As I was in a buying position, the week started off going in the right direction – down. Figuring I had let the prices of a few companies come down to the price I wanted to pay, I decided to sit out one more day. Ooops, bad move. Not only did the markets head up, but the companies I planned to buy went up sharply. Once again, I plan, the markets laugh. Sigh!
Market News
Led by higher oil prices and the move into a seasonally strong period for the market, the Toronto Stock Exchange (TSX) hit a record high of 20,928.10 thanks to a strong surge of 2.5% this past week. Financials and Industrials also gained this past week, but it was largely the energy sector, which touched its highest point since May 2019, that propelled the TSX.
Earnings from the big US banks led the American Indexes higher, providing a strong start for the markets in the fourth quarter. The Dow Jones Industrial Average (DJIA) had its biggest weekly jump since late June, while the S&P 500 had its best week since late July.
In the chart below, you can see that September was not a good month for any of the indexes but they’ve all reversed course in October. The surprise for me is the TSX has taken the lead from the S&P 500 and is leading the charge back up.
Here are the growth number for the four indexes since January 1, 2021:
-
- TSX: 20.05%
- S&P 500: 19.04%
- DJIA: 15.32%
- Nasdaq: 15.59%
Portfolio News
In the vein of a rising tide lifts all boats, while it was a good week for the markets, it was also a good week for all three portfolios. All portfolios outperformed the US indexes and two beat the TSX. An impressive performance by Shopify was the likely driver of Portfolio 3 to the top performer of the week. In second place was Portfolio 2, buoyed by the only energy company in any of the portfolios, TC Energy Corporation (TSX:TRP). Finally, the rise in the markets that turned out to be a double-edged sword for Portfolio 1. While Portfolio 1 rose with the markets, that same rise prevented me from acquiring additional shares in some of the best performing companies in Portfolio 1.
Companies on the Radar
Last week there were two companies on my radar. Copperleaf Technologies (TSX:CPLF) has taken a spot in Portfolio 1. Rivian is still on the radar because it has not gone public yet. While there is some information about the company on the website, the only financial information is from their Rivian’s S-1 Prospectus on the Securities and Exchange Commission website.
As with last week, I am looking to add shares in the companies listed below. I think these companies will be able to grow their respective top and bottom-line numbers over the next five years and since I purchased them, they have shown a strong percentage gain in share price, and compound annual growth rate. In no particular order:
- SEA Limited (NYSE:SE)
- Cloudflare (NYSE:NET)
- Trisura (TSX:TSU)
- Roku (NASD:ROKU)
- Crowdstrike (NASD:CRWD)
- Trade Desk (NASD:TTD)
- Nvidia (NASD:NVDA)
- Innovative Industrial Properties (NYSE:IIPR)
- Unity Software (NYSE:U)
- Home Depot (NYSE:HD)
- Visa (NYSE:V)
- Magnet Forensics (TSX:MAGT)
Portfolio Update
Portfolio 1
Portfolio 1 for the week ended October 15, 2021: UP 
While I was glad to see the markets move higher, I wish they had waited another day before they started their climbs, so I could have bought shares in some of the companies on my radar. On Monday, October 11, SEA Limited dropped to US$ 316 and by the end of the week it closed at US$ 354. Crowdstrike was another company that jumped $30 during the week. The share prices never pulled back and my limit orders always were a bit too low. However, I was able to add shares to two existing companies and add 1 new company to the portfolio.
Activity This Week
Bought: Nuvei (TSX:NVEI) I made my first purchase of Nuvei in June 2020. Since then, it has grown revenue, and net income. Plus, it is part of a growing electronic payment transaction industry.
Bought: Copperleaf Technologies (TSX:CPLF) I started a position with Copperleaf. The company uses Artificial Intelligence and big data (2 hot areas) to help companies improve their capital and operational decision making. In addition, it has strong, experienced leadership and, based on the Glassdoor ratings, appears to have a decent corporate culture. I want to see growing revenues and net income before investing more into the company.
I’ve had good success investing early in Canadian technology companies in the past (Lightspeed Commerce, Nuvei and Docebo) and buying additional shares once the company proves it deserves more of my money. Hopefully, Copperleaf will continue this streak.
Bought: Celsius Holdings (NASD:CELH) Celsius surprised me with the 2nd highest percentage increase in share price and the highest compound annual growth rate of all the companies in Portfolio 1. That this is a consumer defensive sector company rather than a technology company really caught my attention. Most of the other companies I am adding to are in the technology sector so investing more in Celsius was almost automatic. Strong revenue and net income growth the last few years would indicate they are executing their growth strategy and consumers are buying into their energy drink products they market as “… a lifestyle brand which offers unique, proven benefits, to accelerate metabolism and burn body fat.”
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 $
- Automotive Properties Real Estate Investment Trust (TSX:APR.UN)
- Andlauer Healthcare Group Inc (TSX:AND)
US $
Quarterly Reports
No quarterly reports this past week.
Portfolio 2
Portfolio 2 for the week ended October 15, 2021: UP
Activity This Week
No activity for the past week.
Dividends
Dividends Received
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 $
US $
No US$ dividends this week.
Quarterly Reports
No quarterly reports this past week.
Portfolio 3
Portfolio 3 for the week ended October 15, 2021: UP
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.
No dividends this week.
Quarterly Reports
No quarterly reports this week.