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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: Hi 5i: Just a comment related to recent questions about the relative merits of various Canadian banks. I have often heard the view expressed that 'the banks all run together,' implying that it doesn’t matter too much which one an investor selects to own. I have also heard suggested the strategy of ‘buying the laggard,’ on the theory that in time it will catch up to the group and thus provide a better return over that timeframe. Recently I took the time to put the big five Cdn banks on the same chart to compare their stock performance over a variety of time periods. I was a bit surprised by the results. Instead of converging over the longer time periods, their performance actually diverges significantly, though all provided fairly decent positive returns. The specific results (as of a couple of weeks ago) included the following:
1. Best over the past 3 months: BMO

2. Best over the past 6 months: BMO

3. Best over the past 1 year: CM

4. Best over the past 3 years: RY

5. Best over the past 5 years: TD

6. Best over the past 10 years: RY

The difference over the 10 year period was quite significant. RY’s price appreciation was the leader at over 160%, followed pretty closely by TD at about 150%. BNS was in the middle of the pack at almost 100% and BMO and CM were both under 60% appreciation. Adding the dividends into the mix might close the gap slightly from a total return perspective but the laggards would still be well behind the leaders over the 10 year time frame. (All presuming the charting function I was using was getting correct data and working properly.) Cheers!
Read Answer Asked by Lance on September 24, 2014
Q: Re: Contrans Group Inc. Class A Subordinate Voting Shares...

Should I tender my shares or hold on till a better deal comes along?
I have till October 3. 2014 to respond.
Thx -- Hanna Abramowitz
Read Answer Asked by Hanna on September 24, 2014
Q: IS FRC A BUY, SELL OR HOLD AT THIS LEVEL. IT HAS BEEN FALLING LATELY. THANK YOU FOR YOUR OPINION.
Read Answer Asked by Francis on September 23, 2014
Q: Could you comment on MSL. Merus Labs International Inc ?
Thank you!
Issaku
Read Answer Asked by Issaku on September 23, 2014
Q: Could you please give us your opinion on Capstone Mining after recent news. Is the share price freefall a result of this, or does it relate more to the collapse of commodity prices. Thanks, Mark
Read Answer Asked by Mark on September 23, 2014
Q: Congratulations on a fine bike ride. How do we honour our pledges, i.e, where do we mail the check and who is it made out to. Thanks
Read Answer Asked by Don on September 23, 2014
Q: Veresen (VSN)

Hi Team - I was hoping you could please explain the apparently high payout ratio of Veresen. According to CIBC Investors Edge, the payout ratio is 439.63%. From what I can see with FASTGraphs, the payout ration has been over 100% (sometimes well over) since 2001.

I don't understand how this can be possible over such a long time period. I've noticed this with other companies as well from time to time. Generally though, the commentary you provide suggests a low payout ratio is best.

Could you please help educate me?

Thanks very much. Michael
Read Answer Asked by Michael on September 23, 2014
Q: My portfolio currently is a little overweight in REITS and light on US exposure. REITS have generally gone sideways or declined somewhat over the last few months and I realize that you generally are of the view that REITS should not be expected to have any capital appreciation of note over the next year or so. Accordingly in order to seek some capital appreciation and some US exposure I am thinking of selling a significant portion of my REIT holdings (Calloway, American Hotel, Artis, Summit) and purchasing some of AAPL, GE, BCR, DE, MFST, NWL, PG, TXN. Do you see anything questionable in my logic or do any of these US holdings present a concern? Thanks in advance.
Read Answer Asked by Mark on September 23, 2014
Q: Altius Minerals ALS:TSX is down to $11.25. Please comment
on the news and the sector with respect to new buying.
Regards, Gord
Read Answer Asked by gordon on September 23, 2014
Q: Is there something going on in the market I haven't caught? Friday's 200 point drop on seemingly no news was strange enough. Now we have another triple digit, across the board loss and the only explanation is perhaps speculation about a report due on Chinese growth. Yet I'm seeing some of my lower beta, stable, conservative stocks plunging even more than the high beta momentum stocks. Easyhome down almost 6%, IPL down almost 5%, even Saputo down over 3%, none of which would seem to have anything to do with China. I'm not seeing people moving into anything else (certainly not energy, tech or materials) so what's the money doing?
Read Answer Asked by John on September 23, 2014
Q: What are your thoughts on Agrium vs. Potash? Are they at attractive valuations/do you think investing in such a company is a good way to play the inevitable global population growth from a long term prospective? Also, when is the seasonal strength time for agriculture stocks and is seasonality something you take into consideration when choosing stocks.

Thanks for your thoughts!
Read Answer Asked by Arthur on September 23, 2014
Q: Could you please give me your recommendations for the three best growth companies at this time?
Read Answer Asked by Curt on September 23, 2014
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