Investment Q&A

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?

Q: Sorry if this question comes in twice as I'm not sure it went through the first time.

In the past, your team has indicated that BNS was your favourite bank. Is this still the case, even though it has underperformed? I am considering taking a position in a bank as I have currently have CXI and EFN in my financials, and feel I am missing a bank as part of my portfolio. Am wondering which one I should take a position in (or perhaps ZEB).

Thanks!

Q: Copy of press item below and wondering if this is a significant event that I as an investor should be concerned about.
Thanks John
PRESS DIGEST- Canada - Jan 13
** Canaccord Genuity Group Inc has been hit with a string of veteran departures amid a severe commodity price correction that has raised the prospect of more job cuts. Scott Davidson, the dealer's executive vice president and global head of corporate development and strategy, announced his departure on Tuesday.

Q: My portfolio is overweight in Financials and feel I need to reduce over time. Wells Fargo has provided good returns but I am thinking there is more upside with BNS and TD over the long term.
I am planning to sell my position in WFC and move to a different sector in US$. Perhaps the Consumer Discretionary or Industrial sectors. Your thoughts.

Q: I am a conservative, retired dividend-income investor with a pension and CPP. My portfolio includes AD, AQN, ALA, BCE, BNS, CGX, CPG, RY, SLF, WSP, WCP, WEF, ZLB, XIT, Sentry Cdn Income Fund, Sentry REIT, RBC Eqty Inc, TD Health, Annuities and Fisgard Capital.

My question is regarding SLF. I bought it in the fall of 2014 with the investment thesis being rising interest rates and an improving equity market (both supposedly good for lifecos).

I am basically flat (down from cap loss and up from dividends). I am normally almost fully invested and am not a trader. I'm happy to hold SLF, but I think the original investment thesis has now changed. Is SLF dead money for now and is the current environment likely to produce more share price deterioration?

On a side note, I am slightly overweight in financials.

Thanks, Steve

Q: Hi Guys,

I am an income oriented investor with the following financial stocks:

Bank of America (BAC)
Bank of Montreal (BMO)
Genworth Canada Inc (MIC)
Gluskin Sheff (GS)
Royal Bank (RY)
Sun Life Financial (SLF)
Toronto Dominion Bank (TD)

They all represent roughly equal value in my portfolio and are all within my minimum and maximum allocation. The overall financial area is within my global limits. I have no additional cash to invest. I have the following questions:

1)Would you sell any?
2)If you would make a sale, how would you replace it in the financial area?
3)Do you see more than a 10% chance of a dividend cut in the next 3 years for any stock?
4)Any other comments would be appreciated.

Please charge 2 credits due to the number of securities involved.

Thanks
John

Q: Any chance this stock could go much lower, any upside, dividend stands at 6.7 % right now. What is your take on it ? Thanks and the best for your team in 2016!