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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: Due to fortunate timing following some great advice (thanks 5I!!) combined with the recent market surge, we find ourselves overweight in Tech. With relatively equal weighting, which of these 7 companies (if any) would you consider selling? In what order?
Read Answer Asked by Stan on February 13, 2020
Q: I started half positions in these company’s last week. Do you think it would be best to buy full positions now or wait for a little pullback?
Read Answer Asked by sean on February 13, 2020
Q: GReat article on trying to understand the Brookfield emplire.

https://theprovince.com/financial-times/inside-brookfields-empire-a-complicated-jigsaw-of-500-billion-in-assets-spread-across-the-world/wcm/ced4b714-3e50-4115-b9ac-48d6ce1f623a

Cheers
Read Answer Asked by kelly on February 13, 2020
Q: Hi Team,
This may be a bit of a "shot in the dark" question, but what i'd like to know is your top 5 companies with a "high risk - high reward" profile and 5 in the "medium risk - high reward" for a 3-5 year hold.
thanks
michele
Read Answer Asked by Michele on February 13, 2020
Q: The company just had a new issue announcement for convertible 5.25% debentures with a settlement date around mar 5, 2020. I am interested in buying, but would like to know how the conversion feature works ... will the holders have the option not to convert to common shares? Or it’s mandatory? At what conversion price usually?
Read Answer Asked by Liping on February 13, 2020
Q: I am finding myself a bit on the heavy side lately in the "technology" sector, which has certainly not been a bad thing. My question is whether or not it warrants a bit of a higher weighting as the sector seams to be broadening so significantly with companies such as REAL, which services the real estate and insurance industry, being classed as Tech sector. With the spread of technology into all industries and aspects of our lives, there seems to be some discrepancies between companies that develop tech for use in an industry being classed as tech or the specific sector. Another example could be CAE which could be argued as transportation and healthcare to a degree but is classed Tech. I Understand that these are just titles and weightings can be a bit flexible. I realize this is a bit of a nebulous question but your comments, clarification are always much valued.

Secondly, I have some cash to deploy and other than technology, what other sector or sectors would you favour (other than to deploy based strictly on a perfectly balanced portfolio, sector wise) would you favour for the longer term at this point in history?

As always, thanks for the sage advise!

John
Read Answer Asked by John on February 13, 2020
Q: IAG reported a 7.8% increase in their dividend, EPS up by 14% … overall, results seem quite respectable yet share price is down over 3%. The executive commented ….

"Overall, business growth was very good in the fourth quarter. Sales were especially robust for segregated funds and in Group Savings and Retirement," Mr. Ricard continued. "Individual Insurance sales also finished strong with 8% year‑over‑year growth, and mutual fund sales improved. Solid profits and sales in both of our U.S. divisions in 2019 reinforce our desire to continue growing our U.S. presence in 2020, in particular with the acquisition of IAS announced in December 2019."

"Profitability remained strong in the fourth quarter," added Jacques Potvin, Executive Vice‑President, CFO and Chief Actuary. "Market growth and new business strain are among the items that had a positive impact on profitability during the quarter. Our year-end assumption review also had a slightly positive impact on our results. The review factored in investments in technology to improve client and distributor experience."

"Our guidance for 2020 puts core EPS between $6.30 and $6.90. That makes the midpoint 11% higher than last year," continued Mr. Potvin. "After exceeding guidance in 2019, we're also raising our target range for ROE to between 11.5% and 13%. Organic growth and various profit improvement initiatives will help us reach these targets. On another note, we achieved our goal of organically generating over $250 million in capital in 2019. Renewing that goal in 2020 will allow us to maintain our strong capital position."

Can you comment? Thank you
Read Answer Asked by Martin on February 13, 2020
Q: Re: Question concerning recent performance of EDG180, Feb 11, from John.
I note that EDGPOINT came about toward the tail end of the 2008 market shock and that they therfore had an excellent starting point for their funds to perform. Is it possible that this serendipitous beginning might somewhat explain their longer term results and that perhaps their more recent performance which "has indeed slipped" might actually be the norm?
Steve
Read Answer Asked by Steve on February 13, 2020
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