Investment Q&A

Q: DFN is down. Dumb question coming: The 15 core holdings (7 Cdn banks, 2 insurance cos, 3 oil related, 3 others) are all or mostly down. The markets are down generally. Dividend payers are down generally on fear of a rate hike(s). For income purpose, isn't all that 'just noise' for DFN earnings & payouts unless its holdings actually cut their dividends? current price is looking attractive to me. What do you think?

Thanks and also for all the info you provide daily,
Mark

Q: Just to follow up, what happens to preferred shares that are trading below the issue price at the maturity date? Do they keep trading indefinitely under the same terms or expire at zero? Safety of income is fine but not at the expense of the initial investment?

Q: I'm at a loss about what to do with my Element Financial Preferred Shares (EFN.PR.C).

I bought 2k shares at $25.40 for safety and income. The threat of US interest rates rising hurt the price. Then the drop in CDN rates really hurt the price.

I believe the company is well run and I'm earning a nice dividend, but given the shares only move in one direction (down) should I just sell and walk away...a shoebox would have offered a better return. Thanks as always.

Q: Hi Peter & Team: I have a 3.5% position in GIB.A and 6% in CSU. I am considering keeping my position in CSU, selling GIB.A to buy MDA. Do you think this is a good swap from a point of view of diversification and perhaps a better growth potential?

Q: Hi Peter What is pushing boston down no neg news and last results were decent but every day it down
Stan

Q: Hi, I need to increase consumer non-cyclical to 10% per your recent review. (Thank you for that) I have L (Loblaw) at 2.2 and ATD.B (Alimentation) at 2.7. Just double the exposure or add one or 2 new names in the sector? If so what?
Thank you, Ted

Q: With the nice selloff in LND from 24c to 17c, would you consider the current price a reasonable entry point? One of my concerns are the warrants outstanding, which may put pressure on the shares. Your thoughts?

I have done some due diligence, and believe the business model to be quite attractive.

Q: Please comment on Q2.

THX

Q: Good morning,

Looking to see if you have a view as to the recent weakness in Fortis, especially as it doesn't appear that in the near term rates are poised to move higher,a common headwind for utilities.

Thank you,

Brad

Q: Hi Peter,
Our 13 yr old has 19% each of BNS, ESL & T. What and when would you buy with the remaining 43% cash ? Thank you !

Q: Would you comment on the the acquisition of Datamine? Thank you.

Q: Would you please clarify your view that First National's (FN) payout ratio is 100%? In today's quarterly report, FN states that "on an after tax, pre-FMV basis", the payout ratio was 62% and was down from 67% in the same quarter of 2014. Also, what is FMV?

Q: How concerned are you regarding new revelation that a long standing director has resigned. Of note is the timing just before clarification on mortgage originations as well as no reassuring comments from the director involved. I feel it's too late to sell now but this seems like more worrisome news. Thanks for your comments.

Q: Peter and Co
Is it too late or wrong time to get in to CXI or EFN?
Thanks
Margita

Q: With all the bad publicity and now an important director resignation would you think it wise to place a stop loss on the stock and around what price would you place it?
Thank you

Q: Looks like the market is not satisfied with the lack of clarity from PHM regarding insider selling. Do you view this as an overreaction and an opportunity to purchase or a wait and see?

Q: Hello Peter & team, What happened to PHM....$1.00 ! Thought doubts about directors selling were clarified yesterday.
Thank you.

Q: Almost 3 millions of shares dumped on the market with only 1 hour of trading. It's down 20% so far. It sounds like investors have lost confidence on this company. What is your advise for today's trading action and is is a good buying opportunity?

Q: Further to Paul's MISC question; What is the best way to rebalance? A simple calendar approach? If so how often? At one extreme, one could rebalance daily, but incur heavy transaction fees and possibly sell one's winners way too early.

At the other extreme, one could rebalance annually, or some longer period. Transaction fees would be minimised. But this approach might miss cycle tops (and bottoms).

If a calendar approach is not used, then how is discipline maintained?

Q: Hello folks:

1. I know predicting interest rates has become a dangerous activity now a days. Rate hike prediction hasn't materialised but instead we got Poloz's rate cut.

2. Through my Scotia itrade I get IPO offers for preferred shares. Yesterday I got one from BMO Perpetual preferred share 5 % and one from Canadian Utilities 5.25 %

Worth buying? Of course one can only express an interest and one is not guaranteed to get the shares.

There seems to be a shift from Rate reset to Perpetual Preferred shares recently. At least that is my perception. Furthermore the new issues, (at least on Scotia iTrade platform) are sold out within a day! Especially the issues by Big Banks and solid Canadian companies. Any reason why? Does it mean the smart money is hungry for a solid 5 % yield?