How to Review the Price History of a Stock Using CIBC Investor’s Edge

Before I buy a stock, I always like to review how it has been trading. Sometimes shares are only traded in small numbers and their price tends to jump around unpredictably like a frightened leopard frog. For example, LNF trades around the $13 point. It can go up or down a dollar on a whim but only seems to trade a few hundred shares at a time. Other stocks, like CNR can bounce up and down $0.75 every day while trading tens of thousands of shares. Here’s how I check the price history for shares of a company using CIBC Investor’s Edge.

Checking the Price History for an Equity Using CIBC Investor’s Edge

  1. Go to CIBC Investor’s Edge at: https://www.investorsedge.cibc.com/ie/
  2. To sign in to your CIBC Investor’s Edge account/s:
    1. In the User ID field, type your User ID.
    2. In the Password field, type your password.
    3. Click on the Sign On button.
  3. From the list on the left side, click on Quotes and Research, then click on Market Centre.
  4. In the Symbol text field, type the ticker symbol for the company of interest.
    For example, I typed LNF for Leon’s Furniture.
  5. Click on the View button.
  6. Review the information for today about the open, range, bid, bid lots, previous close, 52-week range, and ask, ask lots.NOTE that all price information on this screen is 15- to 20-minute delayed. You can see the current price when you are in the Stock Order Entry screen.You can also look at the P/E, EPS and Market Cap.
  7. There’s a handy little chart to the left that shows how the stock has been trading today.
    I can see at a glance that LNF took a 50 cent per share dive after the opening of trading but has since rebounded and is now trading down about 25 cents
  8. Click on the 5 dy; 3 mo; 1 yr and 5 yr tabs to see the chart for the various time periods.For example, a review of the chart for LNF for 1 year shows that last year it climbed steadily all year, with a brief upwards spike and retreat in December and January.A look at the five year price history shows this stock has climbed from a 2008 crash of less than $10 to about $14 with a few swings up and down along the way. It’s currently trading near its all time high.
  9. Looking at this history, I will have to decide whether I’d prefer to wait for a pullback, since it does seem to have them fairly often, or go ahead and buy now.I could just by part of a position now, and pay a second commission to buy another part a few months from now. But is it worth paying two commissions? I need to choose before I submit a buy order.
  10. When your review is complete:
    1. Click on the Sign Off button.
    2. For increased security, close your browser session.

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Has reviewing the pricing history for a stock ever saved you a bundle? Please share your experiences with a comment.

When Wishy-Washy Works: Taking Part Profits from a Skyrocketing Stock

I recently lamented in How on Earth do you Decide WHEN to Sell Your Shares of a Successful Stock how difficult it can be to pick the time to sell. One strategy I (and others) sometimes use is to take “part profits.” Yes, it’s wishy-washy. But it works.

Let’s look again at my old friend Enbridge. We bought at $30.75, split adjusted. It’s trading today at $48.75. So each share is up $18 in just under 2 years. Our trading commission at BMO InvestorLine, where this stock is held, is $9.95. It’s held in an RRSP so there is no capital gains tax, although all monies withdrawn from the RRSP in the future will be taxed as income.

Calculate the Impact of the Sales Commission on Your Total Return Before Selling

You should calculate how many shares you would have to sell just to pay the trading commission. Then you’re ready for the next step.

Here’s the analysis for my situation:
With an $18 gain, we could sell one share and still make an $8 profit. That’s a return of more than 13% on the original 30.75 investment, since it has been just 2 years since we made the purchase. Cool! (Most of my investments report in negative numbers.)

In case anyone wants to know what math I used:
(48.75-30.75) = 18
(18-9.95) = 8.05
(8.05 / 30.75)*100 = 26%
(26%) / 2 = 13%
You can see where your mileage may vary.

If you have a sales commission of $29, obviously selling one share would lose you money. You’d have to sell 2 shares just to make $7. Still, for each share you sold after that you’d make the full $18 a share of profit.

Does the Sales Commission Use Up Too Much of the Profit?

If you are going to have to sell a quarter or half of your shares just to pay the sales commission, you may decide you don’t want to sell now. All decisions are 100% personal, but it doesn’t seem like a great profit will be made if so much of the growth in value in the stock will be going to pay fees.

An example of this might be if you bought 100 shares at $1 each including the fees paid to buy the stock. They are now worth $2 each. But you have a trading commission of $29. You would have to sell 29 shares just to pay the commission. Even though the stock has doubled in value, you might not want to sell.

Or you may feel that’s as high as the stock can go, so you’ll just have to accept the painful fee, sell, and take your $71 profit. It’s still a return of 71% and if you bought those shares in the last year, that’s an amazing annual rate of return compared to a GIC.

Defeating Analysis Paralysis by Taking Part Profits

The worst part of owning a very successful stock is deciding when to sell. You keep wondering if it is going to continue to climb into the stratosphere leaving you stranded on Earth wishing you had stayed aboard. Then you start agonizing that maybe it has run out of fuel and is about to nosedive down to plunge back into the ocean, sinking all your hopes fifty fathoms deep.

For the wishy-washy part profits are the answer.

Instead of selling all of your holding, you sell part. That leaves you with some bragging rights either way the stock goes.

If the stock continues to climb, admittedly you will not maximize your benefit from that improvement. However, if you put your part profits to work in another successful way you may not suffer a substantial setback.

If the stock plummets, you will still lose money, but hopefully your partial profits will offset the loss or enable you to make an overall profit.

How Much Should You Sell to Take the Partial Profit?

Of course now you’re back at a variation of the original question: how MUCH do you sell?
This is where the sales commissions may play a role.

With my Enbridge stock, I could actually sell one share at a time, since I make a lovely little profit on each one. It does, even to me, seem a bit silly to do that, though.

Making too many sales and paying too many fees makes even less sense if the commission uses up a substantial amount of the profits.

Do I Have to Sell in Groups of 100 Shares?

In the bad old days, this question was often simpler. Brokerages did not like to accept or fill orders for sales unless they were in multiples of 100 shares. The use of computerized trading has changed that significantly. Now the large brokerages like InvestorLine don’t seem to care whether you place an order to sell 10 shares, 100 or 1000. So keeping your sale in lots of 100 isn’t a factor for most sales.

The Wishy Washy Way to Pick the Percentage to Sell for a Part Profit

Luckily, the wishy washy world has developed a standardized decision to avoid excessive dithering. These rules suggestions apply AFTER you have decided it is time to take partial profits and AFTER you have decided that the trading commissions will be a reasonably small cost. Not every stock should be sold when it’s up 50% or even 100%.

  • If a stock is up 50%, take part profits by selling 25%.
  • If a stock is up 100%, take part profits by selling 50%.
  • If a stock is up 200%, take out your original investment by selling 100%.

All of these rules are based on the assumption that you have somewhere to invest those profits (or spend them) that will be safer and still generate a good return.

Getting Back to Enbridge and Part Profits

So what did we do with Enbridge? We sold down to our “core holding” position. We want to always have some Enbridge stock in our portfolio (at least based on our analysis of today). So we took as much profit as we could but now we have to leave it alone. It’s a dividend-paying long-term defensive stock. We just have to ignore that “paper” capital gain and leave it be.

Now we might just have to take a look at our CNR though….

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How do you choose when to sell a skyrocket in flight? How much do you sell? Please share your strategies with a comment.