Investment Q&A

Q: Hi 5i,

I would like your assessment of a New Issue/IPO just made available on TD's Direct Investing web-site. It is for approx $250 million of common shares in Aurigen Capital Limited. It seems this company has been in existance since 2007 and offers Life reinsurance to primary insurers. The CEO (Alan Ryder) has
previously led the launch, growth and operation of two other successful reinsurance start-ups and previously (2007) raised
$505 million of equity capital from respected private equity &
industry investors. Is the CEO and other members of the mgmt team known to 5iResearch? Who are their competitors in the CDN market? Do you recommend purchasing this on the IPO, later after it settles, or not at all for sector reasons? (price has yet to be determined...)

Thanks for your great service!

Scot

Q: RBC has raised its estimate on CF to $12 from 7.50.Is the investment business this strong and will the rising tide lift all the boats such as GMP?
Thanks for your opinion.

Q: Hi Peter & 5i: A recent Morgan Housel article circulated by the Motley Fool discusses a developing trend in the fees charged by financial advisors, away from a percentage of AUM model and toward a flat fee approach. He suggests that this transition will ultimately have many people paying significantly less than they do presently for the services of their financial advisors. My questions: 1. Do you agree that this trend is coming? 2. If so, over what timeframe would you expect it to be substantially implemented? 3. Will it have a material impact on the revenue and earnings of the Canadian fincancial corporations that 5i members may own? 4. If so, which ones would likely suffer the most severe effects? Thanks for your thoughts!

Q: POWER Corp financial measures indicate deep value, good dividend 3.8% forward PE 10.3, estimated earnings this year $2.12 dividend well covered. It will likely have some conglomerate discount but should benefit from European exposure. Why is it essentially static - narrow range trading?
appreciate comment.

Q: What is your opinion of Guardian Capital. Jerome Hass had some positive comments the other night on BNN. What do you think?

Q: I would appreciate an update on IGM. Thanks!

Q: Hello Peter,
I am looking to make a move ( 5-7% weighting )on either SLF or GWO, maybe both. Ford recommends GWO as a Strong Buy. Could I have your opinion on which one you would pick? I would consider either one or both, to be ``cornerstone holdings``. In other words, long term growth with steady div. income, within a moderate to medium risk, but well diversified, portfolio. Thank you sir!

Q: Peter, could you give me your oulook on Counsel Corp, seeing as how it has dropped recenlty, is it the time to buy?

Q: Is there any news out on Element Financial EFN, it seems to have a lot of downward movement in the last couple of days. Any info would be appreciated.

Darcy

Q: Hi,

Thinking about IAG and MFC. MFC has outperformed IAG is the past 12 months. The foreseeable slowdown of Chinese growth and other problems likely affect MFC's Asian business. Additionally, I am still not very comfortable about MFC's financial status.

For risk control, is it wise for me to swap my holding from MFC to IAG and maintain a similar percentage in my portfolio?

Thank you.

Q: AHF has management and financial ties with argent(AET.UN). Could this affiliation impact its reputation and status in the market?

Q: What is your opinion of Lloyds Group? It has been on a down trend for the past three months, could this be a result of heavy selling by the British Government?

Thanks,
Glen

Q: jpm had a tough day on friday, if you on hold as i have looked at this more long term or is this a buying opportunity

Q: Greeting Peter & Co.
While I am currently a little nervous about the stock market I don't want to miss buying opportunities for quality stocks. I am considering adding to my very small position in Sun Life Financial, my only financial holding. Also, I am considering increasing my exposure to Canadian financials by initiating a new position in TD Bank.
I would appreciate you thoughts on these two potential purchases.
With appreciation,
Ed

Q: Any reasoning for insurance and banks selling off .... Is it the lack of higher interest rates in the near term .. And is this a buying opportunity ... BNS and SLF ........ Thx

Q: Further to the question from Terrance this morning, TD is not overbought according to RSI today. It is currently at about 61, really, a pretty good score. This number changes daily and, like any of the other momentum indicators, should not be considered a buy or sell signal in isolation.
I agree with 5i, technical analysis is another tool along with fundamental analysis. But, don't buy anything unless the fundamentals are favourable (that's why I subscrible to i5 Research). And, don't worry about the technicals unless you understand the whole picture.

Q: Was reading where it says TD is entering overbought territory with a RSI value of 73.5,could you explain this

Q: Ggod day -

What is your view of the impact of interest rate changes on mortgage co's. and your view of holding these in TFSA?

Which is your preference - TMC, MKP, FC, TZZ, and AI?

Q: Greetings,

Could you please provide an update for CI Financial [CIX]after their most recent financial reporting.

Thanks

Q: I have 30K in BNS and 18K in ZEB.Ijust added SLF 19K.My question is would it be better to sell ZEB and start buying other banks starting with TD and RY or buy XFN ,lower fees,more exposure or just stay withy ZEB.I am leaning towards replicating ZEB as you have mentioned before but wanted a second opinion.Thanks for all your wonderful advice.