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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: Does the current panic in the financial sector make FSZ more attractive or less? Should we treat its recent 13% drop as an opportunity, or should we worry that spooked investors will withdraw assets?

Sometimes companies get taken private when their share price is depressed; given such a move, would shareholders likely be the losers? Not so long ago (at $1/share higher), you characterized FSZ as "fine for income"; do you still think so?
Read Answer Asked by John on March 15, 2023
Q: A guest on BNN commented that BN.ca requires low interest rates to do well and didn't recommend holding the stock.
The stock hasn't done well since the BN/ Bam spin out. What is 5i's opinion. Do you think there is further down side, or languish at the current price or price appreciation.
There was a common assumption that with the stock spin out that it would unlock value. Instead tanked. Buy sell or hold.

Thanks for your expertise.
Brian
Read Answer Asked by Brian on March 15, 2023
Q: What happens to stock prices of mortgage companies when interest rates go down / up?
Read Answer Asked by Ron on March 15, 2023
Q: In a prior question you mentioned that Goeasy's "funding may slow down or cost more if investors get nervous in general, but it can't really experience a 'run' on current funding like a small bank can". I am trying to understand why Goeasy can't experience a 'run'. What is different with this company? You had also mentioned that it has a different funding base. Thank You.
Read Answer Asked by Walter on March 15, 2023
Q: In a recent WSJ article about Deposit Insurance in US/Canada - they state " Canada never had a bank failure" as far as you know is that true?
Read Answer Asked by Reg on March 14, 2023
Q: I currently own BN, BAM, BIP, and BEP. With recent decline would you be adding to these names? Can you confirm good entry points and if you would consider them a Buy/Sell/Hold.

Thank you
Tim
Read Answer Asked by Timothy on March 14, 2023
Q: The SVB rescue seems to have ushered in some fundamental changes in banking in the U.S which one would assume will have ramifications here in Canada.

Now that the Fed has essentially recognized that depositors are no longer unsecured creditors and bonds are valued at par regardless of market rates, what are the implications for investors?

Equity investors will have to assess their position and risk. Certainly giving every Canadian the option of having an account at the Bank of Canada would solve the security issue for depositors, and would avoid the considerable expense of extending insurance to all deposits regardless of amount.

But are Canadian banks and their investors now significantly disadvantaged if one central bank accepts government bonds as collateral at par regardless of market value while the other doesn't? Your thoughts as always would be appreciated.

Mike
Read Answer Asked by michael on March 14, 2023
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