Investment Q&A

Q: In my RIF account I have RY, TD, & ENB reset preferred shares all bought when issued at $25, now trading in the $14 to $17 range. The accumulated book value is $61K. My present annual yield is 3.9%, 3.8% & 4.4% respectively. The reset year is 2024, when the reset interest rate will be the Bank of Canada 5 year rate plus 2.3%, 2.4% & 2.7% respectively. So my question is, with interest rates presently rising, in your opinion are they worth holding to the reset date or should I accept my loss & redeem them now. Thanks … Cal

Q: Is it a good time to buy.

Q: Earlier I asked if a WSJ article stating "Canada never experienced a bank failure" is true. You replied.

"Not 100% true. The last major bank failure though was 100 years ago, in 1923. In 1985 two very tiny banks failed. In the 1991/92 real estate recession several trust companies failed, but these are not technically banks. "
Thanks for the reply.

Today a column in the Globe & Mail stated "CDIC has handled 43 bank failures since it's creation in 1967."

Just wondering if you could comment if they got that wrong.
Thanks.

Q: Good morning. I'm wondering about the insured limits on our investment accounts. I have all our investments online with a major Canadian bank. My wife and I have several accounts, registered and unregistered. We have a number of GIC's in these accounts along with the usual mix of equities ( individual companies, ETF's) . The GIC's are issued by a range of issuers and none exceed 100K. I have no real fear that our banks will fail but am curious about how much insurance is there in place for investors like myself. Is there an optimal way to protect our investments or are we already doing it? Thank you for your patience. al

Q: Hi 5I. I have bought Gibson Energy around $21 a few times and within 6 months it gets up to $24/25 or more and I sell it. I see it as a safe risk/reward play. At sub $22 per share Gibson pays a 7 per cent plus dividend that I think is pretty safe (what is the current pay out ratio?) I am happy to collect a decent dividend and patiently wait for the stock to appreciate. If it languishes I am fine with the divvy. I don't see that much more downside to Gibson. A couple of years ago it did dip under $20 VERY briefly. What is your opinion on Gibson Energy as a safe place to park some money when it trades under $22?

Q: If one is looking to own a banking and utility ETF (not covered calls) which would you suggest?

Q: What is causing MPW to plummet? Is this a position worth hanging on to? Thanks

Q: I am considering buying this company which seems to have a lot going for it. I would like your opinion with any negative aspects included.
I would probably hold for several years assuming all goes well.
Look forward to hearing from you Maureen

Q: Hi 5i - with homeowners attempting to renew mortgages at much higher rates in the next year or two (e.g. going from a 2% fixed rate to 6.5% fixed rate - possible foreclosures, etc), how much risk do you see regarding a housing crash and the resulting risk with Canadian banks? Thanks, Neil

Q: Hi group i own both ENB and FTS - over the last 3 yrs FTS has outperformed ENG by a large margin do i need to own both / which one would you keep and add to present position

Also i am waiting to add to APPL MSFT GOOG AMZN...would you wait or buy now? Thanks

Q: I have bought stock in these Canadian banks, TD, Royal and BMO. How badly can these Canadian banks be hurt by their purchases of US assets? I was going to layer into these positions, would it be prudent to hold off?

Thanks
Brian

Q: These stocks all have high dividends' how safe are they. List safest first.

Q: Switch AC for TFII? I want to keep the sector. I was thinking of first waiting for AC to bounce of its drop. What do you think? Thanks.

Q: With the recent draw down in the oil price, is now a reasonable time to gain some exposure to the sector and what are your thoughts on the oil price/sector for the remainder of the year? Could you also recommend your top 2 small, mid, and large cap companies for this sector at this time?

Q: From an long term investing perspective, would you hold or sell the stock after today's earnings? Thank you.

Q: Hi 5i,
A couple of somewhat related questions:
I'm curious about the 'expression of interest' someone (or some thing) may have made known to CTS management in the past while. Would a potential purchaser be allowed a peek at the quarterly numbers before they were released yesterday in furtherance of its due diligence research, or have to await the release like the rest of us? My guess is the former, tied to a confidentiality agreement, but I'm not sure if that's the case with a publicly traded company.
And, also wondering: if the numbers were decent - as I thought they were - and no purchase deal gets announced quite soon, is it safe to assume there's likely nothing brewing? Or is it all just a black box until something - anything - is formally announced?
Thanks!
Peter

Q: do you have an Ex divedend date for Devon Energy?

Q: Has your view changed that CTS could well be $9 in light of their earnings? If so, specifically what has changed? From your comments today, it appears the flavour doesn't quite taste as good now.

Q: I’m thinking of buying ZBK while the ETF is under pressure right now. How do you feel about this purchase or do you see anything better for exposure to big US banks?
Thanks

Q: Hi 5i,

Would appreciate your thought on recent results and any forward guidance, plus the recent purchase.

Thx.