Q: GS is down 9% today in conjunction with an announcement about the resolution of a dispute between GS and its founders. Although very annoying, should I be fundamentally concerned with the company?
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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 can you please comment on the (potential) money owed to the founders of the company? How likely will this need to be paid and what impact would it have? Would you consider GS a buy right now, or a hold if I presently own it?
Q: I own some of each of these Pfd's...one has the symbol BM in it's name, the other BK...would you be kind enough to make the distinction for me , please and thank you...also if you would comment on their credit quality ...and whether the reset rates in 5 yrs time is the minimum rate or whether the rate is reduced if we have negative interest rates...many thanks ...cheers
Q: Good Morning Peter, Ryan, and Team,
Fiera Capital reported this morning and the numbers looked fairly good, at least to me. I have the company in my wife's RRSP account, primarily for its 4% plus dividend yield and future dividend growth. They seem to be growing their AUM quite nicely in difficult markets. Finally the valuation seems inexpensive compared to other Canadian asset managers. I would like your take on the above. Thank you as always for your sage insights. (PS- I just purchased the book "Market Masters" and I thoroughly enjoyed the section devoted to 5i Founder and CEO Peter Hodson. Great interview and wonderful book. I highly recommend it to other 5i subscribers)
Fiera Capital reported this morning and the numbers looked fairly good, at least to me. I have the company in my wife's RRSP account, primarily for its 4% plus dividend yield and future dividend growth. They seem to be growing their AUM quite nicely in difficult markets. Finally the valuation seems inexpensive compared to other Canadian asset managers. I would like your take on the above. Thank you as always for your sage insights. (PS- I just purchased the book "Market Masters" and I thoroughly enjoyed the section devoted to 5i Founder and CEO Peter Hodson. Great interview and wonderful book. I highly recommend it to other 5i subscribers)
Q: Can you please give me your thoughts on POW and VEE? I am considering a 6% position in each, in my TFSA, with 3-5 year time frame. Thanks
Grant
Grant
Q: I know you generally recommend that anyone who is worried about the market move to cash, but I am curious as to how a professional hedges. When Prem Watsa says that Fairfax is 100% hedged what does that mean? If Fairfax’s market holdings drop 30% does it mean that their hedge will earn them the equivalent amount so that the net will be neutral? Does it work the same if their holdings increase in value? (i.e. any gains would be offset by losses in the hedge) What investment vehicle would Prem Watsa likely be using to hedge and what would the cost likely be in terms of percentage of total holdings?
Q: Please comment on recent quarterly and annual results and compare to First National.
Based on current valuations and future potential would you take profits on FN and buy SCB.
Thanks,
Hugh
Based on current valuations and future potential would you take profits on FN and buy SCB.
Thanks,
Hugh
Q: Whats your view on the recent commentary by Fairfax CEO Prem Watsa on stocks being very risky still.
Q: What are your current thoughts on Power Financial for a long term hold ?
Q: Good day,
I have been considering trimming if not selling my insurance exposure out right because of falling interest rates. With more and more Central Banks experimenting with negative rates it is possible that eventually Canada and the USA try out negative rates. Would there be any merit in selling GWO,MFC,SLF to buy FFH? My rationale is I could maintain some insurance exposure but if the whole system implodes (this is why they are considering negative rates to begin with because traditional monetary stimulus isn't working), clearly there must be some risks of a black swan event out there. Like you, I don't like to go zero weight any sector so this way I could maintain insurance exposure but also have down side protection? Or should I keep it simple and simply reduce my insurance weight.. Thanks.
I have been considering trimming if not selling my insurance exposure out right because of falling interest rates. With more and more Central Banks experimenting with negative rates it is possible that eventually Canada and the USA try out negative rates. Would there be any merit in selling GWO,MFC,SLF to buy FFH? My rationale is I could maintain some insurance exposure but if the whole system implodes (this is why they are considering negative rates to begin with because traditional monetary stimulus isn't working), clearly there must be some risks of a black swan event out there. Like you, I don't like to go zero weight any sector so this way I could maintain insurance exposure but also have down side protection? Or should I keep it simple and simply reduce my insurance weight.. Thanks.
