Investment Q&A

Q: Thoughts on Dominion Lending Centres and Q2 results? Is the dividend safe and is it investable at these price levels?

Q: This came across my desk today:

"According to research compiled by UNITE HERE, at least $5.8 billion of Brookfield affiliates' office and retail loans are either in default, have been surrendered to lenders, or are at risk of default according to analysts and industry press.

The financial health of Brookfield's commercial real estate holdings may be of particular interest to current or potential policyholders of American National Insurance Group, the Texas-based insurer acquired by Brookfield in 2022. UNITE HERE's research has uncovered over $1 billion in debt instruments that appear to be related to Brookfield's real estate holdings on American National's 2022 sworn Annual Statement. These include bonds issued by three entities related to Brookfield Property Partners (formerly BPY), which Brookfield took private in 2021 after BPY suffered over $2 billion in losses in 2020; and bonds issued by Canary Wharf Group Investment Holdings, the London office complex jointly owned by Brookfield and Qatar's sovereign wealth fund and which had its bond rating downgraded to junk in June 2023 by Moody's. "

Wondered what your thoughts are as it relates to BN.
American National Insurance Group, the Texas-based insurer acquired by Brookfield in 2022. The majority of these investments are listed on American National's sworn annual statement as "unaffiliated," despite being classified in other filings as affiliated investments. The investments were classified as "unaffiliated" after the Texas Department of Insurance (TDI) approved, with certain conditions, a Disclaimer of Affiliation filed by Brookfield Asset Management (NYSE: BAM

Carl

Q: Earnings not good for TD but fine for RY. Can you explain issues with TD and what you see going forward. It seems RY is cutting costs and this seems to be reflected in results. Is this something TD should be doing also. Would you add to TD at this point?

Q: Based on your previous views “ US regional banks as more of a gamble than an investment at this time” I was looking into the space and of the top ten holdings if each etf and was perplexed that there was no overlap of their selections? Needless to say if you had to create your own etf in this space what would be your top holding and why? Thank you.

Q: I am considering increasing my Canadian Bank exposure. I know timing is never perfect, but given the recent pullback in Cdn Banks, and the headwinds going into a potential recession, is this a good time to buy RY, TD and BNS, or would you wait and see what plays out in next 3 to 6 months?

Thanks
Tim

Q: How much exposure to Chinese real estate does BN and BAM have?

Q: If you were going to hold 2 of the big 6 Canadian banks long-term for dividend income along with EQB for some added growth, which two would you choose?
Thanks

Q: Hi 5i,
AJG's GICS Sub-Industry classification is "Insurance Brokers".
Can you help suggest some Canadian listed Insurance Brokers stock that might be worth looking at for a TFSA and or NonReg account.

Q: Hi 5i
With the markets ability to "price in fore casted earnings etc"...How to you expected BMO share prices and other banks to react to already expected reduced profit, increased loss provisions ect.
Banks have been on a steady decline coming into earnings....and wondering how much further they might go....
opinion...

Thx

Q: Dear 5i,
I was looking at many of the Canadian listed Property and Casualty insurers in it looked like the price appreciation for FFH was and extreme outlier at approx. 65% Total Return for the last 12 months. Can you help explain what they have done differently than the rest of group? I thought that with many of the natural disasters would put pressure on this group of stocks. I would really appreciate your comments.

Q: I own TD and RY and looking to add another financial for total return focus. Would you suggest another bank such as National Bank or an insurance company such as Sunlife or a financial such as Brookfied Corp or another to add some diversification within financials?

Q: Looks like it’s time for an update on WED. They have done well with their execution over the last year, but do you see opportunity for further price gains going forward.

Q: Hello 5i team, Scotia is falling again, it is at 62 , in one of your messages you said that it is becoming atractive (it was at 64 then), what would be a good entry point to buy? thanks

Q: Hi, Sunlife stock sold off, over past few days. Do you have any concerns ? Is it a good entry point for a new position or to add ? Thanks

Q: Saw a pundit on BNN last week who was short BN. I can't recall his name ......I don't pay much attention to the shorts but he did say one thing that interested me. He said that 80% of BN's NAV is the property owned by Brookfield Property Partners . Can you confirm that and comment on the significance of that figure if any ?

I'm also thinking or swapping my position in BEP.UN { up 238% in a RRIF } for BN on a " What have you done for me lately ? " basis . Quarterly reports seem to be dependent on the weather ...... I've also noticed that even when they have a bad quarterly report the stock does not get punished which confuses me ...... Anyways would you endorse a switch from BEP.UN to BN ?

Q: hi,
who are this companies direct competitors? how much debt does Nuvei have, and do you feel comfortable that it can service this debt with their current earnings? also, do you think it could be a take over target now?
cheers, chris

Q: Good Morning

Both my wife I own shares in ECN and have been long time owners and over the years have done very well. However now in our mid seventies and with the new focus for ECN if now would be a good time to exit our position and invest in something more appropriate and conservative for our age. Selling half would leave us with to small a position so either sell all or retain it?
What are your thoughts and if sell is the suggestion what would those suggestions be?
we are over weight in both financials and TECH
We understand you are unable to provide direct guidance
Thks
Marcel

Q: seems to hit all the important check marks on paper. your comments would be well appreciated thanks

Q: In a recent answer from 5i, it was said that BN was "sitting on a lot of capital waiting for attractive buyout opportunities".

A few questions I have are:
Do we know how much capital or cash that BN has to buy attractively valued opportunities? If they were to deploy this capital, would it move the stock positively? Historically, does BN buy slowly or do they make large purchases?

Q: Hi,

Could you tell me why Stone is dropping like a ''stone'' given that the quaterly results seemed pretty good ?

Thanks