Investment Q&A

Q: Hi, Peter and team,

A year or two ago, a friend and I were dsicussing the US financial sector and came to the conclusion that as long as the stock did not "die", it should bounce back as time goes on. Based on this thesis, I started research on a few names e.g. BAC, MS, Wells Fargo etc. and was ready to take the plunge. Then I heard some fund Manager on BNN saying that the US banks were still risky although the PE, Price to Book..... look good because nobody really know what's on their books exactly. That stopped me cold on my track.
Fast forward to now, all the US banks have leap and bounced to recent new highs. My big question: should I "chase" these stocks since their fundamentals (e.g. P to B) still saying they are "cheap"
Thanks!

Q: This is a followup to the question just answered re financial sector weighting - you suggested either FIE or SFN - I see the yield on FIE is double that of XFN - can you give some background on that - does it increase risk in some way ? Thanks again.

Q: You guys have mentioned previously that National Bank (NA) sits at the top of the list amongst the big six banks in Canada. What do you think about it today?

Q: what is your view on Home Capital group (HCG). Is it buy or a hold, long term outlook, long term is two years. Thanks

Q: May I have your views on GMP which I bought at a much higher price! Should I hold?

Q: I have had a good run with WESPAC BANKING CORP (WBK: New York)in my TFSA, & notice that it generally seasonally "tops out" on Mar 1st or April 1st of each yr. Should one sell some or all in advance of Mar01, 2013, or just ride it out?
Thanks in anticipation, Best wishes, Paul.

Q: Urbana corp...urb and urb.a...Do you have any comments on the company and which would be the better buy...if it was a buy?

Q: HCG has taken a small hit recently and I may have missed some news. Also how will HCG be affected by increasing interest rates expected late this year or next year.

Regards

Q: SLF. Would you buy now as it looks like it's house is getting in better shape & dividend is secure. I am long-term invester & was thinking for my RRSP.

Q: Is BNS agood buy at this time .

JIm.

Q: Any reason for Intact's (IFC) sharp sell-off since it's earnings release, still a solid name in your book? Thx.

Q: Hi
could i get your opinion on pwc
thanks

Q: Would you give your view on FIE.A. It holds canadian banks, some reits and insurance companies. Dividend sames OK.I currently hold it in my investment acct.
Thanks Harold.

Q: DFN.T
Hi there. I purchased DFN awhile back thinking that with such a high yield and relative correlation to the TSX that it would appreciate with the Index when it turned around - but this is not happening. I certainly can't complain about the yield, but the the idea of the purchase was to see share price appreciation with the TSX in general. I know my description of the components is over generalizing...but you get my drift.
Should I sell this stock and look into another area - if so which area that you cover would be a suitable replacement?

Thanks so much for your time!

Q: Nice move today on FSZ. I assume it was related to acquisition of GMP Diversified Alpha Fund and the Canadian ABCP Fund. How do rate the value of FSZ at the current price?

Q: Thanks Peter and all the team at 5i. Wonder on your view of MSI for the next 2 to 3 years as both an income play and for capital appreciation in the current economic environment?

Q: Hello Peter - I am looking at Currency Exchange International (CXI.S) It has only been trading since roughly May of 2011 - very thinly traded and very few shares (only 3 million) It seems to be growing rapidly and in a relatively safe area of operation. They also have some warrants that might be a consideration. I cannot find a lot of information on the stock and would very much appreciate your thoughts.

Q: Based on your previous comments, I believe you like National Bank and TD but what are your thoughts on Laurentian Bank (LB)? I have been considering taking a position for some time. It seems to be a conservative bank with steady growth, a good and improving brand (in Quebec at least), good dividend and low payout. Also, its small size and domestic operations seem positive to me. Thank you!

Q: IFC-held for 4 yr -ACB is $33.60. History of > dividends-was thinking of buying more -200 share only-small part of portfolio (RRSP). Should have bght in Sept.?

Q: Hi Peter- This question is about Fairfax Financial Rate Reset Preferred Shares. FFH.C can be called in Dec./2014. Between now and then you will get 8 dividend payments totalling $2.88. It currently trades at $25.87. There will be a loss of 87 cents meaning that your profit is $2.01 share or 3.9% over 2 years.
FFH.G gets called in Sept/2015. There will be 11 payments totalling 3.44. It is trading at $24.70, so add a 30 cent gain for a profit of $3.74 a share or 5.5% per year over 2.75 years.
The one that seems to be too good to be true is the FFH.PR.E which expires in between these two in March 2015. It trades currently at only $23.11. A gain of $1.89. With 9 payments totalling $2.67, you have a total gain of $4.56 on an investment of $23.11 or an amazing 8.8% average annual return over 2.25 years. What am I missing? You have 3 pref issues with a relatively close annual dividend and relatively close call date but with extremely different market values. Same company. All Rate Reset. Is FFH.E a buy?