Market News

Beginning on a positive note, the Toronto Composite 300 (TSX 300), S&P 500,  Dow Jones Industrial Average (DJIA), and the Nasdaq Composite (Nasdaq) all opened the new quarter (October through December) on a positive note. Of the 11 major sectors in the S&P 500, all but healthcare stocks ended higher.

However, looking back at September, the TSX 300 dropped, the first losing month since January 2021, and ended the third quarter down .5%, the worst 3-month period since Q12020. A slight rise on Friday couldn’t prevent a loss for the week, its fourth straight weekly decline. The S&P 500 snapped a 7-month streak of gains and posted its worst monthly performance since March 2020 (before the pandemic hit the world). The DJIA saw its largest monthly percentage drop since October 2020. The Nasdaq also saw its biggest monthly drop since March 2020.

All three major U.S. stock indexes had their worst quarterly performance since the opening months of 2020. The Nasdaq and Dow suffered quarterly losses, with the S&P500 avoided a quarterly loss with a modest gain over the quarter. As with the TSX, despite a late afternoon rally, led by positive economic data (increased consumer spending, accelerated factory activity ) and Merck’s new COVID medication, lifting all three indexes into positive territory for the day, they ended the week lower than last week.

With all the indexes down for the week its not surprising all three portfolios were down. Unfortunately, all had a worse week than the Nasdaq which had the biggest drop of the Indexes.

For the month of September, I was pleased that Portfolio 2 not only beat all of the Indexes but also eked out a tiny gain. On the downside, Portfolio 1 underperformed all the Indexes except the Nasdaq while Portfolio 3 didn’t even beat the Nasdaq. ☹

With the historically most volatile month of the year behind us, I hope that’s the last month where any of the portfolios finish on with a negative.

Companies on the Radar

I didn’t have a chance to take a close look at any new companies last week but identified existing companies that might be worth adding shares. I was looking for highest percentage growth rates since purchased, the highest compound annual growth rates (CAGR) since purchased, and companies that I felt were part of a growing trend, such as cybersecurity and digital advertising. In no particular order those companies include:

• Nvidia (NASD:NVDA)
• Celsius Holdings (NASD:CELH)
• Nuvei (TSX:NVEI)
• Innovative Industrial Properties (NYSE:IIPR)
• Trisura (TSX:TSU)
• Global-E (NASD:GLBE)
• Cloudflare (NYSE:NET)
• Crowdstrike (NASD:CRWD)
• Roku (NASD:ROKU)
• SEA Limited (NYSE:SE)
• Trade Desk (NASD:TTD)

Portfolio Update

Portfolio 1

Portfolio 1 for the week ended October 1, 2021: DOWN

It is not fun when a company you own is the subject of a short seller report. In this case, despite a Friday rally, Lightspeed Commerce saw its share price drop over 20% during the week. The bigger question, how accurate is the report? The claim is Lightspeed is not providing enough information to investors to accurately assess its growth potential. Despite this report, I’ll hold my shares for now but will pay close attention to this situation. I hope this is not another Luckin Coffee situation. That company was found to have cooked their books causing the share price to fall from ~ $45 to $4.00.

Great Canadian Gaming Corporation (TSX:GC) The company has been delisted and the cash has arrived in the account.

Activity

No significant activity to report this week.

Dividends

Dividends Received this week for the following companies:

Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.

Canadian $

Telus (TSX:T)

US $

No US$ dividends this week.

Quarterly Reports

No quarterly reports this past week.

Portfolio 2

Portfolio 2 for the week ended October 1, 2021: UP 

Activity

No significant activity to report this week. Growing wealth slowly. 😊

Dividends

Dividends Received this week for the following companies:

Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.

Canadian $

Brookfield Infrastructure Corp (TSX:BIPC)

Brookfield Infrastructure Partners LP (TSX:BIP.UN)

US $

No US$ dividends this week.

Quarterly Reports

No quarterly reports this week.

