Contents
This FFJ Portfolio - August 2025 report is a high-level recap of my activity during the month. All monthly reports are accessible here.
In recent posts I express my concern about what I perceive to be an environment in which many investors have little regard to the quality of the companies in which they invest. Despite an absence of profitability and positive cash flow, the share price of many 'trainwrecks' march higher.
Another tell-tale sign that we are experiencing irrational exuberance is the number of people with no investment experience approaching me about wanting to invest.
Recently, someone received a 'tip' about a small company with a 'revolutionary' product. The company trades on the Canadian Securities Exchange and the Venture market in the US. This immediately sets off 'red flags' as this is where companies list when they have no credibility.
Within seconds of looking at the company's Notice To Reader financial statements (not worth the paper on which the financial information is presented), we know that we should not place any reliance on the statements.
NOTICE TO READER
Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that
the financial statements have not been reviewed by an auditor.The accompanying unaudited condensed consolidated interim financial statements have been prepared by and are the responsibility of the management.
The Company's independent auditor has not performed a review of these financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.
The first note to the financial statements reflects the following:
The Company has never generated profit or positive cash flows from operations. For the six months ended March 31, 2025, the Company reported a net loss of $2,174,422 (2024 – $2,418,087) negative cash flow from operating activities of $1,964,718 (2024 – $1,686,226), and an accumulated deficit of $17,354,176 (September 30, 2024 – $15,179,754). These conditions indicate that a material uncertainty exists that may cast significant doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue its operations as intended are dependent on its ability to obtain necessary financing and raise capital sufficient to cover its development and operating costs.
These condensed interim consolidated financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in these condensed interim consolidated financial statements.
Within the first note of the financial statements, we also see the following:
The address of the Company’s corporate office and its principal place of business is 1100 – 1199 West Hastings Street, Vancouver, BC, Canada.
Performing a 'Google Map' search of this address, we see an image of an office tower. The very nature of this company suggests the principal place of business should not be an office tower.
Upon further investigation, this address is a popular business location and appears frequently in public filings and contact information for companies in resource, mining, and clean energy industries. Many micro cap companies use this business address so they can share administrative, legal, or consulting resources.
For the 6 months ending on March 31, 2025, this 'trainwreck' reported $22,948 in Revenue (NO...that is not millions of dollars!) and a Net Loss of $2,174,422.
When this company was presented to me on August 16, 2025, the company's share price had just soared to $2.95/share after having typically been trading for less than $0.25/share.
On August 25, the share price closed at $1.57. As I compose this post following the August 29 market close, however, shares trade at $2.16; they traded as low as $2.04 within 1.5 hours before the market closed.
If we look at the daily volume, we get the sense the share price is perhaps being manipulated. On most days in the past 52 weeks, the daily volume has been under 400,000 shares. On May 21, 2025, however, less than 40,000 shares traded. In July 2025, the daily volume started to creep up into the millions with over 14 million shares trading hands on July 31. The daily volume settled down into the millions (2 - 10) after July 31 but shot up to just over 17,683,000 on August 19.
Another tell-tale sign that we are experiencing a period of irrational exuberance is the increase in the Debit Balances in Customers' Securities Margin Accounts (see Financial Industry Regulatory Authority, Inc. (FINRA) monthly margin statistics). I suspect many investors might be taking on more than prudent level of debt to invest.
Recent Activity
Although the broad market is experiencing irrational exuberance, some investment opportunities exist. We just need to:
- pay attention to the underlying fundamentals of the companies in which we invest; and
- have a long-term investment time horizon as it is too difficult to consistently accurately predict short-term share price behavior.
Purchases
Accenture plc (ACN)
During August, I added to my ACN exposure with the purchase of 100 shares @ ~$257.39 on August 1 and another 100 shares @ ~$241.38 on August 7. My ACN exposure currently stands at 700 shares.
Sales
None.
Dividend Income
Dividend metrics are of little relevance in my investment decision making process. My interest lies in an investment's TOTAL potential investment return. In many cases, the preferred means by which a company can allocate its capital is to:
- reinvest in the business
- repurchase shares
- merge or acquire
Nevertheless, I track dividend income and make this information accessible here.
I received dividend income from the following companies. Where possible the automatic reinvestment of dividend income permitted me to increase my exposure.
- Accenture (ACN)
- Apple (AAPL)
- Blackstone (BX)
- Carrier Global Corporation (CARR)
- Mastercard (MA)
- Paychex (PAYX)
- West Pharmaceutical (WST)
- The Royal Bank of Canada (RY.to)
Shares in some of these companies are also held in retirement accounts.
The August dividend income was:
- 'Core' accounts: ~$ 926 CDN and ~$ 2,323 USD
- 'Side' accounts: ~$ 0 CDN and ~$ 1,030 USD
YTD2025 dividend income is:
- 'Core' accounts: ~$ 7,105 CDN and ~$ 37,637 USD
- 'Side' accounts: ~$ 684 CDN and ~$ 9,656 USD
Holdings
In prior FFJ Portfolio monthly posts I explain why the value of the 'Side' accounts component of the portfolio experienced a dramatic reduction in value in June 2024.
