Investment Q&A

Q: I am hoping to retire in the next couple of years. If I can get a 4% return on my portfolio, I believe I'll be in great shape for many years. Recognizing that National is not your favourite bank, I can't help but look at the 6% return and wonder why I wouldn't buy this as a solid income producer. Canadian Banks (including NA)are very well regulated and if they all go under, we'll all have very big problems. Am I missing something or perhaps to ask the question another way, do you see a better place to get a fairly secure 6% return for many years into the future?

Q: Hi All. I went to sell some MDA this morning in my Investorline account. The price quoted was 82.80 and the bid/ask quotes were 82.49/82.81. I noticed on my phone however a price of 83.71. Going to Stockwatch.com, I saw the last trade at 83.71. Had I not back-checked the information, I potentially could have sold at quite a discount based on the BMO information. What's going on here? Is this a typical situation that I just wasn't aware of?

Q: Hi- what is happening with this Maple Leaf situation? Are they in trouble?
Buyable here?
Thanks

Q: Hello 5i:
another comment on Paul's question re: filling up the truck; now $58, used to be $80, and why is there not more of a saving. First, that is a 27.5% decrease. Stated another way: its like being paid 27.5% more. Who would not take that?
Additionally, that is $22 on one fill. How many times do you fill the truck per week, per month, per year. The savings really begin to accumulate (or more money to spend). I lived in samll town BC for quite some time, and remember paying $1.42/litre. Try that one on for size and watch the paycheque disappear.
just my opinion, publish if you feel like it
Paul L

Q: Belated Happy New Year 5i and all members.
My wife and I have some cash in our account - where would you bet putting cash to work in this environment? - stay in cash, bonds or bond ETF or in equities and if equities what sectors do you prefer and some possible names.
Thank you kindly.

Q: I don't own any and was thinking of picking up a large position for year end. What do you think of this idea and the sector over all? What weighting would you give them? How many should I own? Which ones would you recommend?

TIA

Q: I would like your opinion of selling NA (my current holdings of NA are 13.3% of a total CDN-Margin A/C dedicated to financials of 42.9 (RY & TD). The only other holding is CNR (56.2%)... I know it is way overweight for a single holding, but suffice to say I know this and am prepared to carry this risk (it has worked out well for 20 years)
My thoughts are to buy BCE (1000 shares) & EIF (1000 shares) to diversify a bit from financials. I currently hold no telecoms, and I like the dividend paid by EIF (assuming it is fairly secure).
Your thoughts would be greatly appreciated.

P.S. My capital gains on NA would be offset by losses on BB.

Thanks in adavance,
Scot

Q: Hello. What is your take on National Bank?

Q: My wife and I are retired - if one is currently looking to put half of his portfolio into low risk income investments (bonds, bond ETFs, bond mutuals or low beta equities), what would u recommend in your opinion.
Thank you kindly.

Q: Hi Peter and Team,

Could you please comment on National Bank? Is it good buy at current price compare to other candian banks?

Thanks

Q: The price of NA has fallen more than other banks and now the dividend yield at current price is close to 5%. Is there a concern about this bank or is this a good buying opportunity?

Q: Are we seeing early warning signs of more downside to the stock markets given some of the recent bank results. National and CIBC in Canada, HSBC and Deutche Bank come to mind.
If we can legitimately connect the dots between these banking numbers and some of the softer US data numbers and the decision to hold off on interest rate increases might lead one to look for more safe havens if not head for the sidelines for a while.
I would appreciate your assessment of this environment.
Thanks.

Q: 8:29 AM 10/6/2015
Hi Peter

In your comment to Robert today you said with reference to Fiera : " Its association with National Bank has not helped recently, with the bank's very bad news."

Comment to Linda yesterday : "We do not like the news, and do not like the dilution from the equity issue. We are also believers in the cockroach theory: i.e. there is usually not just one problem. Shares are also already $1 below the issue price, not a good sign."

Comment to Margot : "We do not think the bank is in 'trouble' but clearly it is concerned about the economy enough to want to shore up its capital."

So My Question is : Can you clarify your opinion? NA makes up 3% of my portfolio. I own 4 other banks in larger amounts. Do you really think NA is headed for serious trouble and should I just sell it [at a 7% loss] or is it safe to hold for years expecting nothing more than the dividend income?

Thank you..... Paul K

Q: May I have your view on National's "restructuring". Will this likely have any impact on the dividend!! I purchased for a long term hold.

Q: How much would National Bank have to fall for you to consider it an overreaction to the Oct 1 news?

Knocking off 19 cents for the restructuring charge and taking off a little more for the dilution still has the shares trading below 10x earnings. Also, the Maple Financial Group, as ugly as those headlines are, only represents less than 1% of net income. Is the news as bad as it initially appears?

Your insights would be appreciated.

John

Q: Hi

Just my 2 cents on "Josh" and when to sell. I believe this service, while one of the better ones, does not distinguish between a good company and a good stock price to buy that company.

If you could sharpen your pencil to tell members if the stock is attractively priced at the moment, Josh may not have purchased when he did.

Regards
John

Q: Peter what the cheapest / easiest way to convert Canadian $ to US dollars. I also need to keep the funds liquid. I recently sold my house and do not need the funds at present. Do you see further downside to the Canadian $.

Q: I am thinking of taking a small position (400 shares) in the National Bank for the short term. Any advice on this move?

Q: Hello: I saw a web link which provided a convincing analysis of the risk of holding 1 stock vs the index. I think it would make an interesting addition to your "Weekly web sites collection"

http://blog.alphaarchitect.com/2015/05/21/the-risks-of-owning-an-individual-stock/

Ernie

Q: Hi guys,

I am low on consumer discretionary/consumer defensive stocks in my portfolio. I am looking at a minimum holding period of 10 years and for dividend paying stock with good dividend growth history. Could you suggest 5 stocks, 3 Canadians ones and 2 US?

Thanks!