Investment Q&A

Q: I own PRL shares and am happy with their performance. The shares have risen rapidly over the past year and I wonder if shares, either a partial or full position, should be sold. I have seen some data that shows very rapid growth in EPS over the next couple of years .Can you provide key metrics over the next two years that would support your position on this company. Also over this period what would be a reasonable multiple of earnings for the shares? If possible could you factor in its recent acquisition. Thanks.

Q: What can you tell is about this stock. Dropped from over $100 to $14.00 in last ten years yet pays an outsized dividend. Is it a buying opportunity?

Q: In regards to TD - the issue of accountablity arises. The AML lapses were well known inside the company - judging by the "LOL" internal emails. The CEO has profusely apologized - has he received any kind of consequences? Just generally at what point do the board of directors ever suffer consequnces for these type events - can you cite any examples? Just frustrating that branch managers or tellers might be held to account but not highly paid upper management for their lack of supervision.
Regards

Q: Hi 5i, Can you please explain what Brookfield's Oct 9/24 announcement re "Reorganization of Brookfield Infrastructure Corp" means for shareholders like me that hold full positions in BIP.UN vs BIPC. As other 5i subscribers have mentioned, does this reorganization suggest that BIPC will continue to gain vs BIP.UN? Thanks.

Q: Versabank recently made a new 52 week hi. Is this a company with a substancial growth and profitability platform ahead and one you would suggest as a timely investment?

Q: not a question; just information........and a request

i get it, we're all in it to make money yet this company would make a loan shark blush


check out their site "creditfresh"

borrow $1,500 and pay back monthly (from website)

month 1 - $184 'billing cycle charge' and $30 (2% of principal) for a total of $214
month 2 - $184 fee + $29.40 principal
month 3 - $184 fee + $28.81

etc etc etc

it 'appears' that if you let this run the full 48/50 months you would have paid $5,070 in fees

i would be curious if another member can run the numbers and confirm or explain where i went wrong

thanks

Q: I own both as well as stocks like Bip, Bepc, …. I want to own more of BMA and/or BN.
should I own 1 or both? And if 1 why? And if 2 why as well.

Part of my objective here is buy stocks whose size and diversity adds a degree of safety both short term and longer term. Hopefully that is doable here.

Thanks for your help.,

Q: So, what is the next step for Td, Buy a stand alone such as PRL or increase their investment in their U.S
Discount brokerage business.

Q: Following up on all the other TD questions today on the US penalties....do you think the future looks more like Wells Fargo when their growth was curbed (and it proceeded to lag for many years)? Or would you be a buyer now based on the recent underperformance and the known outcome (penalties). Bottom line...buy/sell/hold?

Q: Can you explain what it means for a banking regulator to "certify dividends"? This statement was made in the G & M yesterday in an article outlining the penalties incurred by TD.

Q: Should II. buy TD:CA today? What would be a reasonable price? Or should I average in?

Q: Good morning,

Thoughts on TD from here? I had read earlier reports prior to this week’s drop that there was essentially no value being ascribed to the US retail bank. With the asset cap, what is forward PE and revised target price? I would like to think that even with no growth in the US retail bank, there clearly is some value there, and management will ultimately determine other, more strategic, ways to deploy capital that hopefully will be accretive to the stock price.

Thanks

Q: Hi 5i, I'd like to bring my position in TD to a full weight, and was wondering what your crystal ball shows as a floor. I'm thinking the weak hands will wash themselves of their holdings soon.

Looking at their 10 year CAGR [divi+growth] of approx 10%, a stock yielding 5% with a
5yr DGR of approx 8%, what could go wrong?

Thx

Q: Is TD oversold? Is it buyable here, or do you forecast more downside?

Q: I am not so sanguine to think all is priced in. The Americans are going to slaughter td and wait for the lawsuits. I have a AUS account. what solid US bank stocks or other decent dividend stocks would you recommend?

Q: Sunlife Financial has had a nice increase (+20% since I last purchased). IS Sunlife generally a hold, ell or buy? The other financial I hold is Royal bank. Given decreasing in interest rates and potential impact on banks is it a good time to switch to a bank hold? Which may be the second choice if that is the case?

Q: Hello, on August 15th you answered a question by Derek about this company. Feel free to abridge this quote within your response, pasted below. I don't fully understand your response, as it seems to indicate that TSU will grow faster, but why would you say that IFC is more balanced? Does this mean that IFC should actually grow more over time, or that it will grow less but is more stable? Thank you very much.
Original answer about growth:

IFC (property and casualty insurance and auto insurance) - consensus growth estimate over the next few years 6%

TSU (specialty insurance) - consensus growth estimate over the next few years 10%-12%
TSU has the best growth, as the company reinvested the majority of its earnings back, and volume growth in TSU’s recent quarters is quite healthy. TSU has the strongest growth, but we think IFC could be the most balanced name between capital returns and growth.

Q: I own both KKR and BN. KKR stock price is appreciating significantly more than BN and all other stocks in the private equity realm, that I am aware of. Can a case be made to concentrate on KKR if one is not concerned about including BN to have Canadian exposure? Further, do you see any other financial stock with more pure growth potential relative to KKR?

Q: Comments on the TD penalty news today? To me it seemed expected their growth would be somewhat limited in the US, but in the surface it seems it could have been worse. Market seems to be overreacting a bit I think. Thoughts?

Q: Since the Canadian banks eventually trade in line with each other,would it make sense to sell Royal and buy BNS,TD,etc.?