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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: I own three reset preferreds that were purchased at the issue price. All are underwater by large amounts. AIM.PR.C is trading at $17.52 yielding 8.8%, AZP.PR.B is trading at $19.20 yielding 7.2%, and DC. PR. B is trading at $16.20 yielding 8.8%. With the dividend tax credit the yield averages is well over 10%. How financial stable are those three companies? Are the yields adequate for the risk being taken? Are those shares sells or holds for income?
Read Answer Asked by George on April 24, 2017
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
Read Answer Asked by Harry on April 24, 2017
Q: Hi, this company had a rough third quarter and it's share price has since consolidated to what seems to me like a reasonable level. Given it's future potential for VR , it's new and unique home theater product/content offering due to launch soon, one could see some upside potential in this stock. Considering it is not a profitable company and the stock is in a downtrend, you recommend starting a position , or wait after earning release in June ? Thanks !
Read Answer Asked by Sam on April 24, 2017
Q: I am interested in an american telecom for RRSP

I was considering Verizon or AT&T

Please provide your thoughts on which one is presently the better buy based on
A. valuation
B. dividend growth
C. earnings

and the magnitude of the difference ( my perception is that the difference is small, but I would appreciate your thoughts.)

I would also be happy to consider any alternatives to these 2 in the telecom sector that you think has better upside. longterm hold.

thanks
Read Answer Asked by Ernest on April 24, 2017
Q: A follow up on your recent response regarding XHY and BSJK.
What is the difference in risk factors comparing these two funds if interest rates rise as expected over the next 2-3 years.
I would expect BSJK to act like a single bond held to maturity ( 4% annual return with 100% of the principal returned in 2020 ). XHY yields 5.3% but rising rates could substantively reduce its value, resulting in a net loss if redeemed in 2020. Am I understanding this correctly?
Read Answer Asked by Lloyd on April 24, 2017
Q: Hello,

I assume that VFV and ZSP are identical EFTs provided by Vanguard and BMO respectively. Their MER, asset allocations, sector breakdown are close to identical.

However I notice the following anomalies (VFV vs ZSP):
1) Dividends of $0.238 CAD vs $0.145 with yields of 1.565% and 1.789% respectively. Why the difference in dividends?

2) Portfolio turnover rate of 13.18% vs 31.90%. Why would there be a difference in turnover rate?

3) Benchmark: S&P 500 CAD vs S&P 500 TR CAD. What does the "TR" mean?

3) Market price (NAV?) of $56.33 vs $34.94: Is this due to dividend reinvestment and inception date?

If one were to buy one of these, which would you prefer and why?

Thank you for your excellent and unbiased opinion and service

Read Answer Asked by Vee on April 24, 2017
Q: Peter and Team: This is my first question since joining this august group, as I am still in learning mode and want to make sure my questions add value. However, I think this issue is important and I am truly perplexed. I note that yesterday, 80% of CRHM volume traded were short sales and on above average volume (source: shortvolume.com), which was highly unusual, and the price closes even. Then, the very next day on much greater volume still, the price plummets. Doesn't this strike one as extremely odd, temporally speaking, and especially, as you point out, that most of the trading seemed to be retail? What could be the possible explanations for this? I would really like to understand this one for future reference. On the surface, it would suggest to me that some folks must have information that others don't (earnings leak?), because I find it difficult to believe that the short report referred to earlier explains it all. Any and all thoughts would be most appreciated.
Read Answer Asked by Greg on April 24, 2017
Q: Hello Peter, Ryan et al

I spoke with Kettina Cordero, IR Director for CRH regarding the volatility which she attributes to a letter from a hedge fund manage to his subscribers, however, my thinking was related to the release next week of "Unaudited" statements. She indicated that the CRH fundamentals have not changed and that it is fairly common that unaudited quarterly financials are not audited. Any thoughts?

Thank you .... Marty
Read Answer Asked by Martin on April 24, 2017
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