Investment Q&A

Q: LOOKING TO SWITCH D.UN FOR SOT.UN . CURRENTLY HAVE 15 PERCENT WEIGHT IN REIT SECTOR . HOLDING CSH.UN AND HR.UN AS WELL .

Q: Do you think this reit is severely undervalued compared to a name like TCN.TO tricon capital, MRG.UN own 30 multi residential proporties in the US and has a yield of 6%, with the the loonie going lower their asset and revenue will go UP. thanks.

Q: Please advise whether to sell a small position in Firm Capital, held for income, in light of the recent drop in Home Capital.

Thanks, Tim

Q: with the big drop in share price is home capital a screamimg buy or a value trap
the announcement they made about cutting off brokers was it prudent business decision or an indication of more problems

Q: What is your view on HOT.UN, 8.7% yield and analyst have target of 12.25$ , stock is trading at year low. good opportunity here

thanks.

Q: There is an increase in demand for seniors housing. Is VTR a good stock to own for someone who wants to invest in this sector in the US. Or can you suggest another stock. It appears that they have not cut their dividend even in the 2008 recession.
Thanks again
Terry

Q: Peter; Have you seen any news on SIA today re the increased volume and price bump? Thanks.Rod

Q: Sorry, yet another HCG question. I have owned the stock for sometime and have faith in management, however I am wondering how one interprets an extraordinary announcement like this.
In your response to Jerry you say the company screwed up. Management on the other hand would have us believe this is evidence of their "continued progress" with originations. Maybe the "rebound in origination volumes" is especially strong and they forgot to put numbers to it.
Certainly they expect to achieve mid term guidance despite everything.
The language in these types of announcements is so convoluted. Perhaps with your many years in the business you could help with a translation/interpretation.
Many thanks
Mike

Q: Good morning Peter and Team,

Thanks for your answer to my question about HCG. I recently came across this article: http://www.theglobeandmail.com/globe-investor/investment-ideas/big-bank-alternative-equitable-is-good-value-and-growing/article25486861/

In the article, there are two paragraphs that stood out for me:

National Bank Financial analyst Shuba Khan said he doesn’t have any concerns about Equitable Group’s originations in light of Home Capital’s announcement.

“The issues that Home Capital highlighted appear to be company-specific,” said Mr. Khan, who has an “outperform” (similar to “buy”) and $71 target on Equitable Group.

5i is of the opinion that Home Capital's severe price decline is industry related. I do trust your insight, but am having difficulty reconciling the fact that EQB's stock hasn't suffered nearly as much, and would appreciate your comments.

Q: Peter and team,
I have been trying to get a quote on CXS for the last week or so without any luck. I found today that it is going as SCB (Street Capital?) Is there any significance to the name change (I thought Street Capital was a subsidiary)? What do you think of it at this time?
Gary

Q: Hi Peter and Team,

We hold HCG in several accounts.

It's down substantially in our grand children's RESP, so we probably should just hang on as it's only 3.2% of a well diversified portfolio that won't be needed for over four years.

However, in my RRIF that holds many 5i recommendations, I'm still up over 8% as it's been a long-term holding. Should I hang on and "hope for the best", or swap it for another divided paying financial stock that has better prospects going forward? (We hold BNS in a margin account).

As always, your advice is highly valued.

Q: HCG took a big hit today on downgrades. Yet its ROE is still above 20% and it is a dividend grower. Concerns are over lack of growth of new single family mortgages and conservative policies. I would look at this conservative approach as positive in present housing market. I have a small position in HCG. Should I panic or use this low price as a buying opportunity? Thank you.

Q: SCB took a hit this morning, I suppose because of HCG's news. Do you still find SCB a good value and perhaps worth adding some at this lower point?

Q: what's going on with FN price action? Can't find any news and don't have all the market data. Is it related to Alberta exposure? Thanks

Q: I bought Starwood Property trust due to its low PEG ratio high yield and low PE. So far its given me nothing but grief. Would you sell or hang on?

Q: Hello Peter and Ryan,
NWH.un March $10.00 July 10 $7.63
At 6:10 PM a news report indicated Paul Dalla Lana acquired more trust units. He now owns 34.15% of the REIT. Plus he has an automatic plan to buy up to 5% more. Please comment on whether it's a hold or a loss sell? Also, in general when one person acquires such a large part of a company, does the interests of small shareholders suffer? Thank you, it's always interesting!
Bruce

Q: Hi Peter and the team,
Could you please comment on this reit ?
Is it a good buy ?
Thanks!
Jim

Q: Looking to buy as a long term hold for income. Is the distribution sustainable and is there value in this REIT for a long term income investor. Share price keeps dropping even after a merger that makes the company stronger. Don't understand why shareholders are heading for the door? Are there management issues here or something I am not seeing. Looks like a good value/income play? Your thoughts on this stock would be appreciated.

Q: MRT.UN is near a 52 week low. By all metrics it seems to be a bargain. It has a 5.9% yield, a P/E of 11, trades at 2/3 of NAV, with EPS of $1.50 which easily covers the dividend of $0.96.

Why is this stock so Cheap? What would you expect in terms of performance over the next 2 years? Do you feel it is a good buy at the present time?

Thanks again for all your help,

Glen

Q: I am think thinks of buying some RET's for div. income could you suggest something for me.

Jim.