Investment Q&A

Q: Yesterday Home Capital reported Diluted EPS of $1.36 and Adjusted Diluted EPS of $1.06. The analysts had a target EPS of $1.04. How do we know which EPS figure the analyst projection is referring to-the diluted or the adjusted diluted figure. Thank you and the team for all you do. Ian

Q: Is the Royal downgrade justified

Q: What is your outlook for Canadian bank stocks for this year? Tx

Q: Since the major banks are in s&p 500 is there a point to hold both Zue and Zub

Q: I am wondering if I should sell TD and buy CXI but CXI is hitting a new high should I wait until it come down a bit in price? This would be in my TSFA. I currently own T , AYA , TRP , WCP in equal weight.
Thanks
Dolores

Q: Hi 5i Team,
Can you comment on earnings for Sun Life and Home Capital. On a quick glance HCG came out with fabulous numbers as usual, while SLF's numbers look terrible!
Thanks again for the great service,
Shane

Q: What are your 3 top etfs that follow s&p 500 and top 3 that follow American banks

Q: I'm looking at Canaccord or Gluskin with a 3 to 5 year term in mind. Which one would you choose and why?
Thanks
Ron

Q: The following quote was made on the BNN evening Market Call:

"Guardian holds about 4.7-million shares of the Bank of Montreal and other investment securities which are worth a total of $16.75 per Guardian share (as of 30 Sept) vs. a $16.63 current share price (100 per cent of share value). If you strip out the value of its investment portfolio, the underlying business – which has been robust over the last few years – is a free option"

At face value this sounds like a hell of deal, which my past experience with stocks means it is to good to be true.

I see your last comments are about 9 months old so I would appreciate your thoughts on the above statement and if you view it as an attractive purchase in this current price range.

I just renewed my Membership and you have made it quick and painless. Please keep up the great work.

Mike

Q: Need to reduce my bank stocks.Would you sell BMO or TD?Thanks Paul

Q: Could you comment on the investigation happening with HSBC and should I be selling at this time, thanks.

Q: What are your thoughts on FC : TSX?

Q: I own some shares in GWO and have noticed some strength in the stock price over the last month or so. During this period there has also been some downward pressure on interest rates which is generally not helpful to the stock price of the lifecos. Can you provide any insight into this situation?

Q: Hello Peter and the 5i team

I was watching BNN the other day and a question came across concerning Canacord Genuity. The guest (Jason Donneville) on the show said that they had shorted Canacord because the ratio between the P/B and ROE was far from the usual 1 to 8 ratio ( I am sure there were more reason then just the one but the other reasons were not mentioned). For example If the ROE is 16 the P/B should be approximately 2.0. This is a correlation that I had never heard before or took into consideration. Is this a metric that you use? Is this metric widely used in the stock trading world? Is this metric used more in specific sectors of the market? What do you consider the most significant metrics to judge weather a stock is a buy or not.

Thanks I appreciate your insight.

Q: I am developing my portfolio to be an income generator and like many Canadians, have a significant portion of my capital in Canadian banks. What do you feel is a suitable % range for Canadian banks in an income portfolio? I am certain I am too heavily invested today in the banks but the recent drop was too inviting so more had to be bought. Thanks in advance.

Q: Hello 5I Team
I see that Mike Newman noted that 50% of MFC's revenue came from the U.S. and Asia. I believe that MFC have made quite a focus on the wealth management business in the U.S. Such things should be fairly positive for MFC should they not, considering the weak loonie.

Thank You
Clarence

Q: just wondering if you have put a call out to those guys yet as promised?

Q: Peter; Re GS earnings today- was it a big miss or expected by the street? Could you comment please. Thanks.Rod

Q: I see that CF is handling the IT financing. Given IT is trading over 10% above the $15 bot deal price, CF should enjoy a nice win. My question is whether that win is enough to move the needle for their Q4 earnings. Is the stock a buy given today's weakness?

Thanks!

Q: The charts of REITS (e.g., XRE) and MICS (mortgage investment corporations), for example Firm Capital FC, roughly parallel each other over the years. But in the last few weeks they've gone in opposite directions. FC is way down, and XRE is way up. Other MICS are similarly down. Can you see any reason for the divergence? Could it be a buying opportunity for a stock like FC, if this divergence tends to correct itself somewhat? Thank you.