Dividend Income Update July 2014

Written by MrStockFox. Posted in Dividends

dividendsAnother month has passed and its now time to update what I made in dividend income.  July was another very successful month on my way to becoming financially independent.  But first I need to update my income from June.  For some reason I added up only $112.94, but I reconfigured the totals and the actual amount added up to $126.81.

In July, I took in $88.91, which is more than 4x the income I took in from a year ago.

My total value of Dividend Stocks added up to $33,281 with future 12 month dividends coming in at $1,372.

My goal for the end of the year is to have an account value of greater than $50,000 with 12 month future dividends coming in at $2000.  

Overall, I am very excited each month to see those dividends keep rolling in.  Looking ahead to the month of August, I plan to put an additional $2500-$3500 of capital to work in new or existing companies within my portfolio.

You can find my total dividends received each month located here.

Thanks for reading.


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Ravi Sood: Marginal Gold Producers to Far Outperform the Sector

Written by MrStockFox. Posted in Videos

This week we have CEO of Galane Gold, Ravi Sood as our guest. Ravi is a serial entrepreneur and financier who has founded many successes in the financial and business world such as: Buchanan Renewables, Feronia Inc., and Galane Gold. We brought Ravi on the show to get his insights on the junior resource sector. Ravi leads an unhedged and marginal gold producer in Botswana, producing 50,000 ounces of gold per year, with $11M in cash in the bank, and a $12M market cap. That is how undervalued this sector is right now, and Ravi gave us great insights into why investors should get in and stay in.

When asked why he has chosen to stick with the natural resource sector, and a junior gold producer in particular, Ravi explains that he was a money manager through some of the worst financial periods of our time (the bursting of the tech bubble in 2000, and the stock market crash of 2008). Coming out of these periods were some of the best times he has had making money. The junior resource market is in a similar situation right now, and there is great opportunity right now for the right kind of company.

Ravi thinks we'll be a year plus into the bull market in natural resources before we realize that we're in a bull market. He thinks that the bull market ahead of us will be slower and more measured, and more rational than the last big bull market in natural resources. This time investors will be more disciplined and as a result more selective. 

Speaking on what kind of gains investors can expect to reap when investing in the right junior resource companies. Ravi points out that there are stocks that are down 75% or even 95% from their peak. Further, he believes that the financing in the market isn't going to come back at the same pace, but the best companies to invest in are the companies that are not as dependent on the markets for financing. The companies who are able to generate their own cash flow and already have leverage to the underlying commodity – these are the small producers that will have the most upside.

Speaking from the point of view of his own company, Galane Gold, Ravi tells us they made an acquisition of one of IAMGOLD's properties that didn't get the attention it deserved. And since then, Galane have gotten the costs down on the operation substantially. The opportunity for Galane Gold now is to capitalize on other opportunities in this sector. They are looking to grow from their stable and profitable platform.

Finally, Ravi touches on the topic of marginality in gold producers. If you're a $500 an ounce producer and the gold price moves from $1300 to $1400, it's obviously a positive, but it's a small move from where the company is already at. But for a producer like Galane Gold, that type of move produces huge leverage. Galane Gold is financially stable at $1100 and even at $1200, but as gold goes to $1400 and above, they have tremendous operating leverage. For the company, every $100 in additional gold price, is an extra $5M dollars of cash flow per year, and Galane Gold currently has a $12M dollar market cap!

Ravi Sood is a financier and venture capitalist. Mr. Sood is the founder and former CEO of Navina Asset Management, a Toronto-based investment firm that was acquired by a major financial institution. Mr. Sood has also founded several natural resources based businesses including Feronia Inc., one of Africa's largest employers, where he serves as Chairman. Mr. Sood is also a director of Elgin Mining Inc. and TrueContext Mobile Solutions Corp. Mr. Sood holds a B.Mathematics(Hons) degree from the University of Waterloo.


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Chevron (CVX) - Correction Likely

Written by MrStockFox. Posted in Trade Ideas

A month ago I decided to take profits on my position in CVX because we were very overbought on the weekly chart as well as we were hitting up trendline resistance level.  I bought the position when CVX tested out the bottom of weekly channel back in February. On the daily chart CVX has broken its uptrend as well as failed to hold the new high on negative divergence across all indicators.  At the very least I believe CVX can test out 122 where I may consider buying a partial position.  A longer term position would be built at the bottom of the trendline on the weekly chart below.  This would take many months to pan out.

 


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Weekly Purchases - 8/2/14

Written by MrStockFox. Posted in Weekly Update

arches national park

Photograph(above):

To add some variety to the website, I am going to start providing images from some of the amazing trips I have experienced over the years.  The following photograph was taken at Arches National Park, Utah in 2007.

I Bought:

Dividend Income Portfolio (Total increase in income = $78.62)

$250 of Ross Stores (ROST) - This will add $3.20 to my annual dividend income.

$500 of Ensco (ESV) - This will add $30 to my annual dividend income.

$500 of Transocean (RIG) - This will add $36 to my annual dividend income.

$300 of Deere & Co (DE) - This will add $7.2 to my annual dividend income.

$50 of McDonald's (MCD) - This will add $1.69 to my annual dividend income.

$25 of YUM Brands (YUM) - This will add $.53 to my annual dividend income.

Commodities

$900 of Mag Silver (MVG)

$500 of Corn Fund ETF (CORN)

I Sold:

If you wish to view all my completed trades, you can find them located here.

5 shares FDO for a total gain of 25%. - I sold Family Dollar because Dollar Tree does not pay a dividend, so I reinvested the money elsewhere.

2 shares of CHL for a total gain of 23%.

100 shares of SCPZF for a total gain of 35% - The only reason I sold this was that I wanted to buy more ESV on the dip.  SCPZF was at overbought weekly highs and I decided to take my profits.

1 share of COST for a total gain of 5% - The main reason I sold this was that I wanted to concentrate my holding to my 401k

.6775 shares of NKE

Side Note:

My intent is to hold companies for many months and even for many years.  But with that said, if I see something in the charts or receive a large gain after owning the stock for a short period of time, I will sell my position and take profits.

Also, because the general market is up 30%+ over the last year I continue to be cautious when adding to my dividend portfolio and reducing some positions on rally's.  Many of the companies I am interested in buying are at all time highs.  I generally want to see a several week to several month decline before considering adding to a position.  Overall I continue to be overweight in my Commodities Portfolio and use most of my available funds to purchase in this sector.  In all accounts except my 401k I get FREE Trades.  This is why I can purchase only a couple shares at a time without exposing myself to a high commission percentage.


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