Feb 192018

A few years ago I bought 50 shares of Avigilon Corp (TSE:AVO) at a price of $25 per share. Avigilon is a surveillance and security company based in Vancouver. The idea for the trade was to ride the momentum up and then sell it for a profit. Soon after however, instead of continuing to climb, the stock price dropped. 🙁 “Oh no”, I thought. But rather than admitting defeat and selling my shares at a loss I decided to buy even more at $14 per share. 😮 This is a fairly risky move. I would only double down on a stock if I was really confident about its long term profitability. Doing this averaged down my cost per share.

Because I bought 100 more AVO shares when it was cheaper, my average cost dropped from $25 to $18 per share on 150 shares total.

Well this swing trade had gone on for long enough. I recently decided to get out of this trade and take my profit. 🙂

Overall this has been a successful trade. My cost was about $2,600 including fees and interest charges. I used a small amount of margin to leverage my gains. I was able to sell all 150 shares last week at roughly $27 each with a total proceeds of $4,026.

That’s a decent 55% return on investment over the past 3.5 years, or annalized to 13% per year. 😀 Not too shabby, considering the broad market TSX composite index returned 2% per year over the same time.

Earlier this month AVO announced that it has a definitive agreement to be acquired by Motorola Solutions Inc. The takeover would value the company at $27 per share. This represents a generous premium for AVO and the stock price rose 17% immediately following the news. There doesn’t appear to be another company interested in making a better offer. This is probably the best price I’m ever going to get for this trade, which prompted my decision to sell last week. 🙂

AVO doesn’t pay a dividend so now I can use the cash proceeds from selling the stock to either pay down debt, or invest in some dividend stocks to buy and hold. I haven’t decided what I’ll do with the extra money yet.


Random Useless Fact:

In a study by Psychology Today, about 80% of people who have received mental health treatment say it was effective for them.

Dec 262014

I finally sold my shares of Potash Corp./Saskatchewan Inc a couple of days ago. I first bought this company in 2012, and when it dipped in price earlier this year I bought some more to average down. I got rid of this stock now because I don’t want to risk it dropping in the new year. Overall I only made a $129 profit on my investment of $2260. Not the greatest win I’m afraid, but better than a loss. 🙂

Here are the details of my transactions.

June 26th,  2012
I bought 45 shares of POT on the Toronto Stock Exchange. The earnings of the company looked good, and the dividend was stable. Potash Corp provides fertilizer and other services to help grow the food we all eat. I thought the fundamentals for farming is strong so I bet $600 of my own money on it, and borrowed some money on margin.

Purchased 45 shares at $43.74 per share.
Total number of shares owned = 45
Average cost per share = $43.74
Total investment = $1968.30 ($600 of my own money. The remaining ~$1370 from a bank loan.)

Jan 21st, 2014
After a potash producing cartel in Russia unexpectedly pulled out of the global market the price of potash mining companies around the world, including POT, fell sharply. Instead of selling my stock at a loss I decided to double down on my investment and picked up another 45 shares with $1660 from my savings.

Purchased 45 shares at $36.90 per share.
Total number of shares owned = 90
Average cost per share = $40.32
Total investment = $3628.80 ($2260 of my own money. The remaining ~$1370 from a bank loan.)

Dec 24th, 2014
Sell everything. I don’t see any catalyst in the near future that would give POT shares a boost so I’ve decided to take my winnings and move on.


Gross Proceeds: Total = $3933.80 
Sold 90 shares at $41.72 each = $3754.80
Dividends: $179

Expenses: Total = $1545
Margin loan principle: $1370
Margin interest at 4.25%/year: $145
Trading commission: $30
Net Proceeds: $2388.80
Principle Investment: $2260

Total Profit = $129 or 5.7%

This the longest time I’ve held onto a stock for swing trading. It technically isn’t even a swing trade anymore lol. I plan to use the money from selling my POT shares on better opportunities in the new year. 🙂

Random Useless Fact:
When choosing a baby name, put an important title in front of it and see if it still works.

Nov 062014

How Midterm Elections Affect the Stock Market

Imagine if you knew an investment strategy where the historical odds are almost 100% in your favor! 😀 Well here’s how. 🙂 Since 1942 there has been 18 midterm elections, not counting the one that just happened earlier this week. Every single time the S&P 500 has gone up after one year following each of those elections. The average stock market gain over the 12 month period following all 18 elections was 16%. 🙂 If we only look at what happened after just 6 months following the midterm elections, once again 18 out of 18 times the S&P 500 rallied, and on average by 15%. Chart below for details. (source)


As we can see, the chart shows the percentage change of the stock market index after 3 months, 6 months, and 12 months following each midterm election. The only negative change is after the 3 month period following the 2002 midterm when the S&P 500 dropped 8.7% as shown in brackets. Every other time the stock market has gone up. 🙂 This indicator has been very consistent because regardless of which party wins in the house or the senate the results of a midterm election adds certainty to the political landscape. And certainty gives confidence to the financial markets. 🙂

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Oct 162014


What to do when the stock market goes on sale? A smart option would be to double up on some current positions. 🙂 A couple months ago I bought 50 shares of Avigilon Corp for $25 each. However due to the negative sentiments in the overall financial markets recently AVO’s share price is down. But there’s no need to be alarmed because the company makes high definition security cameras and software. Now is the perfect opportunity for me to turn a current paper loss into a capital gain in the future! I noticed over the last week AVO has bounced around the $13 to $14 range but has never fallen below $13, which to me signals a strong support and a good time to average down. So earlier today I deposited $1,500 of savings into my brokerage account and picked up 100 more shares of AVO.TO. 🙂

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Aug 072014

Someone I work with told me yesterday about a company that designs and manufactures video surveillance equipment and software called Avigilon (TSX:AVO)


He said he knows a person who knows another person who has worked directly with AVO and thinks the stock is very undervalued right now. The company is expected to announce their quarterly financial results very soon. My co-worker believes AVO’s numbers will beat the street’s expectations and the stock will make a nice jump 😀

Of course I’m a pragmatic investor who conducts careful and thorough research before buying any stock, so after my co-worker told me about it I decided to purchased 50 shares of AVO this morning at $25.64/share 😀 I just can’t pass up the opportunity to make a quick profit if he’s right and AVO does go up! The total purchase cost was $1,282. I had $1,000 of savings lying around so I used that, and borrowed the remaining balance on margin.

Initial Investment: $1,000.
Leveraged up to $1,282 ($25.64 x 50 shares)


The company doesn’t pay a dividend but it is growing fast. AVO’s revenues are currently increasing at a rate of 60% a year. It has a pretty high P/E ratio of 39 x but it’s well justified given the company’s growth rate. Short term technical indicators are also promising which is favorable to a swing trade.



I’m hoping to make at least $200 in profit on this trade which would be a nice 20% return.

Here are the reasons I think AVO is a good buy right now for me.

  • My co-worker is bullish on this stock
  • My very smart online friend, Phil from Ontario, likes this stock
  • Bullish momentum, MACD, and other technical events
  • Based in Vancouver, because I like to invest in local companies 😀
  • The consensus from stock analysts is a strong buy.

Will I make some easy money out of this or will AVO disappoint and eventually lose its competitive edge like BlackBerry? Who knows. Acting on a stock tip is pure speculation (lots of risk) but life is short so let’s make it interesting 😉

Random Useless Fact: 

This bathtub is cut from a single slab of quartz and costs $1 million. The block of the purest white rock crystal was discovered and quarried in Brazil.