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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: Having bought some at much higher prices ($18) and given your recent comments around it's low valuation and that IT is trading at significant discount to it's peers would this be a good price to pick up some more and lower my ACB? I know if the company is sold it unlikely to be at a price that's a double from here. IT is an insignificant part of my portfolio but is in my tfsa so i can't use the loss.
Read Answer Asked by Richard on April 26, 2016
Q: Good Morning
I hold 4 Canadian banks CM, TD, RY and BNS in an unregistered account. The bank stocks comprise just under 20% of my portfolio and each has approximately a 50% capital gain. My only other financial stock is a 2.5% position in PWF. Capital gains in my account this year will likely be taxed at 15%. I am considering selling one of the bank stocks (perhaps CM) and investing the proceeds in SLF. I have chosen SLF for it's relatively low valuation and secure dividend.
Is reducing the allocation to Canadian banks appropriate, or does the tax which has to be paid cancel the benefit?
Which bank would you sell?
Is SLF a suitable alternative or is there another company that you would prefer. I already have full positions in CNR and BAM.A.
Thanks
David
Read Answer Asked by David on April 25, 2016
Q: The week, Great-West declined to exercise their call option on their US$300mm fixed-to-floating hybrid bond securities, thus allowing this bond to not mature for another 30 years. Apparently the bond market was shook up a bit over this move and it was not expected. It is my understanding that it has been generally customary to exercise the call option at this point (10 years in this case), but GWL has broken with this tradition/practice. I have read that the market for these types of bonds is about C$45bln.
Do you think that this could real negative impact on the bond market?

Thanks,
Mike
Read Answer Asked by Michael on April 25, 2016
Q: Having built a cash position I am now looking at re-deploying into the market. S&P500 looks like a technical top but maybe on a long-term perspective it is ok. I own many of your names and would favour just increasing those positions as it would not result in over concentration on a name basis or a sector basis. No Oil & Gas due to long-term structural changes or mining due to too many operational and geopolitical challenges. So with this in mind, your top ten or so picks for long-term growth/income.
Read Answer Asked by Greg on April 25, 2016
Q: I would appreciate your thoughts on Mullen Group. I am not sure i fully understand their Q1-2016 comments about strength of trucking business. Yes, OIBDA for trucking is better year over year, but their revenue actually declined for this segment as well. would like to know your thoughts on company's debt, current share price, their survival chances if oil remains at or below current price for next year or so.
At what price would you recommend buying the stock?
Read Answer Asked by Harpinder on April 25, 2016
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