Investment Q&A

Q: This was a company strongly recommended by 5i and specifically to me from a question I asked not long ago. How did this one slip thru your research net?

Q: You stated recently: (the investment strategy of DFN) "and the strategy could be quite easily duplicated." Holding the banks in a self-constructed portfolio would indeed be easy, but it would produce a 4% yield, similar to ZEB. How would you construct the portfolio, as you suggested.

Thank you for your services, esp of stocks not usually covered by analysts.

Q: I watched Cohodes on BNN this morning, and he didn't offer anything remotely substantial to back up his claims. It seems to me there are two real issues with the company 1) did they fully disclose in a timely manner the amount of fraudulent mortgages some of their brokers wrote and 2) are their loan loss provisions high enough considering those mortgages and their overall riskier loan portfolio. I obviously don't know the answer to the first, and for the second, I think the answer is no, they aren't high enough. Thoughts?

Q: Good Morning 5i

I have a significant position in HCG. What should I be thinking about the quick departure of the CEO. Is it good that the board is proactive or does it signal more problems behind the scenes?

Thanks

Q: the alternative finance companies (non Bank lenders) share prices are under performing the markets for quite some time. I understand why HCG is struggling but is there a reason for most of the players in this space not doing well. Margin issues, access to capital, or possibly the improved climate for the USA banks. And if so what is the scenario for possible positive change

Q: Would you consider ONEX more financial because its private equity? TMX site it says industrial.

Thanks!

Q: Hi Gents. Could you please provide your thoughts on PWF's results released today? It appears to be a beat and a dividend increase but the stock is down. Do you have a view as to the long term outlook for the stock?

Q: Hi, my advisor suggested I sell na as it is an all Canadian bank ,and buy Zwb or sit on cash.
I'am a investor for dividends mostly and some growth. Do you think this is a good move,or is the switch even necessary. I assume if I went to cash it would be see if there is a correction and buy at a later time?
Thanks for your comments,Brad

Q: CXI has been continuely drifting lower even after received its long awaited schedule one bank license. Please give reasons for the poor stock performance and recommend buy/sell/hold for a 2 years holder at $35.30 average cost (3% of my portfolio holding). Thank you.
Bill.

Q: I always thought a company's Earnings per share should be higher or at least cover the their Dividend per share. However, FSZ's EPS appears to be around $0.35 and the DPS is now $0.68. What gives?

Q: Hello team, Would you pls. comment on FSZ 4Q results?
Thank you

Q: You've mentioned a few times in responses to others that ECN is "cheap". By what metrics is it cheap?

What is the % insider ownership?

Thx

Q: What's up with the US banks????? Only real time reply would be useful as today's move confirms recent movement.

Q: Hi, My question is about IOU Financial, a small US business loan provider. Their financials seem to be improving, with operating expenses expected to come down in Q4 and they recently secured a new credit facility that lowers their financing cost.

With interest rates going up and USA's economy improving, do you see potential in this name ? What would be the worst risks for them? ( besides being a micro cap )

Thanks

Q: The Canadian bank stocks have been declining since the last week Fed Reserves rate hike and potential more hikes. What is your opinion about Canadian banks in short run (one year or so) and long run (3-5 years)? From your professional point of view, when the Central Bank is about to raise rates in the future?

Q: Looks like the banks are softening both in the US + Canada I own BAC Royal MS BNS PYPL and C... Time to take profits or wait the correction out? Thanks for your valued opinion

Q: i would like to add to my position here, but would like your opinion!

Q: I've never had any interest in ETFs until yesterday a friend told me the error of my ways. He gave me two names ZSP and ZWB that both have annual combined returns (yield & growth) exceeding 20%. It was a real eye opener for sure.

Do you know where can I find reports on line that rate the performance of most Canadian traded ETFs? As well, do you have other ETF names that are comparable in combined returns with ZWB and ZSP that you can recommend?

Thanks.

Q: This is a comment on Ken's question of this morning regarding LFE. I have analyzed this split share and I thought this might be of benefit to subscribers.: LFE net asset value (NAV) as of February 28 is $ 5.44. The dividends will be discontinued again if NAV goes below $ 5. The portfolio which consists of the four insurance companies Manulife, Sunlife, Greatwest life and Industrial Alliance has to produce a net return of $ 1.825 per unit ($ .625 for the preferred and $ 1.20 for the common) to maintain its dividends. Adding a .75% management fee so the total return for the portfolio has to exceed 11.8 % based on the NAV today. This I think is difficult for a portfolio manager to produce consistently. But if interest rate environment favors life insurance companies this might be achievable. The common share dividends is declared by the manager and to my knowledge the amount is not specific, so it could go up or down. The company uses options to supplement the return and according to their document uses some sort of derivatives which may help increase or (decrease) the value of the unit. Since its IPO, of $25 for both units in 2006 it paid $ 13 ( $ 6.35 for the preferred and $ 6.70 for the common). So yes I consider it risky but the IPO was right before the 2007 crash and lower interest environment which devastated life insurance companies. Although its past is not great, perhaps the future is brighter and it is not without its risk.

Q: TD shares dropped a bit recently. Is it a buy now or will it drop further in your opinion?