Investment Q&A

Q: Hey Peter & Team,

To date I have done very well on EFN and yesterday as a prudent measure not ever wanting to be the pig that gets slaughtered took some profit off the table.

Today I noticed the recent financing via Element Financial Corp Sub Receipts (EFN/N) is up almost 9% from $17 - $18.50 on 2.02 million volume while EFN is down 1.22% to $18.57.

Can you help me better understand the relationship between these two issues and what EFN/N increasing from $17 - $18.50 means for us little people.

Thanks for all you do

Gord

Q: Can you sensible describe a "crowded trade ". Jerome Hass was wittering on about this on Bnn on Fri. and said that his hedge fund stays away from these type of trades. One of his recommendations then was cxi, and ,if this is not a crowded trade, then what is? Can you lift the fog . thanks

Q: With the additional insight provided by recent bank earnings reports do they present value here considering future prospects?

Q: The BMO shares are down over $1.00 at the moment, far more than the other banks. Yet BMO raised their dividend and the results for the quarter slightly beat expectations. Why the drop in value?

Q: I currently own both Canaccord and Fiera with a significant loss on CF and not much to show for FSZ during the past year. I originally invested in these because I was looking for something different from the traditional banks and wealth management and deal making in a growth environment seemed ideal. Do you still see value in these because Element is of interest and I am wondering if a switch out of one or both is in order.

My concerns with EFN are two fold. First, there has been much discussion about them buying a big part of GE's leasing business. I am assuming that this is reflected in the price. So, if that deal does not go through, would you expect a sharp price decline.

Second, they are quite exposed to interest rates changes. You have discussed this previously as it pertains to EFN and you noted that interest rate increases could negatively affect the stock. Do you make your recommendation to buy this based on your belief that rates are not going up or that they have the administrative where with all to weather that storm?

Thanks for your insight.

Paul F.

Q: I bought FN for income and modest growth. I read they have the highest PE ratio of 17.91, comparable to other special industry financials. With the recent results, (losing market share)what is their chance of revenue growth this year. Thank you for providing such a valuable forum. Greatly appreciated.

Q: SAFT has a nice yield coupled with a 5 year dividend growth streak. Could you please give me your thoughts on the company going forward.

Q: My granddaughter has no financials in her TFSA. She holds Boston Pizza and Brookfield Renewable in eqal valuations. I am considering adding SLF or TD. Which would you recommend or do you have a preferred alternative stock that pays a dividend?
With appreciation.
Ed

Q: Peter's last visit on bnn picked element and said the p/e ratio was about 17 times. Is this valuation based on a forward multiple? From a quick look at google finance I see trailing 12 months earnings(diluted) added up to $0.56/share. Would this be roughly 34 times trailing earnings?
Thanks

Q: Dear Agent.Is PSEC a good long run investment to hold in a Portfolio. Eddie.

Q: Hi Peter,
As sun life has increased it's exposure to the equity markets via it's new partnership with Qtrade-if equity markets drop and even if interest rates are rising at the same time-will the equity partnership be a drag on the price of the stock

Q: Hello9 Peter & Co,
Having no exposure to Lifecos, I'm debating between SLF and MFC; why has SLF (in your portfolio)so badly underperformed in 2015 ytd?
Thanks,
Antoine

Q: Can you please comment on the biggest risks you see (outside general economic environement) for this company?

Is their portfolio protected in case of a rise in interest rate ?

Can you please comment on management compensation (note 17 of the last q4 fs) and options granted. At fist glance it seems high vs revenue and profit generated?

Thank you

Q: Good Day..Could you give a update on fortress,. Latest report on the financial please Thanx Cliff

Q: Hi Peter. I'd like to add a couple of banks to my portfolio. I'm leaning toward NA and either BMO or BNS. Of the various Canadian banks what would you recommend for my two picks ?

Q: Do you think the chance for a deal are almost certain Then what a deal for arbitrage when one can get hold of some of the issue. Do you know if the subscription receipts will be listed on the exchange.

Q: I have a small position (2%) in Senvest stock, which is a montreal-based value hedge fund. They have been growing book value quickly, recently to $305 while the share price is about $190. Barron's just listed them as #2 in their top 100 hedge funds ranking. I'm wondering if you have heard of these guys and whether you endorse them as fund managers or have heard otherwise, because I am thinking of taking it up to a 4% allocation. Thanks!

Q: hi folks

further to an earlier email on element with respect to mgmt

I remember when newcourt and steve hudson had their heyday in financing in the 1990's and early 2000's

from my recollection there was a lot of 'creative accounting' (a term updated recently to "financial engineering")

question: in light of this 2.2BB issue today (which increases the company capital structure by almost 40%) what makes anyone believe that this mgmt is any more competent than when they near bankrupted newcourt?

one thing of interest being they didn't borrow the whole 2.2bb

comments?

thanks for your insight

robert

Q: Hi Peter

EFN did a substantial financing today of common stock preferred shares and convertible.

What's your take on all this activity? Are you positive about it and if yes why?

Q: Could you provide a brief summary on why you would include Element Financial in your growth portfolio. I see they have always made money but what about them makes you believe they will continue to grow.
Thanks
Jim