Q: 9:21 AM 8/21/2014
Hi Peter:
I must sell something to pay income taxes. I am considering the following 3 choices. All are in my TDWaterhouse cash account :
1. Olympia Financial Group Inc OLY. This is a 1.5% position, ACB $48.11 Current Capital Loss $11,353. However we received the $10/share dividend last year hugely offsetting the paper loss even though the taxable loss is still $11,353. Current Dividend Yield 7.22% Yield in Cost 6.05%. I already have a sizeable realized tax loss this year so don't particularly need to realize any more now.
2. Corus Entertainment CJR.B This is a 1% Position. ACB 24.12. Current Capital Gain $633 Current Dividend Yield 4.37%
3. Surge Energy SGY This is a 2% Position ACB $7.85 Current Capital Gain $2,915 Current Dividend Yield 7.17%
I really don't know why Olympia has been drifting down so much this year as it seems like a nice little company and regularly raises it's dividend. Are there any hidden weaknesses that I don't see? The recent quarterly results are :
Highlights from Continuing Operations for the three month period ended June 30, 2014 include the following; when compared to the three months ended June 30, 2013:
-- Total revenue, including interest earned as trustee and interest,
increased 6% to $9.24 million from $8.69 million;
-- Interest earned as trustee on monies held in trust and interest on
Olympia's own cash increased 17% to $1.41 million from $1.21 million;
-- Direct and administrative expenses (excluding depreciation and
amortization) increased 6% to $7.27 million from $6.89 million; and
-- Earnings before income tax decreased 3% to $1.67 million from $1.73
million.
Olympia advises that it will not be pursuing its prepaid card business and has requested a voluntary termination of its Mastercard issuer licence. As Olympia Trust is not federally regulated and given the fee restrictions imposed by provincial gift card legislation, it was determined that this business is not viable for Olympia at this time.
These three are all held long term [permanently] mainly for their dividends and hopefully some capital growth. I would have to sell all of Olympia or Corus, or half of Surge to pay the tax. I really don't want to sell any of these but must choose one so I would ask your advice on which is the weakest and must be sold.
Many Thanks........ Paul K
Hi Peter:
I must sell something to pay income taxes. I am considering the following 3 choices. All are in my TDWaterhouse cash account :
1. Olympia Financial Group Inc OLY. This is a 1.5% position, ACB $48.11 Current Capital Loss $11,353. However we received the $10/share dividend last year hugely offsetting the paper loss even though the taxable loss is still $11,353. Current Dividend Yield 7.22% Yield in Cost 6.05%. I already have a sizeable realized tax loss this year so don't particularly need to realize any more now.
2. Corus Entertainment CJR.B This is a 1% Position. ACB 24.12. Current Capital Gain $633 Current Dividend Yield 4.37%
3. Surge Energy SGY This is a 2% Position ACB $7.85 Current Capital Gain $2,915 Current Dividend Yield 7.17%
I really don't know why Olympia has been drifting down so much this year as it seems like a nice little company and regularly raises it's dividend. Are there any hidden weaknesses that I don't see? The recent quarterly results are :
Highlights from Continuing Operations for the three month period ended June 30, 2014 include the following; when compared to the three months ended June 30, 2013:
-- Total revenue, including interest earned as trustee and interest,
increased 6% to $9.24 million from $8.69 million;
-- Interest earned as trustee on monies held in trust and interest on
Olympia's own cash increased 17% to $1.41 million from $1.21 million;
-- Direct and administrative expenses (excluding depreciation and
amortization) increased 6% to $7.27 million from $6.89 million; and
-- Earnings before income tax decreased 3% to $1.67 million from $1.73
million.
Olympia advises that it will not be pursuing its prepaid card business and has requested a voluntary termination of its Mastercard issuer licence. As Olympia Trust is not federally regulated and given the fee restrictions imposed by provincial gift card legislation, it was determined that this business is not viable for Olympia at this time.
These three are all held long term [permanently] mainly for their dividends and hopefully some capital growth. I would have to sell all of Olympia or Corus, or half of Surge to pay the tax. I really don't want to sell any of these but must choose one so I would ask your advice on which is the weakest and must be sold.
Many Thanks........ Paul K
