Welcome back to MTB and part II of my stock picking post. So I should explain myself for stocks: Dollarama, Telus and Blackberry. Again, you may find my reasoning unorthodox or nonsensical. Please keep in mind that I’m no super stock picker. I’m hoping with the course I’m taking a couple of weeks will help me become better at it. I probably could have waited till I started taking the course and then buy stocks, but I felt like I had a bit of knowledge to go ahead and buy a few more companies.
Remember I’m THAT person who blindly bought stocks based on tips from someone else and who also bought stocks mainly due to dividends.
Dollarama takes the lead for owning and operating dollar stores in Canada. They have 928 stores in 10 provinces. I am still in awe every time I walk into a Dollarama due to the amount of things you can get for a dollar or slightly more than a dollar. They have such a large range of merchandise. I am highly appalled at what other stores will charge for the similar items.
Why would I want to pay $7.00 for one single gift bag? Highway robbery, I tell ya.
When it comes to tough economic times, I believe there are only certain types of retail that will survive. People will only stick to the necessities and/or buy from discount stores such as Wal-Mart, No Frills and Dollarama. Thus, I would consider Dollarama to be one of those recession proof stocks.
I did a bit of research and found out that they were looking to bring the business into Central America. While there probably is a bit more room for domestic growth, it makes sense that one of the next steps would be to look into international growth.
I purchased Dollarama and watched the stock rise a little bit more before there was a stock split in November 2014. I’m thinking that I maybe should have waited till the stock split before purchasing, but due to lack of patience and not following the company close enough to realize they were going to have a stock split made me jump the gun.
Perhaps doing more rigorous research on a company before I purchase a stock should be one of my financial goals (I hate that word resolution. Such BS) for 2015.
I should get this out in the open right away: I’m not even a Telus customer. I’ve been with Rogers ever since I got my first cell phone. I got it when I was 22. Yes, I waited that long. And guess what. It’s an old school Blackberry Bold.
Telus is one-third of the largest telecommunication company trio in Canada. I bought into it so I would have something in the telecommunications sector. The majority of news headlines in GoogleFinance said good things about the company, such as being a top performer in 2014 and how it could protect you from volatility. They want to increase their dividend every year which is great news for shareholders.
And last, but most certainly not least
(cue dramatic music here!)
I’m one of those loyal die-hard Blackberry fans. I HATE touch screen and LOVE my QWERTY keyboard. I love the physical feel of keys on a keyboard. I type like a maniac and get made fun of at work for typing so fast. Whenever I type on a touch screen, my typing speed is like 15 wpm and it’s so awkward. Touch screen phone people say you’ll get used to it and love it.
But I don’t want to get used to it or try to love it like everyone else.
Hello, my name is Karen and I’m a “Crackberry Addict”.
Again, I haven’t been keeping up with the trials and tribulations with the company, but I remember hearing in the news several years back and how it wasn’t doing so well. After a few management changes, in steps John Chen.
My inexperienced/ non-professional finance background/loyal Blackberry user gut has a good feeling about this guy and where he can take the company. I was pleasantly surprised with the arrival of not one, but two different handsets this year: The Passport (too big for my liking, but I like the name) and The Classic (I really like and actually want to buy, but alas my Bold hasn’t kicked the bucket yet and I’m not one of those people constantly upgrading my phone, just because).
It was interesting to learn of their various partnerships with Ford and Samsung. While Blackberry may not be a big player in handsets (The competition is just way too intense and there are way too many players on the field) and appealing so much to the masses anymore, going the software and security route seems to be a good choice.
Hearing all the positive news and potential for Blackberry reaffirms my decision in owning a small piece of the pie. The price seemed right and I purchased 110 shares at $12.43 CDN. I’m comfortable with the amount I purchased because my eggs are in various baskets. I should also mention that I have a portion of cash in my retirement savings account. Despite my long time horizon, I think having all your retirement savings in stocks in rather risky, which is why I will be looking into buying ETFs this year. So far I have one REIT (real estate investment trust) ETF and right now it’s trading slightly below my purchase price. Not sure what I’ll do with it if it dips down further. Could be a possible sell.
Do you have weird reasons for picking stocks or do you conduct thorough research beforehand?
And now for some British humour on the Blackberry. Enjoy!
Zee @ Work To Not Work says
On occasion I buy stocks without doing a ton of research on them, those are usually the ones that come to bite me in the end…. Thanks for sharing, I enjoy hearing other peoples reasons for picking companies.
I can’t say I’ve had any picks that have bit me in the ass. I’m not going to lie, but I actually do get a little nervous just before I complete the transaction. I don’t know why. Maybe it’s the uncertainty and it is quite a bit of money-thousands of dollars of my hard earned money. But hey, no risk, no reward. You miss 100% of all the shots you don’t take, etc., etc. 🙂
Josh Collar says
Quite an interesting choice of stocks you have there. Sometimes, the best choices are those that involve common sense and rationality.
I’m hoping that after I take the 2nd investing course, I can also use analyzing metrics and financial statements as well. I guess so far my rationale for picking certain stocks has been decent. 😛