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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: Hi Peter- This question is about Fairfax Financial Rate Reset Preferred Shares. FFH.C can be called in Dec./2014. Between now and then you will get 8 dividend payments totalling $2.88. It currently trades at $25.87. There will be a loss of 87 cents meaning that your profit is $2.01 share or 3.9% over 2 years.
FFH.G gets called in Sept/2015. There will be 11 payments totalling 3.44. It is trading at $24.70, so add a 30 cent gain for a profit of $3.74 a share or 5.5% per year over 2.75 years.
The one that seems to be too good to be true is the FFH.PR.E which expires in between these two in March 2015. It trades currently at only $23.11. A gain of $1.89. With 9 payments totalling $2.67, you have a total gain of $4.56 on an investment of $23.11 or an amazing 8.8% average annual return over 2.25 years. What am I missing? You have 3 pref issues with a relatively close annual dividend and relatively close call date but with extremely different market values. Same company. All Rate Reset. Is FFH.E a buy?
Read Answer Asked by RANDY on January 09, 2013
Q: I want to create a financial section of my portfolio. Somewhere between 15 and 20 %. I have been considering adding BMO and NA which are trading at 10 and 8 times earnings and yielding 4.3 and 4.66%. I think a good entry point would be a yield of 5%. Could you comment on the portfolio percentage, stock choices {are there better ?} and entry prices ?
Thanks Garth
Read Answer Asked by Garth on January 08, 2013
Q: Wisinhg the whole team at SiResearch a prosperous 2013.
re: Premium Income Corp. Cl A (PIC.A); I am invested in the Canadian banks through holding ZEB and ZWB. My focus is capital preservation and annual income over 2-3 years. Have you any comments on how PIC-A compares with the earlier mentioned ETFs? I would propose to hold them in a registered account, and review annually.

Many thanks.
Read Answer Asked by Maurice on December 26, 2012
Q: can you give me your opinion on [sii] sprott, thanks, pat
Read Answer Asked by Pat on December 19, 2012
Q: SNV Us listed. Any opinion on this company Peter?
Read Answer Asked by James on December 14, 2012
Q: BOCH - Bank Commerce Holdings in CA. Would this be a good buy for a long -term appreciation Peter?
Read Answer Asked by James on December 14, 2012
Q: CF. In the hopes that M&A activity may pick up in 2013, do you like this company moving forward, in that it could stand to pick up more business in a heightened M&A environment? Does the purchase they themselves made a couple years ago in the UK still hold them back (bearing in mind that half their staff - if memory serves - jumped ship soon after the deal closed). Thanks for all your excellent advice and extremely thorough replies.
Read Answer Asked by Warren on December 12, 2012
Q: Hi. I own the preferred shares, TD.PR.O, for which TD has the redemption option of redeeming the shares after Nov 1, 2010 at a premium & after October 31, 2014 for C$25. No ware on the TD web site can I find what “at a premium means”. Do you know what the premium value would be? Thanks for your help. … Cal
Read Answer Asked by cal on December 08, 2012
Q: Info only to 5i members. Just read this on Motley Fool website: http://www.fool.com/investing/general/2012/12/06/can-your-edward-jones-financial-advisor-really-ser.aspx

Probably explains in part why we are members of 5i Research.
Cheers...........Ron
Read Answer Asked by Ronald on December 07, 2012
Q: Wondering about your current thoughts on Fiera Capital Corp. I have an existing position, and am wondering if you feel now is a good time to buy more. Thanks.
Read Answer Asked by Stephen on December 07, 2012
Q: Peter, Love the site and will definitely renew. Recently retired and have been moving to income over the past year. I feel I'm underweight financials (CM, BMO, TMC and ANGC total 17%) and am considering CIM-N (Chimera). What do you think, or do you have a better idea.
Read Answer Asked by Kyle on December 07, 2012
Q: Hi Peter and 5i team

What do you think of Jovian Capital (JOV). They are issuing a $3.00 special dividend and you have to hold until after the settlement date (Dec 14) to get it. What do you think will happen to the share price after the settlement?

Thanks

Ross
Read Answer Asked by Ross on November 28, 2012
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