Investment Q&A

Q: Isn't it a a bit too coincidental that we learn that both Royal Bank and BMO are selling uninsured mortgage backed securities, a few days before the Home Capital death spiral? You have an optimistic bias, and typically trusting towards management, so I speculate that you will answer that there is nothing much to think of it, but could you take a distrusting view on this (without being paranoid) and guess what could have motivated them to do that?

Q: Do you see any buying opportunities in stocks that may have been unfairly impacted by HCG's news/drop? CWB and MIC have been two mentioned elsewhere.

Q: CRH down another ten percent today. Can you please comment on this after the CC. Do you still recommend holding this.

Q: Good morning and thank you for all your wisdom
Wondering about MX would you beable to shed any light on the drop today

Q: In regard to HCG I am on the wrong end of the stick with this one.
In your defence, I did notice a change in 5i's opinion of HCG around the end of March, here is an excerpt from one of your replies "Unfortunately, there is such a cloud hanging over the company right now, the fear and uncertainty surrounding it make it hard to be excited about in the shorter-term. It could still do quite well if they can get past all of the concerns but actions such as letting go of the CEO are not overly helpful in terms of boosting confidence. We would note that it has been profitable every year since 1999"
Fear and greed rule the markets, investor sentiment affects market value in the short term way more than fundamentals.
At this point, I want to learn what I can from this situation. What would you say are the take-away's from this debacle?
Thanks in advance for your continued excellent work.
Randy D.

Q: In light of the recent events with Home Capital (HCG) would you have any
concerns with continuing to hold FC ? Joe

Q: Sorry, another CRH question. The stock is down after what looked like a solid earning quarter. is there something in the earnings report that investors do not like? Your thought on the continued selling pressure.

Q: Should Gsy be linked to home capital?

Q: HCG has hired BMO and RY as strategic advisors and have now secured a 2 billion LOC. Thoughts please??

Q: Are Brookfield Renewables and Brookfield. Infrastructure not " black boxes" to an investor unless he is able to analyze the assets that they own?

Q: Hello,

What about Methenex's results did the market not like?

Regards,

Robert

Q: Hello Team,

Any new news on BTO? Knowing the sector is out of favour,and gold trading down lately, their quarter results were not that bad! Production in line with estimates. something is not right. I am long the stock.

Thanks,
Stephen

Q: With the demise of HCG there is plenty of blame to share. I am disappointed with 5I continuing to maintain its rating of B+ right to the end. You extensive experience in the field did nothing for your subscribers. As with most other advisory services your tune only changed when it was far too late to make a difference. I can add DH to the comments. It was only my own common sense and intuition that protected me in both cases. I hope 5I does some soul searching and simply does not write this one off as another miss.

Q: I have little exposure to materials/mining except for LIF and SSL. My SSL position is very low but I have added to it recently. While the company seems to be doing well, its share price is not doing well especially today. Is this a hold, sell or time to add a little more?

Q: Rrx, Tog and Spe, which one would you prefer better? Thank you.

Q: can you comment on this company; charts and technology look interesting

Q: Do you have any information on this company. Is it worth goibg in at 2% of portfolio.

Q: Pondering whether to sell my FTS with a 10% gain to buy SSL.
Please provide your position and advice.
Thank you

Q: Hi,
I would like to buy some preferred shares as I don't have any Preferred's in any of my accounts but with so many different descriptions out there I'm not sure what I should be looking for. For instance I would like to have a high yield ( > 4.5% ) and a guaranteed return of capital on a set date if held until that date (if there is such a thing out there). I see many new offerings come out through TD & Scotia iTrade but these are usually closed very quickly.

For instance this one came out this morning:
"TD Direct Investing would like to inform you that the following New Issue has just been announced.

Element Fleet Management Corp. - 5.75% 5 Year Rate Reset Preferred Shares, Series I

Short Description: Offering of Cumulative, 5-Year Rate Reset Preferred Shares, Series I via Bought Deal
Price: $25.00 CDN per share.
Settlement: On or about May 5, 2017."

This sounded good but by the time I tried finding out more about the offering it was closed already.

So, is there some guidance you can give on what "buzz words" to look for when a new issue comes out so I can put my "expression of interest" in before the offering is closed?
I guess what I would really like to know are the following:
1) Are 5-Year Rate Reset Preferred shares the best option for capital preservation?
2) Is it best to try and buy Preferred shares on a new offering or to look in the open market?
3) Is there a Preferred share Class that guarantees your original capital outlay?
4) Any other guidance you can offer in looking for the best: time / place / kind when looking for Preferred's?
5) And finally, once I find a suitable Preferred offering - which account type would you recommend best to hold in for tax purposes (i.e.- reg. vs non-reg.)
Thank you.

Q: I purchased some of this stock for an RESP about a year ago. It has climbed nicely. The company seemingly achieved a good measure of success before going public. What are your views of this company and the stock going forward?