Investment Q&A

Q: Re: Banking Industry in General (with reference to Jim's post):

I also am concerned with the banking changes. I would guess the majority of Canadians aren't aware these changes took place. I've read that saving/checking accounts wouldn't be included, but they certainly were in Countries that did have bail-ins. I've put some money/investments in a local Credit Union just so I wouldn't have everything in one place. It may not make a difference, but maybe it will. Another thing some people may not be aware of is Canadian Banks got a "sort of" bailout in 2008 through the CMHC. I still don't know all the details of what took place and I think it is all paid back now, but it certainly wasn't front page news.
This would be less of a concern to me if the US had thrown some executives in jail instead of just fining the companies. There is no accountability or admitting of guilt anymore, just pay a fine and move on (or in Politician's cases, shuffle cabinet positions around).

Sorry if this rant offends anyone, I don't mean it to be that way.

Paul

Q: BUY SELL OR HOLD
1.) PIVOT
2.) VOGOGO
3.) DYCOM, DY.......U.S. LISTED COMPANY
Thanks

Q: I have option to transfer series 1 preferred to series 2. I have pasted the announcement to provide all the relevant info. Could you please let me know if I should convert to series 2. I will appreciate your response ASAP since I have to make decision soon.
Thanks and kind regards,
Tarun


First National Announces Dividend Rates on Cumulative 5-Year Rate Reset Class A Preference Shares, Series 1 and Cumulative Floating Rate Class A Preference Shares, Series 2
2016-03-02 10:00:00 PM ET (CNW Group)




First National Financial Corporation ("First National") (TSX: FN, TSX: FN.PR.A) today announced the applicable dividend rates for its cumulative 5-year rate reset Class A Preference Shares, Series 1 ("Series 1 Preference Shares") and cumulative floating rate Class A Preference Shares, Series 2 ("Series 2 Preference Shares").

With respect to any Series 1 Preference Shares that remain outstanding on March 31, 2016, commencing as of such date, holders thereof will be entitled to receive cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of First National. The dividend rate for the five-year period commencing on April 1, 2016, and ending on March 31, 2021 will be 2.79%, being equal to the 5-Year Government of Canada bond yield determined as at 10 am (Toronto time) March 2, 2016 plus 2.07%, as determined in accordance with the terms of the Series 1 Preference Shares.

With respect to any Series 2 Preference Shares that may be issued on March 31, 2016, holders thereof will be entitled to receive floating rate cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of First National, based on a dividend rate equal to the 90-day Canadian Treasury Bill plus 2.07% on an actual/365 day count basis, subject to certain adjustments in accordance with the terms of the Series 2 Preference Shares. The dividend rate for the period commencing on April 1, 2016 and ending on June 30, 2016 will be equal to 2.532%, as determined in accordance with the terms of the Series 2 Preference Shares.

Beneficial owners of Series 1 Preference Shares who wish to exercise their right of conversion should communicate as soon as possible with their broker or other nominee and ensure that they follow their instructions in order to ensure that they meet the deadline to exercise such right, which is 5:00 p.m. (Toronto time) on March 16, 2016

Q: If currently owned would you continue to hold or sell?
Thanks
Dolores

Q: Can you tell me what is happening with WEQ. I bought a huge position (in an account I call VEGAS)at 0.22 and wonder if it will ever get back to its highs in 10 years. They were tied to oil and gas but have shifted to other industries (Movie rentals, Permanent Modular, Passive House Construction etc.) How do the debentures play out? Do you know the management?

Q: Would you be a seller of this stock if owned at the current time?
Dolores

Q: I think you still have SYZ in your growth portfolio. Do you intend to keep it there for the immediate future?? ( yes or no) - thanks.

Q: Good morning,

I am looking for some stock suggestions in the US on how best to play the rental market particularly in some of the more expensive/popular real estate markets in the US ie San Francisco. My thesis the strong growth in real estate prices will result in the millenials choosing to rent in the more popular urban centres either by choice or necessity.
Can you comment on this thesis as an investment opportunity and provide your best equity ideas at this tine in US and Canada.

Thanks for the excellent service!

Q: An article by Mr P.Hodson in The Vancouver Sun dated Mar 5.He said that he cannot predict"multi,baggers" stocks,but can make suggestions such as GUD,DHX.B SYZ & PLI.

Q: Hi,

Would you please rank these from 1 to 4, what your preference would be today for 3 years hold.
GUD, EFN, KXS, SH.

Thank you,
Milan

Q: Hi 5i Team,

This is an unusual question and feel free to take a pass on it, as it might not fall within the definition of the service you offer, and I would fully understand. Also, feel free, if answered to post or not.

There have been bank confiscations in Cyprus. And I believe, banking problems in other jurisdictions where the depositor has taken the hit. Rare, but they happen.

We were supposedly immune from such confiscation action by the rules and regulations of the banking industry, and also having relatively strong and stable economies and banking systems.

Since the Cyprus event, and the problems of the 2008 crash, according to articles in Canadian MoneySaver (May and June, 2013), the banking rules in the US and followed by Canada have been modified to allow for the backs to take money from their depositors, during an economic crisis, rather than rely on a government bail out.

This is not something that keeps me awake nights, but it does nag me as ... How does this make sense ?

I do not understand why the regulations were changed. Changes normally happen if there is a "really big reason to do so." In other words, If our economic and banking systems are in such great shape and are expected to be for the distant future, why change the rules ? The implication is that perhaps some sort of condition could occur that to save the "systems" (government budget and banking system), the investors will take the hit. (This also raises the option that ... Hey, why not just print money and give it to the banks as in the past - there was grumbling, but it did solve the problem).

I guess I am looking for a general comment on banks, safety of deposits, and why need to change regulations.

Thanks for the great service.

Jim,

Q: Any idea what spurred a 23% jump in CFW on Friday? I don't see any news, but volume seems be up about 3X normal.

Q: Hello Peter & Team, this is about sector allocation. In a recent answer to Tim, you suggest 10 sectors with their resptective percentages. Would you consider REIT to be the 11th sector, or is it already inserted in the Financial sector? If this is part of the Financial sector which is at 20%, then what should be the weight of Reit in that sector? Thanks, Gervais

Q: Stocks like Athabasca and BTE Baytex have had a good run this week, do they have a future, or should one take this as an oppurtunity to get out and buy into better quality. My time frame is 5-10 years

Q: Ryan - Congratulations on your performance on Market Call today. Very impressive to say the least!

Paul

Q: I wanted to congratulate Ryan on an outstanding performance on BNN today. I thought that after the first few minutes he really settled in and came across very well. It's so great to see a young guy coming into his own. Extremely knowledgeable, well spoken and confident. Very impressive! Also, keep the beard bro, it's killer. haha
cheers

Q: Any comments on the recent strength in the stock price ?

Q: Would you recommend 21/2% each for Pot and LIf for the materials sector of an income portfolio? If one or both are unacceptable, please provide your suggestions. Thanks.

Q: Good afternoon,

Would your comment ahange on this company since the last time you comment of February 17? And what is their dividend payout %?

Thanks

Paul

Q: It is hard to get financial ratios etc., I guess because it does not issue shares & perhaps it's corp. structure. Also, must be thinly traded: hard to get in and out without paying/getting price you want. I was thinking of buying for my non-registered account. Is it a safe long-term investment - I see they just incr. payout by 27%. I am retired - ergo, no more big fat pay checks to replenish any poor investment decisions. Oh, would this co. be a target for a co. like CCL for example?

Your comments would be appreciated.

JP