Investment Q&A

Q: Revamping my 70 year old partner’s portfolio, looking for income and modest growth.

Being quite overweight in financials, wanting to exchange some or all of these positions: MKP, AI, TF, ZWB. Add to my BNS (currently 2%), and diversify into other sectors.
Is it worth keeping any of the Mortgage related MKP, AI, TF? Is FSZ lower risk? US banks/ETF?

I expected the upside of ZWB to be significantly less than ZEB, but when I compared the charts they seem like two dogs chasing the same ball, never far apart. Very similar up and downside, is that your view also?

Carl van Rossum

Q: I noticed that Trisura has a potential run up in the bid / ask (~$6) compared to last night's closing price ($38.02 - 38.50 range). Over the past 4 - 5 months there has been insider buying yet, I cannot find news short of calling them directly. They seem to be immune from work stoppages unless a contractor goes bankrupt. In the Corporate Insurance, segment, there could be a slowdown in top-line growth though they have a good renewal business. Their policies do not cover business interruptions from the pandemic. Also, given that they are a wholly owned sub of Brookfield Asset Mgmnt., I have a good comfort level and am considering moving to a full position. May I have your thoughts?
Thank you

Q: What is your opinion on replacing AGF.B with FSZ? I’m underwater big time with AGF.B, would incur a loss in my trading account and hopefully gain some of the loss with the FSZ dividend and possibly growth.
Thank you.

Q: Are the Lifeco's in general going to be hurt badly because of relatively high death claims due to Covid,
or is this possibility already priced in ?

Q: Which of these 2 companies do you consider to be the better investment on a long term basis. I am attacked to MFC's Asian business but you seem to recommend SLF frequently. I currently hold MFC but could switch to SLF or add SLF to portfolio.

Q: Hello 5i Team

I have an equal number of shares in both Great-West Lifeco (GWO) and Power Corporation (POW).
My average cost for GWO is $22.00 per share and for POW is $21.90.
Since POW owns 70 % of GWO, should I purchase more shares in POW and sell my GWO position? This would result in a slightly higher yield going forward on the POW shares. Or should I consolidate my position in GWO and sell POW?
I have matching dollar positions in MFC and SLF, so I want to stick with GWO/POW.

Do POW and GWO share price move in tandem (i.e. same percentages) because POW holds 70 % of GWO or is POW restrained by its holding of IGM Financial?

My last purchases of POW/GWO was on April 13 and 15 respectively. Do I have to wait until May 13/15, before I sell either one, if I want to claim the small capital loss?

Thank you for the great service.

Q: I have all 5 big banks and the 2 telecoms in my Margin Account for income purposes. I sold FRU and IPL because the dividend was reduced significantly. So I have some cash available to top up.
Given the Banks have Yields and Pay Out Ratios as follows (BMO 6.34% - 46.83%; BNS 5.90% - 44.47%; CM 7.49% - 36.67%; RY 5.25% - 44.84%; TD 5.82% - 44.76%) I am considering CM as the best yield and lowest Pay Out. Would you concur?
Thanks

Q: Your comments on MSI:CA latest results would be appreciated. Thanks.
Dave

Q: Hi 5i Team,
Given the current low interest rates, low crude prices and the covid-19 situation and all these factors have a negative impacts on insurance companies and big banks. What are your thoughts on taking a position in FIE?
Cheers and your great works are appreciated.

Q: Risk of small business bankruptcys, loan losses - would this be a Material Risk for BNS given the countries they do business in, or would the risk be smaller because of the countries they do business in - or perhaps the loans to small business is a minor part of their over all portfolio (meaning their loans are to larger business with stronger balance sheets).

Q: Thank you again for this great service.
I am down about 25% on BNS (and I have no losses for tax purposes and will have more offsetting gains from other holdings). Thinking of selling BNS and buying POW which in my view has more upside. I would appreciate your advice on what to do with proceeds from BNS sale i.e., other suggestions please (I am very well diversified).

Q: If one believes the markets will return to" normal " FSZ looks like a buy. The company just announced a loss of 6.8% in assets to 158 billion in the quarter. (not bad considering the quarter the market put in)The stock is down 40% from the highs. Thoughts please.

Q: Just wondering if you have an opinion about Wells Fargo. It's looking awfully tempting. If not, what US bank would you prefer? Looking for conservative growth. Thank you.

Q: I currently have a 1.3% position in POW at a loss of 37%. What do you think of adding 0.5% to average down? Do you think the price will come off these lows over the next 12 months or is this more likely the new normal here?

Thanks.

Q: Hi,
Could you please comment on commercial impaired loan growth with respect to the Canadian banks prior to the Cov 19 crisis ? Have they increased their reserves appropriately ?
Thanks

Q: In this covid-19 crisis,BNS & other big 5 can banks have been following the orders/instructions/requests of both OSFI & the Fed.Gov't.For example,deferring mortgage & credit payments,reducing interest rate on their charge cards,lending supported by the backup of the Fed.etc. What will be the impact on BNS especially on its revenue & bottom line? Txs for u usual great services & advices.

Q: How healthy is the comp. and is the div. safe ?

Q: Which one credit card company would you prefer today? I am looking at Visa, Master Card and American Express. Thanks.

Q: you guys seem to be fine with this stock.
But the market thinks different.Why?
Any compelling reasons to buy it here?
What is their financial situation and metric/numbers.
Would you initiate a position here?

Q: What was the payout ratio at National at the time of the last dividend?

Also do you have any details of the circumstances that caused Na to cut their dividends in the past, such as how dire their circumstances were.

Thx!