Investment Q&A

Q: I would like to use GRT.UN, CM,ENF,PZA,TD,SMU.UN,T,AX,BCE,AND FC in a retirement income portfolios what do you think. Are there any I should not use.

Jim

Q: Cohodes said to Bloomberg he is getting ready to announce another company that he's going after. Says "It’s a doozy". I had to look up what that means: unique. It's not EQB, it's another one. I don't think it's CIBC, because it isn't "unique". What are your top 2 guesses for this company? My guess is Genworth, because it's the only mortgage insurer in Canada and so, is "unique" in my opinion. But the carry cost to short it is over 5.5%, so there might be a better choice I have not thought about.

Q: Since CIBC is the most sensitive to eventual housing downturn, how secure would be my RRSP and TFSA accounts with CIBC Investor's Edge in case CIBC gets into trouble. Thank you for great service. Milan

Q: With BMO and RY recently announcing they will securitize and sell uninsured Canadian Alt A mortgages, does this indicate that Cdn banks are following in the same foot steps of US financials leading up to 2008 financial crisis? What is your view on what this portends for Cdn financials and the Cdn housing market?

Thanks

(http://www.wealthprofessional.ca/business-news/big-six-bank-to-enter-fray-with-new-product-224397.aspx)

Q: Hi Peter and Gang,

Just wondering what your views are on Canadian banking industry going forward and if the 5 big Canadian banks are a buy, hold or sell.

Thanks,
Harry

Q: Can you rank these Banks for me. Thank you

Q: Last year CM agreed to buy Private Bancorp in the US at a price which is now about 20% less than the current market price of the PB. It appears highly unlikely PB's shareholders would vote to approve the deal. Of course CM could raise their offer. Today's GAM article discusses this deal and a confusing ( to me ) comment about CM having an option to buy 2% of its stock should the deal fail and therefore supporting CM's stock price. I would appreciate your thoughts on this deal as I am currently considering selling the stock at today's levels given the uncertainty about where this stock is going.

Q: I currently own National Bank and am thinking of selling it for CIBC. Would this be a prudent move given the likelihood of a stock split?
Many thanks, Peggy

Q: I want to buy one of the banks that is rumored to split their shares in the near future.Which one would you recommend.
Thanks .

Q: Hi All at 5i!! Should the Canadian real estate bubble burst, which of the Canadian Banks have the most invested in mortgages and have the most to lose? Thank you, Tamara

Q: With the theory , which is debatable, that the most unliked bank of the majors currently, comes out with the best return the following year(s). Which Canadian bank should I look at for 2017 based on 2016.

Q: I am considering a position in CM, which has increased considerably in the last couple of months. Is this a reasonable time to get in, or should I wait for a pull back?

Thanks for your advice.

Q: Hi:
CM is trading above $100 lately. In the past, banks have tended to split above $100. Any rumours of this happening with CM?
Thanks: Jerry

Q: I was comparing banks and was intrigued by comparison between these 2.
YOY, BNS is about 14% higher than CM, whereas 5 yr return shows both very similar return. Is there a merit in switch from BNS to CM,to take benefit of relative discount on cibc. Over longer term banks have moved in locksteps. thanks

Q: I sent a question early that came back as private. If I indicated for the question to be private, that was my mistake. I would prefer it to be public as we all learn from each other's questions and your answers.
Thanks

Q: For simplicity, the following list of stocks are close to equal weight in my RRSP portfolio. I want to add another full position of one stock. I am thinking of CM for dividend or TMR for gold exposure or another suggestion you may have. I included my TFSA holdings so that you can see all of my equities.
RRSP
Energy-ENF/RRX/WCP
IT-ESL/SYZ
Industrials-EIF/MAL/RBA/SIS/WSP
Utilities-BEP.UN/EMA
Consumer-MG/NFI
Financials-BNS/SLF
Health Care-SIA
Telecos-BCE/T
Materials-CHE.UN/SJ
Realestate-BPY.UN

TFSA
ADW.A/CCL.B/CSH.UN/DSG/ECI/GUD/IPL/PUR

Thanks and have a good weekend.

Q: Hi- the banks all seem to have done well, partially because loan loss provisions have been reduced. Is that a discretionary situation...in other words, can earnings be boosted by lowering provisions? How does that work?
How does it relate to Tier 1 capital? And what are the banks' Tier 1 Capitals now?
Thanks

Q: Good Morning
I hold 4 Canadian banks CM, TD, RY and BNS in an unregistered account. The bank stocks comprise just under 20% of my portfolio and each has approximately a 50% capital gain. My only other financial stock is a 2.5% position in PWF. Capital gains in my account this year will likely be taxed at 15%. I am considering selling one of the bank stocks (perhaps CM) and investing the proceeds in SLF. I have chosen SLF for it's relatively low valuation and secure dividend.
Is reducing the allocation to Canadian banks appropriate, or does the tax which has to be paid cancel the benefit?
Which bank would you sell?
Is SLF a suitable alternative or is there another company that you would prefer. I already have full positions in CNR and BAM.A.
Thanks
David

Q: I have a 4% weight in CM in a portfolio heavily weighted to financials. I have already crystallized some capital gains this year and was planning on waiting till next year to sell my remaining position in CM, proceeds to liquidate an investment loan. I have heard that the upcoming budget may change the tax hit to capital gains from 50% to 100% which would speed up my plans to sell prior to the budget announcement.
Based on your connections do you think it likely that the Liberals will make this change?
What is the date of the Budget announcement?
CM go s ex-dividend on March 23 so when can I sell and still get the next dividend payment? i.e. Is ownership for dividend purposes based on the selling or settling date? If settling date than could I sell on March 18 which would settle on March 23?

Q: I hold 4 of the big Canadian banks (BNS, TD, RY and CM), each with a half position, except BNS which has almost a full position due to its under performance. What is your outlook for this sector in 2016? Should I continue to add to my positions on weakness? I don't own any insurance companies and I own one U.S. bank (Wells Fargo). Is it hard to ignore the dividend yield of Canadian banks at these prices.

Thank you,
Jason