Investment Q&A

Q: 8:29 AM 10/6/2015
Hi Peter

In your comment to Robert today you said with reference to Fiera : " Its association with National Bank has not helped recently, with the bank's very bad news."

Comment to Linda yesterday : "We do not like the news, and do not like the dilution from the equity issue. We are also believers in the cockroach theory: i.e. there is usually not just one problem. Shares are also already $1 below the issue price, not a good sign."

Comment to Margot : "We do not think the bank is in 'trouble' but clearly it is concerned about the economy enough to want to shore up its capital."

So My Question is : Can you clarify your opinion? NA makes up 3% of my portfolio. I own 4 other banks in larger amounts. Do you really think NA is headed for serious trouble and should I just sell it [at a 7% loss] or is it safe to hold for years expecting nothing more than the dividend income?

Thank you..... Paul K

Q: May I have your view on National's "restructuring". Will this likely have any impact on the dividend!! I purchased for a long term hold.

Q: How much would National Bank have to fall for you to consider it an overreaction to the Oct 1 news?

Knocking off 19 cents for the restructuring charge and taking off a little more for the dilution still has the shares trading below 10x earnings. Also, the Maple Financial Group, as ugly as those headlines are, only represents less than 1% of net income. Is the news as bad as it initially appears?

Your insights would be appreciated.

John

Q: Hi

Just my 2 cents on "Josh" and when to sell. I believe this service, while one of the better ones, does not distinguish between a good company and a good stock price to buy that company.

If you could sharpen your pencil to tell members if the stock is attractively priced at the moment, Josh may not have purchased when he did.

Regards
John

Q: Peter what the cheapest / easiest way to convert Canadian $ to US dollars. I also need to keep the funds liquid. I recently sold my house and do not need the funds at present. Do you see further downside to the Canadian $.

Q: I am thinking of taking a small position (400 shares) in the National Bank for the short term. Any advice on this move?

Q: Hello: I saw a web link which provided a convincing analysis of the risk of holding 1 stock vs the index. I think it would make an interesting addition to your "Weekly web sites collection"

http://blog.alphaarchitect.com/2015/05/21/the-risks-of-owning-an-individual-stock/

Ernie

Q: Hi guys,

I am low on consumer discretionary/consumer defensive stocks in my portfolio. I am looking at a minimum holding period of 10 years and for dividend paying stock with good dividend growth history. Could you suggest 5 stocks, 3 Canadians ones and 2 US?

Thanks!

Q: Do you have a favorite beaten up high risk stock? I'm looking to flip a loser for another loser (tax loss selling). Thank you!

Q: I'm 66 w a blessed portfolio from years of investing and using 5i(thank you).
To preserve retirement capital would you:
1) Take 1/2 & buy 5 laddered bonds w 1-5 yr maturities,hold to maturity and replace as they mature annually?
2) Take 1/2 and buy a bond ETF? - recommendation?
3) Take 1/2 and buy a bond mutual fund? - recommendation?
4) Leave the rest in a well diversified portfolio(growth, dividends)?
Thank you.

Q: We have PD, SGY, PPL, CEU & BTE in our accounts - approx 5% of portfolio - down 15% to 55% - do u recommend just holding or selling and buying stocks that will benefit from lower oil?
What sectors, stock do u like with lower oil?
Thanks

Q: My wife will be retiring later this year and will depend on her investments to generate her retirement income. While she owns many of the securities in your income portfolio she would like to add a couple of balanced funds to further diversify her investment portfolio. I reviewed all your previous responses to fund related questions and concluded that Mawer would likely be your top pick as a balanced fund manager. Based on your experience in the industry are there one or two other managers that you would recommend for our consideration. Thanks.

Q: Hi Peter and 5i folks,

Love this service. I especially like the questions database which I consult on a regular basis. I also the quick return on questions asked in an often rapidly changing environment overlappded with long term "sage" advice. And I also think the new rules on question limits to be most fair.

It is now 2015 and it is time to add to my TSFA account. I am growth oriented now but will rotate to income in about 5-7 years. I am wondering if you could recommend 3-4 equities that have been over-punished (providing a good entry point) with the recent market pull back.

Pats on the back for a unique and valuable service !

Q: I note your current model equity portfolio holds no stocks in the Consumer Staples sector. This sector has been in an almost uninterrupted uptrend since the 2008/09 debacle. Are there any stocks you would rate B or higher?

Q: Hi Peter and 5iResearch Team,
Can you please provide your short to medium term outlook for National Bank, NA. It is down significantly from its highs. Do you see this as a buying opportunity. I know they are different company's would you buy National Bank or Stantec at this time.
Thank you. Linda

Q: Hi Peter
Today's downgrade on NA concerns me. I hold TD,BNS and BMO as well as NA. I'm thinking of selling NA and buying Enbridge. I'm up 18% on NA. Please comment. If not Enbridge do have another recommendation? Thanks for all past advice.
Cam

Q: Hi 5i Team,
In your response to Monika, you mention that National Bank (NA) is usually discounted because of its size and Quebec base. Is there something they could do to unlock value and get a higher multiple? In other words, what could management do to get them priced more like the other major Canadian banks?

Q: Hello Peter,
Hope you are feeling better after the accident? I have a question in regards to National Bank, do you think it is the best buy of the banks at this time.
Thanks for your answer

Monika

Q: Hi team:
I am thinking of adding NA to my dividend portfolio, I owned some already, would it be an advantage to wait until the stock has split ? (coming up in mid-Feb)
thank ?
In 3-5 years horizon, would SlF and MFC be comparable to NA (held outside RRSP) ? thanks

Q: I would appreciate your views on National Financial.

Thanks,