Dividend Lover

Nuvista Energy, Opportunity or Value Trap

2011-11-08T23:43:00.000-08:00

Okay This one does not pay a dividend, I have taken a rather big position in NVA, and I am very excited about it.

It is trading at a serious discount to its assets. and there is nothing wrong with it as far as I can tell.

The price is now $6.25
The CIBC analyst said this about the stock when it was trading at $9.15

NuVista trades at 63% of Risked NAV and 4.2x 2011E EV/DACF versus its peers at 75% and 5.5x, respectively. We believe investors are not paying much for significant upside that NuVista has in its asset portfolio, hence our Sector Outperformer rating

According to their math, the stock is trading now at 43% of risked NAV and %72 or core NAV.
This means if you value all their unexplored (probable) and undeveloped (proven) reserves at $0 then take the assets that are currently producing discount them by 28% you'll get $6.25 a share

RBC Analyst also thinks this stock is undervalued, it is rated as Outperform, and given a price target of $9.00

Ontario Teachers is invested in this company. They own 18% of the stock. They last bought shares at $9.50 in March 2011 so we are getting a 35% discount to what Teachers paid. Those guys have done their research and invested 8 months ago. This gives me more confidence in this stock.

Daylight energy
These guys operate in roughly the same areas daylight energy is operating, which gives more confidence to the NAV numbers, The Chinese bought Daylight at 1.2x risked NAV here we have a chance to buy at 0.43x risked NAV.

Management Team
The CEO who recently joined comes from Talisman Energy an oil major and has many years of experience and seems like a very qualified guy for the job. I've read good praise about the management team from CIBC and RBC.

Earnings are coming out on Nov 10th, The company gave an operational update in August saying everything is on track to meet the projections.

It is clear that this stock is undervalued, when will it appreciate is a different story. The only risk I see to owning this is that you could miss out on the other oil and gas stocks that are cheap right now while waiting for this one to appreciate.

Oil Stocks are Undervalued

2011-10-13T14:50:00.000-07:00

I Have been loading up on oil stocks lately because of record low valuations. Oil companies are a screaming buy right now. so cheap that the Chinese are willing to pay more than double the share price for Daylight Energy.

from CIBC analyst

We view the sector's risk/reward as extremely compelling. The large caps
are only 13% off their lows reached in the 2008/09 financial crisis and the
sector is discounting only ~US$70/Bbl oil LT. Our top large-cap picks are
SU, TLM, NXY, & CNQ

Summary on Suncor:

Suncor Energy Inc. (SO–$46.00 Target): Our top pick remains Suncor, which we believe is one of the best-positioned companies against downside commodity risk. We believe the stock has far more defensive elements than the market gives it credit for (most FCF generation and one of the best balance sheets at US$70/Bbl) yet it has been among the worst performers during the recent downturn. Even with the sell-off in oil prices, Suncor is being well supported by high Brent and SCO premiums and exceptionally strong downstream results. Given the company’s operational momentum throughout Q3, we should see record CFPS from the company this quarter. Furthermore, following the recent completion of its major turnaround in the oil sands in Q2, we believe the company is now poised for ~18 months of relatively uninterrupted operations.

Summary on Talisman

Talisman Energy Inc. (SO–US$23.00 Target): In our view, Talisman is better situated now than at any time in the past five-plus years, as the company can lay claim to a well-defined unconventional gas portfolio and is demonstrating substantial and sustainable growth. Additionally, Talisman brings a compelling mix of highimpact exploration that could further extend those five-plus years of international growth visibility. Although Talisman does not have the same defensive characteristics as Suncor in the US$70/Bbl case, we note that even if it did have to cut capex by ~$500 million from our current forecasts, we would still expect ~9% of growth next year – one of the highest growth rates in our group. Additionally, we note that its balance sheet remains very strong even at the US$70/Bbl level. Talisman is also one of the least expensive on P/NAV metric – trading at only 42% of risked NAV. Furthermore, Talisman offers more exploration catalyst potential than any other Canadian large cap, in our opinion, which will be the defining factor for the stock’s performance in Q4/11. The company has high-impact wells planned for offshore Indonesia (South Makassar Strait) and Kurdistan but it is Colombia that most interests us given the lower risk, large size and relatively short cycle times.

Worlds First Fiat Currency

2011-10-12T14:46:00.000-07:00

Fiat Money is Not New

The first time fiat money was ever used was in 11th century china, during the Yuan and Ming dynasties. Surprisingly this ended with hyper-inflation and the notes were discontinued in 1455.

