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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: I would like to purchase half positions in Stantec, Home Capital and Cineplex but I can't bring myself to pull the trigger because of recent positive share price appreciation. How can I justify entering the market at this particular point in time? I was clobbered in 09 ie sold out near the bottom and clobbered again recently with a position in VIX. Thank you.
Read Answer Asked by Richard on October 29, 2013
Q: I took a position in Equity Financial a while back and was up about 12% before the departure of an executive. I invested in EQI partly because I had missed the boat on HCG at about the $55 dollar mark after the shorting noise. Now I'm about at break even on EQI and wondering what to do. I liked the growth potential of EQI and the fact that you liked management, and I liked the bargain price of HCG at $55. Should I sell EQI and look at Counsel CXS, perhaps, or maybe Wi-Lan is turning the corner? You will probably say I should go with HGC, but it is hard for me to pay $77 for a stock I could have had at $53.(Maybe I should just get over that missed opportunity.) I am mainly after growth at a bargain (don't need a dividend) in any sector. Maybe RKN Redknee? I currently have a pretty good replica of the model portfolio. Again, thank you, thank you, thank you, for a service that is so good that I can't believe it exists. So glad to say good-bye to my broker.
Read Answer Asked by Gordon on October 21, 2013
Q: Question: How many years of significant growth do you think Home Capital Group (HCG) have ahead of them? I see the growth is there as we move from 2013 into 2014 and even with HCG's recent move its valuation is still attractive with a p/e in the low 9s using 2014 earnings estimate. However, do you still expect ok growth beyond 2014 or do you see HCG turning more into a MIC (Genworth) with an attractive valuation, a steady dividend but also low earnings growth?

Thanks, as always.
Read Answer Asked by john on October 21, 2013
Q: HCG has had quite a move recently. On BNN this morning, they said they thought this was a short covering rally. I think the fundamentals of HCG are excellent and by putting this company into greater focus, the shorts may have inadvertently sparked investors to have a closer look at HCG. I know you like HCG as well. Would you be trimming a little here? Do you know how many shares are still short?

Thanks
Read Answer Asked by Hans on September 19, 2013
Q: Team,

I am looking to add a financial position to my wife's small, slowly growing, portfolio of mostly 5i recomendations (Magna, Cineplex, Amaya and Apple). I would classify her as a cautious medium term (2-3 years) investor.

In light of the Fed's decision yesterday (low rates in forseeable future but indicative of poorer US economy), would you be more or less bullish on US Financials vs. Canadian? How would you rank the following companies 5 that we have shortlisted to purchase? Thanks!!!!

TD
BNS
HCG
JPM
BOA

PS - I cant say it enough, I absolutely love this service and the value I know I'm getting!
Read Answer Asked by Ray on September 19, 2013
Q: In the past I have been burned buying stocks that are breaking out into new highs after they have already had a great run. My old inclination of searching for undervalued companies when they are unloved, and catching a run early, is hard to shake. Do you believe any of your portfolio picks are in the early stages of a nice climb, just as MG was 9 months ago and/or how much more upside can you see in something like Magna? - Thanks.
Read Answer Asked by orion on August 10, 2013
Q: Hi Peter:
I bought some HCG at around 53 while the hedge fund managers were shorting this stock
It has recovered nicely and today, it went up again nicely

Where do one find the volume of short positions on this stock?
I made a nice profit, I am tempted to exit or the momentum of HCG is real? pays a small dividend too! Thanks for recommending this stock!
Read Answer Asked by Michael on August 08, 2013
Q: Hi:
I bought HCG at around $ 52 recently, I understand that a group of people South of the border were shorting the stock, HCG fell from near $ 60 to the level where I bought it,
I am planning to hold it for at least 2 years to get the dividend
and hopefully enjoy abit of capital gain, do you think I should add more HCG at this stage ? Would it be a reasonable move?
Many thanks! have a good day
Read Answer Asked by Michael on June 13, 2013
Q: Regarding Home Capital: If housing prices decline, presumably more people would qualify for mortgages, if they still have jobs. More people would have the required down payment for the cheaper houses. Or do company earnings come from the size of the mortgage versus the volume of mortgages? Also, I read/heard somewhere that HC does not lend in the condo market, only detached homes, and they require a significant down payment. I just can't see any reason for shorting HC, except that someone had "said their loans are sub-prime." Actually, their loans might be even more prime than those of banks? What am I missing here?
Read Answer Asked by Gordon on May 22, 2013
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