Investment Q&A

Q: Hi: Today, on BNN, John O'Connel said that Home Capital is the most heavily shorted stock in Canada. Hard to believe, but I can't find the US short position anywhre. Do you know what the total short position in Home Capital is? Should I be worried?

Thanks,
Hans

Q: Hi guys. Please give me a Canadian equivalent etf which will protect against Cdn $ appreciation against U.S. dollar

Q: Your recent article on preferrers only alluded to resets, which are now over 60% of all preferrers issued. So, I don't know how much I can take from the article. For example, I would like your opinion on efn.pr.e. You have recommended fen several times recently, and this preferred yields north of 6.5%. I believe I get my 25$ back in another four years, as long as the company is solvent, right? And the reset spread is around 4.5%, so I either get my money back or i get a very good yield when this five year term expires, right? I realize I am not participating in the cap gains, but I traded that for a 6.5% yield that seems quite safe and getting my money back in the end (i.e. 5 years). Am I missing anything?

Q: Since March 25, 5 guests on BNN have recommended EFN. I own the stock and I am up 30%. You made some comments on April 1.

What has changed in the past few weeks to prompt this number of recommendations?

Is it time to cash out, hold or buy more?

Thanks.

Grant

Q: Hi Gang,

It looks like Aston Hill (AHF) is looking to sell itself according to information from PREFBLOG on April 16 as follows:

“Aston Hill is looking for a buyer:

Executives at Aston Hill Financial Inc. have been shopping their firm to other asset managers, hoping to find a buyer.
Over the past two months, senior employees at Aston Hill have reached out to several Canadian firms and expressed interest in selling their company, according to multiple people familiar with the discussions.

The overtures have been made at a volatile time for the company, which recently lost a high profile mandate to manage $2.2-billion ‎worth of funds for IA Clarington Investments Inc. which prompted Aston Hill to slash its dividend.”

What would happen to the share price (currently 81 cents) if a sale occurred?

Any thoughts on when or if this may happen?

Thanks
John

Q: I noticed that this UK bank sells at a discount to the tangible book value. Is there a reason that I should avoid buying this stock?

Q: Atlas is a spinoff of Kingsway, reportedly. Although not a dividend payer, its freedom from KFS seems to have been a positive move. What is your opinion of its current valuation and growth prospects?

Q: UBS is a Swiss based international bank that I'm interested in purchasing as a stock. Would you recommend it or, if not, could you suggest a European based etf as a better choice ? Thanks, as always.
Dave

Q: Do you prefer MFC or SLF at this time? Thank you.

Q: I am significantly overweight in Financials and would like your advice on trimming/rebalancing in my RSP portfolio.
I currently have 35 % in the following: BMO, BNS,CM,NA, RY,TD in the backs, SLF and GWO in insurance - all with significant gains, and HCG and CF in other financials with a moderate loss position.
Would you trim all positions or eliminate several companies?
Where should I rebalance into companies in your new growth portfolio?
Thank you for this advice!
Peter

Q: At a 14.8 percent dividend yield, this looks like a fantastic stock. What would be the negatives in owning this stock? I am in my late 40's and don't need the dip into it for at least another 15 years or so.

Q: Hi, Bank of America is only bank in my portfolio, bought it around 8$ but it didn't do much during last year. Should I sell it and switch to some Canadian bank. What is your risk/reward assessment vs. Canadian banks.

Thank you for great service.
Milan

Q: Hello, I have just consolidated my holdings and I am on the wait list for a portfolio review. In the mean time, could you please give me your opinion on my financial holdings which make up 35% of my portfolio. I feel this is rather high, what percentage would you recommend to hold for the average investor for financials and which holdings should I sell/trim in your opinion. My holdings are JPM.. 5.03%, AIG..5.73%, BAC..3.63%, C..2.57%, BNS 5.37%, COF..2.68%, AD...3.37%, TD..4.56%, CXI..0.53%. Also, my portfolio is approx. 40% US, 50%can, 10%bond etfs. Thanks for your insight.

Q: I have a little bit of MKP and I noticed that it has been in consistent price range for a long time. It has a nice dividend 8.3%. Do you think it is a good candidate for a full position for someone just looking for income?

Thanks,
Charlie

Q: With the unfortunate passing of the ceo any implications for the company? As he was so well respected do you think the company would be a takeover target.

Q: Hi Peter and company, Can I have an updated assessment on holding Great West vs Sunlife. GWO appears to have more momentum right now and the yield is very similar. I really appreciate your opinion going forward. What do you expect from both over the next 3-5 years.
Many thanks!
Martin p.s. Very interesting changes to the portfolios!

Q: Hello Peter and group: Would like your opinion on Capital One Financial. I used to think of this company (not sure why) as somehow a little "tainted" but see that it is now on S&P's "five star" list. Thanks, Don

Q: Hi Peter and team, I've read the changes you've made in the Balanced Equity Portfolio (formerly known as Model Portfolio). HCG was removed.....does this mean you are suggesting it is a sell? And, are we to assume you're not going to cover it anymore?

Thank you!

Q: What do you think of the latest earnings report? Seems good to me. I don't understand why the stock is falling.

Q: Please provide your opinion this US ADR: Barclays preferred share series D. Please comment on the risk of it being called and where you expect the yield to be over the next 12 months.

(I like this ADR because its has great yield; good for US income; and there is no US tax withholding on the dividends.)