I was asked if I ever bought stock for trading purposes. Yes, I do, but lately they have generally all been special situations. At the moment I only have one stock that I bought for purely capital gain and trading purposes. This stock is Barrick Gold Corp (TSX-ABX). I wrote about this recently on my blog. I bought this stock because I felt that it was unfairly dumped recently. This was because of the drop in the price of gold and also because of trouble the company was having. The market does tend to over react.
Another company I bought for purely capital gain and trading was Canam Group Inc. (TSX-CAM). I bought this in November 2011 and sold it in March 2013. I took a small position and I doubled my money. This company was in construction and was having problems. It cut its dividend 2011. I sold when it was on its way to recovery.
Another company I bought for trading was Teck Comino now Teck Resources Ltd. (TSTCK.B). This company bought Fording Canadian Coal Trust and had cash flow problems in 2008. It was bad timing for this purchase, but company would not have known that we were going to have a financial crisis. I bought this stock in November 2008 and sold May 2009 for 3 times what I paid.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.