Investment Q&A

Q: Hello
My broker once said to me something like 'most Canadians who hold our banks, intend to hold them throughout their lifetime, so if you intend to hold them that long, you may as well own BMO's Bank Covered Call ETF. Yes you give up some upside capital appreciation, but you get increased income and some downside protection as a result o writing the call option'. What do you think??

Q: bank of america settles this morning, how do you feel about owning this stock…. and financial's in general, any fav's?thanks,

Q: 9:21 AM 8/21/2014
Hi Peter:
I must sell something to pay income taxes. I am considering the following 3 choices. All are in my TDWaterhouse cash account :

1. Olympia Financial Group Inc OLY. This is a 1.5% position, ACB $48.11 Current Capital Loss $11,353. However we received the $10/share dividend last year hugely offsetting the paper loss even though the taxable loss is still $11,353. Current Dividend Yield 7.22% Yield in Cost 6.05%. I already have a sizeable realized tax loss this year so don't particularly need to realize any more now.

2. Corus Entertainment CJR.B This is a 1% Position. ACB 24.12. Current Capital Gain $633 Current Dividend Yield 4.37%

3. Surge Energy SGY This is a 2% Position ACB $7.85 Current Capital Gain $2,915 Current Dividend Yield 7.17%

I really don't know why Olympia has been drifting down so much this year as it seems like a nice little company and regularly raises it's dividend. Are there any hidden weaknesses that I don't see? The recent quarterly results are :

Highlights from Continuing Operations for the three month period ended June 30, 2014 include the following; when compared to the three months ended June 30, 2013:
-- Total revenue, including interest earned as trustee and interest,
increased 6% to $9.24 million from $8.69 million;

-- Interest earned as trustee on monies held in trust and interest on
Olympia's own cash increased 17% to $1.41 million from $1.21 million;

-- Direct and administrative expenses (excluding depreciation and
amortization) increased 6% to $7.27 million from $6.89 million; and

-- Earnings before income tax decreased 3% to $1.67 million from $1.73
million.
Olympia advises that it will not be pursuing its prepaid card business and has requested a voluntary termination of its Mastercard issuer licence. As Olympia Trust is not federally regulated and given the fee restrictions imposed by provincial gift card legislation, it was determined that this business is not viable for Olympia at this time.

These three are all held long term [permanently] mainly for their dividends and hopefully some capital growth. I would have to sell all of Olympia or Corus, or half of Surge to pay the tax. I really don't want to sell any of these but must choose one so I would ask your advice on which is the weakest and must be sold.
Many Thanks........ Paul K

Q: GCG.a
Hi- what do you think of Guardian Capital? It seems cheap compared to others in the space and seemed to have a good earnings report.
Thanks

Q: efn element financial is it abuy

Q: Callidus Capital reported earnings lately...stock price seems to have nice upward momentum. Thoughts on this recently listed company? Still more advisable to watch or can someone start to nibble with a small position? Thanks for your excellent service...Mike

Q: How do the banks (especially TD and BNS) perform compared to the TSE? Is it close both in short term (say 6mo) and longer term (5 yr, 10yr). I'm wondering if they would be good for a "lazy man" portofolio if one does not have enough money to set up a balanced portfolio and doesn't want to do ETFs.

Q: With reporting to happen soon, is right now a good time to buy a Canadian bank stock? What would be your top 3 CDN banks to get into now? Why do you favor BNS in your portfolio with its foray into Central and South America?

Q: What can you tell me about TDb Split Corp (symbol XTD on the TSE). How does the stock generate its income?

Q: WOULD YOU BUY THE BANKS HERE BEFORE THE UPCOMING EARNINGS THANKS

Q: Any thoughts on Pacific and Western Bank(PWB).Is it a buy for the future?

Q: I own CXS since 2 years in my TFSA and am down over 35%. Should I continue to be patient? I am tempted to use the cash to buy either PHM or GXI. Thanks for the excellent and invaluable service.

Q: Hi Peter and Team,

Quick thoughts on National Holdings, NHLD.US

Q: Hi. I hold Lloyds Bank via the ADR (LYG US). The government seems to be considering a sale of all or part of their shares to institutional investors shortly. Do you think they will sell the shares below what they are trading at today, or at the previous sale price.
Thanks for your thoughts on this

Q: Hi,
Could you please comment on the latest financial results from Counsel Corporation [CXS].

Many Thanks

Q: Hi Peter and Team,

What are your thoughts on Blue Capital Reinsurance Holdings, BRCH.US

Q: Can I get your take on CXS's earnings today. I'm down 20% over the last year, is it better to cut my losses and re-deploy the cash to one of ELW, BAD, AYA or PRW? I have 20+ yrs before I need these funds from my TFSA. Thanks for the great service you provide!

Q: Thanks to your recommendation some time ago I have made over 700% profit on Autocanada and am considering selling the shares I have left to buy either KKR-N or BX-N. What can you tell me about these 2 stocks. Am considering this trade for better income and some capital gains.

Many thanks for all the great information you provide. Helen

Q: your thinking on ego financial & its missed earnings for the last quarter.
efh-t

Q: Could you please comment on Apollo Global Management (APO) and their second quarter earnings. Should I sell it?

Thanks,
Milan