Portfolio 3

Portfolio 3 for the week ended October 1, 2021: DOWN

Activity

No activity to report. Growing wealth slowly. 😊

Dividends

Dividends Received this week for the following companies:

Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.

No dividends received this week

Canadian $

Brookfield Asset Management Reinsurance Partners (TSX:BAMR)

Brookfield Renewable Corp (TSX:BEPC)

US $

No US$ dividends this week.

Quarterly Reports

No quarterly reports this week.

 

Market News

The TSX 300 Composite ended the week lower than it started, but the S&P 500, DJIA both ended higher than they started while the NASDAQ 100 essentially ended where it started. The TSX was down on worries about a slowdown in the post-pandemic economic recovery and fears over the fate of debt-ridden China Evergrande, a Chinese property developer that is on the brink of missing payments on some of its debt (bonds). If this issue is not resolved it could send a jolt through  the global markets. Barring a rally on the TSX next week, the TSX will end September in losses after seven months of gains.

On the US side, the week didn’t start out too well with a selloff on Monday thanks to concerns about the Evergrande. However, they survived a bumpy week to end slightly up for the week.

All the portfolios ended the week with small losses, with Portfolio 3 losing the least. It’s a bit surprising that Portfolio 2 had the largest loss for the period considering it’s the most conservative of the three portfolios. The TSX 300 Composite also had a minor pullback while the three US exchanges all had slight increases for the week.

Nothing to worry about, each portfolio and each index is going to have ups and downs. I’m in for the long term so I ignore these short-term blips.

Companies on the Radar

Nothing really caught my attention this past week but with cash from Great Canadian going private expected to land next week I’ll have to start looking to see if there are any companies I’d like to own or if I should increase ownership in companies already in the portfolios.

Portfolio Update

Portfolio 1

Portfolio 1 for the week ended September 24, 2021: DOWN

Great Canadian Gaming Corporation (TSX:GC) this company and the corresponding shares still appears in the portfolio but there has been no trading activity since September 17. I expect the shares to disappear and be replaced by cash next week.

Activity

SOLD Cresco Labs (TSX:CL) Cresco Labs acquired Canadian marijuana distributor CannaRoyalty Corp back in January 2020. CannaRoyalty/Cresco Labs was another marijuana company purchased back in 2018 to try and capitalize on the legalization of marijuana in Canada. Cresco has fallen 50% from its February 2021 high (pun intended), the outlook for the marijuana industry is flat for the next year or so and no ‘big’ event on the horizon that would cause the marijuana industry to spike up. With better opportunities out there, I felt it was time to sell before the share price fell any lower and lock in a 50% gain on the initial investment. Of course, the share price rose immediately after selling the shares.

Lesson: when companies rise on hype it is best to sell on the hype rather than wait for facts to bring a company back to reality, especially if you only bought the company for the growth component.

Dividends

Dividends Received this week for the following companies:

Canadian $

No Canadian$ dividends this week.

US $

Nvidia (NASD:NVDA)

Quarterly Reports

No quarterly reports this past week.

Portfolio 2

Portfolio 2 for the week ended September 24, 2021: DOWN

Activity

No significant activity to report this week.

Dividends

Dividends Received this week for the following companies:

Canadian $

Dream Industrial REIT (TSX:DIR.UN) DRIP

Alimentation Couche-Tard Inc (TSX:ATD.B)

US $

No US$ dividends this week.

Quarterly Reports

No quarterly reports this week.

Portfolio 3

Portfolio 3 for the week ended September 24, 2021: DOWN

Activity

No activity to report

Dividends

Dividends Received this week for the following companies:

No dividends received this week

Canadian $

No Canadian$ dividends this week.

US $

No US$ dividends this week.

Quarterly Reports

No quarterly reports this week.

Market News

The TSX 300 Composite, S&P 500, DJIA and the NASDAQ 100 all ended the week lower than they started. The TSX closed at its lowest since Aug. 23, 2021, likely a combination of it being a seasonally weak time for the market and the federal election on September 23, 2021. The 3 major US indexes ended the week lower on worries about corporate tax hikes, Covid-19 and possible tighter fiscal policy.

