Investment Q&A

Q: Can you explain the 2.75 % rise in this stock on Mar 21? Quarterly results don't seem that impressive. Is it another reaction to the share buyback ? Thanks, Joe

Q: Can I get your thoughts on Onex? Is the current price a good entry point for a long term hold?

Q: With the possible exception of BMO, the Big Five banks seem to be hitting a plateau. At the same time, there's talk of moderating interest rates. But shouldn't lower rates be a stimulus for banks' business - mortages, etc.? I thought it was the insurance companies that benefited from higher rates. Or is the apparent tapering-off of banks' growth just a reversion-to-the-mean phenomenon?

Q: Can you comment on a recent short thesis on the Canadian banks? The fund (Crescat Capital) claims that 82 percent of Canadian companies have negative cash flow, but when I read it, its free cash flow they refer to, which is obviously not the same thing. Nevertheless, negative FCF would still be concerning. What's your take?
Thanks, Alex

Q: Please comment on PWF results. ALSO, with another dividend increase and company buying back stock, how do you view the management overall. Stock has been a bit of a laggard over the past 5 or even 10 years. Do you see this changing?

Q: Is the class action law suit potentially fatal? Can the risk be quantified?

Thanks, Dennis

Q: I am puzzled by the recent strength, of PRU US. PRU has had ratings upgrades. TipRanks ™ ‘top analysts’ rate is as “Strong Buy”. RBC Cap has it as at outperform. All of the several financial sites I looked up rated PRU as a buy or above. FT of London has made favorable comment on Prudential Group in the past year. (MFC has also been showing signs of life only some of which is attributable to winning litigation this week). It is generally accepted that interest rates in the US and Canada will remain low for more than a year. These LifeCos are holding up well... why? What gives? SLF is doing well, but SLF has non-overlapping operations and has had better strategies than MFC.

Question: would you sell PRU and deploy proceeds elsewhere? Would you expect PRU to appreciate more than dividend plus about 3%, that business prospects for the LifeCos will improve? Although PRU looks great value, its ROE, ROA, ROIC look poor--- but then I see conflicting ratios and metrics… your Bloombergs or service provider would have the deeper stuff of substance that I always want to see before buy/sell decisions.

Q: CHW has launched Tandem finance - to which the market is responding?? What is your view on this venture?

Q: What do you see as the end game for Square? Do you think they will eventually get bought out by someone like Visa or MasterCard?

Q: Versabank is calling in its subordinated debentures to the tune of $10,000,000. What does this mean?
Will this give versabank better returns through capital growth and dividends?

Q: Peter; I’ve read your previous answers re CHW and I’m stumped re the stock action in the past week after the earnings report. It’s gone from over $12 to $11. on higher volume- have you seen or heard anything on the street for th drop? Thanks. Rod

Q: Does the can - us dollar have an impact on Canadian bank prices? Say the Can$ loses 10% would that have a significant effect on the stock price?

Q: Hi, Peter which one of these co would you buy today and why? Looking at 2 years time. I own all 3 but would like to keep 2 . Thanks. Alnoor

Q: Hi, what do you think about this company: goosehead insurance?
All the best

Q: Hello,
I own ATA and AIF in my RRIF account, both of them suffering a small loss. I would like to replace one or both of them with ECN. What is your thought? I usually like to hold stocks for at least 3 years. Thank you very much.
Herbert

Q: Hi Team!

I notice GWO has made an offer to shareholders to buy back shares. What do you feel their primary reason for doing this would be?

Q: Hi,
I already own some MA but I want to add more exposure to this sector. Which of these companies would you suggest for a long term hold with minimal volatility? (I'm not sure why why my TD webroker trading platform lumps CRM into the same category as the others but it does?)
Is there a credit card ETF you like?
Also, are there any equivalent Canadian stocks?

Q: My thoughts, further to Dale's inquiry on March 12. I also received notice of PWF's plan for a buyback of 8% of their total shares. I won't be tendering my shares for a few reasons. I like the 5% dividend. Back in May 2018 they announced a 6% div. increase, and there may be another announcement coming this spring. Also, PWF will only advise the actual share price given for this tender, after the deadline to tender has passed. The range given is anywhere from $29 to $34.
I will stay on the sidelines. A sound decision?

Q: I have owned JPM, TD and BNS for a few years. The thinking was it would enable me to spread my investments outside of Canada. Given the lacklustre performance of JPM and the fact that TD has significant US assets and BNS is international, I am thinking of swapping JPM for VISA (or MC if you think that is better) to get financial assets that may act just a bit differently than the banks. Does this thesis make sense?

Appreciate your insight.

Paul F.

Q: Although securities are " held in segregation ", what specifically ensures that beneficial shareholders (non-registered ) are protected from a legal( registered) holder's liquidity issue ? My question relates to the possibility, not the probability of a liquidity issue . The question relates to large portfolios which are well beyond the scope of the CIPF protection . As an aside , I would note that , contrary to conventional wisdom , Canadian banks , although much stronger than many others around the world, are not really " well capitalized " . They meet and exceed very weak regulatory standards and regularly pass related stress tests . Over leveraging produces very good returns on too little capital . An informed analysis of all of our major banks balance sheets should raise the issue of possible risk associated with weak regulatory standards regarding capitalization .