Q: I would like to know your opinion on FN. I saw that this stock is now at his 52 weeks high. Is there a reason for that and should I continue to keep it or do you suggest that I take profit and put the money in another stock? and if so, what could you suggest?
Thanks for your good work. I am always impressed by the quality of your answers.
Michel
Thanks for your good work. I am always impressed by the quality of your answers.
Michel
Q: Between these 2 stocks, they represent about 8% of my overall portfolio. Trying to bring my allocations back inline ...would you keep both ? If you had to choose which one to sell, which would it be ? FSZ/MIC
Q: With the recent bump in Cdn Bank stocks would you add to existing positions or do you think they've moved ahead of themselves in the short term? Thanks.
Q: What can you tell about it's recent acquisition? It looks like it is trying to expand it's geograhic footprint - Ontario - perhaps open some branches at some point? How are they paying for this acquisition? I already own all five Canadian banks in my RIF and Non-registered accounts, and have for many years - added to positions in early 2009; however, I was thinking of buying this bank for the upside when oil slowly makes it's way back up again & the AB economy picks up.
Comments please & thank you ... JP
Comments please & thank you ... JP
Q: What are the chances of the Dutch Auction buyback announcement shaking off some of the short sellers?
Q: Hello great team,
I own some split preferred FFN.pr.a. I am OK with 5.25% dividend and my understanding is that my principal investment and dividend are safe as long as NAV value of the unit remain above $10. Current NAV is ~$14. Are there any other risks (e.g. management) in losing my principal of $10 per preferred share other than drop in NAV value less than $10. Overall, what do you think about this preferred? DBRS rating is 4 high. The fund is managed by Qudravest Capital Management. I will appreciate any alternate suggestions to this preferred share? – I am OK with 5% return and safe principal.
Thanks
I own some split preferred FFN.pr.a. I am OK with 5.25% dividend and my understanding is that my principal investment and dividend are safe as long as NAV value of the unit remain above $10. Current NAV is ~$14. Are there any other risks (e.g. management) in losing my principal of $10 per preferred share other than drop in NAV value less than $10. Overall, what do you think about this preferred? DBRS rating is 4 high. The fund is managed by Qudravest Capital Management. I will appreciate any alternate suggestions to this preferred share? – I am OK with 5% return and safe principal.
Thanks
Q: Really appreciate your endorsement of BNS & the other big 5 can.banks & calming influence.So much negativety & fear mongering leading up to their 1st Q reports stated Feb 3 & ended Mar 1 with BNS,that it was unnerving.Moodys on BNN stated in a severe stress scenario ,can banks may even need to cut dividend or issue more shares to raise money.As far as I can recollect the big 6 have never cut dividend.Moodys & the other rating agencies endorsed the sub prime pakages buy US banks in the 2007-2008 financial crisis.John Aiken of Barclays Capital cut the target price of the big 6 by 20%.After graduation,he workrd for National Bank,then Dundee & since 2009 for Barclays,ranked 3123/3730 analysts & rated 1/5 with 1 being the weakest.4 of big 6 increased div(CM,TD,BNS & RY) & 4 beat convincingly( CM is the best--$2.55 eps beat $2.41 expected) & 2 were pretty closed.BNS had the biggest appreciation after release--up 5.97% @ close Mar 1.Re my Q on Feb 19,the big 6 are amongst the strongest & safest banks in the world CM leads in T1 capital @ 10.6 & BNS @ 10.1.Big 6 performed better than the US banks
Q: You recently recommended 20% financials in an income portfolio. I own BNS, TD, SLF, FFH, OCX, and BAM.A. Would you consider FFH, OCX, and BAM.A to be financials? If so would you recommend a weighting of approximately 3 % in each of these 6 stocks? I note that the OCX share price has pulled back - would you recommend adding to it now? Many thanks for your great service.