Two of the portfolios ended the week with small gains, with a small loss for portfolio 3.

Companies on the Radar

Two companies that have been on my Radar in the past popped up this past week. The first is Upstart Holdings (NASD:UPST), a US based, cloud based lending platform that uses artificial intelligence (AI) to improve access to affordable financing for individuals. The company company’s 3 co-founders still have leadership positions in Upstart with a high overall approval rating in glassdoor.  A quick look at the numbers shows it has increased sales the last 3 years, finally turned a profit last year; no long term debt; and positive free cash flow. I’m always interested in fintech (financial technology) companies.

The other company is Globus Medical (NYSE:GMED), another US based company. Globus Medical makes robotic systems for spinal surgery “designed to improve accuracy and patient care.” The company is founder led with an OK glassdoor rating. Looking at the numbers, Globus Medical has beaten the S&P 500 over the last 5 years; prior to last year, sales and net income were increasing; no long term debt; and are cash flow positive. I suspect that with hospitals tied up with Covid-19 cases a lot of surgeries were pushed back, leading to a drop in net income (although it remained positive).

Both companies are founder led, utilize technology, appear financially sound and are worth a deeper look.

Portfolio Update

Portfolio 1

Portfolio 1 for the week ended September 17, 2021: UP

Great Canadian Gaming Corporation (TSX:GC) announced an anticipated closing date of September 23, 2021, of its acquisition by Raptor Acquisition Corp., an affiliate of Apollo Funds. Great Canadian will be delisted from the TSX after the arrangement closes.

This will free up cash so time to see if there are any new public companies I’d like to own a very, very, very small piece of or to take a bigger ownership in companies already owned (still a very, very, very small piece).

Activity

No significant activity to report this week.

Dividends

Dividends Received this week for the following companies:

Canadian $

Automotive Properties Real Estate Investment Trust (TSX:APR.UN)

Yellow Pages Ltd (TSX:Y)

US $

BSR Real Estate Investment Trust (TSX:HOM.U)

Home Depot Inc (NYSE:HD)

Quarterly Reports

No quarterly reports this past week.

Portfolio 2

Portfolio 2 for the week ended September 17, 2021: UP

Activity

No significant activity to report this week.

Dividends

Dividends Received this week for the following companies:

Canadian $

Summit Industrial Income REIT (TSX:SMU.UN)

US $

No US$ dividends this week.

Quarterly Reports

No quarterly reports this week.

Portfolio 3

Portfolio 3 for the week ended September 17, 2021: DOWN

Activity

No activity to report

Dividends

Dividends Received this week for the following companies:

Canadian $

No Canadian$ dividends this week.

US $

No US$ dividends this week.

Quarterly Reports

No quarterly reports this week.

Market News

The TSX Composite, S&P 500 and DJIA all ended the week lower than they started. With September traditionally being more volatile I suspect the pullback is a result of some profit taking happening as investors lock in gains after a bullish September.

All 3 portfolios ended down for the week, with portfolio 2 falling the least as it is designed to be less volatile.

Companies on the Radar

Two companies popped up on my radar this week – Yotpo and Mammoth Biosciences. Unfortunately, both are private companies, but I wouldn’t be surprised to see them go public within 12 months.

Yotpo is an ecommerce marketing platform that helps brands accelerate growth.  They are founder led and based in Israel with offices in New York and London. They came onto my radar with an announcement from Shopify that they are making a strategic investment of $30 million in Yotpo. If a market leading company invests in a smaller company, I want to know more about this smaller company to see if I’d like to own a piece, albeit very small piece, of the company. If a small cap company turns out to be a winner there is a long runway ahead of it and I’d prefer getting in closer to the beginning than halfway through.

