Investment Q&A

Q: Please comment on earnings, and if you would add to a position in any of the three?

Thanks

Q: Any news on sharp drop today($4.34 down 0.08) after recent good uptrend & flirting with new year high of $4.475.2% position on $4.02 p/p Buy more,hold or take profit? Thanks for u usual great services & view

Q: I currently hold both.

Re ECN.PR.A
1. Reset Dec. 5 , 2021
2. Rate cannot be less than 6.5%
3. Protection against rising rates, but with rates neutral and/or falling there is an increase likelihood of redemption at $25.
4. Price of Pref. Has trended along with ECN. Cibc has a target of $5.00
5. Reset at 5 yr Canada plus 5.44 (1.523 + 5.44 = 6.963). My book value is $23.57 for a yield of 6.9%
6. Relative to ZPR the price has dropped.
7. I’ve been unable to see the trend on volume.
Question is to make sense of all this, Sell hold or sell half position and keep the cash for other opportunities.

Q: Hello,
I own ATA and AIF in my RRIF account, both of them suffering a small loss. I would like to replace one or both of them with ECN. What is your thought? I usually like to hold stocks for at least 3 years. Thank you very much.
Herbert

Q: I have been called by ECN's Proxy Agent to solicit my votes for the matters before their upcoming AGM. Are you aware of any significant issues concerning executive compensation or the share plans Thank you

Q: Do you see any of these as promising take-out candidates - and if so, in what order ? Thanx Robbie

Q: Your reply to Karl on Mar 7 stated that You are going to give it a few Qs & that it is not a stock that "need to own" If the latter,please suggest some replacements My $9.10 p/p represents a 28% drop.Thanks for u usual great services & views

Q: I intend to start a position in ECN in the near future and would appreciate your advice as to whether to buy the common shares or the preferred, of which there appear to be 2 choices available A or C . What criteria should I be looking at to make this decision ?
Keep up the good work. John

Q: I currently sit at 2.5% on EIF and GSY, would a top of of one these 2 be in order or add 2.5% of ECN? The only other financial is BNS with 2.5%.

Q: Please comment on earnings. Would you add to either/both/none of these two names?

Q: Can I get your view on the earnings release?

Q: Tech Analysis d/d Feb 6 supplied by 5i correctly predicted Breakout(B.O.) for ECN($3.88) AW.UN(36.09) & ABT(8.36).Article d/d Feb 12 stated that ECN is on a B.O. with 10 buy & CTP $4.65.Is this an entry point for ECN? Thanks for u usual great services & views

Q: As much as I enjoy your service, there are times when I find your answers provide insufficient depth. I can understand that when you are asked about obscure companies that most of us have never heard of, but I do expect more, perhaps incorrectly, when the question pertains to companies in your portfolios. Case in point on Feb 6 a question asked what you would recommend , GSY or ECN. Your answer without any support was GSY with no rationale for your choice
On Feb 5, ECN held an information session that provided guidance for 2019.
Management are looking at EPS of 23-25 cents . up from about 11 cents in 2018.
Key sub components are looking quite strong:

Kessler's projections imply earnings growth of close to 40% and revenue growth of around 60%.
Triad is guiding for adjusted operating income to grow around 17%
SFC guidance is for adjusted operating income to grow around 25% in 2019. Originations guidance is expected to be up around 36%. Management believes that the business can grow about 20% annually going forward.
Without getting into them there are other numbers that I have not mentioned that also look quite strong..
The company has been in a transitional phase the last couple of years and there will be some potential losses as ECN sells some of its legacy assets. All in all, it would appear that guidance was extremely positive.
So given this outlook what is it about GSY that makes it a better choice?

Q: I currently own ECN for a total weight of 5.3 % , I am thinking to make it a 3.5% weight and put the cash into VB. ECN is held in non rrsp account so I would be paying taxes on capital gains or just keep ECN as the momentum is good at the moment and analyst are increasing their target prices. At what weight would you sell some? I already own SLF and BNS for financial sector.
Thanks
Dolores

Q: My son is looking to add a financial company to his TFSA. He is 21 years old so has a long investment horizon. Which do you like better GSY or ECN? His only financial holding is BNS which he holds outside his TFSA.

Q: I have a question about ECN.

I have been patiently holding for over a year now after buying around 4.30. I am quite frustrated with price action and am wondering what it will take to see ECN over 4.30 (if ever) and how realistic it is to believe that there will be a catalyst that moves this stock to above $4 and perhaps closer to $5.
Thank you,
Sam

Q: Hi 5I,
The above names are all owned in my TFSA. Of these, I am underweight in COV, IWO, PHO, SDX, SYZ AND VB. I've got some cash to put to work with a long term objective. With consideration to the sector weighting, and my under weights, would you recommend I top up on any at this time or maybe introduce a completely different name or names to the portfolio? Thanks!

Q: Hi, I’m about even on ecn 1.5% and would like to switch to higher dividend paying stock 3%+ with a little growth.
For 2 years it has done little unless you were lucky and sold at the high.
Would you stick with the banks? I have TD 2.5% and FSZ 1.5%.
Thanks

Q: Hi 5i,

I'm looking to increase my current Financial Sector weighting from 5 to 15%. I currently hold BNS @ 2.2%, SLF @ 1.5%, and GSY @ 1.3%. What would you add too and/or too a new position? I don't like to have more than 5-6% of one holding, of course this would be risk adjusted down according to market cap/safety.

Last part, on sector weightings. I follow your general recommendation and I noticed you changed the following from Oct'18 to Jan'19 as follows:
Consumer disc. 10 up to 15,
Consumer staples 10 down to 5,
InfoTech 20 down to 15, and
Utilities 5 up to 10.

Can you add some commentary behind these sector weight changes?

Thanks, Chris.

Q: Ecn's preferred shares, ECN.PR.A, are down $5.00 or so since their issue last year, pay over 8% & their issuer ECN seems to be doing well. Is this quite a risky investment with a dividend of 8% percent for someone seeking yield? Is it fear of rising interest causing the drop or is there a problem with ECN that I'm unaware of? Thanks as always for your sage advice.
Dave