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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: My holdings in the banks are pretty well equal. Circumstances have arisen which require me to decide whether I should shift this balance against the most overvalued to the most undervalued, if there is a worthwile difference among them for a long term holder. Would you be inclined to rank them and indicate whether your order represents significant differences?
Read Answer Asked by Carl on June 05, 2017
Q: Always a nice surprise from Brookfield, to find a new stock dividended-out into your portfolio. I see that it's a global (re)insurance company, or looking for global opportunities at least. When BAM dividends out small quantities, prices to tend to drop as they get sold out of portfolios. Assuming that happens in this case, is this a reasonable opportunity to purchase more, to build it into a small position? Is there a projected dividend pay-out that you can see?
Thanks very much...
Read Answer Asked by Warren on June 03, 2017
Q: The company issued $100M of preferred shares at the end of April and yesterday issued $1.2B of ABS term notes. Looks to me like they have encumbered long term cash flows significantly. Seeing as how the market sold off at 9:30 this morning then bounced back somewhat is telling me that current investors are nervous over these actions. Just a thought.
Read Answer Asked by Patrick on June 01, 2017
Q: On the news "Element issues US$1.2 billion of rated ABS term notes through Chesapeake" the stock has dropped 38% (and halted)

CIBC just reiterated their $15 target price and said it is a buy and deal is good.

Would retail investors be selling out here? Am looking at buying here - dividend is now coming close to 5%

Also can you explain the use of the ABS term notes for the fleet management business. Thank You.
Read Answer Asked by Mayur on May 31, 2017
Q: Question related to the new preferred share offering: ECN.PR.C which yields at the very minimum 6.25%.

Deal was sold out and as soon as it started trading the share price dropped below the $25 issue price and is now below $24.

Why would anyone buy the issue at $25 and sell it right after. Any ideas?

Also, would you recommend adding to it below $24. I have 700 shares which represents around 1.2% of my portfolio.

Thank You.
Read Answer Asked by Mayur on May 31, 2017
Q: Are we seeing yet another short attack here?
Looks like they had a very positive announcement with the ABS notes just yesterday and now the stock is getting decimated. Why do these short attacks keep happening in Canada is there anything we can do about it. HCG, CRH, BAD, I'm sure there are others that I can't recall. Its getting tough to be a Canadian small/midcap investor.
Read Answer Asked by Rob on May 31, 2017
Q: Hi Peter , wonder if you could tell me why the banks are down from their highs in Mar. while the earnings are good, and what would be the catalyst to get them back to that level. Thanks, Nick
Read Answer Asked by Nick on May 31, 2017
Q: Today's Globe has an article about the value of Laurentian Bank and Canadian Western Bank following their share price reduction in the wake of the Home Capital debacle. Would you view either as a long term hold and which would you prefer?
Thanks.
Read Answer Asked by Steven on May 30, 2017
Q: i have a bit of a high allocation to banks and i was thinking of trimming Bns. I am also doing this because i have some fear of a housing bust and the proximity of the banks to such an event. And also because there may be a good chance that capital gains tax will be increased next year. I will re invest this money and my question has to do with what sector do you think would be the safest if a housing crash should result. For instance i had thought of buying Canadian Tire. But, i imagine a drop in the housing market will have a big affect on their sales as well. Appreciate your thoughts as usual
Read Answer Asked by joseph on May 30, 2017
Q: Many analysts on BNN are recommending owning US banks vs Canadian, as dividend growth looks better for the US banks.. Would the benefit of owning a US bank be worth sacrificing the dividend tax break Canadians currently get,and the currency conversion to US dollars. Thank you
Read Answer Asked by Donna on May 29, 2017
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