Investment Q&A

Q: Have held this for 18 months ,been very patient as a lot of BNN analysts have liked it with the promise of "unlocking value" when the company splitting into 2 ,but they only thing that has happened really is the stocks "dropping in value" any reason why and your thoughts for the next year on these 2 companies..thanks.

Q: Interesting comments from David Baskin yesterday on why he still holds HCG. Only 8% of their portfolio is insured, so new mortgage rules should have a limited impact, and estimated earnings are $4.00 so very cheap at current price. As a longterm holder I'm considering averaging down. Appreciate your advice.

Q: Hello Peter and Staff
Please dock whatever questions you feel are appropriate. I believe HCG is only residential mortgages which caused you to drop it from the portfolio due to recent rules introduced. I also believe First National is in the same boat,ie beaten up because of its residential nature lending to home owners. I guess the CEO was on BNN and said the banks may take 20% of their business. FC and AI and TMC have not suffered the same fate so far. Are they not affected?
Also ,if you were to buy TMC for yield to replace FN, do you buy TMC or TF?
Thanks for all you do
Dennis

Q: Looking for financial sector allocation suggestions as replacement for HCG/mortgage sector. Already have positions in EFN/ECN/CXI/BNS/SLF...any suggestions? or okay with going to 20% on tech vs current 15% 35 years old, money is all in registered accounts, little debt, and no need for money in next 10-20 years

Q: I am resending question thanks for your patience. I was curious whether tf would be affected much by the new mortgage rulings, as it is a short term commercial investment grade mortgage lender. The share price seems to be climbing since the new laws were announced. It appears to have a high dividend with adequate coverage.. Thanks Tom

Q: Does the governments recent changes to mortgage criteria change your opinion of FCF in light of the fact their only holding currently is Dominion Lending.

Q: I sold not only HomeCapital but EQB, because Cohodes, our nemesis, is now shorting it as well. Now I'm left with First National. As much as I'd like to think I'm a long-term investor, my gut tells me once retail investors read about the news on alternative lenders this weekend, the stock sell-off will accelerate. Some insiders are also selling, even the CEO of HomeCapital who sold a massive amount of shares at 34.50 right after that buyback announcement? Another insider sold over 400k at 27.50 less than two weeks ago? For me, the last nail in the coffin was Sherry Cooper's interview yesterday on BNN (Dominion Lending). Most surprising, the CEO of First National came on Bloomberg basically saying: "It's bad for us and banks will take 20% of our market". Question: Would you sell First National and replace it with Surge Energy, which is back in an uptrend? Thanks.

Q: What is your opinion on replacing a holding in PWF with FSZ with respect to future growth and income? Joe

Q: Morning, I have held HCG for years, and XTC for about a year, have been waiting for a turn to positive on both. Is either expected to improve or are there better names in these areas? Thanks, Lavern

Q: i hold Gs in my margin acct and have been and have been an owner for a couple of years now, what are your thoughts as to a continuing hold.

Q: Will commercial lenders escape the mortgage pullback and could you recommend some that wont be as affected the governments rules separate from banks ?

Q: What are the new mortgage rules 5i is talking about???

Q: I have losses and 2% positions in each of these companies in a well diversified portfolio. Do you suggest moving on and selling any of these, especially after the gov't mortgage rule changes. What replacements might you suggest. I already own TD, BNS and SLF at 3% each.

Q: WOULD YOU BUY HCG TODAY? THANKS

Q: First National (FN-T) is down over 6% today, presumably due to talk of federal mortgage rule changes. I like the stock but would appreciate your views about the current outlook and whether this might be a buying opportunity or a falling knife situation. Many thanks.

Q: Will the new federal housing initiatives adversely impact Its business, and if so, are you able to quantify rough;y that impact and does the drop constitute a buying opportunity for a long term hold? Thx

Q: Would you recommend buying this name on the dip today amid housing concerns?

Q: Banks will now have more "skin in the game" and possibly will offer lower mortgages. What are the chances that this will mean HCG and other non-bank mortgage insurers will have the benefit of having more demand for their product, with more favourable underwriting conditions?
John

Q: Presntly paying a 6% is the divident sustainable. What is the outlook going forward.

Thanks

Vince

Q: Peter,
For derivative exposure re. wells Fargo, it has almost none as a percent of total exposure.
for the others:
JPM aound 7%
City around 9%
Goldman around 13%
Morgan Stanley around 28%
So on that metric only, Wells is a pretty good bet, notwithstanding the abomination of what they just did and their complete ignorance of respect of customers (50 shades of gray) and of respect of employees!!