That's a nice little fact, but then after more research it seems that every fiat currency ever used throughout history has ended in devaluation and eventual collapse.

Fiat Money Never Worked

From Louis IV to Napoleon to Post-World War I Weimar Germany .The Treaty of Versailles was essentially a financial punishment placed on Germany to make reparations. The sums of money to be paid by Germany were enormous. (Huge unpayable debt, sounds familiar?)

Can you look at this graph that shows gold in USD and tell me that inflation is around 2% and that we need looser monetary policy because we are at risk of deflation. All that while keeping a straight face?

How does one profit from this eventual collapse?

The general idea is to own leveraged hard assets. of course the best hard asset to fit this bill is real estate. If you don't own your own home go buy one. It is possible that the gold bullion ship has already sailed but you can still find some gold miners trading at some good valuations.

The US dollar is a fiat currency like many before it throughout history, why would it be different this time?

How to profit from the eventuality peak oil using dividend stocks.

2011-09-20T12:35:00.000-07:00

I was reading about the peak oil theory over at The Oil Drum and I came to the conclusion that peak oil ( the world reaching it's maximum oil production as in the highest production amount possible in barrels per day ) will likely happen in our lifetime. ( oil will never run out only become more and more expensive to increase / maintain production levels )

So how does one profit from peak oil ?
Simply put, by investing in oil companies, especially ones with large oil reserves and long life assets.

What does that mean ?

It means oil Juniors like BMO Junior Oil Index ETF If you like the conservative hands off approach and don't mind paying 0.50% in management fees. Investing in Junior producers or exploration companies is a risky business that is why an ETF is a good idea.

What about unconventional oil ?
Yes Oil sands, Cardium, Bakken, etc are all good investments because of the large reserves and long production life.

Do you have any picks ?
My top pick is SUNCOR ( SU ) with 50 year plus reserve life, and a nav of 54$ a share it is trading at a huge discounted valuation. my other picks are DAYLIGHT ENERGY ( DAY ), PENN WEST PETROLUIM ( PWE ) and PETROBAKKEN (PBN) all of which pay dividends.

What if peak oil does not happen ?

Even If peak oil does not happen, some other energy crisis or oil bubble will happen sooner or later. Either escalation of the situation in Syria, Yemen, Iran, The middle east will have another crisis sooner or later.

Disclamer I am long SU, DAY, PWE and PBN. I am often invested in the companies I mention. I believe they are good investments otherwise I would not mention it.

Successful People are Proactive

2011-07-24T19:11:00.000-07:00

Every hear you boss say the word proactive, or reaching out etc. These CEO buzz words used to make me giggle. I've met many Entrepreneurs and Business owners. What successful share in common is that they are proactive. They think of an idea good or not. Then they follow through with it, by making phone calls assigning it to their employees etc. Then they keep following through by checking up on the progress and hounding the person working on it until the work is done. In other words they go and act on their ideas.

Being proactive is more important to success than being smart. How many people are smarter than there boss. If you look at technology companies you'll find very smart engineers working for some guy with either a business degree or sometimes no degree at all. You might argue that being smart has nothing to do with having an academic degree. but yes it absolutely does yes I am biased. Anyway back to the point, These proactive dumb dumb's have surrounded themselves with smart people and so do not need to be smart themselves. That is why being proactive is more important to success than being smart.

RIM is the next Nortel ? Nope, Not at all, Buy RIM now.

2011-07-24T13:13:00.000-07:00

I went to Future shop to check out the playbook. Though I would never spend 600$ on a gadget playbook or Ipad as you can see my previous post. Other people do buy such devices and pay a lot for it. I took a look at the device, played a game of tetris on it, watched some movie previews. it seems like perfectly good tablet.

I also spoke to my cousin, who is a doctor that does not know anything about investing his money other than buying high MER mutual funds. When I suggested RIM to him he said that RIM is going to go bankrupt like Nortel. so that makes me think that the sentiment is very very negative.

Now here are the reasons why you should invest in RIM at 26$

1. Each share has 5.48$ worth in cash.

2. The remaining 21$ of valuation is 4.3 P / E

For those who do not understand P / E it means assuming that RIM does not grow its earnings 1 cent more, even thought the smartphone sector is exploding. Each share will earn the remaining 21$ in 4.3 years.

