Investment Q&A

Q: What is your current thinking on Urbana Corp? The discount to NAV seems to have increased substantially (although I wonder how accurately NAV can be determined on the private holdings).
Do you have any opinion regarding the investment in the Bombay exchange? Thanks,

Q: For income generation for the next 3-5 years, is there one or 2 sectors to overweight on or is it still better to diversify across sectors?

Thanks

Q: I hold 4 of the big Canadian banks (BNS, TD, RY and CM), each with a half position, except BNS which has almost a full position due to its under performance. What is your outlook for this sector in 2016? Should I continue to add to my positions on weakness? I don't own any insurance companies and I own one U.S. bank (Wells Fargo). Is it hard to ignore the dividend yield of Canadian banks at these prices.

Thank you,
Jason

Q: I have taken a good look at the financials and balance sheet. This seems to have a clean balance sheet with a great R.O.E with low costs. It has also indicated that much of the loan book has provisions for rate increases and decreases. So I look to you for a more in-depth look.
What are your thoughts of the balance sheet and income statement. Going forward what are your thoughts on this company continuing to take share from the larger banks and maintain the growth and free cash flow? Thank you for your perspective.

Q: Hi Peter and Team,

In light of Graeme's recent question and this article:

http://www.theglobeandmail.com/report-on-business/oil-shock-seen-hitting-canadian-bank-profits-in-2016/article28242504/,

Which Canadian banks would you favour if the scenario in the article comes true, or are all Canadian banks in the "same boat"?

At this time, the only bank stock we have is BNS. We have some other "financial" stocks like HCG, EFN, and CXI spread around several accounts, but no other banks.

Thanks as always for the guidance you provide, especially during this crazy, volatile market.

Q: I would like your opinion on Equitable Group Inc. traded on the TSX and the 3% interest rate to be paid on savings plus accounts by the new EQ Bank. January 14, 2016 news release "Equitable Bank launches EQ Bank"-Equitable Bank, a subsidiary of Equitable Group Inc. announced the launch of EQ Bank, a new completely digital way of banking. How can a bank pay 3% and is this sustainable?
Thank you,
Nadine

Q: Both SLF and IGM are down 20% in the last 2 months. This is much worse than the market declines over the same period of time. Any reason why?

Q: Hi,

Given the mkt direction, do you think Canadian banks are a good place to hide out for two years and should I wait or buy now?

Q: I hold a small position in Gluskin Sheff, which is getting hammered today, down 10% after an update that noted some revenue outflows.

Is this a game-changer in terms of outlook, or simply a hiccup that warrants taking advantage of the dip?

Q: As a follow up to the question asked by Richard regarding RBC I can say that anecdotally my late father starting buying bank shares in 1982. There were a number of occasions when he was advised by others to sell and he refused every time. He bought the shares for the dividend and the view that Canadian Banks were the safest Canadian equity. My mother and my siblings are very grateful for my father's wisdom.

Q: Because I am primarily a dividend investor , I don't really have a "sell discipline" for bluechip stocks and simply ride the ups and downs while dripping dividends. This has been painful for pipelines and REITS and banks etc, some of which are down substantially. Some would say it's wiser to sell at breakdown points such as 200 day average, or sell a portion when the stock is up 50%. I have only sold rarely for re-balancing and so have taken some lumps lately. Any words of re-assurance would be appreciated.
Thanks

Q: The value of PJT.us shares allocated to my RSP is less than a percent of RSP. My options seem to be to leave the PJT shares which were remnants from the 'corpoarte action' by BX , i.e. leave them as is..... OR I could add to the holding. Since PJT is newly independent as a listed entity little history is available to us, the NON-Bloomberg Club :( .
With the panic selling lately (panic that is incomprehensible to me) PJT shares may have become good value . Perhaps now could be an attractive point at which one could add to above-noted PJT holding?

My question is whether PJT is a business whose shares are OK to add to?
Your diagnosis of PJT’s prospects and your opinion would be much appreciated, especially if you deliver your somber (and sober) ruling with gravitas.
Enjoy le weekend. AO: jv dictated
File : Dept: Neurosurgery, Trauma, Rochester NY

Q: Hello,

Just wondering your thoughts on this company? The valuation appears to be cheap and I think they have a good foothold in their respective business. The pay a handsome dividend and I am very patient. I would be buying it in a TFSA.

Keep up the good work!

Q: In your opinion which Canadian bank(s) do you think has the strongest management team?

Q: Barry Critchley in the FP this morning, reported that both TD Bank and CIBC will be buying back big chunks of shares under NCIB. What does NCIB mean? And, as the article states, each purchase (at a discounted price) won't affect the daily price, it should have an appreciating effect on the price since there would be fewer shares for the same total value of the banks, should it not?

Q: Good morning,

I am looking to find the relative exposure of the big 5 banks to the oil and gas sector. I understand that thus far that the effects of the downturn in the oil patch have been somewhat benign, but it would be helpful to know the potential relative effects of a protracted low oil price on the respective banks (ex National and Cdn Western) based on their exposure to the sector. As well, could you please pass along the bank that you feel is most insulated.

Thank you for your response,
Brad

Q: Canadian banks have all dropped in value YTD by up to 6%. I understand that this is due in part to concerns about energy-related loan losses as well as high consumer debt levels. What is your call on what will cause the declining trend to stop, and when that might be ? From a technical point of view, where is the support level for RY ?

Q: Could you please provide your latest thoughts on cig and outlook going forward?

Q: I have a question about Equity Financial Holdings . I thought for sure, that you would have covered this company, since it is praised by every analyst on BNN and since it meets one of your most important criteria - the beginning of a dividend.
Why is it not covered?

Q: Assuming the market recovers at some point, will CAD & anticipated lower rates cause banks to recover last on a relative basis from this point onwards?