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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: Good Morning Peter & Team :
I think there are good investment opportunities in businesses involved in financing loans to self-employed people or people with poor or no credit history, euphemistically called "bruised credit". These are companies that provide chattel mortgages [mainly car loans] and/or "Payday" loans. The companies must have rigorous and effective loan loss controls in place. Many of the widely advertised payday loan companies such as Wonga and Cash Stores do not appear to trade on any exchange but there must be others that do.

So far I have identified Easyhome [EH], Carfinco [CFN], and Rifco [RFC] which might fit into this general category of high risk loans.

I would appreciate your advice on what other companies there are that I should consider, and I would value your opinion on the best and safest way to invest in this category, for both strong growth and at least a modest dividend.
Thankyou........... Paul
Read Answer Asked by Paul on December 30, 2013
Q: I would like your opinion on 3 names FTN,DFN,INC.U all pay large dividends, are the dividends secure and do you see any growth. thanks
Read Answer Asked by Larry on December 30, 2013
Q: Fiera is a money manager, has grown by acquisition, which is the only way to grow in the pension management business. What do they do when they run out of new operations to acquire? I would like for long term hold for the dividend and growth, I would appreciate your view on weather Fiera Capital would work for me? Thanks Barry love your site
Read Answer Asked by BARRY on December 27, 2013
Q: re: MET

the last time someone enquired about MET (US) was in August
I have in my portfolio PWF and SLF
they have a good run
How does MET (US) compared to the Canadian Life co in terms of
dividends and more important some upside potential for capital gains ?
Merry X'Mas
Read Answer Asked by Michael on December 24, 2013
Q: Hi, Can I get your opinion on XFN for 2014.
Best of the season to you and your staff.
Thanks
Carl
Read Answer Asked by Carl on December 24, 2013
Q: Hi,

I"m a medium risk investor who likes to buy and hold. I need exposure to US banks. Which do you like better, ZUB, PFI, or RYF? I'm inclined towards RYF. What do you think?
Read Answer Asked by Graeme on December 22, 2013
Q: IBN, iccici bank, and GS Goldman Sachs, for my USD account.
Buy sell hold ?
tks
Luc
Read Answer Asked by Luc on December 19, 2013
Q: Can you please provide your opinion on RIL.UN? I currently hold this position and debate on liquidating it.
Read Answer Asked by Andrew on December 17, 2013
Q: In response to your answer on HSBC, which I bought for global financial exposure, you state that you felt there were better options. What would some of those other choices be?

Thanks.

Paul
Read Answer Asked by Paul on December 16, 2013
Q: Hello 5i team
Copied from various press releases and news stories:
Fiera Capital Corporation (FSZ) completed its acquisitions of Bel Air Investment Advisors LLC as well as Wilkinson O'Grady & Co., Inc. last October. The purchase price is US$156.25 million, including US$115 million in cash (part of which will be held in a three-year escrow) plus US$10 million by issuing new Fiera Class A subordinate voting shares over a 32-month period.

The purchase price was financed using the net proceeds from the Firm's previously announced C$105 million private placements of a total of 9,781,000 subscription receipts from treasury with each receipt priced at $10.75. Of that total number of Subscription Receipts, Fiera issued 6,696,000 Subscription Receipts, on a private placement bought deal basis. In addition, Fiera issued 3,085,000 Subscription Receipts, on a private placement basis to National Bank of Canada who will ante up $31.4-million to maintain its ownership stake at 35% of Fiera.

As the subscription receipts were sold on a private placement basis, the Class A Shares are subject to a statutory resale restriction until January 19, 2014. The Subscription Receipts, together with the Class A subordinate voting shares issued, are subject to a four-month plus one day statutory resale restriction ending on January 19, 2014.

My question is : I want to take a 3% position in Fiera. With the big share issue, and the subscription receipt price at C$10.75 [current share price is C$13.64], and the 3 year escrow issuing shares over a 32-month period, plus the statutory resale restriction ending on January 19, 2014, will this put strong downward pressure on Fiera's share price? Would you be a buyer right away as the price is currently down 13% from it's 52-week high, or can we anticipate a further 5-10% correction in the share price in the months ahead?

Thank you for answering all my questions.... Paul
Read Answer Asked by Paul on December 16, 2013
Q: Would you be able to provide an opinion on HSBC Holdings plc(ADR)
Thanks again for your comments.
Read Answer Asked by Stephen on December 16, 2013
Q: In a recent answer you mentioned the concept buying SLF as interest rate protection, Could you please elaborate. I assume you mean the insurers will do well when interest rates go up despite their recent run. Can you clarify why. Do you think the same would be true for the banks? I hold lots of bank stocks and this would please me very much. I hold few insurers an asking should consider holding my nose and buying more.
Thanks, Manfred
Read Answer Asked by MANFRED on December 13, 2013
Q: Peter and Co, thanks for the exceptional service.
My question is off topic in some ways but it may have implications for one of Peter's favourite stocks, BNS.
Reuters has reported that in Germany, the UK and the USA there are ongoing investigations into the suspected manipulation of the benchmark pricing of gold and silver. This investigation comes on the heels of the LIBOR price-fixing scandal. The Bank of Nova Scotia-ScotiaMocatta is one of the five banks that are involved in the twice-a-day price fixing for gold.
If there is found to be manipulation in the gold price-fixing, how significant would this be for BNS if ScotiMocotta is implicated?
Thanks.
Ed
Read Answer Asked by Ed on December 13, 2013