April 2024
Core Accounts: ~$ 739,787 CDN and ~$ 3,540,445 USD
Side Accounts: ~$ 606,667 CDN and ~$ 1,696,869 USD
Total: ~$ 1,346,454 CDN and ~$ 5,237,314 USD
May 2024
Core Accounts: ~$ 569,237 CDN and ~$ 3,642,078 USD
Side Accounts: ~$ 299,732 CDN and ~$ 1,784,750 USD
Total: ~$ 868,969 CDN and ~$ 5,426,828 USD
June 2024
Core Accounts: ~$ 553,777 CDN and ~$ 3,965,820 USD
Side Accounts: ~$ 0 CDN and ~$ 630,943 USD
Total: ~$ 553,777 CDN and ~$ 4,596,763 USD
July 2024
Core Accounts: ~$ 598,271 CDN and ~$ 4,218,120 USD
Side Accounts: ~$ 0 CDN and ~$ 881,679 USD
Total: ~$ 598,271 CDN and ~$ 5,099,799 USD
August 2024
Core Accounts: ~$ 598,631 CDN and ~$ 4,368,140 USD
Side Accounts: ~$ 27,470 CDN and ~$ 931,443 USD
Total: ~$ 626,101 CDN and ~$ 5,299,583 USD
September 2024
Core Accounts: ~$ 620,426 CDN and ~$ 4,428,345 USD
Side Accounts: ~$ 32,226 CDN and ~$ 953,814 USD
Total: ~$ 652,652 CDN and ~$ 5,382,159 USD
October 2024
Core Accounts: ~$ 617,739 CDN and ~$ 4,411,985 USD
Side Accounts: ~$ 37,230 CDN and ~$ 960,683 USD
Total: ~$ 654,969 CDN and ~$ 5,372,668 USD
November 2024
Core Accounts: ~$ 649,920 CDN and ~$ 4,786,925 USD
Side Accounts: ~$ 40,476 CDN and ~$ 1,026,183 USD
Total: ~$ 690,396 CDN and ~$ 5,813,108 USD
December 2024
Core Accounts: ~$ 628,504 CDN and ~$ 4,670,202 USD
Side Accounts: ~$ 39,292 CDN and ~$ 1,066,098 USD
Total: ~$ 667,796 CDN and ~$ 5,736,300 USD
January 2025
Core Accounts: ~$ 660,263 CDN and ~$ 4,950,735 USD
Side Accounts: ~$ 44,099 CDN and ~$ 1,126,663 USD
Total: ~$ 704,362 CDN and ~$ 6,077,398 USD
February 2025
Core Accounts: ~$ 653,051 CDN and ~$ 4,970,834 USD
Side Accounts: ~$ 41,447 CDN and ~$ 1,190,729 USD
Total: ~$ 694,498 CDN and ~$ 6,161,563 USD
March 2025
Core Accounts: ~$ 617,286 CDN and ~$ 4,829,134 USD
Side Accounts: ~$ 35,596 CDN and ~$ 1,265,103 USD
Total: ~$ 652,882 CDN and ~$ 6,094,237 USD
April 2025
Core Accounts: ~$ 620,799 CDN and ~$ 4,708,988 USD
Side Accounts: ~$ 74,619 CDN and ~$ 1,352,923 USD
Total: ~$ 695,418 CDN and ~$ 6,061,911 USD
May 2025
Core Accounts: ~$ 660,717 CDN and ~$ 4,863,614 USD
Side Accounts: ~$ 78,367 CDN and ~$ 1,402,636 USD
Total: ~$ 739,084 CDN and ~$ 6,266,250 USD
June 2025
Core Accounts: ~$ 667,624 CDN and ~$ 5,101,029 USD
Side Accounts: ~$ 83,394 CDN and ~$ 1,401,732 USD
Total: ~$ 751,018 CDN and ~$ 6,502,761 USD
July 2025
Core Accounts: ~$ 710,951 CDN and ~$ 5,318,092 USD
Side Accounts: ~$ 90,407 CDN and ~$ 1,396,771 USD
Total: ~$ 801,358 CDN and ~$ 6,714,863 USD
August 2025
Core Accounts: ~$ 716,802 CDN and ~$ 5,451,218 USD
Side Accounts: ~$ 87,700 CDN and ~$ 1,405,280 USD
Total: ~$ 804,502 CDN and ~$ 6,856,498 USD
NOTE: The above values exclude investments in several tax-efficient accounts for which I do not disclose details.
Final Thoughts
I wish you much success on your journey to financial freedom.
Note: Please send any feedback, corrections, or questions to [email protected].
Disclaimer: I do not know your circumstances and am not providing individualized advice or recommendations. I encourage you to make all investment decisions through research and due diligence. You should also consult your financial advisor where appropriate.
I wrote this article myself and it expresses my own opinions. I am not receiving compensation for it and have no business relationship with any company whose stock is mentioned in this article.
