Investment Q&A

Q: Hello 5i team
Copied from various press releases and news stories:
Fiera Capital Corporation (FSZ) completed its acquisitions of Bel Air Investment Advisors LLC as well as Wilkinson O'Grady & Co., Inc. last October. The purchase price is US$156.25 million, including US$115 million in cash (part of which will be held in a three-year escrow) plus US$10 million by issuing new Fiera Class A subordinate voting shares over a 32-month period.

The purchase price was financed using the net proceeds from the Firm's previously announced C$105 million private placements of a total of 9,781,000 subscription receipts from treasury with each receipt priced at $10.75. Of that total number of Subscription Receipts, Fiera issued 6,696,000 Subscription Receipts, on a private placement bought deal basis. In addition, Fiera issued 3,085,000 Subscription Receipts, on a private placement basis to National Bank of Canada who will ante up $31.4-million to maintain its ownership stake at 35% of Fiera.

As the subscription receipts were sold on a private placement basis, the Class A Shares are subject to a statutory resale restriction until January 19, 2014. The Subscription Receipts, together with the Class A subordinate voting shares issued, are subject to a four-month plus one day statutory resale restriction ending on January 19, 2014.

My question is : I want to take a 3% position in Fiera. With the big share issue, and the subscription receipt price at C$10.75 [current share price is C$13.64], and the 3 year escrow issuing shares over a 32-month period, plus the statutory resale restriction ending on January 19, 2014, will this put strong downward pressure on Fiera's share price? Would you be a buyer right away as the price is currently down 13% from it's 52-week high, or can we anticipate a further 5-10% correction in the share price in the months ahead?

Thank you for answering all my questions.... Paul

Q: Would you be able to provide an opinion on HSBC Holdings plc(ADR)
Thanks again for your comments.

Q: As a followup to Morgan's question re Mastercard; now that it has declared a 10 for 1 stock split and will buy back $3.5 billion worth of its shares would you have a different opinion of this stock?

Q: In a recent answer you mentioned the concept buying SLF as interest rate protection, Could you please elaborate. I assume you mean the insurers will do well when interest rates go up despite their recent run. Can you clarify why. Do you think the same would be true for the banks? I hold lots of bank stocks and this would please me very much. I hold few insurers an asking should consider holding my nose and buying more.
Thanks, Manfred

Q: Peter and Co, thanks for the exceptional service.
My question is off topic in some ways but it may have implications for one of Peter's favourite stocks, BNS.
Reuters has reported that in Germany, the UK and the USA there are ongoing investigations into the suspected manipulation of the benchmark pricing of gold and silver. This investigation comes on the heels of the LIBOR price-fixing scandal. The Bank of Nova Scotia-ScotiaMocatta is one of the five banks that are involved in the twice-a-day price fixing for gold.
If there is found to be manipulation in the gold price-fixing, how significant would this be for BNS if ScotiMocotta is implicated?
Thanks.
Ed

Q: Hello. Your opinion on LFE, Canadian Life Companies Split Corp. please. Buy, sell or hold? They recently reinstated a dividend. Thanks.

Q: What's your opinion on DFN-T. Certainly a high dividend but is it sustainable over time?

Q: What do you think of FN's:
1. Fundamentals;
2. Risk.

Thanks,

Q: I currently hold BMO, BNS & RY. Would buying HCG be a good idea.

Thank you as always

Q: Hi there
Wondering if I was to add an insurance company for a bit of a buffer to rising interest rates would either MFC in Canada or MET in the USA be a buy at this time in your opinion and if so which would you favour at this time in a registered account?
Much thanks
Stuart

Q: Hi,I am looking at citigroup and efn, which would you recommend, I am open to suggestions on a financial..............thanks

Q: I would appreciate your views on National Financial.

Thanks,

Q: Hello Peter, are there plans to write a Company Report about Element Financial (EFN)?

Thanks,
Deb

Q: What do you think of MasterCard (MA) as a global financial play?

Q: What do you think about FSL for a Rif?
Thanks, Ron

Q: Please give me your comments on Element Financial anouncement wrt financing and new portfolio

Thanks
Darcy

Q: Please give me your opinion on The Bank Of Ireland (IRE) as a medium and long term hold.

Thankyou

Q: I was thinking of buying td on the US side. In a previous Q/A you said the price would adjust. I am not sure I understand this. If the Canadian $ drops to say .90 cents would that not make an increase of 4% or so on the difference in the dollar plus being paid in US dollars in the dividend?
Also what are your thoughts on the dividend stock split?
Thank you for your assistance and clarification.

Q: I have held Firm Capital (FC) for a couple years, and am now down on stock price after, unfortunately, adding more last spring. I am considering using this for a tax loss. I might replace it with MCAN (MKP), which appears to be a fairly similar company with a similar yield. How would you rate MKP v FC? Alternatively, do you think it is better to sell FC and move the funds to a different sector? FC is about 2% of my portfolio, and I am retired and invest for income. Thank-you.

Q: Looking at Genworth. It's very cheap on an earnings basis, why is that? The business doesn't seem overly risky from my perspective. Do you think the new risk fees being charged to CMHC will be of much help to Genworth? What kind of growth is expected?

Thanks,
Rob