Investment Q&A

Q: As a follow-up to Tim, I understand the CDIC issue, but what about funds in a self-directed brokerage account held at a bank that has to be bailed-in? How would a bail-in affect stock and preferred share holdings in the bank affected, and, in the same account, non-bank stocks and ETF holdings that hold some of the bank stock? Does it make any difference if the individual actually holds the stock certificate (I suspect most of us don't)?
Thank-you

Q: Looking for a nice/reliable dividend and some growth.

With lots of "talk" about infrastructure spending, would you buy either .... OR BOTH ... of these companies.

Thanks yet again.

Q: I read your report on this company and questions and answer and you mentioned that this stock need to be kept for 5 years or more. With the stock being down so much from my purchase price and in my TFSA is it not better to just sell and look for another stock with more potential. It is a 7% weight.
Thanks
Dolores

Q: XHY looks like a timely buy for a nice yield and maybe even a little price appreciation over the near term in an income account?

Q: You recently recommended 20% financials in an income portfolio. I own BNS, TD, SLF, FFH, OCX, and BAM.A. Would you consider FFH, OCX, and BAM.A to be financials? If so would you recommend a weighting of approximately 3 % in each of these 6 stocks? I note that the OCX share price has pulled back - would you recommend adding to it now? Many thanks for your great service.

Q: KXS or CXR for TFSA 10yr hold and why?

Q: What is your opinion of the latest earnings, and if you feel this stock has more room to grow, and how you feel about it for a longer term hold and what are the risks to holding it.

Q: What do you think of RMP's latest results and is it worth bragging about record production at $30 oil? Is this a candidate for a snapback in a steadily improving market if I were to hold it for a few years?
Thanks.

Q: Re: Banking Industry in General (with reference to Jim's post):

I also am concerned with the banking changes. I would guess the majority of Canadians aren't aware these changes took place. I've read that saving/checking accounts wouldn't be included, but they certainly were in Countries that did have bail-ins. I've put some money/investments in a local Credit Union just so I wouldn't have everything in one place. It may not make a difference, but maybe it will. Another thing some people may not be aware of is Canadian Banks got a "sort of" bailout in 2008 through the CMHC. I still don't know all the details of what took place and I think it is all paid back now, but it certainly wasn't front page news.
This would be less of a concern to me if the US had thrown some executives in jail instead of just fining the companies. There is no accountability or admitting of guilt anymore, just pay a fine and move on (or in Politician's cases, shuffle cabinet positions around).

Sorry if this rant offends anyone, I don't mean it to be that way.

Paul

Q: BUY SELL OR HOLD
1.) PIVOT
2.) VOGOGO
3.) DYCOM, DY.......U.S. LISTED COMPANY
Thanks

Q: I have option to transfer series 1 preferred to series 2. I have pasted the announcement to provide all the relevant info. Could you please let me know if I should convert to series 2. I will appreciate your response ASAP since I have to make decision soon.
Thanks and kind regards,
Tarun


First National Announces Dividend Rates on Cumulative 5-Year Rate Reset Class A Preference Shares, Series 1 and Cumulative Floating Rate Class A Preference Shares, Series 2
2016-03-02 10:00:00 PM ET (CNW Group)




First National Financial Corporation ("First National") (TSX: FN, TSX: FN.PR.A) today announced the applicable dividend rates for its cumulative 5-year rate reset Class A Preference Shares, Series 1 ("Series 1 Preference Shares") and cumulative floating rate Class A Preference Shares, Series 2 ("Series 2 Preference Shares").

With respect to any Series 1 Preference Shares that remain outstanding on March 31, 2016, commencing as of such date, holders thereof will be entitled to receive cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of First National. The dividend rate for the five-year period commencing on April 1, 2016, and ending on March 31, 2021 will be 2.79%, being equal to the 5-Year Government of Canada bond yield determined as at 10 am (Toronto time) March 2, 2016 plus 2.07%, as determined in accordance with the terms of the Series 1 Preference Shares.

With respect to any Series 2 Preference Shares that may be issued on March 31, 2016, holders thereof will be entitled to receive floating rate cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of First National, based on a dividend rate equal to the 90-day Canadian Treasury Bill plus 2.07% on an actual/365 day count basis, subject to certain adjustments in accordance with the terms of the Series 2 Preference Shares. The dividend rate for the period commencing on April 1, 2016 and ending on June 30, 2016 will be equal to 2.532%, as determined in accordance with the terms of the Series 2 Preference Shares.

Beneficial owners of Series 1 Preference Shares who wish to exercise their right of conversion should communicate as soon as possible with their broker or other nominee and ensure that they follow their instructions in order to ensure that they meet the deadline to exercise such right, which is 5:00 p.m. (Toronto time) on March 16, 2016

Q: If currently owned would you continue to hold or sell?
Thanks
Dolores

Q: Can you tell me what is happening with WEQ. I bought a huge position (in an account I call VEGAS)at 0.22 and wonder if it will ever get back to its highs in 10 years. They were tied to oil and gas but have shifted to other industries (Movie rentals, Permanent Modular, Passive House Construction etc.) How do the debentures play out? Do you know the management?

Q: Would you be a seller of this stock if owned at the current time?
Dolores

Q: I think you still have SYZ in your growth portfolio. Do you intend to keep it there for the immediate future?? ( yes or no) - thanks.

Q: Good morning,

I am looking for some stock suggestions in the US on how best to play the rental market particularly in some of the more expensive/popular real estate markets in the US ie San Francisco. My thesis the strong growth in real estate prices will result in the millenials choosing to rent in the more popular urban centres either by choice or necessity.
Can you comment on this thesis as an investment opportunity and provide your best equity ideas at this tine in US and Canada.

Thanks for the excellent service!

Q: An article by Mr P.Hodson in The Vancouver Sun dated Mar 5.He said that he cannot predict"multi,baggers" stocks,but can make suggestions such as GUD,DHX.B SYZ & PLI.

Q: Hi,

Would you please rank these from 1 to 4, what your preference would be today for 3 years hold.
GUD, EFN, KXS, SH.

Thank you,
Milan

Q: Hi 5i Team,

This is an unusual question and feel free to take a pass on it, as it might not fall within the definition of the service you offer, and I would fully understand. Also, feel free, if answered to post or not.

There have been bank confiscations in Cyprus. And I believe, banking problems in other jurisdictions where the depositor has taken the hit. Rare, but they happen.

We were supposedly immune from such confiscation action by the rules and regulations of the banking industry, and also having relatively strong and stable economies and banking systems.

Since the Cyprus event, and the problems of the 2008 crash, according to articles in Canadian MoneySaver (May and June, 2013), the banking rules in the US and followed by Canada have been modified to allow for the backs to take money from their depositors, during an economic crisis, rather than rely on a government bail out.

This is not something that keeps me awake nights, but it does nag me as ... How does this make sense ?

I do not understand why the regulations were changed. Changes normally happen if there is a "really big reason to do so." In other words, If our economic and banking systems are in such great shape and are expected to be for the distant future, why change the rules ? The implication is that perhaps some sort of condition could occur that to save the "systems" (government budget and banking system), the investors will take the hit. (This also raises the option that ... Hey, why not just print money and give it to the banks as in the past - there was grumbling, but it did solve the problem).

I guess I am looking for a general comment on banks, safety of deposits, and why need to change regulations.

Thanks for the great service.

Jim,

Q: Any idea what spurred a 23% jump in CFW on Friday? I don't see any news, but volume seems be up about 3X normal.