Swing Trade, Round 5: Sell and Profit – POT

I finally sold my shares of Potash Corp./Saskatchewan Inc a couple of days ago. I first bought this company in 2012, and when it dipped in price earlier this year I bought some more to average down. I got rid of this stock now because I don’t want to risk it dropping in the new year. Overall I only made a $129 profit on my investment of $2260. Not the greatest win I’m afraid, but better than a loss. 🙂

Here are the details of my transactions.

June 26th,  2012
I bought 45 shares of POT on the Toronto Stock Exchange. The earnings of the company looked good, and the dividend was stable. Potash Corp provides fertilizer and other services to help grow the food we all eat. I thought the fundamentals for farming is strong so I bet $600 of my own money on it, and borrowed some money on margin.

Purchased 45 shares at $43.74 per share.
Total number of shares owned = 45
Average cost per share = $43.74
Total investment = $1968.30 ($600 of my own money. The remaining ~$1370 from a bank loan.)

Jan 21st, 2014
After a potash producing cartel in Russia unexpectedly pulled out of the global market the price of potash mining companies around the world, including POT, fell sharply. Instead of selling my stock at a loss I decided to double down on my investment and picked up another 45 shares with $1660 from my savings.

Purchased 45 shares at $36.90 per share.
Total number of shares owned = 90
Average cost per share = $40.32
Total investment = $3628.80 ($2260 of my own money. The remaining ~$1370 from a bank loan.)

Dec 24th, 2014
Sell everything. I don’t see any catalyst in the near future that would give POT shares a boost so I’ve decided to take my winnings and move on.

Gross Proceeds: Total = $3933.80 
Sold 90 shares at $41.72 each = $3754.80
Dividends: $179

Expenses: Total = $1545
Margin loan principle: $1370
Margin interest at 4.25%/year: $145
Trading commission: $30
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Net Proceeds: $2388.80
Principle Investment: $2260

Total Profit = $129 or 5.7%

This the longest time I’ve held onto a stock for swing trading. It technically isn’t even a swing trade anymore lol. I plan to use the money from selling my POT shares on better opportunities in the new year. 🙂

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Random Useless Fact:
When choosing a baby name, put an important title in front of it and see if it still works.