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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: These banks have been "hammered" in the recent downturn (for good reason due to prospective loan losses, and near zero rates). That said, do you see the Fed mandating dividend cuts/eliminations in the future here, or is the market just really skittish about it? They all look "cheap" right now, but an elimination of the dividend would be a real reason for me to leave this space if it were as distinct possibility vs. a "tail risk". What is your take on this and these companies - do you see much risk in dividend cuts here? Or is it just a reflexive thought in that the European banks were mandated to eliminate dividends...
Read Answer Asked by David on June 15, 2020
Q: Hello 5i,
I have owned ZPW.U since 2016 and I am down ~ 20%, of course I receive ~7% dividend paid monthly.. regardless, I am getting frustrated with this investment as it doesn't seem to participate in any gains when the market declines as I assumed the puts would. In your view, what are the reasons for the decline since 2016? and do you see a possible rebound? or just exit this horrible investment.
Thanks
CR
Read Answer Asked by Carlo on June 15, 2020
Q: Any opinion on this preferred share? I believe they re-set in March 2013 at 3.17% above the Bank of Canada Rate, based on $25 par value. That is lower than the current yield, but better than many rate reset preferreds. Should I hold, sell or buy more? Should I sell and just buy the common shares?
Read Answer Asked by Jack on June 15, 2020
Q: I am curious why the above energy infracstructure supposibly defensive due to their yields have been weak this week.
They took a hit today despite falling yields in cnd and
u.s. bond yields and a slight rise in wti and natural gas prices.




Read Answer Asked by Terry on June 15, 2020
Q: Good morning,
I own a small house in Ottawa that is free and clear with a current market value of approximately $350,000.
A recent discussion with my trusted mortgage broker confirmed that a 5 year term (Closed & Fixed) term mortgage can be obtained at a rate of 2.29%. This mortgage is said to be:
a. insured through CMHC,
b. portable, and
c. transferable.
At that rate of 2.29% and given that the interest paid would be tax deductible if I use the funds for investment purposes, I'm seriously considering borrowing around $200,000 and investing this amount for an initial 5 year period with an expected net rate of return on investment of 4.5% .
Q1. With $200,000, what are your thoughts of splitting this amount in 5 different chunks of $40K in the following instruments:
a. Mawer Tax Effective Balanced Fund,
b. Mawer Global Balanced ETF Fund,
c. Vanguard Balanced ETF Portfolio,
d. IShares Core Balanced ETF Portfolio, and
e. BMO Balanced ETF

Q2. As an alternative to the above and given the 5 year time frame, would your preference be to invest the $200,000 in a selection of best in class individual stocks split between different sectors and if so, would you be so kind as to provide me with ya listing of your best ideas at this time.

I thank you and look forward to hearing your thoughts on both of these investment strategies.
Francesco
Read Answer Asked by Francesco on June 15, 2020
Q: What's up with WSP? It held up quite well since March but after
issuing some financing a little while ago it slipped back and seems to be languishing, even during the run up prior to Thursday. What was the financing for? Was it a prudent time to do that? There had been some mention of a merger with a US entity; was the financing related to that and is that going ahead? And last, where do you see this equity going from here. Thanks for your excellent service.
Read Answer Asked by Leonard on June 15, 2020
Q: Recently, in response to a question requesting your advice on a number of stocks including the above, you singled out MSFT and CRWD to "buy more". What are other stocks would you recommend to "buy more" at this time?
Thank you for your advice.
Read Answer Asked by sam on June 15, 2020
Q: Hi Peter,

I am researching some companies in the medical aesthetics space (INMD, CUTR, VERO, AGN, EOLS) and was wondering in this space, what multiple do companies typically trade at from a few different key metrics such as price to sales, P/E ratio, and any other metrics that you feel would be relevant to this space from a valuation perspective? Thanks.
Read Answer Asked by Andrew on June 15, 2020
Q: Please evaluate Novocare as a potential growth stock. Comments I have read are below and it would be great to hear if you see potential for this to rise as we get back to treating "elective" issues.

Unfortunately, the pandemic has delayed enrollment in some clinical trials. But ultimately, this is the only company with a "fourth modality" of cancer treatment beyond surgery, radiation, and chemotherapy — and with no competitors in sight.

Thanks!
Read Answer Asked by Tim on June 15, 2020
Q: It looks like the corona virus numbers in the states are rising. The fears of a second outbreak seem to be happening. Would you be trimming any of your winning positions right now?
Read Answer Asked by sean on June 15, 2020
Q: I'm interested in the idea of green/sustainable agriculture as a theme moving forward. Any stocks or ETFs that could fit the bill? Thanks
Read Answer Asked by Daryl on June 15, 2020
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