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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: You were asked a question a few weeks ago about AIG vs. KKR. You noted that US interest rates are likely to rise and that helps insurance companies but for other reasons you felt KKR may be the better buy for growth.

My question concerns rising interest rates and how they would affect a deal making company like (though not specifically) KKR. I see how rising rates help the insurance industry. But wouldn't the same increase hurt KKR since borrowing costs could rise. Or are you of the opinion that the increase will not be large enough so as to dampen merger and acquisition activity, at least in the medium to longer term.

As always, appreciate the wonderful insight.

Paul F.
Read Answer Asked by Paul on June 04, 2015
Q: hi.. Any new coverage on nyx. also notice S is getting some attention lately, any particular reason? Thanx in advance for your grat efforts. Cliff
Read Answer Asked by cliff on June 04, 2015
Q: From my understanding with Dupont it is going to split or break up into two companies. I think it takes place on July 1st 2015. Can you please confirm? Also my research does not extend much past that. Should I hold or sell before this split? I am leaning towards holding but after that I am not sure if I should keep DD or both? Will Dupont be worth holding after the breakup and what about that second company. When Abbot Labs split I knew more and I wanted to keep both Abbvie and Abbot which I did. But Dupont I know nothing about. Please advise on any information you may have.

Thanks Jimmy
Read Answer Asked by Jimmy on June 04, 2015
Q: I have a TFSA with BMO at 40%, SYZ at 10% and unfortunately TA at 11%. I have 18.5k to invest. Overall I am down. Can I please get your recommendations? Good for the long term.
Read Answer Asked by Lois on June 04, 2015
Q: What do you think about starting a full position on Laurentian bank today primarily for income? Earnings look good to me. I don't own the stock but I'm considering buying it because if I'm right, they do little lending to companies in the oil industry. They also have the least client borrowers who work in that industry. I like that the forward PE of 8.5 and the 4.5% dividend. On the other hand, the valuation has always been less than the big banks so maybe the cheap PE isn't worth factoring.
Read Answer Asked by Matt on June 04, 2015
Q: looking for growth stock or ETF suggestions for monthly contributions for kids under 18.This will be a taxable account. Monthly amounts would be small ~$100.
Thanks
Read Answer Asked by Dan on June 04, 2015
Q: Hello

REIT, UTILITIES, and TELECOM I believe are 'Interest Sensitive Sectors'?

Are there other 'Interest Sensitive Sectors'? in the TSX like maybe the Consumer Discretionary sector? or other?

Are these 'Interest Sensitive Sectors' affected as much by the US fed rate as by the Cdn fed rate?

If you were to give your best 'guesstimate' how much would these 'Interest Sensitive Sectors' fall in price (% wise) if Interest rates were to increase say 1/2 a percent?

Thank you very much

Stephane
Read Answer Asked by Stephane on June 04, 2015
Q: Would be interested in your current views of VXS particularly in light of the recent senior management changes and the company's continued revenue growth and financial performance.
Read Answer Asked by Richard on June 04, 2015
Q: Hi there,

I'm looking to initiate new positions in 2 of the following for my RRSP. Can you tell me what entry point you would target for each and which 2 you prefer? I am wondering if you expect any of them to drop in the next 3-6 months to create a better entry. Assume things are properly balanced.

I would only choose one of the pipelines and 1 utility if I went those routes. Thanks as always!

Inter Pipeline (IPL)
Pembina Pipeline (PPL)
Canadian National (CNR)
Canadian Utilities (CU)
Fortis (FTS)
Read Answer Asked by Tim on June 04, 2015
Q: Hi,
I purchased FSV on June 1 and I wasn't completely sure whether I purchased the pre-split entity or the post-split entity as Colliers has not shown up in my portfolio. Yesterday, it showed a loss of about 60% (another member commented on this drop) and a price of approximately $20. Today, my price on BMOInvestorline is showing about $80 but the TSX is showing it today at about $34. I called BMO and they said I had indeed purchased it pre-split and that Colliers would appear in a few weeks (which I thought was odd).

Do you have any thoughts on the above? Are there more than one FSV trading now? Are any other members facing a similar situation?

Thanks,
Read Answer Asked by Robert on June 04, 2015
Q: I purchased TBE @ 2.15. It now trades @ 0.70 and pays a high dividend. Is it worth increasing my holding to reduce my cost base?
Read Answer Asked by George on June 04, 2015
Q: Peter and Team,

With David's Tea going to IPO soon, is this a stock to buy on the first day of trading? I always steer clear of IPO's due to concerns with fees, etc., but this business seems to be strong based on the number of happy customers I see.

Is David's Tea a good idea or would I just be getting into some hot water here?
Read Answer Asked by Marc on June 04, 2015
Q: Following up on a March enquiry re. ENL - would it be better to sell the TSX listing (which, as suggested, has, at times, little or no volume) and buy the NY listing? Or will Toronto simply follow what the US does in terms of valuation?
Clearly ENL has done very well over the last months so certainly want to hold onto it.
Read Answer Asked by Murray on June 04, 2015
Q: What do you think are the implications for the coming King vs. Burwell US Supreme court verdict on PHM's business model? I haven't heard to much about this case but it appears relevant to PHM as I think they target highly subsidized indications with large reimbursements. Please correct me if I am wrong.

Which side is better for PHM and do you think they will win?

Thanks
Read Answer Asked by Scott on June 04, 2015
Q: Hello Peter and Team,
After the recent name change yesterday BCI has plummeted. Are insiders selling? Do you see any other reason for the decline in price?
Thank you.
Read Answer Asked by Gail on June 04, 2015
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