Any particular reason why Laurentian is so cheap? Are they overexposed to the housing market or something?
I believe in full disclosure: I put the order in mainly because I feel like stocks generally decline after they do a secondary offer like this. The company ends up in a better position with the new capital. Ultimately my buy offer went through at less than the (quickly subscribed) bought deal price.
It's no different than buying after a dividend cut.
Supposedly the problematic loans amount to a few percent of its portfolio and aren't outrightly fraudulent, but about insufficient buyer vetting.
I think any housing crash in Canada will primarily impact non-bank brokers. LB's operations are primarily in Quebec, which hasn't had quite the housing boom of the rest of Canada.
Any particular reason why Laurentian is so cheap? Are they overexposed to the housing market or something?
I believe in full disclosure: I put the order in mainly because I feel like stocks generally decline after they do a secondary offer like this. The company ends up in a better position with the new capital. Ultimately my buy offer went through at less than the (quickly subscribed) bought deal price.
It's no different than buying after a dividend cut.
Supposedly the problematic loans amount to a few percent of its portfolio and aren't outrightly fraudulent, but about insufficient buyer vetting.
I think any housing crash in Canada will primarily impact non-bank brokers. LB's operations are primarily in Quebec, which hasn't had quite the housing boom of the rest of Canada.
I'm kicking the tires on this one.
Laurentian buys back $180M in 'problematic' mortgages, more repurchases to come
Montreal-based Laurentian said the total repurchase target is now in the range of $392 million
Geoff Zochodne, the Financial Post, January 10, 2018
A rung on a 5 yr GIC ladder matured this morning. I just purchased a new 5 yr rung at 2.81%, the best 5 yr rate available today at RBCDI.
The ockham household's fixed income portfolio (all in RRSPs) consists largely of four ladders: three 5 yr GIC ladders and one 8-9 yr prov strip bond ladder. I'll have to begin simplifying soon as withdrawals begin.
A busy day for our TFSAs. My strategy is solely focused on dividend payers. I sold my position in NWC and Boston Pizza and reduced my position with the telcos and utilities. Used the proceeds to buy Northview Reit, Rogers Sugar and Enercare all in equal portions. I like and understand their operations. They are simple and boring but stable. Rogers has acquired a maple syrup company which should give them some growth and room for dividend increases. Northview has close to a monopoly position in many northern communities. Also took a 6k position in Immunovaccine as a pure speculative position in a taxable account. I have come across a number of bullish reports on all of these purchases. ECHLON and Dejardine gave the reports. IMV is in some late stage clinical trials. Some of the big Pharma have been paying big money for this type of stock. No risk no reward.
Bought 100 TRP for my LIF, doubling a holding I had earlier reduced, as it nears a 52 week low. Continuing a strategy of trading around a central position.
Sic transit gloria mundi. Tuesday is usually worse. - Robert A. Heinlein, Starman Jones
Shakespeare wrote: ↑01 Feb 2018 09:54
Bought 100 TRP for my LIF, doubling a holding I had earlier reduced, as it nears a 52 week low. Continuing a strategy of trading around a central position.
Good idea! I just did the same adding to existing core positions in both TRP and WBA-Q. Some of the proceeds from the NWL-N sale put to use.
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830
Added a tad to a core position of EMA probably to early again and bought a couple 100 VCNS just for fun. Yesterday bought some bond ETF for TFSA to start to build two position portfolio (VAB/XAW) a day to early now that VCNS is here.
This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed
Added to ENB this morning. I had reduced my Enbridge position in December and the price seems to have dropped enough since then. Also added to TRP, SAP and EMA. Next on my list to top are BCE, RCI.B, TRI.
All big cap Canadian dividend stocks I own/follow, except banks, in my cash dividend account are down 10%-20% from their highs, roughly 7% on average YTD alone, yet I don't see much buying going on or even much talk about it. Is that not enough of a drop to trigger some aggressive buying? Are you expecting a bigger drop?
Next on my list to buy are HR.UN. I am also considering BAM.A. Does anyone own it as a core holding?
