 22%. It comes from organic growth of 5% (based on the objective of the company to open 75 new schools), a 15% growth through acquisitions and rising prices (inflation) of 2%.
• To achieve the objective of growth through acquisition of 15%, MTY will make acquisitions to increase by about 25% per year long-term assets (ie $ 20M this year ... up $ 32M in 5 years ).
• I also assume that all acquisitions are profitable and that no revision of goodwill is required. Note that this assumption may seem strong, but I must admit that Stanley seems to take my time to make a roadmap without fault.

I also tested a model in which I have made no growth by acquisition. This model was intended primarily to see if the stock remains attractive where MTY took years to find an interesting company in which to invest. Sorry for the big fans, but not growth by acquisition (or a BIG house development shops ... like 75 per quarter), the Title is not worth much. My ticket is already pretty long, I'll avoid going any further in this worst-case scenario.

Statement
Here is the statement (click to view larger). Basically, Y-1 is estimated at three months and Y-2 Y-5 follow the main principles decry before. I have no complaints about the rest.

Review
The record was built inverted. That is to say that I have included the figures would be accurate to observe the relationship between the income statement and balance sheet (or shareholder's equity section). Level of debt, I assumed a growth in accounts payable to support business growth, but no other form of indebtedness. This allows me to find the value of my assets (debt + equity).

I maintain the cash position to 1-2 million by putting everything in the short-term investment, but for me, 2 are the same case. Goodwill is included in "Other assets" and is indicated only for presentation purposes. (Actually, I use it for other calculations and was too lazy to remove it before doing a print screen!)

Here is the link for the report I wrote:
http://sites.google.com/site/financialanalysisjournal/mty-food/04-19-2010-MTY.pdf


I want to reiterate that I can not be held responsible for your investment decisions. If my report helps you build a good idea, but I can not be held responsible for your future losses (because if I were, I would also be held responsible for prizes!).

Those who want to know what are my models in my assessment, my next few posts (in the coming weeks) will tour models used in finance and I will indicate my favorite. For the curious, my target price is based on MTY 6 models that seemed to converge!

Koleston Color Chart For High Light

5Banc Split Corp. (TSE: FBS.B)

I updated my list of the top position and performance and I thought I would add a little explanation about what 5Banc Split Corp. since all the people I have spoken did not fully understand the product.


What's this?

First, FBS is a company that is structured like a mutual fund capital closed trades on the stock exchange. It's a bit between the ETF, the common background and a business. The best way of looking at it is that it is a shell company that invested in the stock market. The aim of BSF is to invest in the 5 largest banks. The weighting for each stock is put in almost 20%, but a slight variance may occur in response to market fluctuations and other factors.

Why is it so special?
Everything is in the ownership structure. There are two groups of owners FBS: preferred shareholders (AP) and shareholders (AO). PAs receive 4.75% per annum, payable quarterly, based on the issue price of the share ($ 10). The AO also receive the remainder of the capital gain. The structure is made so that the ratio AP / AO = 1 at any time. In December 2011, FBS redeem all preferred shares and new issues (the official process is a bit more complicated but the result is not bad in this genre).

The first reaction is to tell the world "You're sick! To pay 4.75% PA, while banks pay a dividend in the 4%". However, FBS is able to pay a dividend of 2.5% currently. Why? Here's the best description I can do:

• Issuance of $ 100M to $ 100M AP and AO.
  
• $ 200M investment in a portfolio generating returns of 3.8% ($ 7.6 million in dividends per year) or the approximate average dividend yield of Canadian banks [TD (3.2%), RY ( 3.25%), BNS (3.8%), BMO (4.4%) CM (4.6%)]
  
• Dividend Payment of $ 4.75 million to the PA (or 4.75 million = 4.75% x $ 100M)
  
• Rest $ 2.85 million available to cover the costs of business operations (approximately $ 500K, or 25 basis points) and pay dividends to AO.
  

Still leverage ...
I already hear several start criticizing This product takes the lever on companies that already have the handle (and I speak not even I could purchase the lever in a margin account ...). I can already hear me lecturing the world about the dangers of debt and / or structure such as this. But where is the danger to the AO? For me, it is certain that there is a greater risk that investment in just five banks. But if you think the banks will quietly raise their value and dividends in the coming years (that is, if you think bonds are cushy), add a little lever is interesting in terms of performance.

