Investment Q&A

Q: Any thoughts on the recent results from Equitable Group? Despite what initially appear to be strong earnings reported Thursday p.m., the stock was down significantly in Friday trading. Thank-you.

Q: This company price is heading lower yet their earnings are almost $10.00 for the year .they do not seem to have the same problems as Home capital.What is your opinion on this stock.

Q: Would you recommend investing in this preferred at this time (given the drop in its price recently), and would you consider the preferred as a safer investment vs investing in the common shares. The reset is Canada 5 year bond yield + 4.78% (September 30, 2019). I am not sure, but are there any more Canada bonds to be issued going forward? If not how will the rate be set in the absence of further Canada bonds being issued..

Q: EQB is dropping in sympathy with HCG, what is your opinion on it?

Q: Hello,

How do you feel about EQB.PR.C? It had been pretty stable around $25. Do you feel like it will drift back to that price over the next 1-2 years?

Regards

Q: Isn't it a a bit too coincidental that we learn that both Royal Bank and BMO are selling uninsured mortgage backed securities, a few days before the Home Capital death spiral? You have an optimistic bias, and typically trusting towards management, so I speculate that you will answer that there is nothing much to think of it, but could you take a distrusting view on this (without being paranoid) and guess what could have motivated them to do that?

Q: EQB.PR.C - do you think the $4 drop today is justified.
If not I am thinking of adding a little to my position before a possible rebound.

Q: According to Webbroker, it has an operating margin of 61%, ROE 16%, payout ratio of 9.8% and no debt. It looks like a quality company that's down about 28% on panic. If it's as good as it's stats appear to be it's on sale. What do you think of it's quality and prospects? Thanks.....

Q: What about an investment in equitable at this juncture given it is being tainted by home capital? Would they not benefit from Home Capital's demise? Thx

Q: Hi I'd really like to "short" the housing market , any ideas? Thanks
Rick

Q: aside from the obvious collateral damage re HCG, what am I missing regards the recent EQB decline?

Q: Do you have any thoughts on the recent rapid price appreciation on EQB following its results last week? Results seemed pretty good in my opinion but not super spectacular and the stock is up over 20% in the last two trading days.

Q: Your opinions on the above companies would be appreciated.

Q: What stocks to sell short if Canadian housing bubble burst? I know the benefits and risks of shorting. As well as the fact that many believe that housing prices would ever go down. Obviously, I have a different opinion and would like to have your objective answer.

Q: About Mark's question, on Twitter, @CdnMortgageNews posted this yesterday: "@EQBank says > 1/2 of its 2016 YTD prime single-family securitized mtgs would not qualify for insurance under the new rules. Src: RBC". Could be a reaction to this. Hope that helps.

Q: Any thought on Equitable Group's latest results? Share value is down over 5% on news of increased dividend, increased EPS and increased ROI. Is this because of the mortgage market overall in Canada?

Q: I sold not only HomeCapital but EQB, because Cohodes, our nemesis, is now shorting it as well. Now I'm left with First National. As much as I'd like to think I'm a long-term investor, my gut tells me once retail investors read about the news on alternative lenders this weekend, the stock sell-off will accelerate. Some insiders are also selling, even the CEO of HomeCapital who sold a massive amount of shares at 34.50 right after that buyback announcement? Another insider sold over 400k at 27.50 less than two weeks ago? For me, the last nail in the coffin was Sherry Cooper's interview yesterday on BNN (Dominion Lending). Most surprising, the CEO of First National came on Bloomberg basically saying: "It's bad for us and banks will take 20% of our market". Question: Would you sell First National and replace it with Surge Energy, which is back in an uptrend? Thanks.

Q: I view EQB as a mini HCG. EQB stock has performed well this year and is near its 52 week high where as HCG has not. Why do you think EQB has performed better this year? Which do you think is a better buy at this time?

Q: EQB has been doing well recently although I've held it for awhile and it just went above my purchase price. It is 19% of my TFSA but tiny in my overall portfolio. Should I continue to hold or sell?