If one is in accumulation mode, buying some of these things at current levels should be a tailwind for future returns. But for someone in withdrawal mode, I don't see anything compelling enough yet to roll out of other existing holdings to enter one of these that you name.
You ask about BAM.A. I would want to see it in at least the $48 range to interest me.
Been adding little bits of Disney here and there in the past month. In my view, not a screaming bargain, but seems reasonably fair. In an expensive market like today, that seems fine with me.
jay wrote: ↑01 Feb 2018 14:37
Added to ENB this morning. I had reduced my Enbridge position in December and the price seems to have dropped enough since then. Also added to TRP, SAP and EMA. Next on my list to top are BCE, RCI.B, TRI.
All big cap Canadian dividend stocks I own/follow, except banks, in my cash dividend account are down 10%-20% from their highs, roughly 7% on average YTD alone, yet I don't see much buying going on or even much talk about it. Is that not enough of a drop to trigger some aggressive buying? Are you expecting a bigger drop?
Next on my list to buy are HR.UN. I am also considering BAM.A. Does anyone own it as a core holding?
tough to go against the trend. TRP yielding 4.5%, BCE yielding over 5%, BEP-UN almost 6%, ENB just over 6% at the declared dividend rate. interest rates and bond yields can't go up forever. at what point is there support for these names? for a long term hold i would be tempted to pick up some more of these. if they have stopped going down in price the dividends look attractive
rharvey199 wrote: ↑02 Feb 2018 11:50
interest rates and bond yields can't go up forever.
Why not?
I had a double digit mortgage in the 80s.
No one under the age of 45 has a remote concept of what we experienced. Rates won't go that high again simply because global economies would collapse under the weight of debt addiction, but there is nothing stopping rates continuing to climb slowly for at least awhile. Perhaps the rest of this year unless the US Fed gets cold feet in an election year, and even if so, I see them still increasing into 2019.
rharvey199 wrote: ↑02 Feb 2018 11:50
interest rates and bond yields can't go up forever.
Why not?
I had a double digit mortgage in the 80s.
Me too; 14% as I recall! That'll make you tighten your belt!
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830
rharvey199 wrote: ↑02 Feb 2018 11:50
interest rates and bond yields can't go up forever.
Why not?
I had a double digit mortgage in the 80s.
why not? because nothing goes one way forever. yes rates can and probably will go higher but if mortgages went into the double digits this time around 2007/2008 would look like a small correction
i remember my first investment was a GIC that paid 12% back then.
nisser wrote: ↑02 Feb 2018 16:06
I bought some IPL. The dividend stocks are exceptionally oversold. Unfortunately I have too much of TRP/ENB to add more to it.
Why oversold?
Perhaps they are undersold:
1) 5yr GOC yields have increased 1.2% since last summer or 1.6% since the lows
2) a 4% divco whose share price has dropped 10% is now yielding 4.4%, and increase of only 0.4%
Until the yield curves level out, I would hold off.
ENbridge's yield is nearly double it's 5 year average, IPL's is 30%+ higher, etc. The market is overreacting based on 2 pieces of information that are unlikely to be sustainable. To me that seems an overreaction.
Everyone's acting as if the interest rate will be double digits within a few years. I do believe it'll go up but even a gradual hike above 4% would absolutely crush the economy. Where else will you get any yield? Where else will people pile their money? Overinflated real estate bubble? Shopify that's currently trading at 2400+ forward price earnings? Marijuana stocks that have left the stratosphere? Amazon who is toying around with the idea of a non-profit healthcare venture as if the 'non-profit' is any different than it's core business ?
nisser wrote: ↑02 Feb 2018 16:06
I bought some IPL. The dividend stocks are exceptionally oversold. Unfortunately I have too much of TRP/ENB to add more to it.
Why oversold?
Perhaps they are undersold:
1) 5yr GOC yields have increased 1.2% since last summer or 1.6% since the lows
2) a 4% divco whose share price has dropped 10% is now yielding 4.4%, and increase of only 0.4%
Until the yield curves level out, I would hold off.
Don't forget their very expensive experiment near Redwater that is nowhere near their core business and will cost billions.