Buy Alert: Western Forest Products (again)

New Stock Buy!

I just made my second stock buy of 2019.  Instead of initiating a new position, I added to an existing one.  I had recently received $500 as a reward from my RBC VISA reward program, which was deposited into my TFSA, so I thought I should put the money to work right away.

The Buy

I purchased 310 shares of Western Forest Products at a price of $1.835.  This brings my total share count to 1881 and brings my average price down to exactly $1.836!

This will add an additional $27.90 to my annual dividend income and allow me to drip an additional 3-4 shares per quarter depending on the stock price.  I am now on pace to DRIP 92 shares per year (and rising with each additional DRIP).

The Why

I’ve talked about Western Forest many times, so I wont go into to many details again.  It essentially boiled down to a few things.

  • Essentially zero debt on the balance sheet
  • Trading at a reasonable 11x earnings
  • Company is buying back shares, because they believe it is undervalued
  • Well covered 4.79% yield (53% payout ratio)
  • Growing dividend
  • Recent acquisitions and improvements to facilities should help increase margins and revenue in future

You can see my other posts about Western Forest HERE and HERE

This purchase brings my forward annual dividend income up to $6546.60*

*About half my portfolio is currently in funds that do not pay any distributions or dividends.  You can view the full portfolio HERE

Cheers!

Finally pulled the trigger. First stock purchase of 2019!

Transcontinental Stock is my first buy of 2019!

I finally put my money where my mouth is.  I’ve been talking about Transcontinental’s stock a LOT!.  It started in the summer – It was one of the top stocks that screened in my Summer Stock Screen

I then wrote another article in October about how cheap it was.  You can read that post HERE

Lastly, TCL was the stock I chose in RoadMap2Retire’s stock picking contest as well earlier this year.  Needless to say – I’ve been thinking about this company for a while.

I actually had a buy order in for TCL on Friday, at a price of 21.03 but it never got filled, so when I saw the price had dipped again this morning, I put in another offer – this time at $20.93 – and it got filled right away!

I purchased 125 shares at a cost of 20.93 (plus commission).

I’ve already written a few times about the company, and why I thought it would be a great addition to my portfolio, so I won’t do a huge write up today.  You can click the links above if you want more info.  I WILL however, just point out a few things:

  • Trading at a 36% discount to it’s 52 week high,
  • Current P/E of 8.1
  • TTM EPS of 2.62
  • 4% dividend yield
  • Increased dividend every year since 2001
  • Low payout ratio

While this wouldn’t be considered a huge growth stock by any means, the value seemed too good to pass up.  I’ll happily sit and collect a 4% yield while waiting for the price to bounce back.

This purchase of 125 shares will add $105.00 to my annual dividend income, and more importantly, it allows me to DRIP 1 new share each quarter.

Do you own TCL?  Let me know what you think of this purchase.

Cheers!

P.S – I was really close to purchasing Andrew Peller instead – and if the price stays low, I expect ADW to be my next purchase.

Review #3 Stagg Jr. Bourbon

Whiskey Review # 3

Whiskey Whisky Review Stagg Sazerac Buffalo Trace

I am extremely new to this, so take it easy on me.  I intend to come back to most of these, multiple times and re-review them, to see if my tastes have changed, or if certain batches are better than others.  Each review will follow the same template, and include a score.  Please enjoy responsibly 🙂

Last night was -50 with the windchill.  I was home alone with the kids (the wife was out curling).  After the kids were in bed, I decided I wanted needed something with some heat behind it – so I decided to finally bust open the bottle of Stagg Jr, which I got in November.  This is one powerful bourbon(to say the least) coming in at a whopping 126.4 proof.

Date Reviewed: Jan.30

Atmosphere: in a Glencairn glass, neat @ home.  The temperature outside is -50 with the windchill.

Distillery: Buffalo Trace

Mash: Speculated to be 75% corn, 10% rye, 15% barley

Age: 8-9 years

Type: Bourbon

ABV%: 63.2% (yes, seriously!)

Price I Paid: $85.00*

*This was at a limited release, only a few bottles available. I grabbed 2.

Appearance:  Pretty standard – reminded me of toffee/caramel

Nose:  When the bottle was first opened – I immediately smell 2 things:- Spices & Alcohol – that said, for a 63.2% bourbon, the alcohol smell isn’t as strong as I expect.  I swirl it around, and one smell keeps coming back to me – EGGNOG.  As I sip on it for the next 45 minutes, that Christmas time, Demerra Dark Rhum & Eggnog smell keeps coming back.

Palate: I take the first sip neat – after letting it sit for about 10-15 minutes.  My mouth feels like it is going to explode.  The INTENSE booziness overtakes every other taste and feeling in my body – and my tongue is on fire.  This is my first 60%+ I’ve ever had, and I feel like once I am a little more experienced, I will come back to this one on it’s own – but for now, I need to add a few drops of water.

I add about a third of a teaspoon of water, swirl it around & take another sip.  This time, some flavor start poking through – I feel some rye spiciness on my tongue.  Instead of burning now, It feels like different spices are dancing all over my tongue.  Some of the oak comes through as well.  I don’t pick up on much other than spices and wood.  A small hint of brown sugar.

Finish: The finish is weird.  My tongue feels everything – but once it hits the back of my throat and goes down, there is no burn.  Everything happens on the tongue.  The finish lasts just long enough (less than I expected for such a heavy bourbon).  Even though the tongue is still dancing/burning, I want to take another sip.  I ended up sipping on this 1 glass for almost a full hour, taking my time, and trying to get to know it better.  I’ve heard these get much better over time – and I expect as I get more experienced I’ll appreciate it a lot more.

Conclusions:  He may be called jr., but this lil guy packs a HUGE punch.  The first sip (neat) was probably wasted on my inexperienced palate, and if I am being honest, I just couldn’t enjoy it neat – but once it opened up with some water I was able to appreciate it a lot more.  This is definitely one I will come back to a few more times over the next couple years.  Aside from the smell of eggnog, what stood out the most – was how much heat there was on my tongue, and how little heat there was going down my throat.  I’ve also never had my tongue feel this way before, painful almost at first, but slowly morphed into a sequence of flavors dancing all around my mouth. I bet this would really shine in boozy Manhattan as well.

Overall Score:  80/100*

*First time trying anything this high proof.      
Continue reading “Review #3 Stagg Jr. Bourbon”