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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: I just learned that the Ontario government has ruled that P&C insurance companies will henceforth be required to lower their premiums on car insurance policies by 15%. I know that Intact Financial (and other insurance companies, I presume) has been fighting this for a number of years. Now that it's a fait accompli, how much of a negative impact will this have on the IFC's share price?
Robert
Read Answer Asked by Robert on November 21, 2014
Q: Peter -do you have any thoughts on the relative attractiveness of the Aig warrants versus Aig common ...and whether you view either as compelling here?
Read Answer Asked by Kim on November 21, 2014
Q: Is AHF a buy,sell or hold after it's recent slide?
Thanks
Garry
Read Answer Asked by garry on November 18, 2014
Q: Why is its yield of 2.9% lower than each of the Individual Banks which are all higher than 3.5%?

Thanks, Austin
Read Answer Asked by Austin on November 17, 2014
Q: Question about averaging down or buying on major dips.

I have seen the comments "we don't like averaging down" on a number of occasions.

If I consider a stock like AHF, which I believe you liked when you prepared your report on this company and still like today, what would be wrong with averaging down (assuming we keep our stock weights somewhat in balance and possibly increase our exposure a little bit).

The way I read your Q&A to AHF is:
- The fundamentals have not really changed. In fact, they are possibly better. The focus is on higher margin business.
- The dividend (7%) is secure with good cash flow. (This is a great dividend which we can collect while we wait for the stock to go higher. Not many companies pay 7%.)

As a result:
- If we buy the stock at this price, our risk is greatly reduced. The stock is selling at 70% the price it was recommended at and your opinion of the company has not changed. It is like going to the store and buying stuff on special.
- If the stock goes back to the price it was at when recommended ($1.22), that is 42% upside. If we assume it takes 2 years to do so, that would be a 21% annualized gain, plus about a 7% dividend per year for an annualized gain of 28%. And this assumes the price only goes back to the price it was initially recommended at for purchase.

If averaging down is not a good thing, when fundamentals are same if not better, and our risk of financial loss is lower (as preservation of capital is paramount) and the dividend is exceptional... Then as some people would say, is it not time to back up the truck, is it not the time to be greedy when others are fearful...

And if it is not a good purchase at time price, then should we not get rid of it and move on.

Your valued opinion is greatly appreciated. I've learnt a lot.

Thank You.
Read Answer Asked by Walter on November 16, 2014
Q: Your opinion of CXS results today and future prospects. I'm currently underwater and had hopes of target price going into $3.00 range.
Read Answer Asked by richard on November 14, 2014
Q: I would like your thoughts on the lastest quarterly results on CXS and with the beat do you see more investors buying this stock thanks.
Read Answer Asked by david on November 14, 2014
Q: I should've waited a day to ask about EQI Could you give me some colour on their latest results?

TIA
Read Answer Asked by Gerald on November 14, 2014
Q: Hi Peter I am thinking of adding Bam And BA to my portfolio. Do you have an opinion on these 2. I am a moderate investor with a focus on steady growth
Read Answer Asked by Terence on November 14, 2014
Q: In your opinion, would today's news of the Bank of Nova Scotia's raising of 7B$ of any concern? Thank you
Read Answer Asked by Michael on November 12, 2014