Phantasmix Stock Market Blog

I feel like doing some math today:

• Silver Wheaton should have 40,000,000 ounces of silver to sell in 2013
• Their cost is $5/oz
• With spot at $34 like today, that’s $29/oz profit, or $1.16B
• With 346MM shares outstanding, earnings would be $3.35 per
• At a modest 20 P/E (yes, modest for the sector and for their business model), share price would be $67

Currently at (SLW: 35.66 -0.75%)

I wanted to buy more SLW (silver) but didn’t have the cash. Right now I’m trading the tax-free account and there’s an annual limit to how much I can add there. So, I got out of the XLF trade for a total profit of $3.20, and added SLW.

I added SLW twice since the initial buy-in on Feb 7. My ACB on it is $35.58. [ edited to add: current price (SLW: 35.66 -0.75%) ]

A note on options: XLF options are fairly priced and track the stock very very well. Surprised me. SLW options are lagging behind. Didn’t surprise me

What’s up with the dollar? I still have some US$ left, should I just convert it all to Cad$?

I opened up a TFSA with Questrade as soon as it became available.

This account must be in the individual’s name. If you’re transferring funds from a joint bank account, Questrade may ask for proof that you are, in fact, one of the account holders of this joint account (I ran into that issue). A simple screenshot of your bank e-statement is enough proof.

I started with the minimum CAD $1,000 and after thinking about it for some time, decided to make it my challenge for the year – turn $1,000 into $5,000, without additional deposits. No restrictions on the method, except no direct shorting or selling naked options (it’s not a margin account).

In the top menu on the site, there’s a new button, TFSA $5K. On that page I’m going to post all the trades I make in TFSA.

Quick backgrounder on this new account type –

TFSA (Tax-Free Savings Account) advantages:

• Invest up to $5,000 each year and every year
• Accumulate faster by never paying tax on your investment income, interest, dividends and capital gains
• Withdraw funds any time and for any purpose without paying any taxes
• All income earned — dividends, interest, capital gains – grows tax free

Questrade’s trading services in TFSA:

• No annual fees, no inactivity fees, and a low account-opening minimum of CAD $1000
• Low commissions on stock trades: 1¢ per share, minimum $4.95 / maximum $9.95
• Hold and trade U.S. dollars and pay no forced currency conversion fees
• Trade gold bullion
• Get $50 in free trades when you open a new account (must open account from the link above)