Investment Q&A

Q: Some time ago I purchased a Royal Bank "fixed-floater" subordinate bond issue,for which the interest is fixed at 3.18% for the first 5 years, and then floats at the 90-day Canada rate + 1.21% until maturity 5 years later. The "fixed period" is coming to an end this year on November 2.

When I purchased the bond, I was told that banks virtually always "call" fixed-floater bonds before they become floaters. However, I do not understand what would be their motivation to do so: with the current approx 0.30% 90-day rate, they would only be paying about 1.5% interest to the bondholders until maturity in 2020.

Should I expect that this bond will not be called and that I will be stuck with it at a poor interest rate until 2020?

Thanks!

Q: I am thinking of moving out of FSZ into AD for growth and income. I realize they not in the same business exactly but would like your opinion. Thanks for a great service.

Q: Yahoo shows 2016 PE for above as 6.8, 11 & 6 respect. Pls. state what your source shows. I'm itching to buy.
Thanks

Q: What is your rating of QHR Corp now?

Q: What is it that is ailing BIN? I've wanted to buy it now for some time, yet something keeps holding me back.

Apart from your in-house report, I've read quite a lot on this company, because it seems such a logical, slam-dunk, no-brainer (and many other metaphors to accompany that thought) that it should be doing so much better than it is. Yet, it is trading lower now than in January, and nothing seems to shake it out of its doldrums.

Does it have more competition in the space than we (retail investors) are aware? Is it an organic ailment (no pun intended, given the nature of the industry?) Is it management? Is is just the sluggish market?

I would think even in a sluggish market, we're producing more waste than ever before in history, and consuming at such a rate that it makes cockroaches blush, and yet ...

I'd appreciate a gut-reaction, experienced investor's hunch on what's up with BIN.

Thanks very much, as always.

Q: I have a position in FEZ but it doesn't include Great Britain which appears to be the strongest economy in Europe. Would you add an equal position in EWU? Alternatively, if one doesn't wish to buy US$ at this time, what about a position in XUS which appears to cover Great Britain and the developed countries of Europe and is available in C$? Is there a US$ equivalent to XUS? Thanks for your advice.

Q: Is Westshore Terminals a buy/hold/sell?

It did so well for so long and now is receding. Given the coal requirements of China will diminish over time, what is the future of Westshore?

Thanks

Q: In a recent reply to an inquiry about TRP you said that it had a good dividend and it had been unreasonably beaten up this year. Could you name 5 other companies that also fit this circumstance.

Q: Hi Peter et al;
In previous answers you state that this should only be bought for income , now at approximately 4.6%. Most of the rate resets which they hold were issued in 2011 or 12. That means that there still remains 1 year of lower rates to be worked into the yield, so the average could decrease further, and the principal ( 25.00 ) could fall further. Am I out of tune? Also, would Transalta be worth looking at in the 4.50 range considering the interest in renewables?
Appreciate your time.
BEN

Q: Greetings:
What can you tell me about wpg-n. It appears to be very cheap and out of favour. Also, what is your latest assessment of plaza reit. plz.un-t.
Thanks BEN

Q: Is MMY attractively priced/valued considering it's overall status? How would you rate the management considering sector turbulence? Did they win or are likely to win their recent legal battles? Thanks in advance.

Q: In my RRSP looking to swap ATCO for another utility. Soon to retire, looking for safety, income and maybe a little growth. My choices are FTS, CU, EMA and BEP.UN. Already have a little EMA. To my eyes it looks like BEP.UN with its juicy yield is the best choice. What do you think?

Q: Hello 5i team

I am curious about CWB, this bank seems to follow XEG closer then it the does XFN. Is its exposure to the oil field that drastic?? I really like the long history of div growth, the share price to NAV, low P/E ratio and it's low debt. What do you think of this companies dividend (is it sustainable), management, and its growth potential? does this have a greater potential for a rebound then the big 5 banks?

Any info on this company is greatly appreciated

Thanks

Q: Could you please do a research report on this company? TPK is based in BC and they appear to own the rights for a proprietary technology ("Swiss Water") for removing caffeine from coffee. Appears to be quite a profitable + growing business. Views on TPK would be appreciated. John

Q: Please suggest a few companies listed on Canadian exchanges,but who get most of their revenue from the U.S.A.

Q: Hi Peter / Group - Taking present market concern into account. Would you buy into the market today?(or wait) and if you would buy - what would your top 2 value/2 growth stocks be?...thanks

Q: I was just about to hit the the "buy" button on this stock as the new doom and gloom oil price of $20 per barrel hit the headlines. I am looking for income and (some growth vs seeing a declining share price). Would this current turn of events deter you from buying ENF for a 3-5 year hold. I can accept the ups and downs over that period but a reduced dividend.

Thanks for your help.

Q: Hi Peter and Team!! Warren Buffett had purchased quite a bit of this stock. What are your thoughts on it and would you purchase it now with the Canadian dollar being as low as it is. Cheers, Tamara

Q: Doing a bit of portfolio clean up, what would be your recommendation (keep, replace with) regarding the following mutual funds in a well diversified portfolio. They represent about 8% of the portfolio.
DYN435 up 40%, DYN9405 up 18%, TML1013 down 6.5%, TML 1018 up 12%, AIM1651 up 9%
Please deduct credits as necessary.Thank you.
Carlos

Q: Hey guys - Could I please get your favorite Canadian dividend growers to buy at current prices and hold for the next several years. Thanks.