Also, return on assets is not really 3.8%, but $ 7.6 million per year. The dividend is stable ... whatever the value of assets. To decrease the value of the dividend, should the banks cut theirs. But even in times of crisis, they have not done. If you believe that there is a strong likelihood that banks cut their dividends ... Do not invest in their titles!

I know that Scotia and TD have created many such products (the latter comes from TD Securities), but not all products are interesting. For example, I believe that the risk even companies in the sectors of health and energy are such that adding a additional leverage is dangerous. But for banks ...

I repeat: this title is simply more risky investing in 5 banks. However, the expected return is also larger (the risk-return relationship holds). The risk of leverage is a risk that I know well and that I find preferable to an operational risk for banks.

Fear of leverage
Some say I picking on those who preach about the lack of debt ... they are right! I just do not understand how a person may want to avoid at all costs any form of debt. At a minimum, the debt allows flexibility in the activities Company. And there, beware! I'm not talking about debt at the ceiling all our businesses. I talk to have a reasonable presence of debt to significantly improve the level of yields. The returns can come from the systemic risk of the company and / or financial risk. The idea that I preach is to not think in binary (thus either), but rather to assess the systemic risk of a company and to add financial risk accordingly.

If my argument back in personal finance, not because it is dangerous to have 3 credit cards met, a line of credit being fully utilized, an auto loan and a big mortgage we should avoid all the credit. A mortgage that you know are reasonably able to pay in the foreseeable future is not bad in itself. There is even a tool that allows you to make a project many years ago ... provided that the interest rate charged is lower than your required return.

Tylenol Infant Constipation

The impact of debt

After working with beginning students in finance, I realized that the leverage that allows the debt is not well understood by the whole people. A comment from the author on QuébecBourse Intel and AMD has pushed me to make some clarifications.

You understand why the debts of a company after my opinion the principle of "enough is like not enough." Consider the situation

Intel and AMD, but by simplifying and standardizing the data situation for 2 companies easily comparable:

• Let $ 50G Intel to 11.5g of assets that are funded by $ debt (ie D / A = 23%, real numbers)
• Assume that AMD also has $ 50 billion in assets, but $ 42G are financed by debt (or D / A = 84%, real numbers)

Suppose now that both companies are as profitable as the other one (so we gives the same income and it has the same operating costs). We will also assume the debt service of 5% for Intel and AMD 10% (plus hat because more debt) with a tax rate of 30%. I know there are many hypotheses, but simply to simplify understanding.

Say this year, both companies have released earnings before interest and taxes (EBIT EBIT in French or English) of $ 15G. For Intel, the net profit of $ 10.01G (0.7 (15 - [11.5 * 5 %])). For AMD, it is 7.56 billion dollars.

The first conclusion to draw is that the benefit net of a company made no mention of its productivity and operational efficiency. For this, it is better to use the revenues and EBIT (or EBITDA).

per share, assuming that both firms have identical shares of par value to $ 10 per share, we find for Intel and AMD $ 2.60: $ 9.45. We see a big difference here mainly because of the leverage. Reminder: AMD only needs $ 8 billion of funding per share (800M shares).


Another reminder: no figures here is real, it is pure fiction to explain a phenomenon Financial.


And for real life then?
If we see the return current market reality, it is normal (and healthy for the markets) that the same good performance affects more AMD than Intel. Lorsqu'Intel has published good results, the markets are extrapolated to perform well on AMD. Historically, such a method is not without merit. If the jump in earnings per share was important to Intel, we are entitled to expect something of 2, 3, or 4 times greater in AMD. The same dollar increase in net income for Intel and AMD do not have the same effect on earnings per share. And we know very well that the price of a share is based on earnings per share and not net income.


But the risk associated with debt in all this?
Some will say while it does not make sense because AMD is much more risky (after all 84% of its assets are financed by debt). Or make such a comment is not understanding how the financial markets. We already know the danger of debt from AMD. This risk is already built into the share price. Besides, look at the P / E ratios of two companies based on last quarter output. We find a P / E of 13.6 and 7.2 for Intel for AMD. It therefore gives the markets a more favorable Intel AMD.



So to say that markets are deregulated because AMD was up higher on anticipation that Intel was on good news is false. Intel has announced an increase in its operational performance (which resulted in higher profits). If you consider that AMD was able to have a similar increase, higher earnings per share would have been even more important because of the high leverage of debt.