Q: Re: Banking Industry in General (with reference to Jim's post):
I also am concerned with the banking changes. I would guess the majority of Canadians aren't aware these changes took place. I've read that saving/checking accounts wouldn't be included, but they certainly were in Countries that did have bail-ins. I've put some money/investments in a local Credit Union just so I wouldn't have everything in one place. It may not make a difference, but maybe it will. Another thing some people may not be aware of is Canadian Banks got a "sort of" bailout in 2008 through the CMHC. I still don't know all the details of what took place and I think it is all paid back now, but it certainly wasn't front page news.
This would be less of a concern to me if the US had thrown some executives in jail instead of just fining the companies. There is no accountability or admitting of guilt anymore, just pay a fine and move on (or in Politician's cases, shuffle cabinet positions around).
Sorry if this rant offends anyone, I don't mean it to be that way.
Paul
I also am concerned with the banking changes. I would guess the majority of Canadians aren't aware these changes took place. I've read that saving/checking accounts wouldn't be included, but they certainly were in Countries that did have bail-ins. I've put some money/investments in a local Credit Union just so I wouldn't have everything in one place. It may not make a difference, but maybe it will. Another thing some people may not be aware of is Canadian Banks got a "sort of" bailout in 2008 through the CMHC. I still don't know all the details of what took place and I think it is all paid back now, but it certainly wasn't front page news.
This would be less of a concern to me if the US had thrown some executives in jail instead of just fining the companies. There is no accountability or admitting of guilt anymore, just pay a fine and move on (or in Politician's cases, shuffle cabinet positions around).
Sorry if this rant offends anyone, I don't mean it to be that way.
Paul
Q: Hi 5i Team,
This is an unusual question and feel free to take a pass on it, as it might not fall within the definition of the service you offer, and I would fully understand. Also, feel free, if answered to post or not.
There have been bank confiscations in Cyprus. And I believe, banking problems in other jurisdictions where the depositor has taken the hit. Rare, but they happen.
We were supposedly immune from such confiscation action by the rules and regulations of the banking industry, and also having relatively strong and stable economies and banking systems.
Since the Cyprus event, and the problems of the 2008 crash, according to articles in Canadian MoneySaver (May and June, 2013), the banking rules in the US and followed by Canada have been modified to allow for the backs to take money from their depositors, during an economic crisis, rather than rely on a government bail out.
This is not something that keeps me awake nights, but it does nag me as ... How does this make sense ?
I do not understand why the regulations were changed. Changes normally happen if there is a "really big reason to do so." In other words, If our economic and banking systems are in such great shape and are expected to be for the distant future, why change the rules ? The implication is that perhaps some sort of condition could occur that to save the "systems" (government budget and banking system), the investors will take the hit. (This also raises the option that ... Hey, why not just print money and give it to the banks as in the past - there was grumbling, but it did solve the problem).
I guess I am looking for a general comment on banks, safety of deposits, and why need to change regulations.
Thanks for the great service.
Jim,
This is an unusual question and feel free to take a pass on it, as it might not fall within the definition of the service you offer, and I would fully understand. Also, feel free, if answered to post or not.
There have been bank confiscations in Cyprus. And I believe, banking problems in other jurisdictions where the depositor has taken the hit. Rare, but they happen.
We were supposedly immune from such confiscation action by the rules and regulations of the banking industry, and also having relatively strong and stable economies and banking systems.
Since the Cyprus event, and the problems of the 2008 crash, according to articles in Canadian MoneySaver (May and June, 2013), the banking rules in the US and followed by Canada have been modified to allow for the backs to take money from their depositors, during an economic crisis, rather than rely on a government bail out.
This is not something that keeps me awake nights, but it does nag me as ... How does this make sense ?
I do not understand why the regulations were changed. Changes normally happen if there is a "really big reason to do so." In other words, If our economic and banking systems are in such great shape and are expected to be for the distant future, why change the rules ? The implication is that perhaps some sort of condition could occur that to save the "systems" (government budget and banking system), the investors will take the hit. (This also raises the option that ... Hey, why not just print money and give it to the banks as in the past - there was grumbling, but it did solve the problem).
I guess I am looking for a general comment on banks, safety of deposits, and why need to change regulations.
Thanks for the great service.
Jim,