Investment Q&A

Q: Hi Team

IGM is more of a financial company and GWO is really an insurance company, yet both are really owned by power PWF OR POW.

I have a long term buy and hold blue chip dividend investor philosophy.

Safety-wise which one would hold up better in rising interest rate environment
What else should I consider before buying...
Is one of them a better value buy right now ?

thanks

Ernie

Q: Any thoughts on Eurobank -Fairfax owns 13%-Wilbur ross also involved .Understand this consortium has well over a billion dollars invested which is about the current mkt cap . at prices much higher than current -37 cents versus current pricing around 7 cents . So does it make any sense to follow these savvy players ???????

Q: Could the Tahoe deal going underwater have a material impact on joint bookrunner GMP'S share price and 2015 guidance?

Q: I bought this preferred just recently for a price of $25 and it has gone down steadily since then -- it now has a bid of $24.35. It has a yield of 6.5% and I bought it for income but if I lose in capital what I am gaining in income it doesn't make me happy (grin). What do you think the future holds for this preferred?

Q: Can you give us a more detailed analysis of CXI at this point? Was there any more information given on the most recent earnings call provided more information?

Q: Hey Peter & Team,

Originally I bought Manulife right around $20 back in Feb 2014, collected a nice dividend but admittedly, I became impatience with very little in the way of capital gains. Jan I sold at $21.68 and redistributed the capital elsewhere which worked well in PHM & EFN.

Lately there has been much talk about interest rates and how well Insurance companies should do with an increase in rates. I have been sitting on 25% cash for about 6 weeks and am seriously considering MFC or SLF for a portion of this capital.

The long term graph for both since their lows back in July 2012 look very good with higher highs and higher lows all the way but also for both, very little in the way of capital gains for the past year.

Can you please give us your opinion on the Life Co's moving forward, what you think an increase in rates will do for their share values, and which you would select... MFC, SLF or another selection in the sector... at this time?

I know in the past you have recommended SLF ahead of MFC.

Thanks for all you do

Gord

Q: Hi ...can you help with a sector and diversification question? I appear to be out of balance with 30% of the portfolio allocated within the financial sector. The stocks involved are BNS, RY, SLF, BLK, GS, CXI, BRK.B. Equal weight.
So there are two banks, one insurance company, two financial services companies, one currency exchange operation and I am not sure how to classify Berkshire Hathaway. A holding company?
Do you think I am overweight in financials? Would all of these stocks go down if the financial sector stumbled? They seem to be quite different operations to me. I am reluctant to cut back on these stocks as they are all doing well. Maybe BRK.B could be cut but it is the least financial of all of these I think.
Any way thank you in advance for your thoughts.

Q: In response to a recent question regarding US financial ETFs you recommended KIE as an insurance ETF. Do you have specific reasons for favouring KIE over IAK? Thanks.

Q: Hello, I have held FSZ for a few years with little to show for it, patience is running out. Thinking of IFC or AD as replacements. Your thoughts, best bet between these or alternates? Thanks, Lavern

Q: Counsel has shown another good quarter and shows good promise, yet, although they report positive results, the share price slips. Can I have your assessment? Thank you

Q: Could you please comment on CXI earnings report and could you please provide your long term outlook for the company?

Thanks

Dave.

Q: There seems to be a consensus that rising interest rates will benefit US banks. Does this favour the big investment banks over other commercial banks? If so, XLF might be the way to go as it is heavily weighted by the big banks. If not, what would be a good alternative US bank ETF?

Q: Do you think BNS is a buy?

Q: I own JPM and BB&T and have noticed some nice gains in U.S. banks. As a broader-based U.S. financial instrument, would this be a good buy for both decent growth and a juicy yield?
Thanks

Q: I’m definitely more of a buy and hold investor than a trader, but with David Burrows’ words ringing in my ears – “The money’s gone! The market doesn’t know what you paid” -- I’m reassessing my Cenevous holding of two years (down about 30%) and I’m wary of the fact it’s close to breaking support, according to my Investorline data, at $20.23. In the same account (LIRA; currently has no cash), I also hold a small amount of the ZUB ETF. It’s at the upper end of its trading range for the last year and a half; is trending above its 20 and 200 day moving averages; on the verge of breaking out into a three-year high; and technically has moved up closing a gap with the S & P 500 trendline. I know it’s comparing apples to oranges, but I’m asking for a second opinion on dumping CVE for ZUB. (I have a full position in CVE, as well as full positions in WCP; PPY; and and a one-third position in SKX; in fact I’m considering clearing out all but SKX since there are bearish technical warnings for WCP and PPY as well). Other options: dump Cenevous for cash and either wait for another opportunity or buy Cenevous back at a cheaper price later in the year; or taking the Cenevous proceeds and putting them in Don Vialloux’ HAC ETF, which seems to trend steadily upwards, albeit unspectacularly, with his seasonal investing philosophy. ZUB, Cash or HAC? Your insight is very much appreciated.

Q: Hello Team,

I'm considering selling Sunlife ( up 7% ) and buying Manulife. Going forward, all things considered,owning Insurance companies, would you consider this a good switch?

Q: Good Morning Team,

BMO offers ZUB and ZBK. Both are equally weighted US bank ETFs. Both are sold in Canadian dollars. ZUB is hedged while ZBK is not. If they are both sold in CDN dollars could you please explain how one is considered hedged while the other is not? What are the tax implications for holding these in a TFSA?

Thanks,
Richard

Q: What is your opinion of these stocks - Buy/Sell/Hold?

thx, Ross Siemms (New Subscriber)

Q: I have held cwb for about 5 yrs at an average cost of $22. With regards to the latest quarter and future prospects should I hold or move into another financial. I already owe bns and the eft zub. Thanks.

Q: You were asked a question a few weeks ago about AIG vs. KKR. You noted that US interest rates are likely to rise and that helps insurance companies but for other reasons you felt KKR may be the better buy for growth.

My question concerns rising interest rates and how they would affect a deal making company like (though not specifically) KKR. I see how rising rates help the insurance industry. But wouldn't the same increase hurt KKR since borrowing costs could rise. Or are you of the opinion that the increase will not be large enough so as to dampen merger and acquisition activity, at least in the medium to longer term.

As always, appreciate the wonderful insight.

Paul F.