Investment Q&A

Q: I am considering adding another financial, and am looking at either CIX or IGM (Investors Group). I am retired and invest primarily for income, with dividend sustainability and capital preservation ranking above growth. Which would you choose, and why. This would be about a 2-2.5% position.

Thank-you

Q: Hi Peter and team, How important are Moody's ratings? What are your thoughts and do you agree?

"Moody's Places Bank of Nova Scotia's Ratings Under Review"

https://www.moodys.com/research/Moodys-Places-Bank-of-Nova-Scotias-Ratings-Under-Review--PR_337955?WT.mc_id=AM~WWFob29fRmluYW5jZV9TQl9SYXRpbmcgTmV3c19BbGxfRW5n~20151102_PR_337955

Thank you!

Q: Hello Peter & 5i team,
These stocks are up by some 80% so far in 2015; I'm very happy but it is hard to figure that this excellent performance is mostly due to the "unlocking of value" theme.
Regards,
Antoine

Q: earnings look strong time to reenter a position???

Q: Is this a good time to be buying DH? I have 4.6% weighting of this stock in my portfolio

Q: HI Peter,
I own Bank of Nova scotia, Royal and TD. All of these represent a total of 20% weighting in my portfolio. I basically plan to keep these for over 5 years and are part of the DRIP plan which allows me to buy whole number of shares. It appears that he short sellers have been successful at bringing down share prices of some Canadian Companies (ie. VRX, etc). Under what conditions would banks be hit by short sellers given the banks are fairly conservative? There is a big talk of the housing crisis, but I would think the banks are smart enough to withstand short term fluctuations in a correction. If there is a big short on the banks, i was simply going to add to my holdings or let it ride with more shares from the drip plan. I am assuming the Canadian banks will continue to do well in the long run. Thanks again for your input.

Q: On a fundamental basis, what do you think of CI Financial's purchase of First Asset? For a five year hold in the financial category of a portfolio, would you rate it as a buy or would you rate BNS or another one of the banks more favorably?

Q: Could you please comment on my sector weightings?
Non-Registered CAD account. Income Bias.
70% Equity
30% Fixed Income

Resource(non-energy)8%
Consumer 8%
Banks 16%
Other Financial (Insur, MFunds, Fintech)16%
Utilities 11%
Telecom 8%
Precious Metals 2%
Energy 8%
REIT 12%
Technology/Industrial 11%

Thank you

Q: Having sold my US financials six months ago, I am now looking at re-entering with Lloyds Bank and KKR. The latter pays a very hefty dividend so I will purchase it in my RRSP. What is your impression of these companies and, in particular, the fact that the UK government is or has disposed of their Lloyds stock.
Thank you.

Q: Hello Peter and team, I'm considering adding to my half position in EFN. But while I know it's up nicely over the past year, the recent performance has not been good, including today when it is down in an otherwise buoyant market. Any reason I should hold off?
Also, which of ESP and DHX.B would you suggest I favour (for the long term) if I am adding to only one or the other's position. Thanks as always!

Q: I am trying to reduce the number of the different stocks I own. I'm considering selling home capital group HCG, and replace it with either currency exchange CXI or Sun Life financial SLF, both of which are still underweight in my portfolios. Do you think it would be a reasonable a trade? It would leave my financial weighting intact.

Q: What is your opinion of Dundee corp. down at these levels. What is their book value and is it realistic.
Thanks

Q: Hi Peter and Team,
I am holding financial stocks: TCN plus US holdings JPM, AIG and City Group.

I am planing to add one more and thinking to buy either Canaccord Genuity or Element Financial. At the current price level, which one would you suggest in terms of upside potential?
Thanks as always. Pui

Q: Hello team, with Trudeau's plan of spending to get some growth going in the country, would that potentially increase the GDP. If GDP is on the rise, could that potentially lead to a rate hike. If a rate hike happens then would companies like banks and insurance companies benefit from this? So would now be a good time to start accumulating slf and bns?

Q: Hi Peter and Co.,

Is there a chance that CXI's bank licence application isn't approved? With the stock price down 38% or so in the past few months, the market seems to be suggesting that this is a possibility. Or is the price weakness suggesting that the next quarter or two will be weak? Or is this just general market weakness combined with CXI being a thin trader?

Your thoughts are appreciated,

Michael

Q: Would you recommend the preferred reset share of CF? Would it be considered a higher risk investment?

Q: Would this be a good buy for income. The dividend is about 6%. Under what scenario could I lose money. I need to protect my capital. Thanks Cathleen

Q: I would suggest that Canoe got the better of this deal.Your comments please

Q: Hi Peter,

Being a retired person looking for safe dividends I have full positions in The Royal Bank, TD and Bank of Nova Scotia. I was wondering about doubling my BNS shares.

My thinking is that the dividend is safe and BNS will probably continue to be around a long time from now and the price I am paying for the shares seem to be cheaper than most other businesses at approximately 11 times earnings. Where for example to buy Telus is approximately 18 times earnings.

(as an FYI, I also have Railroads, utility's, pipelines, telecoms,oil, gold, reits, Life co's)

Warren Buffet says to buy things that are on Sale.

Just wondering what your opinion would be on this thought.

Thank you,
Charlie

Q: Hi,

I am thinking of buying either TD or BNS for my RRSP to buy and hold. I saw that you recommended BNS on BNN the other day so I assume you like it more than TD. Can you briefly tell me why and how the two compare on a valuation basis. I like TD for the US exposure.

Thank you!