This compares with 4.9 P/E for nokia ( RIM is now cheaper than nokia !!! ) and 11.8 P / E for Apple

Here is what The CIBC analyst had to say, with a price target of 65$ :

At these depressed levels, we continue to recommend buying the shares. Our view is that the product transition is now well advanced with delays
already anticipated in the share price. The product refresh will help restart
shipment growth later in F2012.

so to recap, go buy some RIM shares,
you have panic,
you have good valuations
you have experts calling it cheap
you have limited downside

Disclaimer I have a covered call position in RIM

Luck Favours the Prepared

2011-07-22T12:39:00.000-07:00

How often do you come across a great opportunity that you cannot take advantage of either because you were fully invested in something else. or because you were too slow to react because of the many distractions that eat up your time.

That is why I believe that being prepared to take advantage of these lucky opportunities that present themselves is just as important as the opportunities themselves. It doesn't matter how great the price of this property because the owner is an ignorant divorcee wife or the panic that is going on with RIM at the moment. If you are not prepared to take advantage of the situation you will not gain anything.

Many people got rich from the recession, Think about it, was it luck? The same opportunities were available to everyone. However only the prepared were able to take advantage of the panic. Now we call them Lucky.

How can you be prepared? It is simple. never be 100% invested. always keep some cash or credit available. you could tie it up for that 3 or 4% returns, or you can sit on it and wait even for 1 or 2 years for that great deal that will give you 20% or 30% returns.

How much money is sitting on the side lines ?

2011-02-27T22:06:00.000-08:00

I was reading a monthly report about Canadian asset management companies, I want to share this graph.

Bulls make money when the market goes up, Bears make money when the market goes down, and Pigs get slaughtered.

There is only 1 type of investor who holds money in a money market fund in an investment managed by an asset manager. The Pig. pigs invest in a money market mutual funds, instead of high interest savings accounts because they don't know better.

And this graph is telling us that the pigs have been deploying their cash. in fact they are holding less cash than before the recession.

CIBC 2011 Top Picks

2011-01-24T19:53:00.000-08:00

I wanted to share this, some of these are dividend stocks.

CIBC's did a good job with their 2010 top picks but ofcourse even a monkey picking stocks out of a hat would have made money in 2010 but I do give them get some credit for beating the index.

T1213 Request to Reduce Tax Deductions at Source for Year(s) _____

2011-01-23T15:11:00.000-08:00

Go download T1213, print, fill out, then mail this form to CRA.

also make sure you already gave your employer the correct TD1 , and if you are in Ontario TD1ON

why overpay your taxes, I'd rather pay what I owe when its due.

you don't over your credit card, or gas bill. why would you over pay your tax bill?

Jan 4 2011 RRSP and TSFA contribution day

2011-01-22T07:37:00.000-08:00

Now that the year is over, it is time to make a new contribution to the Dividend Lover RRSP and TSFA portfolios.

January 4th the first trading day of 2011 is a great day to make TSFA and RRSP contributions. It is a great day for contributions because you get the most the most tax advantaged growth time since it is the earliest day you can a contribution.

People who make their 2010 RRSP contributions on March 31 2011 have missed on 15 months of tax deferred earnings. since they could have done their 2010 RRSP contributions on Jan 4, 2010

I hold Canadian REIT's in my RRSP because enjoy the tax efficiency. i had already picked out HR.UN as the new investment in both accounts since it is offering the best discount to NAV among the large cap REITS

I always preach, make your contributions asap to maximize the tax advantaged growth time, especially when it comes to your TSFA. If you do not have enough money to contribute to both early contribute to your TSFA first

The New Year Resolution Crowd

2011-01-17T11:10:00.000-08:00

Today is the 3rd week of January, The peak time for failed new years resolutions.

Anyone who works out at a gym gets a front row seat to the new year resolution madness. by now we will notice the decline of these tubby new faces who started showing up at our gyms.

I believe that the reason why these new years resolutions fail is because the group of people who make these resolutions generally fail at most things they attempt. quite the bold statement I know.

If there is something that needs to be done, like going to the gym, or quitting smoking or saving more money or whatever new years resolutions tend to be. It is something that needs to be done and if you are the successful type, you go off and make it happen.

However a new years resolution person is not willing to do it. The new years resolution is just another excuse to talk about doing things. And right about now is when this group of people give up and we can have our gyms back.

