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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi, All Canadian banks have bounced back nicely over past few weeks. Canadian Western Bank, however has outperformed the big banks by a wide margin. Analysts have also been busy raising price targets, citing higher NIM and stronger growth in loan portfolio. Recent stabilization of oil prices and rebound in Alberta economy may also have a role to play. What is your opinion of this bank as long term hold? I own CM,TD and RY and recently took a starter position 1.5% in CWB. Is it worth adding at current prices ? Thanks
Read Answer Asked by rajeev on October 04, 2017
Q: Hello 5i :

I current own Wellsfargo shares and they are not doing much. Do you think I should sell them and buy Banc shares instead? Please compare the two and provide your expert advice regarding the future earnings, cash flow, dividend growth, debt and multiple expansion in the next few years!

Thank you as always,
Read Answer Asked by Rossana on October 04, 2017
Q: Like many others, I really appreciate this site and the help you give us.

I have a half position in both Fiserv and Vantiv in my TFSA, mainly because I couldn't choose between them. I know you like Square and am considering adding it as well but it seems like it is in the same business as the other two. Is this correct?
Assuming it is, does one of the three stand out as being better or worse in terms of potential return or risk? Is there any point in owning all three?
Read Answer Asked by Todd on September 29, 2017
Q: Hello,

I am currently holding 2,000 shares of Callidus Capital Corporation which I acquired earlier this year at an average cost of $16.53 per share. I have seriously considered selling these shares at the substantial loss they now pose to my portfolio but have been hesitant to do so.

I am hesitant in part because I perceive that 5i may be of the opinion that the firm might yet be taken private by some means, at a substantial premium to today’s share price. It is also my impression that 5i may possess some level of confidence in the management of Callidus.

I have combed through the firm’s 1st and 2nd quarter 2017 earnings announcements and I have several questions about Callidus that I hope you may be able to assist me with.

• Are my perceptions regarding 5i’s outlook for the firm and faith in its management team accurate?

• Are you able to help me understand exactly how much money Callidus Capital Corporation has invested in Bluberi Gaming Technologies Inc., in aggregate?

• Do you know what remaining value Callidus may be currently attributing to their “investment” in Bluberi Gaming Technologies Inc.? In other words, have they already written down or realized any losses attributable to their investment in Bluberi?

• Was any portion of the money Callidus Capital Corporation currently has at risk, in connection to their investment in Bluberi, ever transferred from Catalyst Capital Group Inc. to Callidus Capital Corporation? If it was, are you able to explain to me the pretense or conditions under which the transfer of this risk might have been conducted?

• Callidus has themselves been buying back shares in the firm at substantial premiums to the current share price over the past number of months. Do you perceive this as a potential positive development or might this somehow further diminish the value of the company? Why are you of that opinion?

• Hypothetically: If you personally owned shares in Callidus and selling all of them meant you would crystalize a loss of 3% of your portfolio’s total value ($12,570.00), would you sell them and move on or would you continue to hold them in the hope you might obtain greater value for them within the next twelve months?

As always, I value your opinions, information and insight. Thank you!
Read Answer Asked by Richard on September 27, 2017
Q: In the financial sector, specifically banks, what dividend stocks do you prospect to have higher growth rates in the long run. Narrow down on a few stable growth stocks in the sector.
Thank You!
Read Answer Asked by James on September 22, 2017
Q: Please provide your opinion on TD bank with reference to buying it on the TSX or NYSE. Since I have both a US and Canadian denominated accounts the buy can be made in either account. Is there any advantage to buying in one versus the other? Is the US listing subject to influences relative to all US banks, which currently are seen in a positive perspective with respect to the US Fed intending to raise interest rates? Although the rates are expected to rise in Canada as well, it does not seem to be as important a factor as compared to the US. At current exchange rates there is a difference in the relative value per share as well as a difference in the proximity to the 52 week high. Is there an explanation for this situation and is it significant to making in buy in US or Canada?
Read Answer Asked by Brian on September 21, 2017
Q: Home Capital Group (HCG) - Recent news show that the company is back to normal operations and investors were confident enough to vote against Warren Buffet's 2nd tranche beliving that the confidence is already in place and reasoning equity dilution was not necessary. Is HCG still a good buy at current levels (say $13 to $15 range) ? Please advise.
Read Answer Asked by Sridhar on September 21, 2017
Q: First off I am 30yrs old slightly more growth investor and plan on holding for long term. I have a 25 CND stock portfolio of approx. 300k and Pension of 100k split between a Global Fund and CND Fund. In reviewing my personal portfolio I feel my financial exposure maybe needs some work (17% Weighting). I have a full position in GSY, TD,SLF and a half position in CXI. My question is because TD and SLF are probably already represented in my pension fund and they don't really fit the style of my portfolio would you look at switching them out? If so what suggestions would you have that would compliment GSY and CXI. Thanks
Read Answer Asked by justin on September 20, 2017
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