One Buy, One Sell

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Happy Canada Day everyone! Today I thought I would share with you a stock I sold and one that I purchased with the money I received from the sold stock. Back on June 10th I was looking at my TFSA account and noticed a stock that had been sitting in my account doing nothing, so I decided it was time to move it.

The stock I sold was Andrew Peller Ltd

Andrew Peller Limited produces and markets wine, spirits, and wine related products. It offers wines under various trademarks, including Andrés Wines, Andrew Peller Limited, Peller Estates, Trius, Thirty Bench, Red Rooster, Sandhill, Wayne Gretzky Estates, No. 99, No. 99 Rye Lager, Wayne Gretzky Okanagan, Black Hills Estates, Gray Monk Cellars, Tinhorn Creek, Oldfield Reserve, Innovation Series, The Creek, Crush Club, Creek Design, Calona Vineyards, Raven Conspiracy, Conviction, Peller Family Vineyards, Domaine D’Or, Hochtaler, Royal, XOXO, Black Cellar, Copper Moon, Rebellion, The Diplomat, Waltzing Matilda, Panama Jack, PJs Craft Cream, No Boats on Sunday, Schloss Laderheim, Baby Canadian, Baby Duck, Wine Country Vintners, and The Wine Shop. The company also produces and markets personal winemaking products under the Vintner’s Reserve, California Connoisseur, Atmosphere, Cheeky Monkey, KenRidge, Niagara Mist, Cellar Craft, World Vineyard, Selection, Island Mist, Winexpert, LE, Après, and Legacy brands through approximately 200 authorized retailers, and 400 independent retailers in Canada, the United States, the United Kingdom, New Zealand, Australia, and China. The company owns and operates 101 independent retail locations under The Wine Shop, Wine Country Vintners, and Wine Country Merchants store names. Andrew Peller Limited also exports its products.

(Source: Yahoo Finance)

I bought this stock over a year ago and hadn’t done anything with it. After my initial purchase it sat in my account collecting dust. I did receive a small dividend quarterly from the stock. I don’t think there is anything wrong with being in the wine and spirits business and over the long run I believe Andrew Peller will do well. However since I didn’t have any plans on buying more shares I thought I would put my money to work in a stock that I liked.

On June 10th I decided to sell all of my 45 shares in the company. By making this decision I took a loss of 30.8% on my investment. Although it is tough to sell and take a 30% loss on any investment I believe it is worth to do so than having your money sit there and do nothing.

Dividend

Andrew Peller was paying me $2.42 quarterly so my annual income will drop by $9.68

Stock Purchase: Go Easy

I used the proceeds from the Andrew Peller sale to add to my holding of Go Easy Ltd (ticker: GSY).

goeasy Ltd. provides loans and other financial services to consumers in Canada. It also leases household products to consumers. The company operates through two segments, Easyfinancial and Easyhome. The Easyfinancial segment provides unsecured and real estate secured installment loans, and secured saving loans; loan protection plans; and an optional home and auto benefits products, which offers road side assistance and a suite of other support services, as well as credit monitoring services. The Easyhome segment leases furniture, appliances, electronics, and computers. As of December 31, 2019, it operated 256 easyfinancial locations that include 33 kiosks, as well as 163 easyhome stores that include 35 franchises. The company was formerly known as easyhome Ltd. and changed its name to goeasy Ltd. in September 2015. goeasy Ltd. was founded in 1990 and is headquartered in Mississauga, Canada.

(Source: Yahoo Finance)

I first purchased Go Easy back in March before the pandemic fully hit, and I’ve been wanting to add to my position and lower my costs. Go Easy has been a growing company in Canada and it will be very interesting to see how their next quarterly results are. The last earnings were up to March 31st. Revenues in that report are higher in everyone of their business segments but we haven’t seen the impact of COVID-19 on their operations. The company did say the business had $214 million in total funding capacity which should be sufficient to fund growth through the fourth quarter of 2021.

The Buy

I used the cash from Andrew Peller and was able to buy 8 shares @ $57.92 per share of Go Easy.

Dividend

Go Easy pays a quarterly dividend of $0.45 and with this buy my quarterly income will increase by $3.60 and $14.40 annually.

Thanks for reading!

Stay Safe everyone!

Matthew

5 thoughts on “One Buy, One Sell

  1. Hey Matthew,

    Happy Canada Day buddy and congrats on the great purchase, I think it’s an awesome edition to your portfolio. If something isn’t performing up to expectations, might as well find opportunities elsewhere.

    I just crossed 50 subscribers on my YouTube channel, so I’m pretty excited about that on my end.

    Have a great one!

    -DG Capital

    Liked by 1 person

  2. Hi Matthew,

    I have never been able to open any of the links in your emails. Am also unable to cut and paste the links. Have others had the same issues?

    Regards,

    Bernie Klunder

    Like

  3. I guess it’s OK to swap the cash from one company to the next and increase your yield a bit. Especially if Andrew Peller is under performing. As for the Goeasy, I don’t understand their easyhome segment. Why would people lease furniture and electronics if they can buy outright. Leasing something for a year gets as expensive as buying the product outright. I guess there is a market for it.

    Like

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