November Dividend Income Report

2010-11-02T13:21:00.000-07:00

Dividend Lover NR     Portfolio: $19323      $2,770 increase
Dividend Lover RRSP Portfolio: $$10,478   $122    increase
Dividend Lover TSFA Portfolio: $1932.84   $13.81 increase

The increase in the NR portfolio was due to investing new funds into KMP, RCI,

The increase in the TSFA portfolio was due to 1 month of DRIP

The increase in the RRSP portfolio was due to 1 month of DRIP and reinvesting the accumulated change into SRQ.UN to get the drip on it working again.

This brings us to 31.73% of the 100,000 yearly dividend target a 2.9% increase

How I got a 12.1% GIC from RBC

2010-10-15T14:41:00.000-07:00

okay the title sounds like a scam, but it is effectively true.

RBC offers a multi-product discount. the GIC was the last product I was missing. and as I have made the evils of GIC's known in my previous post. buying a GIC from RBC allowed me to get the multi product discount and so my 1000$ was effectively earning a guaranteed 12.1% return.

The products you require from RBC in order to qualify for the multi-product discount are

1. chequing account
2. credit card
3. line of credit
4. mortgage
5. investment ( GIC ) self directed investments do not count

I have the VIP account with them which costs a whopping 30$ a month, I had to get this because it is the only account type that does not charge you when cheques you deposit bounce, (due to deadbeat tenants).

This account type also gives a free safety deposit box, free (annual free credit card) and 3 free chequing accounts and 1 US account

however with the multi product discount the fee is reduced from $30 to $22 a month. on top of that you get an unlimited number of free chequing accounts.

adding that GIC is going to earn $8 x 12 = $96 a year from the fees and $25 a year from interest = $121 a year or a %12.1 GIC

The multi product discount also applies to other account types, so even if you have a regular account it is likely worth trying to get it.

October Dividend Income Report

2010-10-14T13:52:00.000-07:00

Dividend Lover NR Portfolio: $16,553 $3,512 increase
Dividend Lover RRSP Portfolio: $10355.90 $58.9 increase
Dividend Lover TSFA Portfolio: $1919.03 $15.50 increase

The increase in the NR portfolio was due to investing new funds into Encana (ECA), bank of montreal (BMO) and Manulife Finanial (MFC)

The increase in the TSFA portfolio was due to 1 month of DRIP

The increase in the RRSP portfolio was due to 1 month of DRIP

This brings us to 28.83% of the 100,000 yearly dividend target a 3.59% increase

September Dividend Income Report

2010-09-15T08:29:00.000-07:00

Dividend Lover NR Portfolio: $13,041.00 $2 increase
Dividend Lover RRSP Portfolio: $10,297.00 $66 increase
Dividend Lover TSFA Portfolio: $1903.50 $15.50 increase

The increase in the 2$ increase in the main portfolio was due to 1 month of dividends used to deleverage by paying off some of the margin.

The increase in the TSFA portfolio was due to 1 month of DRIP

The increase in the RRSP portfolio was due to 1 month of DRIP

This brings us to 25.24% of the 100,000 yearly dividend target a 0.08% increase

I haven't invested any new money this month.

August Dividend Income Report

2010-08-16T14:58:00.000-07:00

I've started my new job, I will make a post about it soon, but it is taking up ALL my time.

Dividend Lover NR Portfolio: $13,039.00 $2173 increase
Dividend Lover TSFA Portfolio: $1,887.14 $18.54 increase
Dividend Lover RRSP Portfolio: $10,230.90 $124 increase
Total Yearly Dividend Income: $25,157.04 $2,315.54 increase

The large increase in the Non Registered portfolio was due increasing the leverage in the account.

The increase in the TSFA portfolio was due to 1 month of DRIP.

The increase in the RRSP portfolio was due to 1 month of DRIP.

This brings us to 25.16% of the 100,000 yearly dividend target.

Consumption Maximization

2010-07-13T12:37:00.000-07:00

Saving money is in a way deferring consumption. Money itself is an IOU from society to consume an amount of goods and services. when you put money aside you are delaying consumption.

You could consume something today, but if you instead save and invest these IOU's you could buy more, bigger and better items to consume later.

Now I'm going to claim that the ultimate goal of saving and investing is to maximize the amount of goods consumed throughout a person's life.

say you have these options,
1. Buy a $100,000 Porsche today in cash.
2. Invest the money and use the dividends to lease a new $600 a month car every 3 years for the rest of your life.
3. Invest the money for 10 years @7% then lease a $1200 a month Porsche every 3 years for the rest of your life.

