Sunday, September 21, 2014

Short-term Trade: Bought and Sold Alaris Royalty Corp.

After a nice gain on a short-term trade in Sirius XM Canada ("XSR"), Mr Market discounted my other favorite short-term trading target, Alaris Royalty Corp ("AD") on September 9th. Since the stock was down more than 3% that day on no news, and because I'd eventually like to own Alaris for the long-term, I bought in at $32.61.

Fast forward almost a week to September 15th, while I was waiting for a connecting flight in Los Angeles airport (LAX), using their free WIFI, I noticed that Alaris was selling about a $1/share higher. I exited my position at $33.61, and made another gain with my short-term trading fund.

The latest gain allowed me to repurchase Alaris on Friday at the great price of $32.45. I was even able to buy 10 more shares with the gains of past transactions and a dividend I received on Inter Pipeline fund (a company I own for the long-term in my TFSA). If Alaris falls below my purchase price, I'm perfectly happy holding them and collecting the 4.6% dividend (which grew over the summer)....but if they happen to rebound above $33 again, I'd likely look to sell them and buy more shares back at a lower price.

(Full Disclosure: No position in Sirius XM Canada, Long Inter Pipeline Ltd, holding Alaris for the short-term)


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