COMMENT
Actual bonds, ETFs or bond mutual funds? Depends on whether you are a do-it-yourself and how much money you have. With $20,000 you are better off with an ETF, which gives you a diversified basket. Doing it yourself open you up to a lot of single issue risks.
HOLD
Preferred D series. Redeemable starting in October. Pretty sure this won't get called. One of their perpetuals. Probably trades below its call price of $26. Good holding.
HOLD
Perpetuals that are approaching the purchase price. If rates continue to go up so that yields fall, should they sell? He feels they won't get called. Nice yield that should run for a very long time.
TOP PICK
Preferred (SLF.PR.D) 4.45%. Current yield at about 5.64%. Next call is next December at $26. Doesn't think it will be called out but if they did you would have a 27% return from here.
TOP PICK
Preferred (PWF.PR.L) 5.1%. Current yield of about 5.69%. Next call is Oct 31/11. If it got called out at $26, you are looking at an almost 20% return but he doesn't think it will get called out.
TOP PICK
(TRUCS) 4.87% maturing Dec 29/2049. Callable at the end of 2015. Expects the call to be exercised and would have to pay you 19.5 basis points over Government of Canada bond.
PAST TOP PICK
(A Top Pick Aug 28/09. Up 8.27%.) 6.1% Series AX Bond yielding 5.5%.
PAST TOP PICK
(A Top Pick Aug 28/09. Up 8.23%.) 7.25% Series D Bond.
PAST TOP PICK
(A Top Pick Aug 28/09. Up 12.37%.) 4.35% Series 17 preferred bond.
COMMENT
Bank bonds called Trucs and Cats. What are they? These are hybrid Tier 1 capital bonds. Trucs are issued by RBC Capital Trust and Cats are issued by TD Capital. They have conversion privileges under certain conditions.
PAST TOP PICK
(A Top Pick Oct 22/09. down 47%.) Consolidated 1 to 5. Had put a lot of faith in the new CEO who did a lot of cutting and was looking for higher margins, which did not come. Company continues to lose money. Sold his holdings in February at $2.91.
PAST TOP PICK
(A Top Pick Oct 22/09. Down 16.5%.) Very highly tuned to the economy and housing market. They have to start showing regular profits quarter after quarter. Introducing some new products. Still likes.
PAST TOP PICK
(A Top Pick Oct 22/09. Up 130%.) In a highly competitive field. Have about $90 million in cash, about $3.50 a share. Record revenues this past quarter and are looking at continued high profitability. Could see it doing a double.
TOP PICK
Droid phones are taking off. Just sold a division to Nokia (NOK-N) for $1.2 billion area and expected to pay down debt. Also planning on subdividing into 2 divisions, which should unleash shareholder value. One division, which has been losing money, is expected to break even while the other would be making a lot more money.
TOP PICK
#3 after Google and Bing. Management is way overpaid. Offer of $8 to $11 billion was made for Alibaba, which was turned down but it sounds like there is a lot of pressure to sell. Pristine balance sheet.