So you see why I like that my companies have some leverage in their operations. This improves the net without operational improvement. A well-managed company should not be 0 debt, but rather have a reasonable debt that does not endanger the situation of the company. Of course, AMD does not fall into this category. Its debt is ridiculous and dangerous. But a business without borrowing (eg Becker Milk) does not give its shareholders the returns they are entitled.

Bio Gel Nails Toronto

A temporary return on investment

After reading some comments on the temporary investment on the web, I began to wonder questions about my vision of the thing.

Basically, my question was why I dislike the fact that MTY Food has 25% of his business in cash, but a company like Westjet does not bother me (it has 28% cash).

I quickly realized that it's my gut feeling who initially said no to MTY but YES to WJA. I learned to listen to my inner voice in 2008 ... because I have always advised before my mistakes during Q2 and Q4 2008 (of course I had not heard). In short, it was my lesson of the day: Never go against how I feel now ( if you do not like, Then do not touch ).

To answer my question, I had still something more concrete. And I found today: my confidence in management. Let me explain: For

Westjet, I have confidence in the future of the enterprise and project management. I know there are nearly 45 new aircraft to be delivered over the next 5 years and the company management intends to see Westjet among the largest airlines in the world by 2016. To survive in the industry, it is common knowledge that should also hold about 10% in cash. By comparison, WJA has a cash position far too great, but I'm comfortable with. I know what are the intentions of the company (or rather the direction) with that money.

Conversely, I do not know what it means to MTY Food with its funds. I am unable to see what are the objectives of MTY. I know they are already leaders in fast food food court. But what are the objectives of management? How do they intend to spend this money? Where do they make acquisitions? In

Alimentation Couche-Tard, I know that the goal of management is to improve its position in the U.S., to shop south of the border to acquire companies competitors. But MTY? do they want to develop a new niche in Quebec? Expand their exposure in the rest of Canada? From the American adventure? Moving to Europe?? I do not know.

I'm not comfortable investing in a company where I do not know what direction the research and holds a significant amount of cash on hand. I'm not saying it is a sure failure. I'm just saying that this is a new venture to add into the equation (the uncertainty of management objectives) that I do not wish to take. Some may take love, I am me. After

Cipralex For How Long

The concept of value

a large text on the Quebec budget, I thought it would be interesting to settle for a small column on the simple concept of value.

WhiteShad As mentioned in his blog ( http://portefeuille-financier.blogspot.com/ ) in February, the intrinsic value of an enterprise is the maximum amount you are willing to pay to buy the future cash flows generated by the company. I will now explore this concept of value and introduce the concept of risk.

The value of continuity: going concern value

This value has described and WhiteShad that we tend to regard as the single value. It is the value of the company, considering that it will continue its operations in the foreseeable future. In the situation where one seeks the value of business continuity, we must look to the future of the company and ONLY the future. Past performance gives no value (but it could serve as a basis for calculating future Cashflows).

In such a situation, how to assess the value of the company? We must determine the future Cashflows and update to the present with a discount rate that we have chosen.


Take the example of a company which has only one client with whom she has a long-term (75 years) that will provide a net profit of $ 100 000 guaranteed per year (the Cashflows are some). How much is this company? It depends on the discount rate chosen. If we require a 10% return, the value will be $ 999 214. But at 11%, the value is only $ 908 728. At 15%? $ 666 648!

This shows that the required rate of return assumption makes it very volatile the value of the company. And it was not even incorporated the concept of risk on the side of the cash flows! Indeed, we have assumed that the $ 100 000 was secured and stable. But in a business, this amount varie et cette variation peut être complexe à prévoir. Quel sera le bénéfice de Bombardier dans 8 ans ? Nous pourrions tous avancer un chiffre, mais il sera aussi réaliste que la prévision météo pour le jour de Noël l'an prochain !

Calculer la valeur de continuité d'une entreprise par l'actualisation des flux monétaires futurs est une lourde tâche et un léger changement de 2 ou 3 hypothèses peut affecter grandement notre calcul de la valeur intrinsèque d'une entreprise. C'est pourquoi plusieurs analystes utilisent des méthodes d'évaluation relative, i.e. qu'ils comparent l'entreprise à d'autres. La méthode la plus populaire est sans contredit le P/E, but there are more than twenty (I will not cover here).


