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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: Unfortunately, I bought HCG at the top and am now dow 41%. Channeling my inner 5I, I'm assuming, given you see nothing fundamentally wrong with the company, that my reduced dollars are as well placed here as anywhere else at the moment. It's in my TFSA, so i can't take a tax loss. i'm a senior, more interested in income and maintaining capital than growth, though of course I'm happy if there IS growth. Does the real 5i share the view of my inner 5i, or should I take my loss and go elsewhere? Many thanks
Read Answer Asked by M.S. on September 22, 2015
Q: I am trying to decide how to complete the financial portion of my portfolio. I generally like a concentrated porfolio of 25 - 30 stocks with equal weightings. I currently hold Sunlife and BNS and can't decide between one of HCG, CXI and Element in Canada and one of JP Morgan and Wells Fargo in the US. (assuming this is not too much for the group)

Would appreciate any comments you may have and thanks for the insight.

Paul F.
Read Answer Asked by Paul on September 21, 2015
Q: I have a similar (nice) problem to that posted by David. I bought a half position in HCG and saw it go up 15% in a couple of weeks. Tempting though it is to cash out and take my wife out for a good dinner, I still want to purchase the other half position as it was my intention all along (I am a long term invester). I am not trying to "time" the market, but it is 1) a small cap (the other financials I hold are RY, BNS and MFC); and 2) the market is gittery to say the least. So the question is: what is the reason for HCG to rise so fast? Short covering? As always, thanks again. Henry
Read Answer Asked by Henry on September 15, 2015
Q: I hold 3 stocks per main section allocation and have HCG as my financial anchor (through thick and thin - as my three main inspirations Jason Donville, Mawer's Martin Ferguson and yourself are still constructive on it); I also hold AD. I sold RFC for a couple reasons including captial tax loss to offset gains elsewhere.

Which financial stock would complement well HCG (and AD)? CXI, EFN, EH, Fiera, other??

Assume an otherwise diversified portfolio for long term investor (doing well mostly except my financials!!). Dividend is nice to have but I am focusing on stock's total return as primary criterion.
Read Answer Asked by Jennifer on September 11, 2015
Q: Hello: I follow everything on this site about HCG because I'm down 46.27% on this stock. As an investment, I'm wondering if and when I'll b able to recover what I've lost. I'd like to hold the stock for a long term hold, but I am not married to it, and if it will take several years, that's several years of my capital tied up with a stock "waiting" just to break even. It's held in a RIF account. What is your advice? Wait? Sell?
Read Answer Asked by Helen on August 19, 2015
Q: Noticed the questions around ROE here and your updated report. I just read the Q2 update presentation on the companies website and saw that the ROE has declined from 32% in 2005 to just above 19% in the most recent quarter in an almost steady straight line lower. HCG's stated objective is ROE above 20%. While the ROE is still high, the trend on ROE is not positive and is not meeting their stated objective. Yet you give it an A rating and an avg ROE of 24.7% over 5 yrs. Is the downward trend in ROE a concern to you and the team?
Read Answer Asked by Richard on August 19, 2015