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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello Peter & Co,
Are there any Canadian equivalents to Goldman Sach's BDC that lends to companies banks used to lend to?
Thanks,
Antoine
Read Answer Asked by Antoine on March 30, 2015
Q: Hi Guys,

This is a follow up to Alayne question on BRF.pr.A.

Don’t forget, the 3.32% dividend is on the original $25. If you calculate it on the current price of $20.35 you get a return of 4.1% ($25x3.32%/$20.35). If it is held outside of an RRSP in will have an equivalent interest rate of approximately 5.3%. This is much better than current yields.

If you reset using the short term provision and if the T-Bill rate went up 1% next year your yield would probably jump to something over 5.25% (6.8% bond equivalent) at that time and you could eventually have a capital gain from the $20.35 to $25.

Not all that bad.

I’m in the same boat with GMP Capital, GM.PR.B. Any comments on this company?

Thanks
John
Read Answer Asked by John on March 29, 2015
Q: We are quite elderly,and have about $28,000 a year in US S.S. and Cdn OAP. We have no need for growth but do depend on Canadian dividend paying stocks to double that income. The 5 major Cdn banks are 23% of our investment, 7% in oil, 13% pipelines, 11% electric power, 8% telcom, 10% reits., 20% misc industry and 8% gold stock and cash. You recently advised someone that 20% was too much to put into banks and that it should be reduced and some put into financials. Can you please suggest some financials or other stocks that pay as good dividends as the banks and are equally safe. Thank you.
Read Answer Asked by Edward on March 26, 2015
Q: Good afternoon
May I please have your view on CXS's results.
Read Answer Asked by Margot on March 26, 2015
Q: Hi Mr. Hodson. Thanks for the question opportunity.
My question is re: today's Globe&Mail article titled 'Why banks should be feeling very, very afraid'. He recommends shorting the banks because they would be dinosaured by Apple pay, Google pay, paypal etc. technology, Just like entertainment, publishing, travel-agency industries.
I am worried. I have 20% of portfolio in Canadian banks for dividends for pension.
Should I trim the banks? Thank you so much. sarah
Read Answer Asked by sarah on March 26, 2015
Q: I have a 3.5% position in Cannacord and down 38%. Volume is low but the price seems to have caught a bottom. I am very tempted to average down my cost. Do you think I would still be trying to catch a falling knife? Do insiders own a lot of the company? Thanks.
Read Answer Asked by Helen on March 25, 2015
Q: Hi Team 5i,
I'm a bit weak on the financial sector of our portfolio. Looking for blue chip companies with sustainable/growing dividends so I'm looking at the Canadian Banks. My questions are:
1. Is this a good time to be adding Canadian banks to one's portfolio?
2. If so, do you still like Bank of Nova Scotia the best? How about TD with it's exposure to the United States?
3. Are their other possibilities that should be considered for the financial services sector that could fit the bill? Perhaps be even better buys at the current time.
As always, thanks for the guidance.
Read Answer Asked by Les on March 24, 2015
Q: What do you think of CYS Investment, a US company. I understand that it is a REIT with a high dividend. What can you tell on this company? How it will be affected by a raise in the interest rate? Do you think that the dividend is safe and do you recommend to buy it for income? Or do you have better suggestions?

Thanks for your great service, Michel
Read Answer Asked by Michel on March 24, 2015
Q: Looking to get some exposure to the US banking sector, one one hand everybody says that bac is a buy trading at less than book value. I also know that Benj Gallander has recommended func many times and he is very good at picking these small cap companies as long as your looking long term. What are your thoughts?
Read Answer Asked by Richard on March 24, 2015
Q: Peter and company,
Do you think CWB would be a good buy now that it is down considerably because of the drop in energy stocks, drop in employment in AB and the slow economy? I stated in a previous e-mail that I wanted to cut back on financial services sector but the price looks attractive. Besides I don't really think of the banks as financial services but rather more as sort of organised crime.
Gary
Read Answer Asked by Gary on March 20, 2015
Q: Hello Peter and Team.

I’m an income investor and currently have 27% of my portfolio in cash.

The other 73% is distributed as follows:

US Tech 11%
Oil & Gas 4%
Consumer 8%
Cdn Banks 12%
Utilities 26%
REITs 12%

I’ve been in and out of the Telecoms and think they are somewhat expensive right now. The Cdn Banks on the other hand look like an attractive sector to add to and I can collect the 4% dividend while I wait. I have a full position already in BNS and would like to add Royal and TD. Maybe 6% in each? or should I just stay in cash and wait for a further pullback? I’m worried about the US markets correcting which will just take everything else down with them regardless.

What do you think?

I know I need to work on better diversification but I don’t want to put new money to work just for the sake of diversification as I view this to be a ongoing discipline. Right now the CDN banks are the only thing I see as a strong buy aside from O&G which is interesting but still a little too risky for me to commit new money to vs. the Banks or am I missing something?

Thanks as always for your excellent advice. Scott
Read Answer Asked by Scott on March 19, 2015
Q: Hi guys,

I want to limit exposure to the financial sector to 20% of my portfolio. I currently own TD and BNS and with the recent pullback in the major CDN banks, I'm thinking of adding 2 additional banks and I'm thinking about BMO and RY. I don't want to invest in an insurance company since no one can be sure when rates go up and I'm not sure about Home Capital Group since it is more concentrated in its business than the major CDN banks and the yield on the major CN banks are twice that of HCG? Your thought? It is risky to hold 4 major CDN banks in my portfolio if overall exposure is capped at 20%?

Thanks,
Jason
Read Answer Asked by Jason on March 16, 2015
Q: hi peter is ffh a buy at the moment thank you.
Read Answer Asked by suzanna on March 15, 2015
Q: What do you think of Callidus and asset-based lending in general? It seems they fill a niche above some of the 'factoring' companies in terms of finance. This seems to be a growth area. Are they fairly valued here? Thx.
Read Answer Asked by Michael on March 13, 2015
Q: Hi team:
the stock jumped up yesterday and now is pulling back
as mentioned NA sold part of her holdings in FSZ
any reason for the volatility ? thanks team!
Read Answer Asked by Michael on March 12, 2015
Q: These stocks are at the low end of my portfolio in terms of asset allocation(<.5%): EGL.un,AR,TBE,AHF,ZAR,IRG,WEQ,S,FC.
Are any worthy of continuing to hold or buy more; or is it time to more on? Thank you for your advice.
Bruce
Read Answer Asked by Bruce on March 12, 2015
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