Mammoth Biosciences is developing CRISPR (Clustered Regularly Interspaced Short Palindromic Repeats) systems to ‘read and write the code of life.’ The company, based in San Francisco, is founder led (4 founders) with one of the founders winning the 2020 Nobel Prize in chemistry for co-discovering CRISPR in 2012. The company ‘is enabling the full potential of its platform to read and write the code of life … addressing challenges across healthcare, agriculture, environmental monitoring, biodefense, and more.’ I don’t know much about the biotech industry, but CRISPR is an emerging technology with great potential.

If either of these companies announce they are going public, I’ll be very interested to get a closer look at them.

Portfolio Update

Portfolio 1

Portfolio 1 for the week ended September 10, 2021: DOWN

The acquisition of Great Canadian Gaming Corporations (TSX:GC) by Raptor Acquisition Corp., an affiliate of Apollo Funds, received all the required regulatory approvals. Raptor will acquire all the issued and outstanding common shares of the GC at a price of C$45.00 per Share. The anticipated closing date is September 23, 2021. Once the deal is completed its expected GC will be delisted from the TSX.

This will free up some cash to either add to existing positions or to start a position in a new company. Either way its time to go shopping.

Activity

Bought ZIM Integrated Shipping Services Ltd (NYSE:ZIM) ZIM appears to have experienced and visionary leadership; strong corporate culture per Glassdoor; growing revenues and net income; using technology to disrupt the marine shipping industry. There will always be a need for shipping, be it trucking, rail or ship. As more businesses and individuals buy everything from raw materials to finished goods from across the globe, marine shipping is the most cost-effective way of transporting goods between continents. Finally, ZIM is part of the Industrials sector, so it also provides diversification for this tech heavy portfolio.

This is another company where I thought there would be a bit of pullback due to profit taking after a strong upward push. I was wrong twice this week before finally acquiring shares of the business.

Lesson: More of a reminder, I’ve no idea what the market or the share price of individual companies will do. If you want a company don’t try to outsmart the market, especially for a few cents a share.

As per last weeks Activity report of the merger of KushCo Holdings and Greenlane Holdings, the KushCo shares have been exchanged for shares of Greenlane Holdings (NASD:GNLN).

Dividends

Dividends Received this week for the following companies:

Canadian $

No Canadian$ dividends this week.

US $

Skyworks Solutions Inc. (NASD:SWKS)

Quarterly Reports

No quarterly reports this past week.

Portfolio 2

Portfolio 2 for the week ended September 10, 2021: DOWN

Activity

No significant activity to report this week.

Dividends

Dividends Received this week for the following companies:

Canadian $

No Canadian$ dividends this week.

US $

Microsoft (NASD:MSFT)

Quarterly Reports

No quarterly reports this week.

Portfolio 3

Portfolio 3 for the week ended September 10, 2021: DOWN

Activity

No activity to report

Dividends

Dividends Received this week for the following companies:

Canadian $

No Canadian$ dividends this week.

US $

Microsoft (NASD:MSFT)

Quarterly Reports

Enghouse Systems (TSX:ENGH)

Selected highlights from their September 9, 2021 3Q22press release
https://www.enghouse.com/wp-content/uploads/2021/09/20210909-Q321-Press-Release.pdf

Financial and operational highlights for the three and nine months ended July 31, 2021 compared to the three and nine months ended July 31, 2020 are as follows:

• Revenue achieved was $117.6 and $354.1 million, respectively, compared to revenue of $131.3 and $382.9 million;
• Results from operating activities was $38.5 and $116.1 million, respectively, compared to $42.2 and $119.3 million;
• Net income was $21.2 and $62.6 million, respectively, compared to $26.0 and $69.2 million;
• Adjusted EBITDA was $41.7 and $126.4 million, respectively, compared to $45.6 and $130.2 million while Adjusted EBITDA margins increased from 34.0% to 35.7% for the current year to date period;
• Cash flows from operating activities excluding changes in working capital was $41.1 and $125.4 million, respectively compared to $45.3 and $130.5 million.

The decrease reflects exceptional revenue in the comparative period as a result of COVID-19 related demand.

