stockchase picture

Compiling comments that experts make about stocks while on public TV.

Expert Index

List by First Name

List by Last Name

Randy LeClair , Chief Investment Officer & Portfolio Manager

Portland Investment Counsel


Date Signal Chart Symbol Company Opinion Price
2013-09-30 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Markets. Markets don’t like uncertainty. Right now it is a “risk off” trade so people are leaving the equity market but haven’t really flooded into the fixed income market yet, so we’re kind of flat. Coming into the year, government bonds were at such low levels, but we got to the point in May where we were seeing positive growth and inflation was tame. That has all been reversed since May where the US government stated they were really dependent on the economic data, where they needed to see unemployment improve and inflation, come up a little bit. For the next 6-12 months we are sort of in a safe zone where he doesn’t expect rates will go much higher.


Price:
$0.020
Subject:
FIXED INCOME
Bias:
UNKNOWN
Owned:
_N/A
2013-09-30 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

If the underlying equity is good quality, are convertible debentures a good way to get downside protection in a rising interest rate environment? In theory, this works great, but unfortunately there are a lot of convertibles that come out that are really weaker companies. In Canada, we don’t have that many convertible issues as there isn’t the market for them. Although it sounds good at the start by getting any percent coupon on a weak company, at times it works against you in a rising rate environment. You really have to be careful and know the companies you are buying.


Price:
$0.020
Subject:
FIXED INCOME
Bias:
UNKNOWN
Owned:
_N/A
2013-09-30 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

What factors differ do you look at when deciding whether to buy bonds of a company versus its equity? With bond investors, you are playing a banker, not an owner. You are really asking yourself, will I get my money back. Credit ratings is a great starting point, whether it is investment grade are not, high-yield. You also have to understand the industry, management, etc.


Price:
$0.020
Subject:
FIXED INCOME
Bias:
UNKNOWN
Owned:
_N/A
2013-09-30 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Target bond ETFs. Is there any way of knowing the “face value” of a target bond ETF? A target bond is a fund that has very specific maturity dates and you can buy anything up to that maturity date. There isn’t really a face value or a price on a target bond, because it is a pool of bonds. This is a reasonable investment for an investor who has a specific event in their life that is going to come up, such as a child or grandchild that is going to university in 5 or 10 years.


Price:
$0.020
Subject:
FIXED INCOME
Bias:
UNKNOWN
Owned:
_N/A
2013-09-30 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

Disabled and on pension. 70% of the portfolio is in GICs and 30% in REITs. When a GIC comes up he puts the REIT payment into GICs. Suggestions. Prudent but maybe a little too conservative. Usually GICs have exposure to only one sort of credit, the banks, and there is a lot more yield to pick up either on the yield curve by going out a little bit further than a GIC such as a corporate bond. Also, you could pick up a little more yield if you bought a utility, telecom or pipeline bond. Preferred shares could also offer a valuable tool.?


Price:
$0.020
Subject:
FIXED INCOME
Bias:
UNKNOWN
Owned:
_N/A
2013-09-30 N/A Must be logged in to use chart A Commentary A Comment -- General Comments From an Expert

With the recent pullback in real return bonds, would you suggest stepping in, or waiting? These are inflation linked so you will get a bit of a coupon plus inflation. His outlook for inflation is that it is flat with very little chances of it going up. These bonds were really brought out for institutional investors, specifically pension funds, but needed something in their book of retirees that was indexed to inflation. He is not a big fan right now.


Price:
$0.020
Subject:
FIXED INCOME
Bias:
UNKNOWN
Owned:
_N/A
2013-09-30 COMMENT Must be logged in to use chart BCE-T BCE Inc.

Preferred G Series? This was a precursor to the “rate resets” and was known as a fixed floater. On a rate reset, you know what the spread is going to be but on this one, you don’t know.


Price:
$44.020
Subject:
FIXED INCOME
Bias:
UNKNOWN
Owned:
Yes
2013-09-30 TOP PICK Must be logged in to use chart BRF.PR.E-T Brookfield Renewable Power Pref

Preferreds E, 5% Series 5. Hydro plants, wind power, etc. Nice coupon of 5%. Callable in 2018 at $26 and then goes down by $0.25 each year until 2022. Current yield of about 6.35% dividend yield.


