RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:up 22% DE is one I've never seen before, but I'll have to look at it, on the surface it gets me interested.
AD I've looked at in an out but never felt comfortable, but I should circle back around on it.
EIF I think everyone has taken a loook at but it moves wildly and dramatically.
I commend you on getting those especially if you hit them on bottoms.
Mr Mikes is a small part of their portfolio and altho it's struggling it has a path for upside with reopening, I've never seen one, but I'm gonna try and make it to thier St. Catherines location next time I visit Niagra Falls, I assume is similar to Keg or Earl's maybe a step down. I'm more concerned about Air Miles to be honest. But most of thier portfolio has pretty nice royalty agreements and by many of our projections is underpaying it's ability/guidance by 8-15% in an abundance of caution due to the pandemic. The current price jump is forward looking as it seems people think that they are going to raise the payout or announce an upcoming deal soon. Also as things normalize it will move off its high yeild as interest in secure payouts grow, I've stated several times I'm not adding unless I'm get 8.25% but I'm softening towards 8%, long term it likely should yeild 6.5-7% in normal times.
I think we likely look at similar stocks because we likely have a similar dividend yeild excitement when screening for stocks. Once a week I look through a couple sites and check movements, yeilds, notable news and try to get to know a company that I haven't done a deep dive on before, once in a while I find a gem of a lightly followed name, like this was and hopefully will be again soon lol.
I'm not too concerned about inflation, it's almost always happening and the fact that they are gonna attempt to hit it with rate moves and the such, I feel inflation will slow down. I don't buy that restaurants will struggle going forward as they just when through a period where people could not go in and on full reopening people are going to want to do the things they couldn't. That said since people stayed home more some learned to cook and or ordered in so that may have more lasting effects, but people are lazy and professional food makers do things right. The bigger concern in restaurants is for the most part they are said to be low margin buisnesses but the larger players can get pricing on supplies. Everything in the food industry seems push and pull and you can use tings to fit your narrative so it's a difficult place to play, but the best places seem to do real well.
When I first got into investing I was gonna buy Chipotle, sub 300, it got up to 700 fell back down and I still was scared of it and now it's at 1500 and hit 1900. I think it's my biggest regret in investing, no dividend and the single share price amount was what concerned me. I think it's the only idea I've had that I've noticed has 6x on me... I've had some smaller miners 3-5x on me when I haven't moved on them and best I've done for myself is a few doubles and a triple on total return. I currently hold a couple companies that may have big potential, WBE is one I could see long term being a few (3-5) dollars if the stars align well...
If you like the royalty space for high dividend yeilds look in second tier mortgage lenders, they operate somewhat similarly but are more regulated like a REIT in that they have required payouts to holders to get special tax treatments. My favourite is MKP (over 20% of my full portfolio, which is overweight in my opinion and it's one of my longest held positions and I've added to it a few times which isn't normal for me) but I feel it's currently over valued by a little bit but if you watch the next few weeks I think they are going to make some nice announcements coming up that make the current price somewhat palatable. I also own FC, but I'm waiting for a sell price and I'm going to off load it just because I've made a very good return and see little room for continued upside at the moment. If I was going to buy today BRE is my pick when it's yielding above 8% as a straight income play with some upside, TF is decent, AI is ok and FN is one that I have recently discovered that I kinda like the looks of. They trade somewhat light and are rather avoided and unknown because of the sigma of the mortgage crisis, but they operate nothing like what was going on with those big firms which you see laid out in 'The Big Short' movie.
I'm well aware of Nortel Networks, I lived in an area that a chunk of the city's population revolved around thier buisness and it did a good job of crippling the community for 10 years after.
Margin is very scary because you usually hear the horror stories, you rarely ever hear the good things it can do. Part of that also is people's mentality with it too, it's almost free money, until it isn't. When I first started investing I used it and got burned right away because of a combination of not understanding what I was doing and then like 7 years later finding out that there was an administrative error by the bank when I opened the account, they had a check mark in a box on the account that shouldn't have had it so it made my use a maximum of 3 days before the account trigged a margin call even if I had enough margin on the account. I only lost like $300 and an unknown amount of potential, but it wasn't until 7 years later when I started asking the proper questions someone found the mistake in the account.
I currently operate at nearly maximum margin use (I'm planning on scaling back to a degree), but I also have a slush fund aside that should we get a small correction I could dip into it and cover margin calls... I've had 100s of notifications and warnings on margin calls, but not many times have I had to react to them, usually when I have it's within the first few weeks after making a new purchase and the call is only for $25-300. I've let 2 margin calls go through to see what would happen, both were pretty violent and I will do all I can to not let it happen again, when the bank's computer sells your companies it doesn't make good decisions at all! (Which is why your freind lost his good stocks because they are usually the most liquid and easy to offload) LoL
Techincally, at the core, Margin is just a secured line of credit based on you stocks current value, just like if you secure a line of credit on your house, the only issue that can hurt is that it's calculated daily, and if you fly too close to the sun it will burn you. If you margin $5-10k of like 25-50k allowance, you have to be going through either the Great Depression or be an extreamly terrible investor to get hurt, you would need to lose 70% of value on the account of margin securable stocks to trigger a margin call on yourself. If your using 45k on 50k of allowance, 10-15% dips can get you and that's a general market pull back that can happen fairly often. I was not that far into margin use when Covid happened and I lost nearly 50% of my portfolio value and on the worst day of that pull back I had a Margin call of less than $100. But after things started to climb back up I started utilizing it to a high degree to take advantage of deals and use it as a personal account cause you can just pull the cash from it like a line of credit and use it day to day, if you can't make a credit card payment you can pull from margin and pay like 4-5% interest on that account for a few days, rather than 20% on an unpaid balance. Also margin interest is a tax write off just like a loss on an investment.