Okay a quick update on the stocks and condo search in Toronto.

I am still holding all my plays and in addition to MetroPCS (PCS) shares that I purchased last week, I got into OCNF yesterday at a price of $1.02 for 1000 shares. This is a long term play which I think will explode.

The company has seen a HUGE drop in the stock price which some might think of signs of going bankrupt. But for some reason, I feel otherwise. This is my opinion only. But with strong cash reserve, the fact the company sold its old ships and bought newer, more efficient ones puts it on a better path in the long term. In terms of debt, the company is in line with the rest of the sector and looking forward, the company is poised to have strong contracts in 2011 as the industry begins to recover.

I did read that the company was looking to issue another 400M in stocks to purchase another group of ships but this is not fully known. Another thing to consider from the past earnings report was that the company took a hit on the earnings front due to the short sale of their old fleet which was greatly lower than market value. I personally don’t care since the company also did buy their new fleet at a cheaper price and those ships are more efficient.

I will hold this stock for a year and feel that there will be some choppy waters before smooth sailing towards the upside is seen. With a price of $1.05, the stock is fairly below its 3 month average but above its 52 week low. If the stock does fall into the $0.90 range, I will certainly pick up another 2000 shares. But for now, 1000 is nice.

No in terms of the condo search, the units I saw on specs (since I’m buying before the shovel hits the ground for the cheapest price) were not as appealing nor was the price and terms are great. I have started looking at a few other new builds that are asking a lower down payment of only 5% initially which means I will only have to invest $12,500 on a $250,000 unit. This is much better since I’m looking at a stronger ROI potential with less invested. I will keep it updated.

Happy Investing!

Aman, MBA

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