Price:
$19.800
Subject:
FIXED INCOME
Bias:
UNKNOWN
Owned:
Yes
2013-09-30 PAST TOP PICK Must be logged in to use chart CU-T Canadian Utilities

(A Top Pick August 27/12. Down 4.65%.) 4.9%, Series AA. All 3 picks are down because over the summer, there was a perfect storm of events including 1) the tapering, 2) index rebalances in preferred shares (ETFs must exchange their holdings), which drove prices down and 3) in August there was a program trade go through which drove them down even further. A solid company. Real bargain at these levels.


Price:
$35.430
Subject:
FIXED INCOME
Bias:
UNKNOWN
Owned:
Yes
2013-09-30 PAST TOP PICK Must be logged in to use chart ENB-T Enbridge

(A Top Pick August 27/12. Down 3.79%.) 4% Series H. All 3 picks are down because over the summer, there was a perfect storm of events including 1) the tapering, 2) index rebalances in preferred shares (ETFs must exchange their holdings), which drove prices down and 3) in August there was a program trade go through which drove them down even further. Still likes this one.


Price:
$43.020
Subject:
FIXED INCOME
Bias:
UNKNOWN
Owned:
Yes
2013-09-30 COMMENT Must be logged in to use chart ENB-T Enbridge

$US Series L and Series 1 fixed cumulative preferred shares as a way to earn US income within Canada. What happens on the dividend reset and is the dividend available for the dividend tax credit? Nice match if you’ve got US commitments or need US income. These are usually issued for 5 years at a fixed rate and at the end of that time, the company has the 1st option to either redeem or allow it to go to the reset at a pre-established spread when they initially issued it. When it goes to reset, the investor has the option to go for the next 5 years of either fixed or floating. Not a tax expert, but he believes that because it is a Canadian company, currency doesn’t really matter, and you should be eligible for the dividend tax credit. (Check with your tax advisor.)


Price:
$43.020
Subject:
FIXED INCOME
Bias:
UNKNOWN
Owned:
Unknown
2013-09-30 COMMENT Must be logged in to use chart FN-T First National Financial

Rate Reset Preferred? This is not a big issuer in Canada. Has been hit by the overall “perfect storm” that we went through in the summer. (See comments in Past Top Picks.) Even though the credit may be stable, it is not easily tradable within a larger portfolio so he doesn’t own. If you’re happy with the yield you are getting and it is a longer-term hold, you could hold this. If you are looking to trade in and out, you might be better with something else.


Price:
$18.910
Subject:
FIXED INCOME
Bias:
UNKNOWN
Owned:
No
2013-09-30 BUY Must be logged in to use chart FTS-T Fortis Inc.

J series preferred shares? One of his favourites. A perpetual type, a longer-term, and the 1st redemption date is in 2021. It will wind down from the 1st call of $26 with a face value of $25, so they could take you over with a $1 premium and then each year thereafter, it will go down by $0.25. In the meantime, you are collecting a $4.75 coupon. Currently trading at roughly $23.50, so on a yield basis, it is a little over 5%. More susceptible to interest-rate movements than a shorter-term one.


Price:
$31.290
Subject:
FIXED INCOME
Bias:
UNKNOWN
Owned:
Yes
2013-09-30 PAST TOP PICK Must be logged in to use chart GWO-T Great West Lifeco

(A Top Pick August 27/12. Down 0.2%.) 5.4%, Series P. . All 3 picks are down because over the summer, there was a perfect storm of events including 1) the tapering, 2) index rebalances in preferred shares (ETFs must exchange their holdings), which drove prices down and 3) in August there was a program trade go through which drove them down even further.


Price:
$30.010
Subject:
FIXED INCOME
Bias:
UNKNOWN
Owned:
Yes
2013-09-30 BUY Must be logged in to use chart PWF-T Power Financial Corp

Preferred S series? Really likes this issue. This is a perpetual, so it is a longer-term and goes to 2022 and is payable at $25. There is a redemption before that at $26, which would start winding down to $25 in 2022. Pretty good dividend of around 4.8%. Trading way down around the $20-$21 mark, so the current running yield on it is about 5.5%.


Price:
$32.050
Subject:
FIXED INCOME
Bias:
UNKNOWN
Owned:
Yes
Showing 1 to 15 of 268 entries
First Previous 1 2 3 4 5 Next Last

No Comments.


You must be logged in to comment.