During the quarter, Enghouse completed two tuck-in acquisitions, adding Nebu BV on June 3, 2021 and Momindum SAS on July 7, 2021.

the Board of Directors approved the Company’s eligible quarterly dividend of $0.16 per common share payable on November 30, 2021 to shareholders of record at the close of business on November 16, 2021.

Market News

The S&P 500 wrapped up its seventh consecutive month of gains, making it the strongest first eight months of a calendar year since 1997. So far, the upward momentum has continued into September. It will be interesting to see if the market ends September higher, given it historically tends to be a volatile month. Will it be a relatively smooth ride or a roller coaster with some good buying opportunities?

As September ends, two of the three portfolios continue to beat the major Canadian and US Index benchmarks. I suspect Portfolio 1 is underperforming because there have been a few acorns planted (companies that will take time to play out) and if they turn out to be oak trees (successful and growing companies) there is a very good chance this portfolio will beat the 2 benchmarks.

Companies on the Radar

Radar companies are businesses I either hear of for the first time, or businesses I’m aware of and have some recent bit of news that piques my interest to look at them again.

ZIM Shipping (NYSE:ZIM) I first saw this company appear in Twitter about a week ago. ZIM is a 75 year old marine shipping company, based out of Haifa, Israel, with offices in the US and Germany. It has a fleet of 80 vessels and serves 180 ports of call throughout the world. It has strong experienced and tenured leadership with a high Glassdoor score and based on these ratings, staff enjoy working for ZIM and strongly approve of the CEO. It’s a medium market cap company providing plenty of room for growth. Per their March 1, 2021 letter to shareholders, “The main pillars of our differentiation are our asset-light model, exceptional agility and technological innovation through business intelligence, big data, artificial intelligence, and technological partnerships.” https://investors.zim.com/news/news-details/2021/Welcome-Aboard-ZIM-Investors/ After reading the same letter I was left with the impression the company was using technology to disrupt the shipping industry. So far the company passed both my Radar Test and Quick Test checklist, and I plan on doing a deeper dive into the company in the very near future.

Portfolio Updates

Portfolio 1

Portfolio 1 for the week ended September 3, 2021: UP

CrowdStrike (NASD:CRWD) was added to the Nasdaq-100 (a basket of the 100 largest, most actively traded U.S companies listed on the Nasdaq stock exchange). This is positive news on 2 fronts: first, to grow to the size to be one of the largest 100 Nasdaq companies indicates the company is growing; second, all mutual fund mirroring the Nasdaq-100 must purchase enough CRWD stock to reflect its spot in the index. When the mutual funds initiate a position in a company it typically leads to an increase in the share price.

Activity

On September 1, 2021, KushCo Holdings (OTC:KSHB) completed their merger with Greenlane Holdings Inc (NASD:GNLN), becoming a subsidiary of Greenlane. The ticker will be GNLN. Holders of KushCo will receive .3016 shares of Greenlane for each share of KushCo.

Dividends

Dividends Received this week for the following companies:

Canadian $

Shaw Communications Inc (TSX:SJR.B)

TMX Group Ltd (TSX:X)

US $

Visa Inc (V)

Quarterly Reports

CrowdStrike (NAS:BNS) 

Selected highlights from their August 31, 2021 2Q22 press release
https://ir.crowdstrike.com/news-releases/news-release-details/crowdstrike-reports-second-quarter-fiscal-year-2022-financial

• Revenue: Total revenue was $337.7 million, a 70% increase, compared to $199.0 million in the second quarter of fiscal 2021. Subscription revenue was $315.8 million, a 71% increase, compared to $184.3 million in the second quarter of fiscal 2021.

• Income/Loss from Operations: GAAP loss from operations was $47.4 million, compared to $30.0 million in the second quarter of fiscal 2021.
• Net Income/Loss Attributable to CrowdStrike: GAAP net loss attributable to CrowdStrike was $57.3 million, compared to $29.9 million in the second quarter of fiscal 2021. GAAP net loss per share attributable to CrowdStrike common stockholders was $0.25, compared to $0.14 in the second quarter of fiscal 2021.

