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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 Research team, I have a long term horizon, and I am a patient and more of a growth oriented investor profile. As interest rates are very low (they have been for a while, I agree), if, instead of investing in REITs, banks, fund managers and insurance companies to obtain my financial sector exposure, I invest in a combination of other "financials" such as AIF, CXI, TCN, TNC, HCG, DH, what would I be missing? What exposures? What additional risks would I incur? Do you have other quality suggestions to complement this short list of other financial stocks? With such a group, are your main large cap recommendations in this sector (BNS, SLF) still necessary? Thank you, Eric
Read Answer Asked by Eric on September 12, 2016
Q: HCG is now down over 50% in my TFSA. I keep telling myself, "don't think about what it WAS worth, think about what it is," but my emotions keep getting in the way of my thinking. Given HCG's current prospects, is this a reasonable place for a senior to leave a now much smaller portion of her portfolio, or should I just take my losses and look for a less volatile stock? ( It seems volatile to me, but perhaps that's those emotions again) Many thanks
Read Answer Asked by M.S. on September 12, 2016
Q: I was wondering if your response to Eugene this morning regarding CI Financial would also apply verbatim to FSZ? I work in the financial services industry and I share your concerns for growth in these companies. The dividend is great and I assume reasonable secure but do you hold much hope of the stock price ever rising? The share price is about where is was 2 years ago.

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on September 08, 2016
Q: X has had a run up recently. Still, I see a forward P/E approx. 13 times. 1.1 price to book and under 12 price to cash.
I do love to compund "toll road" dividends. BUT, is X truly a toll road these days? Some comment about competion in the space, but who exactly are the competitors? I don't want to buy the stock only to see it become "Uberized" by new technology in a short or medium term.
I am looking for a long term hold and hoping dividend increases are on the way. Set it and forget it.
Your thoughts please. Keep up the great work and many thanks.

Cheers
John
Read Answer Asked by john on September 06, 2016
Q: I recently added a small position in CHW primarily for the nice yield and low PE valuation and low payout ratio. I also like their US focus. The stock price is up nicely since I added and I was thinking of adding to it or starting a position in CBL. I am a long term investor (10+ years time horizon). Would you have a preference of one over the other?
Thanks
Read Answer Asked by Gary on September 06, 2016
Q: Hi- the banks all seem to have done well, partially because loan loss provisions have been reduced. Is that a discretionary situation...in other words, can earnings be boosted by lowering provisions? How does that work?
How does it relate to Tier 1 capital? And what are the banks' Tier 1 Capitals now?
Thanks
Read Answer Asked by Pat on September 02, 2016
Q: Hi 5i,
I am young and have time to hold stocks long term. I own some Canadian bank (bns) as well as some broad etfs (and other various non-financial stocks).

Is there value or reason to own a company like Sunlife or Manulife (or similar, please recommend if you know of something better). Or would it be better to own a second Canadian bank? Or would it be best to add the extra money to my BNS position?

Thanks
Read Answer Asked by david on September 01, 2016
Q: Callidus Capital has been increasing the share price amount (now at 16.50) and extending the duration of its buyback offering for quite a time now. I am trying to figure out what the end game in this is. Does this mean they will go private and are trying to clear out stock at lower valuations or are they propping up the price, building awareness, etc. so they do not have to go private? Perhaps they are testing the market perception of a fair share price in a beneficial way to the company? I purchased a full position at $20ish range and I held on. I enjoy the dividend and feel the company has strong potential. I hope your greater experience in the markets can educate me on this one. Thanks
Read Answer Asked by Jeremy on September 01, 2016
Q: Hi 5i team :

would you buy National at this point (46.19) ?, the financial report issued today "looks" OK, but the price drop is concerning. Also many analysts have it as a "hold", why ?. Would you prefer CIBC instead ?, yields and forwards P/E are very similar for both according to Thomson Reuters.

thanks !
Read Answer Asked by Alejandro (Alex) on September 01, 2016
Q: I believe you prefer SLF, but what do you make of MFC at these levels. Would you comment on their fundamentals, Asian potential, wealth management business and technical signals. Would they be a decent buy at these prices ,speculating on an interest rate hike. I've discovered that I am a patient investor and tend to hold on for better or worse.
Read Answer Asked by Clarence on September 01, 2016
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