Rocky’s Weekly Stock Picks

This week is that time of the month. That time for monthly options to expire. Let’s spin the wheel and see what we get.

1. UEC - $4.02 , Uranium Energy is exactly what it sounds like. They find uranium for creating energy. The premiums on monthly options are moderate, and there’s no dividend. The price is relatively unaffected by the larger market as a whole. A great play any day.
   

2. PSIL - $2.84, we don’t see this security going much lower. There’s not currently a dividend, or options. Here’s the TD Ameritrade summary.

   The investment seeks long-term capital appreciation. The fund is an actively managed ETF that seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in securities of companies that derive at least 50% of their net revenue from or devote 50% of their assets to psychedelic drugs and derivatives that have economic characteristics similar to such securities. The fund primarily invests in publicly listed life sciences companies focused on psychedelic medicines as well as other companies with activities in the psychedelics business. The fund is non-diversified.
   

3. TFSA - $25.53 , the Terra Income Fund is a BDC, or business development company. This is a double-edged sword, as it is buying into high-risk investments. The risk to the individual is mitigated through the fund, and historically it looks decent.
   
   Ex-div is Tuesday, and the yield is showing 20%. The next dividend will likely be smaller. We have very little information on this security, despite it being traded on the NYSE. We’ll make a small investment - we’ll save our gambling dollars for risky spreads.
   

4. NEWT - $24.83, ex-div Wednesday, 12.08% return paid quarterly. We like this stock. It involves business and technology, that’s all we need to know.
   

5. PCF - $7.71, ex-div Friday. This fund pays monthly, currently showing 11.75%. Remember, with a DRIP, you can reinvest into more shares without triggering a taxable action. Some platforms don’t call it that, it’ll just be an option the dividend view whether or not to automatically reinvest.

   Automatic reinvestment = no realized gain = no tax.
   
   Whereas if you just take the dividend in cash, you will owe capital gains. Then if you buy more shares, you’ll pay capital gains again when you sell your holdings. Getting double-taxed on your dividends is not ideal!