Choice #1 gives immediate gratification.
while choice number 2 or 3 delay the consumption, there by maximizing the total consumption.

Good things come to those who wait

A disturbing fact in North American culture,
as soon as a kid gets his first job he moves out of the parents house.
when the kid makes more money, possibly cause he is done school or university, he buys a car.
he makes a little more money, he buys a house, or rents a better place, he is no longer a student after all.
the kid gets married, now there are 2 incomes and the 2 can share the house and possibly share one car, and maybe even start paying off student debt? that's great until the babies start coming.

In this sad yet typical story there is no delayed consumption. Any income made is spent right away. And so you are doomed to work for the rest of your life.

I personally think the single most important financially wise decision a young person can make is to live in the parents house for as long as possible at least until mid 20's in order to build some capital.

The second most important decision is to delay buying a car for as long as possible. take the bus / subway. and build your capital.

If I were to give any advice to a young person it would be build capital first.

Changing Jobs

2010-07-08T13:38:00.000-07:00

I recently accepted a new position at another technology start up company. I gave my current employer my resignation effective July 31st.

I was able to negotiate my compensation from a very strong position.

My first job was at an online advertising company. I joined this company at start up and it is now very successful, a world leader. The founders did not give any stock options, and I was young an naive enough to accept. 5 years later I was tired of making other people rich. I left to join my current position, a consumer electronics start up, a slightly different yet lucrative field.

A month ago I was contacted by a Venture Capitalist who offered my an opportunity to work at a company he was invested in. I was a perfect fit for them because of my prior experience. Something that is impossible for them to find here in Toronto.

I knew I had huge negotiating leverage,
1. They came to me.
2. I had a unique skill that is difficult for them to find in Toronto.
3. They were very much in need for someone with these skills and experience.
4. I already had a great Job.
5. I don't even need a Job.

So I agreed to meet them for lunch. I had lunch with 2 of the VC's and the CEO of the company, I made a good impression.

I got another call and we scheduled a meeting at their offices, where I met more of the company. Then they offered me something. which I turned down regardless of what it was.

The next day I was called again with a better offer, which again I turned down.

The day after that, I was called again with a better offer which I finally accepted.

I have an older cousin who is currently a partner in a private equity firm in Dubai. He works hard.
We had a conversation 5 years ago when I told him I am planning to retire by 30.
His response was, I used to think the same way, but when you get to 30 you realize that you are earning more money than you ever thought possible. and so you don't retire.

Book smarts does not equal buisness smarts

2010-07-07T11:19:00.000-07:00

I studied Engineering at school and every now and then I meet some of my nerdier class mates for a game of Settlers of Cattan. Last time we met I saw one of the nerds and I found out that he was working at a company that does not compete with my employer doing something my employer is willing to pay a lot for.

My current employer is a start up rich with venture capital and is stock option grant happy. It is also offering a $3,000 referral bonus to encourage employees to refer people they know. When I brought up the prospect of offering him a job with us, my college refused to even listen to my offer. so I assumed that he must be doing even better than I was at his current job.

After we were done our little game, my college was going to put on his back pack and take the bus to the subway to go home to his parents house. At the time my car was in for service and BMW had given my a 128i loaner car. When i offered him a ride in the car the reaction I got was Wow you can afford a car on your salary. that's amazing I wish I could make enough for a car.

Now we are professional engineers turning 30, and he is still living like a student. This guys is one of the smartest people I know. I used to ask him for help when I didn't understand something at engineering school.

However when it comes to business, he is an Idiot.

July Dividend Income Report

2010-07-06T14:36:00.000-07:00

This Time around I was on Vacation in Los Angeles. I spent the Canada day long weekend + 1 day off work. unlike my trip to Jordan this time I did spend a lot :( but it was worth it.

They had a store called Nordstrom Rack it is similar to Winners in the US except it is bigger and the discounts are better.

Dividend Lover NR Portfolio: $$10,866.00 $3,922.00 increase
Dividend Lover TSFA Portfolio: $1,868.60 $18.30 increase
Dividend Lover RRSP Portfolio: $10,106.90 $296.16 increase
Total Yearly Dividend Income: $22,841.50 $4,236.69 increase

The large increase in the Non Registered portfolio was due increasing the leverage in the account, as I wanted to take advantage of the opportunities the market is currently presenting.

The increase in the TSFA portfolio was due to 1 month of DRIP.

