Investment Q&A

Q: Are you aware of any research that provides detailed analysis regarding oil patch exposure of the big 5 banks?

Q: What would be the top 3 Canadian banks have the best/quickest rebound potential ? thanks

Q: Retired, conservative dividend-income investor with a "buy-and-hold & trim-add around a core position" strategy. At times like these, I take a fresh look at my holdings and ask two key questions. #1 = are there any of my equity holdings that have alarm bells going off? #2 = how safe are the dividends (knowing that no dividend is 100% secure)? The portfolio capital may rise or fall, but it is the continuation of the dividend that is more important.

For asset allocation purposes related to individual stocks (as opposed to sector allocations), I use the following:
5% targets = AQN, BCE, BNS, PBH, RY, TRP, WSP
4% targets = AD, AW, CSH, NWC
2% targets = LNF, MG, NTR
ETF targets = roughly 3-7%

Q#1 = are there any of these equities that you hear alarm bells?
Q#2 = are there any of these equities where you foresee dividend risk?
Q#3 = any thoughts on how I have my asset allocations set up (knowing it is a very personal decision?

Take a bunch of credits. Thanks for your help...Steve

Q: Thoughts on the CN banks? Low rate environment; Cdn economy hampered economically due to low oil and lacklustre mtg/productivity . How does this factor for growth in our banking oligopoly? I would think the 4-5% dividend yield is relatively safe but I cannot see where the stock price growth would come from other than wealth management divisions and perhaps trading which is somewhat risky. Thanks.

Q: Assuming we get a rate cut of 0.5% by Poloz tomorrow, or, over the next few months, how bad will that impact CIBC's NIM and can we estimate the hit on their earnings? Is one bank more exposed to NIM than others? Regional banks are not reacting well right now. Thank you.

Q: Hi...just read your March 1 email....very timely. I have been evaluating some of my current equity holdings from the point of view of topping up some or all of them over time...to reach my asset allocation targets. I do a monthly review of all of my holdings using metrics like P/E, P/BV, P/CF, ROE, Beta, Analyst targets, charting vs 200 mda and higher highs-lows. Mid-Feb I raised roughly 5% cash (basically trimming oversized positions that also appeared to be stretched) and could direct it to the above list. I am a retired, dividend income investor.

The 4 BNN Market Call guests on Thursday-Friday indicated that legging in to this buying opportunity should be considered, as, in their opinion, the market is extremely oversold. In your past life as a Fund Manager, what metrics did you use to guide your process on whether to buy or sit on your hands? For example, "when the VIX is high, it is time to buy"...the VIX is now at 40.

If this is a fair question, could you rank the above 9 equities for topping up to existing positions? My process, for example, has identified LNF as one of the priorities.

Take as many credits as you think appropriate. Thanks...Steve

Q: Hi Guys,
Bought some puts on the above as insurance a few weeks ago and so far so good, they are the 104$ strike that expire in June, not sure if I should grab the profits now or wait a little longer. I know you boys trade options in the US so any insight would be appreciated as I'm relatively newcomer to options.
Thanks
Anthony

Q: Hi 5i,

In my non-reg account I prefer to hold stocks that I can hold onto for a minimum of 3 to 5 years and possibly 10 to 20, that have a yield of around 3% to 5% with the stock price growing +/-5% annually.

Having said that, I am looking to add a stock that would be equal to approx. 1% of total portfolio value.

I am considering adding to my renewable utility stocks (BEP, AQN, INE and BLX which currently total 7.5% of total portfolio value), bank stocks (TD and RY currently 6% of total portfolio value) or telecommunications (Telus or BCE currently 0% of total portfolio). My concern with T and BCE are the current CRTC talks and what may be the market reaction to any deemed negative outcome.

Other than the above listed stocks do any others come to mind that you would recommend at this time?

Please deduct for multiple questions as you see fit.
Thanks!

Q: Good morning, what are your views on Canadian banking industry, and what 2 banks would be your top picks?

Cheers!

Q: Can you name 8 companies with good balance sheets that I can buy long term bonds in. I may go out up to 25years.

Q: These canadian banks represent 20% of my portfolio, I would like to sell CM as it consists of 25% of the financials and is mostly in Canada . Your thoughts please.

Q: If you were to pick 1 Canadian bank for a long term hold (10 - 15 years), which one would you choose? Also, what order would you rank these banks?

Q: What banks were the best performers and worst performers in 2019?

Q: Happy New Year gentlemen.
I know it is an apples to oranges comparison, but where would you deploy an infusion of cash for a 10 year hold? Already hold both, looking more at growth than income at this point.
Thanks

Q: I asked a couple weeks ago, but I was too early at that point. My question is on short positions on the Canadian banks: have they moved up measurably since they reported, both on the Canadian and U.S. sides? I'm wondering if the shorts will be out in full force in January again this year, and possibly they're building up positions before they announce.

Q: How seriously should we take the Canadian banks when they all increase their year-end loan loss provisions significantly? Is this really a harbinger of a slowing economy or am I being too cynical to think that this is a good way for management to build in some "wiggle room" going into the new year? Loan loss provisions are the one area management can use to massage headline numbers and perhaps boost profits next year if results are not so good.

Appreciate your insight.

Paul F.

Q: With most bank results in, just waiting on TD now, and the biggest hits to earnings having been loan-loss provisions and capital markets (in the case of RY) can you see if short interest has again spiked on the backs of these earnings, or has it remained relatively flat since the famous 'big short' trader publicly shorted them in the early part of this year?

Q: I have read that Canadian banks this week are gearing up to report their slowest annual earnings growth since the global financial crisis.
Do you anticipate a negative market response to my holdings listed above? With all 3 at 52-wk highs, how would you rank them for a continued "Hold"?

Q: Hi
I hold all these stocks in a non registered account, to take advantage of their dripping and tax advantages. I have the $ to buy another holding. What top 3 companies do you suggest to add to this mix for a long term hold, my goal is the highest dividend possible, with as little risk as possible. Also, do you have any issues with the compaies already held? I also have other growthier holdings in my tfsa as well as etfs for US and International exposure in my RRSP.
thank you
Michele

Q: For a long term hold, which investment do you feel will generate a better return, JPM or RY?

Thanks for your opinion.
A lot!!!