Investment Q&A

Q: Does CYB hold large stake in EFH and if so how do you view this holding?

Q: I'm not sure I understand LFE and how it operates. Can you explain the business.

Q: CAN I GET YOUR OPINION ON tIMBERCREEK fINANCE Please

Q: Thoughts on Equitable Grp? The company has double digit revenue and ebitda growth over the last 5 and 10 years, yet trades at a relatively low PE and ebitda multiple. I know it has been painted negatively with the debacle at Home Capital but the macro outlook for alternative mortgages in Canada seems very positive to me? With the big banks forced to clamp down on mortgages with new rules coming into effect Jan 1 and Canada continuing to be a great place for immigration, particularly with what is going on in the US, won't demand for housing continue to biased to the upside? Consider this for a medium term view - say 3 years. Sometimes I get caught up in my own biases for a particular outlook so I would be interested in your views. Thanks.

Q: The question is on Hamilton madcap financial etf, HFMU.U.

Is this a good play on the expected increase by the fed and the tax reform expected in the United States? Thx

Q: What are your thoughts of this closed-end fund? It has public and private investments, trades at a discount of course and with leverage to financials. I also wonder whether there would be a potential tax hit as I see they have gold acreage in Quebec carried at $0 ACB. I wonder what your opinion of management is - something here? Thanks! as a follow up to my question just asked, if you were to buy, would you look at the voting or NV shares? Thanks

Q: Chesswood Group seems to be on track for more growth this quarter, do you agree? Is their dividend safe at these levels? Why is there such low trading volume in the stock, is it because the institution holders don't want to sell. Looks like a good entry point to me, thanks.

Q: Hi Ryan, does the recent agreement with an American finance firm have much of a positive spin for Chesswood? Thanks much, AEO

Q: Regarding asset allocation, I need to do some trimming and adding. I need to trim RY and use the proceeds to add to ZWE. In a perfect world, I'd like to nail both dividends, so I wanted to bounce the plan past you.

The ex-div date for RY is Oct 25 and the ex-div date for ZWE is Oct 27. So that means I would get the RY dividend if I sell on or after Oct 25. I would get the ZWE dividend if I buy on or before Oct 26. Did I get this right? Thanks, Steve

Q: Hi 5i:
Thank you for the continued great advice, insight, and the opportunity to renew at the existing membership rates.
I would like your opinion on an article in the Globe and Mail last week – Scotiabank’s AT1 security a hit; other banks expected to follow suit.
BNS issued 1.25B$ internationally through a sale of a new hybrid security that has many of the attributes of a preferred share, but is legally classified as debt. This note qualifies as additional tier 1 capital, pays interest at 4.65% for 5 years and floating thereafter, has no scheduled maturity and converts into equity in times of distress. The new hybrid security also gets around the 25% tax on any passive income generated by investors who are not resident of Canada.
There are more details in the article.
If other banks follow suit what do you think will be the effect on the retail rate reset preferred share market in Canada? Would there be a probability of the banks redeeming their preferred shares currently issued when the first redemption option comes due and replacing with this new hybrid instrument?
Thank you.

Q: On the company website for FC, I see a note that "dividends are treated as interest income for income tax purposes under the Canadian Income Tax Act."
I own some shares in FC and I acquired them expecting that the dividends paid would be taxed as dividends (Oops! Now I know differently). How then is it that a dividend can be treated as anything other than a dividend and what is the reasoning for a firm paying a dividend that gets taxed as interest? Why not call it what it is...interest? Thanks.

Q: Which is your favorite US Bank and why would you buy it today?
Thank you.

Q: Given Mr. Morneau's neglect to place his assets into a blind trust as he was instructed to do, what effect, if any, do you believe this could have on MSI?

Thanks, as always.
Joanne

Q: Hello - I have been following TSU with interest since it's IPO in late June. It's had a nice run over the past 4 months. I'd like to know what your take is on: (1) the recent announcement that the company is hoping to have a 1 for 10 share consolidation followed by a 10 to 1 share split, and (2) whether you think it has potential as a good growth stock. Thanks

Q: Thanks for all you do to help us in the market. Presently I have the following exposure to both Canadian + US financials
- US:PYPL, BAC,C,
- Canadian: BND ,RY,TD.
My exposure to this sector in total is 22% of my US + Canadian Portfolio. I would like to purchase another $100,000 (Cad) in Canadian banks to take advantage of the Dividends. PS the funds are presently in a bank account that collects very low reruns. Should I wait for a pullback? or go ahead without trying to time the market also what is the risk of my exposure being so heavily weighted to US + Canadian Financials? PS Interesting that PYPL has returned 40% in the last 14 mths + BNS just over 30%. Thanks

Q: Hello Team,
What is your response to the latest press release and stock move on XAU? When might it merit detailed coverage?

Q: the Company seems cheap especially when you consider it holds approx. $600M of marketable securities (approx. 1/2 being BMO shares). When i factor this out of the market cap (value) of the company and then just look at the fund management business, this is valued at a very low value and does not seem to be given credit in the market cap. Am i missing something or is the business just not doing very well.

thanks Ken

Q: Product: TD Split share Preferred (xtd.pr.a)

Hello 5i
Thanks for the excellent investment coverage.

I have been utilizing this structured pref share as part of stable income portion of Portfolio for many years. Receiving over 5% dividend yield with a stable stock price has been helpful.

With interest rates potentially movin up over the next few years, this fixed rate product will begin to look less attractive.

If by Dec 2019 (termination date) an investor would like to terminate the holding and receive cash for shares, do you see this transaction being as simple as checking a box and waiting for cash to arrive from Quadravest? Near term Price has been $10.06 but may possibly drop below the $10.00/ share if investors want higher yield.

Do you see any risks associated with being paid out the full $10.00/ Pref share ...... on or about Dec 2019?
Any comment on what this transaction would look like?

Thanks
Dave

Q: I am retired living on dividend income. I just sold my EFN as it hasn't really done anything the past two years. I have a small position of ECN from the spinoff and am wondering if I should add my EFN proceeds to ECN?
I am ok with the 1% yield as an income investor if you expect above average capital gains over the next 2-3 vs bank stocks (TD or BNS).
Or if ECN returns will be similar to TD or BNS, then I will sell ECN also and just invest the proceeds into the bank stocks.

Q: It seems like a 9% drop today in share price is a little excessive in response to a fund manager moving on ( at the end of the year). Are there other factors in play here or just an over-reaction?
It seems like a nice buying opportunity. Many thanks for your comments.