Investment Q&A

Q: I own 3 banks - TD, BNS and RY. Over the past 3+ months, TD share price has definitely underperformed the other 2 banks. It seems this happens every day. Can I get your view on TD? Do you still like it?

thanks

Q: VFH is a US ETF with broad coverage of US banking. The bank ETFs & stocks took a big jump after the US election. Do you think all the potential upside is already priced in? Is there a Canadian ETF providing the same exposure that you would recommend or is VFH the best approach here? Many thanks.

Q: Bought this company for the dividend and some growth, also company is trying to go private thus I believe creating quite the swing in s hare price. What is your opinion of the companies valuation,safety of dividend and how to deal with the prospect of the company going private? I know the company is buying shares on the open market so do you have a feeling for how long this process might take and if one day there may be a premium offer for the balance of the outstanding shares?

There are several questions here,please charge my account accordingly.

Keep up your great service and thanks for your answers

Q: There are two Dividend 15 Split Corp trading on the TSE. DF trades at 7.65 and pays 15.6%; the DFN is trading at $10.74 and pays 11%. They seem to hold the same securities. Why the difference in price? Is this a good stock for income? Thank you

Q: Do you see any light at the end of the tunnel yet for LGQ? Do you think it is worth holding? Thanx Robbie

Q: I was very positive on the company previously and have held it for a while. I added to my position on the additional AUM announced on Jan 30. Can you comment on recent news of National Bank changing from FSZ to Goldman Sachs? How do the plusses and minuses affect your current opioion on FSZ? Buy sell or hold?

Q: I want to buy one of the banks that is rumored to split their shares in the near future.Which one would you recommend.
Thanks .

Q: Good morning,
Can you recommend an etf that covers U.S. Regional Banks?
Thanks as always for the great service.

Q: I have owned National Bank for a number of years. I have read the posts and your preference for TD and BNS. I presently feel that this may be an ideal time to make a switch. The P/E of National Bank (according to Google) is presently quite high, especially for a bank, in my opinion. It is presently a few points higher than both TD and BNS (and also has a slightly higher dividend as well). Is there something going on at the National bank that justifies this higher P/E, is it simply investor sentiment, the higher dividend...? If the P/E is unjustified, in time the stock will retreat and I would rather switch over when the price is higher. Your thoughts on switching over (dollar for dollar). Normally I do not like doing this because, it is not a dollar for dollar switch, after I pay taxes (but I am sure I can sell some losers as well). If you recommend the switch, why do you like TD and BNS more. Looking at the 5 year charts, I see that TD has performed well in comparison. BNS and NA are at about par (assuming NA can sustain the PE or increase its EPS at a higher rate than the other banks). I assume that if the switch is recommend, I do it 50/50? Thanks.

Q: Peter & Co., I am planning to add to my small positions in one or two of these American banks. I have compared P/E, P/B, ROE and payout ratios and I am in a quandary. Would you please list them in order of your priority for possible purchases.
With great appreciation for your excellent service.

Q: Hi,

I have held fairfax for several years, primarily as a hedge against negative market events. With the trump election win, and the unwinding of many of fairfax's bearish hedges, it now seems to trade much more in lock step with my other financials (bfs, slf, ry). Do you still feel fairfax offers a good hedge against negative market events? If not, what you would generally recommend in it's place?

Regards,

Robert

Q: Hi Peter and Team:
I am interested in some comments about both FFN (North American Financial 15 Split) and PIC.a Both trade on the TSX but act like a mutual fund with a small 'mer'.
FFN pays a monthly dividend of 0.10 and its yield is about 13.07% at a trading price of $9.18
PIC.a pays a quarterly dividend of 0.20319 and its yield is about 11.30% at a trading price of $7.20.
I really like high paying dividends, as we all should but,,,,
I have been invested in PIC.a since April 2004. This has consistently paid quarterly since that time. It was a DRIP until a few years ago. Now it strictly pays Cash. This cash is 'Return of Capital' and as such has no tax implications in my regular investment account???, I think. Is this a good or bad thing???
I own about 17% of my overall portfolio in PIC.a Some of this PIC.a Div cash is paying out into a RIF withdrawal, with minimal effects on the Capital in the RIF.
Now I am looking for your thoughts on FFN as I diversify a bit more and of course feedback on PIC.a
Thanks. Ken .....

Q: From what I understand insurance companies should do well if long term interest rates rise. If these companies hold longer term bonds in a rising interest rate environment would any increase in income from higher rates be offset by capital losses on the bonds as long as interest rates increase? How does this affect the stock price?

Q: Is it a good time to invest in FSZ or is the trend to ETF's going to harm it ?

Q: I hold EFN and recently bought more ECN. John O'Connell was on BNN Jan. 19 and expressed a very negative opinion of both based on self serving management. Could I please have your comments on ECN. Buy hold or sell?

Q: I have money available to buy 1000 shares of ecn. They have also prefered with a 5 yr reset.In your opinion would the prefered be better for dividend over 3yrs.Also what is worst scenario for prefered shares.Tks 5I

Q: In December, you suggested that, with its investment profile now dominated by insurance holdings, Fairfax might lose its premium multiple. But many insurance co's offer a better dividend and at least as good a growth profile; what's actually to like about today's Fairfax - or is it, essentially, still coasting on its outstanding performance during the Great Recession?

Q: Hi, I have a very small position in each of these 2 bank stocks that I am looking to consolidate into just 1. It is for a long term hold within a USD$ RRSP...which of these 2 would you recommend? (even thou I understand you focus less on US stocks) Thanks, Stephane

Q: I've held AMTD for around 4 years and it done quite well for me. I hold it in a LIRA which I will have to start drawing on in two,years. What are your thoughts on the stock? If I sell it I would probably look at buying something more conservative like a fixed income ETF?

Q: Good afternoon,

I have half a position in GS and I am thinking of selling it and to buy ETF FLI First assets US and Canadian Lifeco. What are your thoughts?

Paul