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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: Hello 5i Team, I would like to reduce my financial sector holdings from the current 19% to 15% or less, mostly as a defensive move against the potential of a sector "down-draft". Currently hold POW-2.0%, IFC-3.0%, MFC-2.5%, and BNS,TD,and RY at 3.5% each. I am leaning towards eliminating POW and trimming each of the banks to get to the target (income from POW is great but also the only one I am underwater on and I'm not a huge fan of income at the expense of loss of capital), but I also know you don't feel the need to necessarily hold 3 banks so could just sell RY and call it quits. Trading fees not a consideration. Would appreciate your thoughts as always,

Regards
Read Answer Asked by Stephen R. on June 06, 2017
Q: My holdings in the banks are pretty well equal. Circumstances have arisen which require me to decide whether I should shift this balance against the most overvalued to the most undervalued, if there is a worthwile difference among them for a long term holder. Would you be inclined to rank them and indicate whether your order represents significant differences?
Read Answer Asked by Carl on June 05, 2017
Q: Always a nice surprise from Brookfield, to find a new stock dividended-out into your portfolio. I see that it's a global (re)insurance company, or looking for global opportunities at least. When BAM dividends out small quantities, prices to tend to drop as they get sold out of portfolios. Assuming that happens in this case, is this a reasonable opportunity to purchase more, to build it into a small position? Is there a projected dividend pay-out that you can see?
Thanks very much...
Read Answer Asked by Warren on June 03, 2017
Q: The company issued $100M of preferred shares at the end of April and yesterday issued $1.2B of ABS term notes. Looks to me like they have encumbered long term cash flows significantly. Seeing as how the market sold off at 9:30 this morning then bounced back somewhat is telling me that current investors are nervous over these actions. Just a thought.
Read Answer Asked by Patrick on June 01, 2017
Q: On the news "Element issues US$1.2 billion of rated ABS term notes through Chesapeake" the stock has dropped 38% (and halted)

CIBC just reiterated their $15 target price and said it is a buy and deal is good.

Would retail investors be selling out here? Am looking at buying here - dividend is now coming close to 5%

Also can you explain the use of the ABS term notes for the fleet management business. Thank You.
Read Answer Asked by Mayur on May 31, 2017
Q: Question related to the new preferred share offering: ECN.PR.C which yields at the very minimum 6.25%.

Deal was sold out and as soon as it started trading the share price dropped below the $25 issue price and is now below $24.

Why would anyone buy the issue at $25 and sell it right after. Any ideas?

Also, would you recommend adding to it below $24. I have 700 shares which represents around 1.2% of my portfolio.

Thank You.
Read Answer Asked by Mayur on May 31, 2017
Q: Are we seeing yet another short attack here?
Looks like they had a very positive announcement with the ABS notes just yesterday and now the stock is getting decimated. Why do these short attacks keep happening in Canada is there anything we can do about it. HCG, CRH, BAD, I'm sure there are others that I can't recall. Its getting tough to be a Canadian small/midcap investor.
Read Answer Asked by Rob on May 31, 2017
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