Q: Hi Peter,
Could I pls have your thoughts on the latest results of dhx media
Thanks
Paul
Could I pls have your thoughts on the latest results of dhx media
Thanks
Paul
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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: HI 5i, my question is regarding (CZN) Canadian Zinc. it sure seems to be trading very strangely for a company that just very recently received a very important water permit.it would seem that the share price should have gone much not much lower. what do you think of management ? Overall can you comment on this situation and what would you suggest current shareholders do ? thanx norm
Q: RE: Jeff's question of Sep 22 "They (PPNs) can be replicated....but.....using a combination of an ETF and a bond could still result in a decline of total principal at the wrong time."
It is not my intention to be disagreeable at all and I stand ready to be corrected if I have misconceptions about Hank C's idea but here is a real life example of Hank's Gambit:
On June 21, 2009 I purchased a $24000 Government of Canada Strip Bond maturing December 1, 2015 in my wife's RRSP for $20051 (includes commission estimated at $200) with an annual yield just over 3% which is being held to maturity. About the same time in her cash account I purchased $3600 worth of COW units plus a $10 commission. Although we have since moved around the $878 profit from the sale of COW, I believe her principal of $20050 is still not subject to any kind of decline (present value $23281) so long as the Canadian Govt continues to print banknotes AND I sheltered her interest in a tax sheltered account AND capital gains and dividends in her cash account have been tax preferred AND I knew roughly what fees were paid to set this up AND funds have not been locked in. I believe this approach is superior and safer than any structured product available in Canada including Index Linked GICs and PPNs.
It is my understanding that PPNs are 1) Not covered by CDIC and therefore guaranteed by the institution only, which is an inferior guarantee to Cdn Govt, and 2) any gains made on maturity are fully taxable as interest, so even if you have stock market gains which are capped in the contract, you will pay tax at the highest rate and 3) the capped gains are tied to the performance of the TSX 60 or other benchmark so if you have a loss or are flat all you will see is their very low "guaranteed"rate or worse, just your principal after years of investment and hope and 4) you will never see the true hidden fees disclosed in the contract and 5) funds are probably locked in till maturity or there is a high fee to escape. I have never purchased one of these PPNs though when the Bank puts on an ad campaign for them they look tempting to be sure, so my assumptions could be all hogwash. There is a 10 year old CMS article by Jim Yih which estimates undisclosed fees on PPNs to run from 2% to 12%, seems to me a case of buyer beware!
Please let me know where my ideas might have gone wrong as my wife will surely have my scalp if I lose anything of hers!
Also I have never met Hank Cunningham though I did see him speak once at the Canadian Moneyshow.
Thanks, J.
It is not my intention to be disagreeable at all and I stand ready to be corrected if I have misconceptions about Hank C's idea but here is a real life example of Hank's Gambit:
On June 21, 2009 I purchased a $24000 Government of Canada Strip Bond maturing December 1, 2015 in my wife's RRSP for $20051 (includes commission estimated at $200) with an annual yield just over 3% which is being held to maturity. About the same time in her cash account I purchased $3600 worth of COW units plus a $10 commission. Although we have since moved around the $878 profit from the sale of COW, I believe her principal of $20050 is still not subject to any kind of decline (present value $23281) so long as the Canadian Govt continues to print banknotes AND I sheltered her interest in a tax sheltered account AND capital gains and dividends in her cash account have been tax preferred AND I knew roughly what fees were paid to set this up AND funds have not been locked in. I believe this approach is superior and safer than any structured product available in Canada including Index Linked GICs and PPNs.
It is my understanding that PPNs are 1) Not covered by CDIC and therefore guaranteed by the institution only, which is an inferior guarantee to Cdn Govt, and 2) any gains made on maturity are fully taxable as interest, so even if you have stock market gains which are capped in the contract, you will pay tax at the highest rate and 3) the capped gains are tied to the performance of the TSX 60 or other benchmark so if you have a loss or are flat all you will see is their very low "guaranteed"rate or worse, just your principal after years of investment and hope and 4) you will never see the true hidden fees disclosed in the contract and 5) funds are probably locked in till maturity or there is a high fee to escape. I have never purchased one of these PPNs though when the Bank puts on an ad campaign for them they look tempting to be sure, so my assumptions could be all hogwash. There is a 10 year old CMS article by Jim Yih which estimates undisclosed fees on PPNs to run from 2% to 12%, seems to me a case of buyer beware!
Please let me know where my ideas might have gone wrong as my wife will surely have my scalp if I lose anything of hers!
Also I have never met Hank Cunningham though I did see him speak once at the Canadian Moneyshow.
Thanks, J.
Q: The price of MDA has fallen 8% recently. I would appreciate any insight you have regarding this pull back. Also, what do you think of this as an entry point for a long term investor?
Thank you for this great service.
Thank you for this great service.
Q: your updated thoughts on Urbana (URB.A-T)? Seems to be trading at a steep discount to NAV.
Q: I'm thinking about a position in Wells Fargo for safe income ?
