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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: Can you please explain the losses in the big five Canadian Banks shares. I can’t for the following reasons so would appreciate your thoughts before I start to increase my exposure.

Their mtge portfolios are mostly insured , ultimately by the govt. the balance of their mtge loans are normally at significant discounts to the property values.

The new loans being made by the government will likely be backed by the government , not the banks.

They all have a long history of not cutting dividends, BMO has not in 190 years and BNS in 188 years and I expect the other three banks to be in the same approximate time frame of no dividend cuts . Unlikely you will find a US back or an Insurance company that can say the same.

They also over reserve their loan loss provisions in order to keep their profits from the wild fluctuations we see in the US.

Thanks
Read Answer Asked by Robert on May 14, 2020
Q: For an individual bond that I hold to maturity, I would consider the yield to maturity as being more relevant than the current yield. But when it comes to a bond etf what is the relevant metric? Possibly the average current yield? As presumably the underlying bonds are not held to maturity as they would be bought and sold to keep the etf's duration in line with its target.
Read Answer Asked by William on May 14, 2020
Q: Hi team,

Calian just reported what looks like another strong quarter. They seem to be firing on all cylinders, ie 'Record quarterly revenue for the seventh consecutive quarter'. Thoughts?
How does this tech company compare/rank against some of 5i Canadian favourites?
Would you slowly initiate a position over the next 6 months?
The one downside I see is that their FY EPS forecast for 2020 vs 2019 does not seem overly convincing (seen on the 5i Companies page). Maybe the brokers have not adjusted things yet?
Their May 12 revised adjusted net profit and EBITDA per share numbers have been reduced but not sure if that is simply due to the increased share count. Is this a concern?

Cheers,
Steve
Read Answer Asked by Stephen on May 14, 2020
Q: Looking for best 5 year appreciation. Please list favorite of this list or your favorite if missing from this list.

Thanks

Rob
Read Answer Asked by Rob on May 14, 2020
Q: Good Morning: Please share your opinion on this company as a buy/hold/sell at this present time. Comments related to dependability of earnings, given that they are an electricity supplier in a distressed market, dividend security, management expertise, etc. would be appreciated. I do know that they currently have the record for the greatest of no. of years for dividend increases for any cdn. company. Thanks, Don
Read Answer Asked by Donald on May 14, 2020
Q: No questions yet about this rather obscure security, so here goes. Some analysts are predicting that the very high dividend on CWX common shares will be cut drastically or even eliminated. These notes when issued paid 6.375% but at the current price of about $73 the effective interest rate is about 8.5%. Also, when redeemed at (I assume $100) in Oct. 2023, there would be a gain on the current purchase price of $73 for a blended return of about 16%. A high risk security, but would it rank higher than the common share dividend? What are the risks, aside from Canwel going bankrupt, of buying CWX.NT?
Read Answer Asked by David on May 14, 2020
Q: WBA: this one is driving me crazy - I have held for a long time. Last 4 Q beat except for one previous to the April report. I keep thinking I should add to my position. You would think pharmacy would be doing well during this panic crisis? I know people were worries about Amazon; but, quite frankly, it has not panned out. Any analysis you have would be appreciated. Maybe, I should sell and buy technology - already own IGM Etf - had for 3 years.
Read Answer Asked by James on May 14, 2020
Q: Hi Team,
I like to buy stocks in tranches of 3 to give me time to further evaluate from time and new information. If a stock experiences incredible growth in between I find it hard to revalue as I generally don't expect exponential growth. How or what do you do with a stock that has run far higher than you expect before you get to your full book position? My example is DocuSign which I got my initial position at 45 and in 6 months now at 120 (which is great). I see you like Docu even at these levels, do I just buy the remainder of what would be a full position and not think about my initial price (which tends to anchor in my mind)
Thanks! My first 5i question!
Allan
Read Answer Asked by Allan on May 14, 2020
Q: In your recent presentation, you screened for "shareholder yield". I have been unable to find this data in the usual places (Yahoo, Google, my RBC and BMO sites, TMX). Can you tell me if you know any free sites that would provide this for Canadian stocks?
Read Answer Asked by Paul on May 14, 2020
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