Q: I know you have liked Priceline in the past but what do you think of their recent earnings release and the market reaction to it? Is the valuation reasonable?
Thanks so much!
Thanks so much!
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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 thought this article by Rob Carrick (Oct 23rd) would be of interest to your Members.
Any comments on it from 5i would be welcome as CBO is often recommended on the site as providing a 4% + return.
Thanks in advance:
"You're probably not getting the yield on bond ETFs you think you are"
Oct 23, 2014 by Rob Carrick
"Some of the most stubborn investors out there are the ones who believe they’re getting yields of as much as 4 per cent on their mainstream bond ETFs."
"Consider the popular five-year laddered corporate and government bond funds offered in BlackRock Canada’s iShares family of exchange-traded funds (CBO and CLF). If you find quotes for them on Globeinvestor.com, you’ll see yield of 4.2 per cent for the corporate bond ETF and 3.6 per cent for the government bond ETF. For comparison’s sake, a Government of Canada five-year bond yields about 1.4 per cent a 10-year Canada bond gets you just short of 2 per cent."
"I am continually surprised by the number of investors who don’t question these bond ETF yields further. They insist on believing they are getting double the yields available on government bonds. Think about it, people. If bond ETFs offered such outsized yields, wouldn’t investors have piled into them and driven the yields down? As prices rise for bonds and bond ETFs, yields fall."
"If you’re in the group that takes the published yields for bond ETFs at face value, let me direct your attention to the yield to maturity numbers displayed on the fund profiles for CBO and CLF on the BlackRock website. CBO clocks in at 2 per cent, or 1.7 per cent after fees. CLF comes in at 1.4 per cent, or 1.2 per cent after fees."
"The yields you see in bond ETF quotes is the distribution yield, which is based on the previous 12 months’ worth of interest payments and the current share price for the bond ETF. If the price of a bond ETF stayed put, then distribution yield might mean something. In fact, the price of CBO and CLF units have been falling in recent years. Globeinvestor.com shows a three-year cumulative drop of 3.6 per cent for CBO and almost 5 per cent for CLF. A lot of the bonds held in these ETFs have been trading at prices that are above their value at redemption. As these bonds approach maturity, they decline in price."
"If you want to know what yield you’ll get from a bond ETF on a total return basis – that’s interest paid out combined with changes in the unit price – then check yield to maturity. The distribution yield is a much happier number, but it’s not the whole picture."
Any comments on it from 5i would be welcome as CBO is often recommended on the site as providing a 4% + return.
Thanks in advance:
"You're probably not getting the yield on bond ETFs you think you are"
Oct 23, 2014 by Rob Carrick
"Some of the most stubborn investors out there are the ones who believe they’re getting yields of as much as 4 per cent on their mainstream bond ETFs."
"Consider the popular five-year laddered corporate and government bond funds offered in BlackRock Canada’s iShares family of exchange-traded funds (CBO and CLF). If you find quotes for them on Globeinvestor.com, you’ll see yield of 4.2 per cent for the corporate bond ETF and 3.6 per cent for the government bond ETF. For comparison’s sake, a Government of Canada five-year bond yields about 1.4 per cent a 10-year Canada bond gets you just short of 2 per cent."
"I am continually surprised by the number of investors who don’t question these bond ETF yields further. They insist on believing they are getting double the yields available on government bonds. Think about it, people. If bond ETFs offered such outsized yields, wouldn’t investors have piled into them and driven the yields down? As prices rise for bonds and bond ETFs, yields fall."
"If you’re in the group that takes the published yields for bond ETFs at face value, let me direct your attention to the yield to maturity numbers displayed on the fund profiles for CBO and CLF on the BlackRock website. CBO clocks in at 2 per cent, or 1.7 per cent after fees. CLF comes in at 1.4 per cent, or 1.2 per cent after fees."
"The yields you see in bond ETF quotes is the distribution yield, which is based on the previous 12 months’ worth of interest payments and the current share price for the bond ETF. If the price of a bond ETF stayed put, then distribution yield might mean something. In fact, the price of CBO and CLF units have been falling in recent years. Globeinvestor.com shows a three-year cumulative drop of 3.6 per cent for CBO and almost 5 per cent for CLF. A lot of the bonds held in these ETFs have been trading at prices that are above their value at redemption. As these bonds approach maturity, they decline in price."
