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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: I was looking to add to my position in CI since I noticed that they raised the dividend as part of the earnings release - which on the face of it looks like good news. however, when reading through the results, specifically cash flow, i noticed that the dividends and share buybacks are more than the cash flow from operations and it looks (to me) that CI has used debt to fund the share repurchase and dividend. i know people think CI is a potential take over candidate but i'm not so sure. Who knows if that is ever going to happen. given the headwinds facing CI and the industry in general i'm hesitant to put additional funds into CI. Can I get your take on CI's cash flow? And would you prefer BNS, TD or MFC as an alternative to CIX?
Read Answer Asked by Richard on May 06, 2016
Q: Hi Team ... I am up nicely on BNS and will be selling some in order to maintain a proper weighting within my portfolio. I'd like to redeploy the proceeds within the sector and am looking for a company offering a nice yield as well as good growth potential. I'm leaning towards Fiera Capital (FSZ) and would appreciate your thoughts. Also, any other candidates I could be considering?
Read Answer Asked by Richard on May 03, 2016
Q: Hi Peter,Ryan et al. My daughter age 32 has $32K to invest in her TFSA. My initial thought was a half position in CAO and KXS along with full positions in BNS. ATD.B CTC.A,PBH,
and HCG. Any suggestions and comments would be appreciated for at least a 3 year time frame.
Thanks in advance.
David
Read Answer Asked by David on April 27, 2016
Q: I bought Home Capital before it ran into trouble with some of the lenders. I hung on and then I got a notice about a Dutch auction. How is that different from a company just buying it's own shares on the open market? Do you see a benefit to this auction? I read that Home Capital will soon have insured lending. Could these two events move the stock out of the dump?
Read Answer Asked by Deborah on April 27, 2016
Q: Hello Peter.

I am a income investor with a high concentration in blue chip preferred shares...both reset and perpetual. The later being the larger holding. In theory, when interest rates move the two asset classes...Reset/Perpetual should move in opposite directions. This is not the case. In fact I see them moving in tandem.
I'm looking for an alternative to hedge out my income portfolio. I was thinking an inverse long bond ETF (HTD) might be a good investment to protect my overall balance should there be another rate scare like we saw in January.
Your thoughts?
Read Answer Asked by nicholas on April 26, 2016
Q: Good Morning
I hold 4 Canadian banks CM, TD, RY and BNS in an unregistered account. The bank stocks comprise just under 20% of my portfolio and each has approximately a 50% capital gain. My only other financial stock is a 2.5% position in PWF. Capital gains in my account this year will likely be taxed at 15%. I am considering selling one of the bank stocks (perhaps CM) and investing the proceeds in SLF. I have chosen SLF for it's relatively low valuation and secure dividend.
Is reducing the allocation to Canadian banks appropriate, or does the tax which has to be paid cancel the benefit?
Which bank would you sell?
Is SLF a suitable alternative or is there another company that you would prefer. I already have full positions in CNR and BAM.A.
Thanks
David
Read Answer Asked by David on April 25, 2016
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