Investing

Portfolio clean up strategy for low value stocks

  • Last Updated:
  • Apr 8th, 2020 6:12 pm

Poll: Do you prune or hoard?

  • Total votes: 6. You have voted on this poll.
Prune
 
3
50%
Hoard
 
3
50%
[OP]
Newbie
Oct 2, 2012
27 posts
5 upvotes

Portfolio clean up strategy for low value stocks

How do you deal with very low value holdings?

This happened to me when:
1) Stock drops to very low level and stays there
2) Reverse merger or spits into 5 share of XYZ worth $50
3) Dividend reinvestment kicks in after you sell the whole thing – what a pain

I like to keep track of my portfolios in a spreadsheet so importing all that data gets tedious. On the other hand, one day, just maybe, these things could be worth something, and it is just a digital hoard after all. Well, there is some cost, in non registered account, for tax, calculating the ACB, dividends for decades gets tedious. Commissions: paying $6.95 to get $50 would get rid of the problem.
3 replies
Deal Addict
Jul 23, 2007
4352 posts
2756 upvotes
I don't have a great answer for everybody, but yes, I kept my major mistakes in the portfolio for a few years (if possible) to remind myself of how foolish I could be. I eventually got rid of them for less than the cost of the selling brokerage fee. The worst were Nortel, JDS Uniphase and hopefully the last one in my lifetime was Yellow Media.
[OP]
Newbie
Oct 2, 2012
27 posts
5 upvotes
Stryker wrote: hopefully the last one in my lifetime was Yellow Media.
Face With Tears Of Joy Me too, I have 2 shares of Yellow worth $13.98 plus a Yellow warrant expiring 2022 worth $0.40.
[OP]
Newbie
Oct 2, 2012
27 posts
5 upvotes
This gets funky in my Comptershare DRIP portfolio, depends on the holding, if you can sell it through Comptershare, and if they create a T5 tax forms or not.
With 1.489091 shares of Bank of Nova Scotia worth $65, they want $20 to sell it. With 0.776904 shares of BeeMO, a commission of 0.03 per share seems reasonable. ARC Resources has no option to sell.

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