And the concept of risk in all this?
A method for using the discounted cash flow is the use of sensitivity analysis. Such an analysis would include a notion of risk in each case and it would run the model a thousand times (or more) to see what value comes out every time. This gives a mean value with a potential distribution. A simple example based on what has been said before:

• Profits of $ 100 000 now have a standard deviation of 10% and follow a normal
• The required rate of return is 10%, and follows a normal distribution with standard deviation of 1%. In stock

model a thousand times on a mathematical platform (eg Matlab), we could obtain a value of the company in the confidence interval [902,150; 1096250]. In our model, there would be 95% chance that the true value is in this range. If the market value is $ 910 000, we can not declare that the company is currently undervalued (then as above, with 10% it was like she was).


The NAV
This enterprise value is often forgotten by people because it is normally less than the value of continuity. The NAV is that if the company would shut its doors, liquidating its assets and paid all its liabilities. This value is convenient for a company that announced the imminent closure of its doors (in such a situation, there is no continuity).

So how is this calculated value? A quick way to assess the asset value is the book value of the action. However, such a method assumes that the long-term assets, net of depreciation is indeed the resale value of assets. Rather, it should proceed in assessing the overall assets at prevailing prices in the markets. Let Becker Milk. This company owns real estate for over 50 years, she rented to stores. The book value of these assets is approximately $ 15M, but on the market, they easily worth $ 40M.

It is interesting to calculate the net asset value of a company. Why? Because it will find the wrong business. Let Becker Milk. The value of continuity is about $ 12-13 per share (the title is 10 now). Its net asset value is estimated at $ 20 per share with very conservative assumptions. So this tells us that the company would be more expensive if it liquidated its assets and closed shop. There are two possible answers to this situation (and both me off this type of track). Either the industry in which the company operates is no longer viable, or the company is mismanaged and management destroys value. So there

two important values for a business: the value of continuity and its net asset value. The first should be consistently higher than the second and should be calculated by considering the uncertainty in setting our assumptions.

Honey Extractorforsale

cooperative Auvergne Auvergne Bio Distribution positioned in first place!

The year 2009 ended in a good mood Auvergne Bio Distribution has doubled the number of meals served in schools. This year has seen excellent acceleration especially bio in primary schools. Pushed by parents or by elected officials, many municipalities choose to integrate bio for improving the quality of meals served in restaurants of children.

The platform is now at cruising speed, the system is oiled. It allows the provision of schools Auvergne, restaurants businesses, nurseries and nursing homes who wish, and parallel development Auvergnates channels. Indeed, 69.53% of purchases of the platform were made in the region.
Transport is optimized in each case thought to be as clean as possible, and limit the costs to pass on to schools.

Auvergne Bio Distribution is in great demand in other regions to support projects, a sign that demand for local products continues to rise in the French regions. These interventions allow us to measure the advance taken by the Auvergne in terms of professionalization of the distribution, and quality of its structuring tool chains.

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Quebec Budget 2010-2011

At first I did not want to talk about the budget because I thought it was a bit off topic for my blog. After all, there is not much relationship between stock market investment and the budget of a provincial government. However, I changed my mind after hearing several reactions Deplus me.

Reminder hotspots

1. Rise in QST at 8.5% on 1 January 2011 (already budgeted for last year).
2. Rise in QST at 9.5% on 1 January 2012.
3. Increase gas tax by 1 cent per liter per year for 3 years. Montreal and Quebec City may impose additional 1.5 cents.
4. A health contribution of $ 25 this year, $ 100 in 2011 and $ 200 in 2012. This amount will be paid by every citizen is not considered "poor ben ben.
5. Evaluation of the possibility of imposing a deductible medical (nice name for co-payments) in the next few years.
6. The heritage pool electricity will increase by 1 cent per kilowatt hour over the period 2014-2016.
7. Increase tuition fees from 2012 levels indefinitely. Increases of $ 50 per session is already in force until 2011.

And then??

What is the impact on the average of all these measures? It's very simple ... higher taxes payable. It is quite certain that the world is tired of paying and they are disappointed. But what would you do instead of the Minister of Finance? At TVA, the morning of the budget, the journalist asked the people in the street if they were willing to make concessions to keep the same level of services. All, without exception, said they were willing to make concessions. When the reporter offered them some "concessions" (QST increase, higher taxes, higher electricity), there is not one who said yes to the proposed measures. Of course, the reporter was too pitcher did not think to ask them what concessions they were ready to go!

To people around me who criticized them, I asked this famous question. The first response I got was to cut the bonuses paid to bosses of the public (instead of dipping into our pockets again). Nice try, but this is already part of the budget!