"If you want to know what yield you’ll get from a bond ETF on a total return basis – that’s interest paid out combined with changes in the unit price – then check yield to maturity. The distribution yield is a much happier number, but it’s not the whole picture."
Q: Good evening,
In a news release Friday evening, management of Marret Resource stated the net asset value per share was $5. The stock currently trades around $3.64. Could you please offer some guidance as to the reliability and safety of the $5 figure.
In a news release Friday evening, management of Marret Resource stated the net asset value per share was $5. The stock currently trades around $3.64. Could you please offer some guidance as to the reliability and safety of the $5 figure.
Q: How big can this China TV agreement be?
Q: Good morning Peter and Team,
I was surprised to see BNS among the "dogs" in the "Stars and Dogs" column in the Nov. 8 Globe and Mail. In it, John Heinzl wrote, referring to the 1500 job layoff, "If this is how it reacts to the good times, wait until the next recession". As a long-term investor holding only BNS in the big-bank sector, should I be concerned about Mr, Heinzl's assertion? Should I consider diversifying into one or more of the other big banks? If so, which one(s)? Your insight and advice is always highly valued.
I was surprised to see BNS among the "dogs" in the "Stars and Dogs" column in the Nov. 8 Globe and Mail. In it, John Heinzl wrote, referring to the 1500 job layoff, "If this is how it reacts to the good times, wait until the next recession". As a long-term investor holding only BNS in the big-bank sector, should I be concerned about Mr, Heinzl's assertion? Should I consider diversifying into one or more of the other big banks? If so, which one(s)? Your insight and advice is always highly valued.
Q: May I ask opinion on FCU and u308 in general for short- mid and longterm ?
Thanks
Thanks
Q: can you provide me with expected earning per share &top line estimates vs actual ones reported also cashflow is down can you give your take on this thanks
Q: Would you view $50 as an entry point for HCG. How do you rate the company going forward?
Q: Dear Amazing Team:
I would appreciate a current update on your assessment of Capstone Infrastructure. Dividend safe? Thanks so much.
I would appreciate a current update on your assessment of Capstone Infrastructure. Dividend safe? Thanks so much.
Q: Have you changed you opinion on chorus?I've owned it for income and it hasn't disappointed.I would think lower fuel costs would be a great benefit to the company.
Q: Hi;'
I am currently holding Easyhome. What do you think of selling it and purchasing Home Capital Group one of the stocks in your model portfolio.
I am currently holding Easyhome. What do you think of selling it and purchasing Home Capital Group one of the stocks in your model portfolio.
Q: Hi Team
I wish I had sold this one in the summer.
Should I hold, buy more or sell?
Thanks,
I wish I had sold this one in the summer.
Should I hold, buy more or sell?
Thanks,
Q: Hi folks,can I please ask opinion on Q results for Halogen,were there any encouraging signs to hang onto stock or is this a good tax loss seller,holding higher prices and they seem to be executing plan but say not profitable till believe 2016,thx as always jb
Q: Do you think Kinaxis is overvalued here? I realize it is in a sexy area, cloud computing, but the earnings growth doesn't seem to be high enough to warrant the current valuation. Thoughts?
Q: In light of MIC's good Q3 report, does the S&P rating downgrade make sense to you? How negative might this be on the share price? Is it a reaction to the US company report?
Q: Genworth MI
Could you please give your insight into the downgrade by Standard and Poor of this Canada stock. Is it ok to still own because of this report.
Could you please give your insight into the downgrade by Standard and Poor of this Canada stock. Is it ok to still own because of this report.
Q: Re tax consideration, is the TMC distribution considered interest or dividends?
Thanks. Dave
Thanks. Dave
Q: peter
what is your opinion on REI current results?tan
what is your opinion on REI current results?tan
Q: I bought the following for income in the 3 weeks. Please suggest 5 or 6 more income stocks. Thanks.....
Q: Hi Peter,
I would like your thoughts on HBC.
I would like your thoughts on HBC.