• Cash Flow: Net cash generated from operations was $108.5 million, compared to $55.0 million in the second quarter of fiscal 2021. Free cash flow was $73.6 million, compared to $32.4 million in the second quarter of fiscal 2021.

DocuSign (NASD:DOCU)

Selected highlights from their September 2, 2021 Q322press release
https://investor.docusign.com/investors/press-releases/press-release-details/2021/DocuSign-Announces-Second-Quarter-Fiscal-2022-Financial-Results/default.aspx

• Total revenue was $511.8 million, an increase of 50% year-over-year. Subscription revenue was $492.8 million, an increase of 52% year-over-year.
• Billings were $595.4 million, an increase of 47% year-over-year.
• GAAP gross margin was 78% compared to 74% in the same period last year.
• GAAP net loss per basic and diluted share was $0.13 on 196 million shares outstanding compared to $0.35 on 185 million shares outstanding in the same period last year.
• Net cash provided by operating activities was $177.7 million compared to $118.1 million in the same period last year.
• Free cash flow was $161.7 million compared to $99.8 million in the same period last year.
• Cash, cash equivalents, restricted cash and investments were $887.2 million at the end of the quarter.

Portfolio 2

Portfolio 2 for the week ended September 3, 2021: UP

Activity

No significant activity to report this week, however, following a great 2Q Report on September 2, the next day shares of MongoDB (NASD:MDB) closed at US$ 507.41 for a jump of over US$ 105 from the previous day’s closing price of US$ 401.65. 😊

Dividends

Dividends Received this week for the following companies:

Canadian $

Fortis (TSX:FTS)

US $

No US$ dividends this week.

Quarterly Reports

Alimentation Couche-Tard Inc (TSX:ATD.B)

Selected highlights from their August 31, 2021 Q12022press release
https://corpo.couche-tard.com/wp-content/uploads/2021/08/2022-Q1-Press-Release-En.pdf

• Net earnings were $764.4 million, or $0.71 per diluted share for the first quarter of fiscal 2022 compared with $777.1 million, or $0.70 per diluted share for the first quarter of fiscal 2021.
• Total merchandise and service revenues of $4.1 billion, an increase of 5.4%.
• Merchandise and service gross margin decreased 0.1% in the United States to 34.2%, and 2.2% in Europe and other regions to 38.4%, which was impacted by the integration of Circle K Hong Kong. Gross margin in Canada increased 1.2% to 32.3%, due to favorable changes in product mix.
• Same-store road transportation fuel volume increased 11.8% in the United States, 6.3% in Europe and other regions, and 10.4% in Canada, due to higher fuel demand compared to the corresponding quarter.

MongoDB (NASD:MDB)

Selected highlights from their September 2, 2021 Q22022press release
https://investors.mongodb.com/news-and-events/news-releases/news-details/2021/MongoDB-Inc.-Announces-Second-Quarter-Fiscal-2022-Financial-Results/default.aspx

• Revenue: Total revenue was $198.7 million in the second quarter fiscal 2022, an increase of 44% year-over-year. Subscription revenue was $191.4 million, an increase of 44% year-over-year, and services revenue was $7.4 million, an increase of 27% year-over-year.
• Gross Profit: Gross profit was $138.0 million in the second quarter fiscal 2022, representing a 69% gross margin, consistent with gross margin in the year-ago period.
• Loss from Operations: Loss from operations was $72.5 million in the second quarter fiscal 2022, compared to $49.8 million in the year-ago period.
• Net Loss: Net loss was $77.1 million, or $1.22 per share, based on 63.4 million weighted-average shares outstanding in the second quarter fiscal 2022. This compares to $64.5 million, or $1.10 per share, based on 58.4 million weighted-average shares outstanding, in the year-ago period.
• Cash Flow: As of July 31, 2021, MongoDB had $1.8 billion in cash, cash equivalents, short-term investments and restricted cash. During the three months ended July 31, 2021, MongoDB used $19.8 million of cash in operations, $1.7 million of cash in capital expenditures and $1.2 million of cash in principal repayments of finance leases, leading to negative free cash flow of $22.7 million, compared to negative free cash flow of $15.0 million in the year-ago period.