I also speak of a water tax. Even if the budget already includes a water tax to large business users of $ 0.0025 per cubic meter in a production (which increases to $ 0.07 if water enters into the composition of the product), I admits that this is very low. I would have preferred a water tax that is stronger (the current measure would provide only $ 8M per year in the state).

I'm also told he must reduce the size of the state. I agree with the reduction of government, but too often reduced to just reduce the number of services offered (or quality). I think the measures in this budget as the disappearance and / or merger of some thirty organization, reaffirming the policy of replacing a retiring two and freeze the salaries of MPs and ministers ( even though more symbolic than anything else) are a step in the right direction. After

that, instead of going back with a constructive about what should have been done, I was entitled to "Anyway ..."," Charest is a stain "and other words that mean nothing . At most, I got a reply sentence would not hurt to say that the rich pay enough taxes and that is to them that they should pay the bill.



A cultural revolution?

If Quebecers have grumbled a bit at points 1 to 3 in the list above, the reaction was (still is) strong in point 4 (and the possibility of 5). I have some French colleagues (and socialist) at school who were offended by this form of taxation. I will copy here what one of those French who were after the health contribution.

You find it normal that the guy who earns the minimum he will pay $ 200 as the boss super rich? Well, not me! When you have an emergency surgery, to $ 20 000, but you will not pay for the sub, I'll come hold your hand in the hallway, where they'll put you on hold. For my part I do not worry, I still have my French Carte Vitale.

[...] But I think especially that there are other ways to save money than to cut spending on vital as health or education. Must take the money where it is rather than cut the remaining bit of business in Quebec. See a health care system here in American, there's nothing to be proud!

[...] Then [when you say "the rich already pay enough tax through Quebec and taxes"], excuse me but I will not complain about the poor if they pay a tax by more chouille solidarity. No this is not normal that everyone pays the same thing when everyone does not earn the same.

It sums up the thought and fear of many Quebecers. Unfortunately people confuse the arrival of the health contribution to having now pay for care. HEY! There is talk of a tax for all to KEEP our public health system. There person who talked about having to leave the checkbook in order to have surgery. And not tell me that the health contribution is just the first step towards privatization of the system. Such a remark is unfounded and completely false. If this were true, then I could say that increasing taxes on the wealthy would be the first step to seize 100% of their income!

Where the world can criticize is the fact that this new tax is not progressive as the income tax (so you win more expensive the more you pay) but simple. You earn $ 30 000 or do you make $ 200 000, your additional contribution to the health system will be $ 200 per an.J put him in additional capital because the world tend to forget. The rich already pay a tax far above the class average. They therefore contribute in greater proportion to the payment of the health system.

You see, if some find this abnormal health contribution, I think it's just that it is fair to all. Why should the rich pay $ 2,000 while the middle class person would pay $ 200? Do the rich have better access to the network than others? No. The solidarity of the rich towards the poor is already widely present in the progressive tax in Quebec. There is a small fee ($ 200 per year is $ 0.55 per day) for which each contributes does not seem to remember that this tax exagéré.Je seeks to cover a fraction of the cost of the system . This contribution will provide $ 945 million per year versus a system that cost $ 28 billion per year.

I still hear people say that the rich pay no taxes. A simple example demonstrating the importance of the sales tax the rich over the poor. I think you will quickly understand that they already pay a lot. In Canada, you're rich citizen consider as soon as your income reaches $ 130,000 (approximate changes with inflation). From this level, each additional dollar of income is a tax charge of 53%. Take a Quebec citizen who earns $ 200 000 per year. It will pay $ 41 305 tax to the Quebec government and $ 46 500 Canadian government. In total, $ 87 800 tax. By adding $ 600 to EI, the QPIP $ 315 and $ 2,160 QPP, we arrive at $ 90 860. I include the QPP as a tax. In total, 45.4% of its share in income tax. We are not talking of consumption taxes, school taxes, municipal taxes and others.

Let's do the same scenario now for a citizen to pay $ 30 000. The bill will be $ 2,950 to the Canadian government $ 2 700 in Quebec, $ 415 to EI, $ 150 and $ 1,310 QPIP QPP. In total, $ 7,535 that citizen will pay in taxes, or 25.1%.

So now, the rich pay 45% of his salary to the company while the citizen "ordinary" pays 25%. Some say there are plenty of loopholes that the rich can take to reduce their bill. True ... but there are also middle class. And I can claim to have benefited greatly these tax credits offered to the middle class last year.

