Investment Q&A

Q: Hello 5i,

I currently hold both BN and BAM in a 3:1 ratio. If looking for the highest overall possible return, over a 10+ year period, would it make sense to consoildate my BAM into BN?

Q: Still considering OLY and after reading the report it seems clear what drives earnings as of now, and what can bring them higher or lower quite quickly and that would be, Interest Rates
Olympia noting in the annual report that they are exposed to interest rate risk as the cash portion of the off-balance sheet arrangements ($1.00 billion), from which Olympia Trust earns trust income.

2023 Earnings this year were $21 million... according to the Annual report (pg 26) if rates change +/-1% it is estimated that Olympia’s after-tax earnings for the year increase/decrease $7.69 million (noting prime rate at 7.2%)

So rates drop to 6.2 % and earnings drop over 33%?! Is this not essentially a bet on rates at this point or am I missing something?

I guess reading annual reports could pay off (as knowing this when rates were on the rise with no slowdown coming would have been beneficial)

Thanks for your Input

Q: MCan Financial is selling 1.6M shares at $15.40 to raise $25M. This is about 5% of their market cap. What is your feeling on this dilution and how do you see it affecting their dividend? I have enjoyed their high dividend for many years and am now wondering if this is a worrisome sign, or is it a cheaper way to raise operating capital? The drop today brings the price to close to the $15.40 mark. Do you expect the price to fall further once the offering is closed and people try and sell their shares?

Q: The company is an interesting profitable small cap. Looking at their income statement bad expense is a large component of total revenue. I believe they deal in giving smaller high risk loans. Is their business model sustainable and scalable ? If you like what would be good entry point ?

Q: BIZD Vanec BDC Income ETF

Stable, reliable income plus some growth?

Thanks.
I just submitted a question on this ETF …. BUT forgot to ask if it would also be a good complement to XLF because of the different composition of holdings. ?

Or is there a better financial ETF choice for that purpose?

Q: Insurance companies make money with the float. Could you tell how re-insurance companies make their profit? To split the risk, does an insurance companie has to provide funds for the re-insurance? Today, with interest rate higher for longer, with soft landing, no major tubulence, do you prefer one type of business over the other?

Thanks

Q: Hi Peter,
In regards to Adam's question regarding OLY. Would it be appropriate to look at the interest income that OLY has been able to generate as a hedge against higher interest rates. If rates were to move higher, OLY is set up nicely to outperform. The business delivers high ROE in the 50% plus range and should be able to do well in low interest rate environment especially with a dividend in the 7% range. Would you consider it a compounder?
Thanks

Q: Which one would you prefer? Are they tied? Thanx.

Q: Peter; Did PRL meet, beat EPS etc - and do you feel it’s on the right track to keep growing? Thanks.
Rod

Q: Why is ms treading water ? The rest of the financials seem to have more life.

Q: What is your outlook for GSY, is there any upside left for it or do you think I should hop off here and go to a bank? ..........I would also like to know which bank would be your favourite, even if you recommend keeping GSY.

Q: Hi

The results yesterday for PRL look good.

Raymond James has risen there price from $18.00 to $31.00.

Could this be a junior/next GSY?

Thank you for time.

Sincerely

Mike

Q: Hi, Intact Financial shares dropped today over $3, on no news, while most of the P&C Co's shares in US were holding on well or even higher. IFC is a favorite ( Bal Portfolio) at 5i and the valuation does not seem expensive compared to its US peers. Would you be comfortable adding at current level of $226 ? Thank You

Q: Hi There,

When is ECN’s next quarterly earnings report and what is expected? How long would you continue to HOLD hoping for improvements?

Ok thanks!

Q: Do you consider Sirius buyable today?

Thanks

Q: Hi, looking at the financial sector. I have TD and IFC and looking to add another. The options I am looking at is another Canadian bank that benefits from US exposure (RY), a US bank (JPM) or ETF of banks (ZBK), or diversifying away from North America to a major UK (LYG) or European (ING) bank. My objective is downside safety paired with dividend income and some growth. I realize global stocks aren't your focus, but would appreciate any thoughts you might have on relative merits of these stocks.

Q: Dear Peter et al:

To a question today on KKR, you had mentioned that you wouldn't be averse to adding to KKR "s position slowly.
Recently Larry Berman one of BNN Bloomberg's regular told the viewers that he has sold his equity and moved all into private equity and private credit lending. He didn't mention which private equity he bought !

BLK,BX,KKR,BN ...which is your favourite now? Anything else that catches your attention?

Many thanks.

Q: I'm looking at starting a position in OLY. But I saw an update yesterday from an investing site adding a new major risk that earnings are forecast to decline and avg of 6.1% for the foreseeable future. Also a high level of non cash earnings (23% accrual ratio). In the recent ER they stated that expenses had increased due to bonuses etc in their investment arm because of the strong performance of the company. I'm wondering if these things all point to a stock that got so high due to a few great quarters, but is now expected to normalize and pull back as earnings decrease? Which could maybe impact the div down the road also. Is the high performance behind them and the future looks to normalize? Thx

Q: I’ve held TD for many years and the steady dividends are great but it’s sure been floundering as of late in terms of growth. The 50 per cent weighting in the states seems to have dragged it down with the money laundering questions not being adequately addressed. Might a switch to Manulife or Sun Life not be a prudent move at this time??

Q: Hi team
for the pull back recently
thinking of starting a partial position
what would be a good entry price?
dividend is safe? thanks
Michael