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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

I know you have recommended this in the past based on valuation and it has recently rebounded almost 100% off the lows.

As someone with a 5 year+ time horizon, but concerned about capital preservation, is this a good place to be right now

My concern is that if people are struggling to pay bills, rent, buy food, these loans will fall first.

A secondary concern given the present environment is government intervention to reduce the interest rates GSY can charge which would fundamentally impact the business.

Thoughts?
Read Answer Asked by Justin on April 13, 2020
Q: I hold both of these and believe they are in somewhat of the same business, and while both have only recovered to approx 1/2 of their previous highs before the virus problems, GSY has recovered substantially better in the last few days. Is there a problem with HCG or just a lagger at this point???

Many thanks for all your good advise
Ken
Read Answer Asked by KENNETH on April 13, 2020
Q: My question on these two companies performance during the past month.
They usually goes up or down together in the past. But the last month or so, POW decline and PWF goes steady and up a little. Any particular rationale for that?
Which one is a better hold in these turbulent times. Thank you
Read Answer Asked by DAVID on April 08, 2020
Q: Bank dividends, now that banks in Europe are suspending div and JPM is talking about doing the same do you see this rolling over into Canadian banks. If so how much impact on share price as so many of us rely on the Div.

Thanks for you view.
Read Answer Asked by Dale on April 07, 2020
Q: Have FSZ in rrsp so no tax loss. Close to retirement and portfolio is not doing that badly considering the meltdown thanks to your guidance. FSZ is the only stock that is down considerably. Average cost is 11.4. I like the dividends but are they likely to be cut? Not sure what to do with this one. Trim, add, or ?
Read Answer Asked by Craig on April 07, 2020
Q: Do you like POW long term? Is the reported payout ratio of 60% accurate? It doesn t seem to show a lot of growth, should it be a concern? Do you see the Europe exposure as positive? Or would you just buy GWO? Generally speaking, are the lifeco / financial services companies less risky than the banks? I already have a full position in SLF. I am looking for another core holding (financial) for my rrsp acount. Thank you for your help!

Read Answer Asked by Pierre on April 07, 2020
Q: How would you rank the banks? Strongest to weakest in this environment.
I'm considering selling some far "out of the money" puts to get some income. And if I get assigned, so be it. I'll suffer with a few bank positions yielding close to 8%. Geez, we're talking about bank stocks! I figure if they get into trouble we're ALL in really really BIG trouble.
For example, TD at $40 would yield me 7.9% in dividends. That's like 10.2% in interest. Or RBC at $58 would yield me 7.4% in dividends.
So which Canadian banks would "crack" under pressure and which wouldn't.
Thanks and take care!
Read Answer Asked by Carlo on April 07, 2020
Q: Power Financial has merged with Power Corporation. The dividend is over 8% and just recently raised before this covid virus. But when they were two companies, combined the dividend would be much higher for two companies so do you think they would still cut the dividend?
I know they haven't created much value over the years but now being a merged company, do you see more upside? I know you prefer Sunlife. I just think Power Corporation has more divisions they could spin off once this downturn is over. Do you agree?
Read Answer Asked by Helen on April 07, 2020
Q: Any strong objections to doubling down on CHW. I have owned it for many years. It is a riskier play then buying TD but the upside on the rebound is likely bigger at current valuations. They will get hit hard by covid but my feeling is that is built into the current price. I doubt the current 20% div yield is sustainable but they should be in a position to payout something monthly for some income while folks wait for the rebound. With the +50% drop I would double down to get me to my old weighting.
Read Answer Asked by Tom on April 06, 2020
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