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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: Hello 5i,

I purchased easy home for 18 bucks today. Do you believe that they will gain a greater market share with their main competition, the cash store, closing their stores?
Read Answer Asked by Greg on March 06, 2014
Q: Peter and welcome to Ryan ... the new income portfolio is 90% complete and I , as many members, are excited about this new investment vehicle. My question is this, will the portfolio be best applied to a cash account (tax purposes), an RRSP (protected growth), an LIF or an TFSA. Thanks for all your hard work.

Al
Read Answer Asked by Alan on March 06, 2014
Q: Peter, is there a possibility to build into your database of questions (Q&A), the ability to do a word search?

I wanted see any comments you've made in the past about shale gas and comments related to marine transport that may carry this gas overseas.

Thank You as always.
Read Answer Asked by Neil on March 06, 2014
Q: Hi,
CLR has been sliding for the last few weeks. Is there any reason to be concerned? Don't know if I should sell or hold on to it.
Thanks
Read Answer Asked by Rob on March 06, 2014
Q: Just a quick question. Since your model portfolio is up substantially would you recommend that at this time that I follow the portfolio and invest $100,000.00 today using the aforesaid model portfolio. Thanks

Mike Walker
Read Answer Asked by michael on March 06, 2014
Q: Hi,

Can you please comment on CJT's results. Thanks

Read Answer Asked by Imtiaz on March 06, 2014
Q: Peter and 5i team,

With an equity financing, like what has taken place with E recently, how does the average investor buy into the financing? If it's a stock that an investor already likes and is looking to pick up more shares, it sounds like a good opportunity to pick up the stock at a cheaper price (in instances where the financing is done at a lower price than the current market price). I'm just unsure on how to go about participating in these financings. I currently trade with Questrade.

Much appreciated in advance,

Read Answer Asked by Jonathan on March 06, 2014
Q: Please comment on APL (US) Why has it dropped 25%?
Read Answer Asked by rand on March 06, 2014
Q: I have heard you use the EOITDA frequently.What does t mean and how useful is it for evaluating any stock?Thank yu and have a good day
Read Answer Asked by ebrahim on March 06, 2014
Q: What is your opinion on the Knight Therapeutics (GUD) financing at $3.50? The market seemed to act favourably today as it reached $4.50. Mr Goodman retains a significant ownership but do you see this stock trending lower when the financing closes on March 19th and these new shares can be sold for a quick profit?

Thank you
Read Answer Asked by Marty on March 06, 2014
Q: My Question in short:
Can you quantify the change in size of the alternate mortgage lending market due to the recent mortgage regulations changes in Canada? Can you also comment on the quality of said mortgages given that the regulations have essentially raised the bar on the mortgages that the big 5 will write up?

My Question in long form:
I’d appreciate you input on the change in the alternate lending market and any corrections you wish to add to the information I’ve provided.

From my research, there have been three sets of regulations changes to the financial industry in response to the 2008 financial crisis, the Volker rules, Dodd-Frank and Basel I, II, III. From my understanding, the Volker rules limit proprietary trading/derivatives and are thus irrelevant to this subject. The “Dodd-Frank reform” is a sort of blanket US legislation that is being written SEC and rolled out in pieces, some already in effect, until 2018. I believe it will have a direct effect on mortgage quality regulations in the US, but Canadian banks will be able to place there US operations in subsidiaries and thus Canadian operations will be unaffected.

On the other hand, Basel I, II, III and other OSFI policies will have a direct effect on the Canadian mortgage market in a two-fold fashion;
-Bank capital reserves requirements are more stringent from both a quantitative and qualitative measure.
-Rules regarding who qualifies for mortgage insurance have been elevated.

Benjamin Tal recently commented that these new regulations will raises the bar on who qualifies for a big 5 bank mortgage and thus create a new high quality tranche of mortgage business for alternative lenders such as HCG. Would you agree with that hypothesis? I believe the mortgage market is around 1.2 trillion in Canada; do you have an estimate on the size of this tranche of the market? Are there any other alternative lenders similar to HCG that stand to benefit from the change in the market place?


Thanks in advance for answering my question and also for the great research reports you regularly deliver.
Read Answer Asked by Emile on March 06, 2014
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