Q: I'm thinking about a canadian bank is this a good idea now?
Q: Hi Guys
Could I have your opinion on IMG,ABX,TA, sjr.b, and slf
Thanks
Could I have your opinion on IMG,ABX,TA, sjr.b, and slf
Thanks
Q: Peter; In the weekend FP Diane Francis has an article on shale oil in the Tuk. Region. Apparentlyy HSE made the discovery but others are involved. Have you see any names of those also involved? Thanks. Rod
Q: In the global economy that we live in is the printing of money by central banks really as inflationary as past experience would indicate? Since the value of a currency is measured relative to the other currencies of the world, including gold, then if everyone (Fed, BofJ, ECB)is printing money will it really drive the gold price higher relative to any one currency?
Sort of like, if your at a party and everyone is drinking, does anyone look drunk at midnight?
Thank you
Brian
Sort of like, if your at a party and everyone is drinking, does anyone look drunk at midnight?
Thank you
Brian
Q: From the response to Paul's Sep.21 question: "There are some principal-guaranteed products offered by several brokerages also available."
The problem with Principal Protected Notes (PPNs) as so well pointed out by Hank Cunningham in his excellent book "In Your Best Interest" is they are a "product designed solely with fees in mind and not the well-being of the individual investor."
He goes on to illustrate how you can create your own low cost PPN "using a strip or regular bond" plus an "ETF or commodity of your choice."
I hope this helps the discussion of a very problematic area for all on fixed incomes, J.
The problem with Principal Protected Notes (PPNs) as so well pointed out by Hank Cunningham in his excellent book "In Your Best Interest" is they are a "product designed solely with fees in mind and not the well-being of the individual investor."
He goes on to illustrate how you can create your own low cost PPN "using a strip or regular bond" plus an "ETF or commodity of your choice."
I hope this helps the discussion of a very problematic area for all on fixed incomes, J.
Q: Can I get your thoughts on Equitable Group (EQB)? Thanks, Tim.
Q: Hi,
Was looking for your opinion on SFL / Ship Finance International as a long term hold in an offshore account.
thanks,
andrew
Was looking for your opinion on SFL / Ship Finance International as a long term hold in an offshore account.
thanks,
andrew
Q: Peter and Team,
As a retired Boomer, how does one invest 40-50% of one's portfolio (non-registered) in Fixed Income products in this economic environment with the goal of producing income with no risk of capital loss? Bond ETF's have been dropping like a stone, GIC's pay a pittance, and even Preferred Share ETF's are trading near 52-week lows. I realize the income generated from Fixed Income is usually considered "interest" and therefore fully taxable in a non-registered account, but I want safety for half my holdings over preferential tax treatment. I would appreciate your advice. Thanks!
As a retired Boomer, how does one invest 40-50% of one's portfolio (non-registered) in Fixed Income products in this economic environment with the goal of producing income with no risk of capital loss? Bond ETF's have been dropping like a stone, GIC's pay a pittance, and even Preferred Share ETF's are trading near 52-week lows. I realize the income generated from Fixed Income is usually considered "interest" and therefore fully taxable in a non-registered account, but I want safety for half my holdings over preferential tax treatment. I would appreciate your advice. Thanks!
Q: hello 5i:
CCT has been on my radar screen for quite some time and is much more interesting now, since its price has dropped. However, its still trading at a much higher PE than its 5 year average (58.5 vs 41.5) though less than P/B and about even with P/CF. Can you comment on the recent downturn, and expectations for the future. Is the price downturn a reflection of perceived lower earnings going forth, or is it just market gyrations?
thanks again
CCT has been on my radar screen for quite some time and is much more interesting now, since its price has dropped. However, its still trading at a much higher PE than its 5 year average (58.5 vs 41.5) though less than P/B and about even with P/CF. Can you comment on the recent downturn, and expectations for the future. Is the price downturn a reflection of perceived lower earnings going forth, or is it just market gyrations?
thanks again
Q: Would it be a good time to get back into YRI .
Jim .
Jim .
Q: Peter and team would it be a good time to invest in BB .
Thanks Jim
Thanks Jim
Q: Last night I received an email from Peyto Energy advising that they are the subject of a legal action by some shareholders of their most recent acquisition. I have owned Peyto for a number of years and have been more impressed with management with each passing year. I am sure their due dillegence was better than most but I am always reminded of Lowen Group when it comes to these things. Have you any thoughts or insights on this kind of situation generally, or this one in particular?
Thanks
Mike
Thanks
Mike
Q: Hi Peter, if Q3 is going to be scaled back increasing interest rates and making debt harder and more costly to maintain, what sectors / industries will be hardest hit? How should I invest to profit from this decline? Short equities which will be hardest hit by this? or buy companies which will benefit from this decline?
Appreciate your thoughts as always and thanks. Ken
Appreciate your thoughts as always and thanks. Ken
Q: I buy stocks that pay dividends as I need the income whats your opinion of westernone inc symbol is weq your site is awesome thanks Barry