Portfolio 3

Portfolio 3 for the week ended September 3, 2021: UP

Activity

Noting to report

Dividends

Dividends Received this week for the following companies:

Canadian $

Enghouse Systems (TSX:ENGH)

Royal Bank (TSX:RY)

US $

No US$ dividends this week.

Quarterly Reports

No quarterly reports this past week

Market News

Despite a dip on Thursday all of the major North American indexes (S&P/TSX, S&P 500, Dow Jones Industrial Average, and Nasdaq 100) were up this past week. All three of the portfolios finished in positive territory for the week. Hopefully the momentum caused by the upward move on Friday will continue into September.

Portfolio Updates

Portfolio 1

Portfolio 1 for the week ended August 27, 2021: UP

Activity

Sold Canopy Growth (TSX:WEED) . This was my 2^nd purchase of WEED as the first purchase was doing well. This purchase was in the summer of 2018 as an investment into the legalization of marijuana in October, 2018. The stock price jumped to $75+ and has been drifting down since. I should have sold when marijuana was legalised in Canada but was in a buy and hold forever mindset.

After missing this initial opportunity to sell I thought there would be another surge in share price when the US started down the path to legalizing marijuana federally. There was a brief surge when the Democrats won the 2020 election but there doesn’t appear to be any hurry to legalize it causing the share price to drift down.

With the US legalization a low priority and recent announcements suggesting the company won’t be profitable until 2022 at the earliest the price has languished in the mid $20s. As well, Canopy Growth is no longer the dominant company in this industry that it once was. For all of these reasons, I decided to sell Canopy Growth. Since these shares were in a taxable account there will be a capital loss that can’t be used against any capital gains.

Lesson I learned: Not every company is a buy and hold forever company. Identify if it is a buy and hold forever company or one that is riding a hype train. If the later, ride it up and be quicker to sell the shares.

Bought Magnet Forensics (TSX:MAGT) . I’ve been interested in Magnet Forensics since it first came public in April 2021 at $22.90. The company is founder led in the growing cybersecurity industry; increasing sales; positive and growing net income; and the company is cash flow positive. I didn’t have the cash in May but finally had enough cash to buy some shares this week. If I’d had the cash in May, I could’ve doubled the investment already. Sigh.

Dividends

Dividends Received this week for the following companies:

Canadian $

Automotive Property REIT (TSX:APR.UN)

Quinsam Capital Corporation (CNQ:QCA)

US $

BSR REIT (TSX:HOM.U)

Quarterly Reports

Bank of Nova Scotia (TSX:BNS) :

Selected highlights from their August 24, 2021 3QF22press release

Third Quarter Highlights on a Reported basis (versus Q3 2020)

• Net income of $2,542 million, compared to $1,304 million
• Earnings per share (diluted) of $1.99, compared to $1.04
• Return on equity of 15.0%, compared to 8.3%

TD Bank (TSX:TD) :

Selected highlights from their August 26, 2021 3QF22

THIRD QUARTER FINANCIAL HIGHLIGHTS, compared with the third quarter last year:

• Reported diluted earnings per share were $1.92, compared with $1.21.
• Adjusted diluted earnings per share were $1.96, compared with $1.25.
• Reported net income was $3,545 million, compared with $2,248 million.
• Adjusted net income was $3,628 million, compared with $2,327 million.

YEAR-TO-DATE FINANCIAL HIGHLIGHTS, nine months ended July 31, 2021, compared with the corresponding period last year:

• Reported diluted earnings per share were $5.68, compared with $3.62.
• Adjusted diluted earnings per share were $5.83, compared with $3.76.
• Reported net income was $10,517 million, compared with $6,752 million.
• Adjusted net income was $10,783 million, compared with $6,998 million.