The increase in the RRSP income came from a 2,000$ contribution, since I got my NOA I was able to put in the correct amout in there, instead of the conservative estimate I put in on Jan 1st. with this 2,000 I've maxed this years contribution at $22,000

This brings us to 22.84% of the 100,000 yearly dividend target. a respectable increase from the last report

Newtons Laws of Dividends

2010-06-18T11:02:00.000-07:00

Newton related Distance, Velocity and Acceleration with each other to revolutionize the physics of the time.

I was putting together some spread sheets to track my dividend portfolio's. I wanted to make a column to show me the monthly increase in dividends. since more shares get added through the DRIP and new funds. when I realized the parallels that exist between newtons laws and dividends.

Distance is your Net Worth.
Velocity is your Dividend Income.
Acceleration is the change in your Dividend Income.

Adding more shares to a portfolio increases the Acceleration. not only is the Velocity increased once, it is continuously increased as dividend income gets reinvested.

Then add Time into the equations as The sooner you start your investment trip the larger the distance travelled.

Then I went further to add a column to calculate the monthly change in Acceleration. ( the change in the change of Dividend Income) This was the most interesting column. It shows how fast you are increasing your Acceleration. I'm going to polish up this spread sheet and post it.

June Dividend Income Report

2010-06-15T12:53:00.000-07:00

I've been on vacation in Jordan ( the middle east ) for the past two weeks. Surprisingly I have been saving a lot of money simply by not being in Canada. I should go on Vacations more often.

Dividend Lover Non Registered Portfolio: $6944.00 $5288.00 increase

Dividend Lover TSFA Portfolio: $1850.07 $26.49 increase

Dividend Lover RRSP Portfolio: $9810.74 $91.22 increase

Total Yearly Dividend Income before tax: $18604.81 $5405.71 increase

The large increase in the Non Registered portfolio was due more funds invested.
The increase in the TSFA portfolio was due to 2 months of DRIP
The increase in the RRSP is due to new purchases of stock using dividends accumulated in the account. as I have stopped the DRIP. I stopped the DRIP because I intend to use dividend money to start new positions in the portfolio.

This brings us to 18.6% of the 100,000 yearly dividend target. a respectable increase from the last report

The 3 Essential Elements of Business Partnerships

2010-05-18T14:52:00.000-07:00

1. Time
2. Experience
3. Capital

Any business needs all 3 elements in order to function.

A partnership where all the partners have lots of free time on their hands, but no capital or no expertise will not get anywhere. A business will need a sufficient amount of all 3 basic elements in order to succeed.

Therefore these are the ultimate criteria for selecting business partners in any venture.

The reality of it is that we all start out in life with little capital and little expertise. The only thing we have to offer is time. and so in the early stages of life you would look for partners who have capital and expertise but lack the time to manage the ventures.

As you grow older you gain expertise and hopefully some capital. and at the same time, you have less and less time to spare. This is when you start looking for partners who have time but lack capital or expertise.

If the partnership is rich in one of the 3 elements bringing on more partners with more of the same element will dilute the partnership and offer diminishing returns on that element provided.

so the idea is to always strike a balance, a balance that is different depending on the venture.

Day Trading the odds are against you

2010-05-17T14:43:00.000-07:00

Since I have got my Interactive brokers account set up. and some free time on my hands, I was going in buy 100 shares of SU (suncor) as a permanent addition to my portfolio, This broker only charges 1$ per trade when your trading 100 share lots. so I thought I would try to day trade those 100 shares a few times just for fun. I was going to buy the shares anyway.

So over the course of the day I did 52 trades of 100 shares of SU. They added up quickly. I netted about 130$ from the trades, but after paying 52$ to the broker I ended up with approximately $80.

Okay I admit it was fun. It is clear to me that this is gambling, and since there is a 1$ fee for every trade, it is equivalent gambling at a casino where the house has an edge. The higher the commission the broker charges you the higher the house edge.

I used the strategy that there will be resistance at the $32.00 per share price since it is a round number. and the high bid size I saw in the level 2 quotes confirmed my theory. I was buying shares at 32.01 making my break even price 32.03, so I was selling the shares for 32.04 or better.

The only clear winner here was the broker. I can't even imagine how people can day trade with an account like investors edge. Even with 1 click trades and live streaming quotes and 1$ commissions your still at a disadvantage to an institutional trader.

Will I do this again? yes probably until I end up losing 100$ trying to make $1. then I can go back and read this post and say I should have listened to myself.