Investment Q&A

Q: I see CHW dropped another 4.5% today to a 52-week low. Is there any apparent reason for this decline? Is there an imminent risk that it will not be able to maintain its 6.5% dividend?

Your thoughts would be appreciated

Jim

Q: I've been looking at AHF as a buy with the recent stock weakness and the dividend now at 6%.
One thing I noticed in the stock quote summary was the large discrepency between the share float vs outstanding shares - 55M vs 89.9M.
Is this due to insider ownership?
I also noticed they have some convertible debt.
Are any of these factors something to be concerned about?

Q: Peter; Im sure you and staff try and read all the biz papers but just in case you missed todays G&M , Pge. B10 by Mr.Rothey, he comments on Momemtum investing. Thanks. Rod

Q: Hi, could you please tell me what you think about XEI as quick place to add funds during a market sell off? It's for my income portfolio (40% fixed income, 60% equities)
I like the 4+ % yield and the holdings. I believe iShares lowered the MER on it as well.
My equity portion is made up of the following:
XEI Index 2%
Consumer 3% CTC.A , L
Banks 19% BMO , BNS , NA , RY , TD , TMC , MTG
Insurance 11% MFC , POW , SLF
Utilities 8% EMA , FTS , TRP
Telecom 13% BCE , MBT , RCI.B , T
Prec Metals 6% AEM , TCK.B , SLW
Energy 14% CNQ , CVE , CPG , FRU , SU , ERF
REIT 13% CAR.UN , CHP.UN , HR.UN , REI.UN , TCN
Tech/Industrial 10% ET , MG , MDA , RUS , WSP, MRE

Thanks as always

Q: Could you elaborate a bit on the recent news from AHF confirming a term extension for their managed North American Financials Securities Trust. The news seems to have been well received so I presume the uncertainty regarding this event was the cause of recent price pressure. I am not sure I understand the issue - what was going to happen without the extension and is 5 years a meaningful term?

Q: Hello again your thoughts on Cxi

Q: The Scotia bank BNS ? What is your rating

Q: I just learned that the Ontario government has ruled that P&C insurance companies will henceforth be required to lower their premiums on car insurance policies by 15%. I know that Intact Financial (and other insurance companies, I presume) has been fighting this for a number of years. Now that it's a fait accompli, how much of a negative impact will this have on the IFC's share price?
Robert

Q: Peter -do you have any thoughts on the relative attractiveness of the Aig warrants versus Aig common ...and whether you view either as compelling here?

Q: Peter, with banks earnings starting early December can you give us what to expect from the six banks? Which bank will raise dividends? Do you expect good results and what to watch from their earnings? Thanks in advance as always.

Q: Hi Peter
Today's downgrade on NA concerns me. I hold TD,BNS and BMO as well as NA. I'm thinking of selling NA and buying Enbridge. I'm up 18% on NA. Please comment. If not Enbridge do have another recommendation? Thanks for all past advice.
Cam

Q: Is AHF a buy,sell or hold after it's recent slide?
Thanks
Garry

Q: Why is its yield of 2.9% lower than each of the Individual Banks which are all higher than 3.5%?

Thanks, Austin

Q: Would you buy CF today if you have a 2 year horizon?

Q: Question about averaging down or buying on major dips.

I have seen the comments "we don't like averaging down" on a number of occasions.

If I consider a stock like AHF, which I believe you liked when you prepared your report on this company and still like today, what would be wrong with averaging down (assuming we keep our stock weights somewhat in balance and possibly increase our exposure a little bit).

The way I read your Q&A to AHF is:
- The fundamentals have not really changed. In fact, they are possibly better. The focus is on higher margin business.
- The dividend (7%) is secure with good cash flow. (This is a great dividend which we can collect while we wait for the stock to go higher. Not many companies pay 7%.)

As a result:
- If we buy the stock at this price, our risk is greatly reduced. The stock is selling at 70% the price it was recommended at and your opinion of the company has not changed. It is like going to the store and buying stuff on special.
- If the stock goes back to the price it was at when recommended ($1.22), that is 42% upside. If we assume it takes 2 years to do so, that would be a 21% annualized gain, plus about a 7% dividend per year for an annualized gain of 28%. And this assumes the price only goes back to the price it was initially recommended at for purchase.

If averaging down is not a good thing, when fundamentals are same if not better, and our risk of financial loss is lower (as preservation of capital is paramount) and the dividend is exceptional... Then as some people would say, is it not time to back up the truck, is it not the time to be greedy when others are fearful...

And if it is not a good purchase at time price, then should we not get rid of it and move on.

Your valued opinion is greatly appreciated. I've learnt a lot.

Thank You.

Q: Your opinion of CXS results today and future prospects. I'm currently underwater and had hopes of target price going into $3.00 range.

Q: I would like your thoughts on the lastest quarterly results on CXS and with the beat do you see more investors buying this stock thanks.

Q: My investment in Element Financial has NOT proven very rewarding this past year (down a few pennies ) I am interested in growth and would appreciate your advice...,hang in or move on.

Q: Hello Peter & Co.
What is your take on EFN's financial results?
Thanks,
Tony

Q: I should've waited a day to ask about EQI Could you give me some colour on their latest results?

TIA