Investment Q&A

Q: How serious is the risk of competition from financial technology companies? If competition becomes a threat, would banks like bns not just buy the fintech companies? I would appreciate your thoughts.

Q: The big 6 Canadian banks are amongst the world's strongest & safest banks.BNS rated 18th in 2012 & 7th in 2013 strongest ,whereas CM is the only one to appear between 2012 to 2015(3rd,3rd,15th & 18th respectively).All @ historical low PE.eg BNS @ 9.7(trailing) & 9.3(forward).Majority of guests on BNN opined that there are short term headwinds plus "short" by Americans,but recommended hold for 2 years or longer.They have generated decent & stable returns over timer expect for last year.Please advise if the negative factors including the effect of sharp drop in oil prices & its knock on effects are priced in.Each stated that the loan exposure to oil is no more than 2% & it is manageabl.,All report next week with BNS on March 1.

Q: Would you still choose BNS if this was the only bank you were to hold or would should suggest another bank? This will be the first stock for a TFSA that has $4000.00 in it and will be holding and adding to it monthly.
Thanks

Q: According to media reports Venezuela is on the verge of bankruptcy and the more the oil price falls the greater the odds. From the Scotia Global site:
"Scotiabank is proud to have a strong presence in Venezuela through ... Banco del Caribe"

How strong is their presence there and will default have long term effects on BNS shares? I note it is a 3.6% position in the BE portfolio which presumably went in at 5%. Thanks, J.

Q: I have a question about Bank of Nova Scotia
Ive been watching Bank of Nova Scotia and its dividend is now above 5%. I'm confident the stock price will eventually recover. However, what are the chances the dividend will be cut if the economy doesn't improve? Is there a better alternative bank?

Q: The Banks exposure to the Oil and Gas debt(losses)and non-payments of loan losses in particular Bank of Nova Scotia. Therefore, how many are not paying, behind in their payments and how many will never pay them back or written off. In addition, how much does BNS have set aside(Reserves) for direct and in direct loan losses(debt), and any other helpful figures and etc.

Q: Hello,

Could I ask for clarification of this response to an earlier reply to Craig. Specifically, in what sense have you been wrong?
5i Research Answer:
We have been wrong on BNS, but we would keep it now, on valuation and with its international exposure offsetting a weak Canadian economy.

Q: My question is about selling puts on bns as an example. Any advice on how to start out as I am new with options. Have done quite a bit of reading on the subject. I have my account with TD set up for options 2y ago. What would you recommend as a strike price and how far out would you go. I was thinking about 3 to 6 weeks. What sectors would you currently recommend for selling puts. Any reading you might suggest. What are the taxes paid on the premium received. Thanks for the great service and the more elaborate the answer the better. This is a large question please charge 5 credits. Thank you. Chris

Q: Any comments on Bns and Ric downgrade to day

Q: Do you view Moody's downgrade of BNS as alarming? Also, do you think this is a good entry point for all the big five CDN banks and if so what would be your top two or three. Thanks.

Q: Hi Peter and Team,

In light of Graeme's recent question and this article:

http://www.theglobeandmail.com/report-on-business/oil-shock-seen-hitting-canadian-bank-profits-in-2016/article28242504/,

Which Canadian banks would you favour if the scenario in the article comes true, or are all Canadian banks in the "same boat"?

At this time, the only bank stock we have is BNS. We have some other "financial" stocks like HCG, EFN, and CXI spread around several accounts, but no other banks.

Thanks as always for the guidance you provide, especially during this crazy, volatile market.

Q: In your opinion which Canadian bank(s) do you think has the strongest management team?

Q: Sorry if this question comes in twice as I'm not sure it went through the first time.

In the past, your team has indicated that BNS was your favourite bank. Is this still the case, even though it has underperformed? I am considering taking a position in a bank as I have currently have CXI and EFN in my financials, and feel I am missing a bank as part of my portfolio. Am wondering which one I should take a position in (or perhaps ZEB).

Thanks!

Q: Hello,
For some of us who are crazy enough to invest in current markets, can you recommend few Canadian stocks that have:
1. High stability i.e. low Beta (ideally recession proof), but declined recently
2. Low P/E ratio
3. Dividend of at least 3%

Basically, I am looking for something like Fortis, though it didn't decline much...

Q: Do you see a sector rotation taking place into 2016 where enb - bns - cgx- t - slf- and mg could outperform and thus should be brought up to same allocation as esl - dsg - ccl - csu....thanks

Q: Can you tell us what is the free cash flow for Scotiabank for the past year and past 5 years?

Q: What's the last day of the year for tax loss selling, thanks

Q: BNS and TCN don't do much since some time. Both are down around 18% lately.

Should one stay the course, or look for alternatives ?

Q: I'm thinking of selling BNS (4.5% of total portfolio) while I'm still up 8% and redeploy the cash.
I currently have PWF (1% Holding and down 10%), TD Bank (3.5% holding up 34%), MFC (1% holding and down 5%),
DH (1% holding and down 10%). Would you recommend holding on to BNS or sell and add to one or all of these other financials. Open to other suggestions as well. Merry Christmas

Q: What's with BNS? It's been dropping all week. Can you shed some light on this and what is he outlook for it?Thanks very much,