Enwave Corporation (TSX-V:ENW)

Selected highlights from their August 27, 2021 3QF22

Key Financial Highlights for Q3 (expressed in ‘000s):

• The Company reported consolidated net income of $670 for Q3 2021, compared to a net loss of $1,166 for Q3 2020, an increase in profitability of $1,836.
• Reported consolidated revenue for Q3 2021 of $7,351 compared to $5,998 for Q3 2020, an increase of $1,353 or 23%.
• Gross margin for Q3 2021 was 36% compared to 26% for Q3 2020.

Significant Corporate Accomplishments in Q3 2021 and To-Date:

• Formed a global strategic partnership with Dole Worldwide Food & Beverages Group.

Portfolio 2

Portfolio 2 for the week August 27, 2021: UP

Activity

Sold Canopy Growth (TSX:WEED) . This was the first purchase of WEED in October 2017 as an investment into the coming legalization of marijuana in October 2018. As in Portfolio 1, I should have sold when marijuana was legalised in Canada.

The rationale for selling is the same as in Portfolio 1 but this time there was a decent profit. Fortunately, these shares were in a tax-free account so there will be no capital gain taxes to be paid.

Lesson I learned: Not every company is a buy and hold forever company. Identify if it is a buy and hold forever company or one that is riding a hype train. If the later, ride it up and be quicker to sell the shares.

Dividends

Dividends Received this week for the following companies:

Canadian $

No Canadian$ dividends this week.

US $

No US$ dividends this week.

Quarterly Reports

Bank of Nova Scotia (TSX:BNS):

Selected highlights from their August 24, 2021 3QF22press release

Third Quarter Highlights on a Reported basis (versus Q3 2020)

• Net income of $2,542 million, compared to $1,304 million
• Earnings per share (diluted) of $1.99, compared to $1.04
• Return on equity of 15.0%, compared to 8.3%

 Portfolio 3

Portfolio 2 for the week August 27, 2021: UP

Activity

Adyen (OTC:ADYEY) split 2 for 1 on August 24.

Dividends

Dividends Received this week for the following companies:

Canadian $

No Canadian$ dividends this week.

US $

No US$ dividends this week.

Quarterly Reports

Royal Bank (TSX:RY)

Selected highlights from their August 26, 2021 3QF22

Q3 2021 Compared to Q3 2020

• Net income of $4,296 million                 up 34%
• Diluted EPS of $2.97                 up 35%
• ROE of 19.6%                 up 390 bps
• CET1 ratio of 13.6%                 up 160 bps

Q3 2021 Compared to Q2 2021

• Net income of $4,296 million up 7%
• Diluted EPS of $2.97 up 8%
• ROE of 19.6% up 20 bps
• CET1 ratio of 13.6% up 80 bps

Q3 2021 Compared to YTD 2020

• Net income of $12,158 million up 48%
• Diluted EPS of $8.39 up 50%
• ROE of 19.2% up 560 basis points

TD Bank (TSX:TD)

Selected highlights from their August 26, 2021 3QF22

THIRD QUARTER FINANCIAL HIGHLIGHTS, compared with the third quarter last year:

• Reported diluted earnings per share were $1.92, compared with $1.21.
• Adjusted diluted earnings per share were $1.96, compared with $1.25.
• Reported net income was $3,545 million, compared with $2,248 million.
• Adjusted net income was $3,628 million, compared with $2,327 million.

YEAR-TO-DATE FINANCIAL HIGHLIGHTS, nine months ended July 31, 2021, compared with the corresponding period last year:

• Reported diluted earnings per share were $5.68, compared with $3.62.
• Adjusted diluted earnings per share were $5.83, compared with $3.76.
• Reported net income was $10,517 million, compared with $6,752 million.
• Adjusted net income was $10,783 million, compared with $6,998 million.