Investment Q&A

Q: The BPO pref shares, in my view, are trading at levels that indicate serious concern over credit risk.
A question put to you on Jan 30, 2023 was with respect to who held the liability for the BPO pre shares (the questioner was asking about BPO.PR.G specifically). You replied:
“While BPO is a separate legal entity, its preferred shares are under the obligation of BN.”
However, a similar question was posed Mar 20, 2023 with respect to BPO.PR.P and you seemed to reply that the obligation on those BPO pref shares was with something called Brookfield Property Preferred LP.
Forgive me if I have mischaracterized your answers, this is a bit confusing to me. It seems to be a very big difference though.
I am assuming that the Preferred LP is some sort of subsidiary?
If so, that would make the BPO prefs MUCH more risky, in my opinion.
I note that the Financial Post reported in Feb 2023 that yet another Brookfield subsidiary (Brookfield DTLA] has defaulted on loans on two major office towers in downtown Los Angeles. The loan amounts are staggering, by the way.
Can you please clarify all this?

Q: If interest rates and inflation are going to peak, do you think these ETFs (XLF, IAK TLT) have opportunity now? If so which one has most potential right now? Thank you.

Q: Hi,

Should one just wait out the decline in CIX, or bail?

It's not like I backed up the truck at 20 or anything.

Yours kindly,
David

Q: What do we anticipate for next steps with ECN. Will there be further transparency on strategic alternatives, growth plans and detail(s) on the approach candidate and potential offer?

Q: Hello,

Brookfield Corp has been on a downward trajectory for over a year. Lower lows. It now trades around 9x next 12 cash flow per share. How is this not a table pounding buy? At what price would you average down, and at what price is it an absolute steal at?

Q: I'm underwater 10% on BNS and TD. What are the benefits of sitting on this? If I was to sell and reinvest, what do I buy?

Q: ECN down 17% so far today . After reading your answer to Bradley I have a couple of questions . What does " Finance originations fell 25% " mean ? And what do you attribute the miss in earnings to ? And what is the insider ownership numbers ? . Would you approve of an investor wetting their toes based on the review ?

Q: I have been in and out of ECN a couple of times this year. I got lucky yesterday buying near the bottom and sold shortly after for a decent profit.

Based on your comments earlier today, would you advocate for a buy and hold or only hold if you’re currently invested?

Q: What’s the reason for the halt today ? The quarter looks like a disaster and no conference call to discuss further guidance doesn’t seem transparent at all. Is this normal during a review? Time to pack it in here ?

Q: I have ZUB in my TFSA at a 6% weighting and I am down 13%.Is it a buy/hold or sell for a 1-3 year time frame.
Thank you

Q: Hi, We own above Canadian banks, which makes up the financial sector of our portfolio.

On an YTD basis, interestingly, their performance has diverged significantly, with CM +7%, RY +2.5% and TD -9%. During past 30 days (reflecting impact of recent crisis in financial sector SVB/SB), these names have declined as follows : CM -7%, RY -8% and TD -17%. Does it mean that market is assigning higher risk to TD, relative to its peers ? Does it make one name more attractive than others, and if so why, if we wish to take advantage of the sizable decline in their share prices, and add for long term investment ?

Thank You

Q: Looks like a miss for ECN. Comments please.

Q: Hi,
How does EQB fare when compared to other banks (such as RY and TD) when being compared for being sufficiently well capitalized as discussed in your blog post? Thanks.

Shyam

Q: Could you comment on earnings. How does PRL compare to GSY?
Would you consider this a buy today?

Q: May I have your opinion on their earnings reported this morning, and your opinion on a potential investment in this company in light of current issues with the US banks?

Q: Hi 5i, Propel Holdings just reported, and would welcome your analysis of the results posted and the outlook conveyed.
As best you know, are they generally chasing the same customer as GSY does in their loans business, and would you see Propel more for income, growth, or expect a bit of both? Thanks kindly.

Q: VIRT has been banged up recently due, reportedly, to changes in U.S. regulations and their perceived impact. Do you feel that VIRT's stock price has over-reacted and that it might now be considered a buy?

Q: Good afternoon, I have a considerable loss in my BBUC holdings (held in an RRSP) and am wondering if I should consolidate into BN. If interest rates peak and the market rebounds, do you see BBUC realizing a significantly higher share price increase, considering their business strategy? Or, does it make sense to consider a consolidation into BN now? Thanks for your thoughts on this.

Brad

Q: If I look at the top holdings it appears that the fund will still enjoy the previous level of dividends, add to this the funds from the call options.
With that in mind the dividend from the fund should remain approximately the same as now. Thus a decrease in nav but with a higher yield than a few weeks ago. Am I missing something

Q: If forced to give a percentage chance of CWB failing, what would it be. CWB looks like a decent buy to me at the moment. Yield is good, payout ratio is reasonable, last report was okay, they are becoming more widely involved across Canada, etc. However, they are relatively small and by nature more involved with somewhat riskier loans. Is this a bank you would invest in right now?