Had the government increased the tax on the first tax bracket or reduce the basic income sheltered from tax, it would have reached the same result as the imposition of a contribution to health for all. In this situation, all those who pay taxes, have paid $ 200 more. The big difference between this mandatory contribution and increase the tax, it is known that the money raised with this contribution will go directly to health.


In conclusion, I remind those who often forget that the money who enters the government must be equal to the money that comes out. An imbalance will be offset by debt (loan for a gap and reimbursement for a surplus). Currently, we are far from surplus and will soon take us to the Greek situation (not tomorrow, but if it stays like this for 5-10 ... yes). To balance its finances, the government currently has two choices: increase revenues and / or reduce expenses. We can not work miracles; money not grow on trees. If you want to complain, go ahead, but offer a solution to improve the situation. Arrive with enough to make sense and be constructive.

Updated:
solution
I thought a bit after writing this post and I thought why not increase the corporate tax? What would be needed to cover rising health contribution? The current deficit? Well the answer to both questions is simple: raise corporate taxes by 25% and 45% respectively.

In Quebec, the average tax rate is 12% regular. The combined federal-provincial income is 30%. This rate is comparable to Ontario (32%) and British Columbia (29%), but is below the U.S. rate (± 35%). To cover the deficit this year should rise 12% to 17.35%. Such an increase would eliminate the tax competitiveness and employment in Quebec Quebec would suffer. But the increase of two percentage points (from 12% to 14%) would bring $ 650M per year over the state. And 14%, we would be identical to Ontario.

If Something Is 20% Polyester And 80% Shrink?

Performance Q1-2010

I am pleased to announce that my performance has been updated and that my wallet can celebrate its fifth quarter in positive performance. During Q1-2010, my portfolio produced a return of 4.37% compared In my March to 2.26%.

I'll enjoy this first post on my performance a bit to explain my calculations. Among other things, for those who do not know what March 1, I suggest you read my column for almost a year ago on the comparison benchmark vs MAR ( http://financeanalyse.blogspot.com/2009/ 04/le-benchmark-une-bonne-chose.html ).

I would add one important point to this quote I had written this note: "The important thing is to try to beat [our MAR] ... and to truly! So you want to do At a minimum, as well as passive management [which is our March]. " This sentence is obvious in a sense. If I offers a choice between 2% yield on one month and 74% ... my decision will not be very long if we have the same level of risk! The subtlety that was missing in my text on the benchmark was the whole notion of risk. It's fine to want to beat her in March, but it should be maintaining a similar degree of risk.

For my part, unfortunately, I calculate my performance only at the end of the month. This meant that I only have 12 observations to assess the change in my portfolio over the year. A risk assessment of the portfolio is complex and not statistically significant due to the insufficient number of observations. And take the values before December 2008 to calculate my risk would be absurd: I learned my lessons and it has drastically decreased.

The only measure of risk that I calculate is the standard deviation of my portfolio. Culated, my deviation from March 2009 is 22% (12% in March) compared to 55% in the period before March 2009 (20% in March). This is a significant decrease is largely attributable to redesign my portfolio in March 2009. My standard deviation higher than 10% in March was mainly due to the fact that I was on line a good portion of that period. The content of the next paragraph is also partially responsible. My calculation

monthly performance also cause an impact in relation to deposits and withdrawals that I do. However, I adjusted my performance calculation to make sure I underestimate automatically imposing deposits on the first day of the month and withdrawals at the end (only in my calculations). For example, this method gives me a yield of 4.42% in March 2010 instead of 4.70% if I had seen the magazine as being made at the end of the month.


positions in sales mode

Currently, some titles are still in the portfolio because the right time to sell is not yet come. In fact, all my titles, Except for Westjet and ECB are in sales mode. I have also completed the sale of Canadian REIT Monday.

Manulife was an error. A few weeks after holding the title, management took decisions without logical to me. I still kept telling myself that I will well understand. I'm still waiting for a revelation!

I like GE but I feel that looking at the figures of the company that no major additional gains to be made. I will most likely retain the title, but selling shortly (1-3 months) my option.

ETFC was also a mistake, but partial Pay! I intend to sell the security before the shareholders meeting to be held in May. The company should then have the okay to proceed with a reverse-split ...

option on Citigroup expects the next results in less than a month. It should normally be sold in the week after publication unless new changing all that.


ECB is preserved because it provides great stability in my portfolio and a steady income and interest (dividend over 5%). Westjet offers instead the element growth and potential.