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Posts from the ‘ADF Group (DRX)’ Category

Week 135: Retail Changes

Portfolio Performance


See the end of the post for the current make up of my portfolio and the last four weeks of trades.


Recent Developments

During the Christmas break I began to focus my attention on the Canadian market, searching out stocks that had not yet participated in the bull market or that had further room to run.  I started to call these stocks my “Venture” ventures but that is not really accurate; I’ve actually only invested in a couple of companies that trade on the Venture exchange.  But they do tend to be small and micro and even nano cap companies, so many of them are Venture in spirit if not name.

My thesis was based upon a few pillars.  First, the Canadian markets severely underperformed the US markets in 2013 and given the tie between the trade of the two countries I didn’t think this disconnect could continue forever.  Second, The Canadian markets were dragged down by a rout in commodity stocks, particularly gold, and I wondered how much of the general downdraft had resulted in non-commodity businesses being dragged down unfairly.  Third, the Canadian dollar had fallen 10% and I had to think that this made any kind of export based business much more attractive.

The fall of the Canadian dollar also provided me with another reason to return to my home-country market.  I have done really well in the past year owning stocks in American dollars.  Its been a 10% gain across the board, even if a individual stock did nothing. But this force can work two ways and I am wary of a 5% correction to the upside that causes my portfolio to take a hit. Read more


The first of my Venture ventures: ADF Group

One of my themes for 2014 is investments in the TSX Venture exchange.  I post the Venture performance every month when I compare it, along with the S&P 500 and the TSX, to my own performance. Since I started this blog, the Venture has been in a steady slide down and now is only a little more than half the value it was in 2011.

Now some of this move is of course due to an end (or lull if you so prefer) of the commodity boom, and many of the stocks associated with that boom aren’t coming back.  But I think there are also a number of names that have been dragged down with the ship, and that there are opportunities within small Canadian stocks that reside on the Venture.

So far I’ve got five names that I’ve taken a position in.  The company’s I am investing in are all quite small, so I am keeping my positions small and I’m not going to broadcast these posts all over twitter because my intent here is not to pump them as I think they will do just fine on their own merits.  In this post I am going to start with a discussion of ADF Group. Read more