Tax advantages and portfolio chanes

Before updates:

If your really bored or nerdy like me you can check out

http://www.walterharder.ca/T1.html

then enter in $60000 income into the Canadian dividends from public corps and viola total tax owing is $91.06


I think i found this loop hole originally at

http://taxtips.ca/

I would like to confirm this with an accountant first, but it looks legit. The biggest problem is just coming up with the $500,000 - $1,000,000 and then finding the 'good' company with 4-8% dividend yield... (ie. BCE, perhaps DHF.un, YLO.un when they convert, most big Canadian banks, TRP, ENB, TRI, ACO.b, ABO.a*(one of my favourites in the group), CP, IIC, GWO, MFC, FTS, L, akt.a, CNR, RCI.b, etc.

Of course many of these companies no longer sport 5-10% yields, but closer to 2-4% range. Some are close to 100% payout too, which isn't a good sign. Many trusts will be converting and some good companies could be handing out large yields in the next few years, with the ability to actually cover them with earnings.

Lastly a deep in the money put would likely be a reasonably priced way to protect (like insurance) your capital in case of major market drops like the last few years!

Portfolio changes:

sold out 80% of BVF in steps.
Bought small amounts (roughly 5% of trading capital) of:

GVC.T
ALDA (US)
CKK.V
ORS (US)

New strategy on new buys: buy smaller amount and if it falls (atleast 20%) and company situation has materially changed average down.

still holding:

BVF
CLCT (US)
CGS (worthless but good reminder not to buy goodwill fluff without any earnings to back it up and huge debt just to add insult to injury. Good lesson)

Cash level in account close to 50%.


Continuing to updating and analyze companies on watchlists. Currently using TMX.com (sends emails on volume and target prices), Stockscores.com (highlights companies on lists when @ or below target price), and google to track idea's. Sedar and Edgar for company info and insight.


Also chaning checklist and polishing it for ease of use to evaluate companies quicker and allow for better comparison between idea's. Currently looking at buying CNJ (missed the boat), AG.un (also missed this boat), ARTW, NWF.un, OME, STMP, VOXX & ALC to name a few.


Contemplating selling puts on L, BVF, and a few others instead of buying and to collect small amounts (hopefully) if companies hold or go up. Nice way to get into a position a little cheaper if your going to buy anyways, but cheaper cost comes with potential opportunity cost if stock moves higher quickly in time frame.


Found new website this week which seems very helpful for debt insight.

http://doubleblind.ca/

Golden opportunites are shrinking.