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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: Hi,

This question is more about the sector than individual companies. I inserted GLD/XGD/JGD in the stem b/c if I put GOLD, it takes me to a small cap gold co!

An answer by a well respected senior guest on BNN made me look up the prices of Gold companies in 2011 when spot gold hit 1900+ in 2011, Alamos was 20+, ELD 100+ (really?) CG 23+, and so on and so forth.
If anything, with low interest rates and USD in shakier position compared to 2011, these companies ought to be doing much better. Yet they are still a lot lower than their 2011 prices.

Any reason why?
Will they reach their 2011 highs again? If you think they will reach their 2011 prices, what would be your picks in that scenario?

Read Answer Asked by Savalai on August 05, 2020
Q: May I have your assessment of the following 3 South African gold companies: DRD, GFI and AU. Thank you.
Read Answer Asked by John on August 05, 2020
Q: I have two questions for you:
1. I currently own TGZ and looking to add another small/mid cap gold play. I've zeroed in on EQX and WDO. Which do you prefer or is there another name you prefer.
2. WELL or DOC.....which do you prefer and why?

Thanks so much,

Dennis
Read Answer Asked by Dennis on August 05, 2020
Q: Thank you for the quick response to my ER/AUG. After reading your response, I realized that with ER currently trading at .26, its way below the implied deal price of .42 and I would potentially be leaving a lot of money on the table if I was to sell now and buy AUG. Hence I am best to wait selling my ER to see where all this settles as you suggest. Having said that, my reason to sell was to capture a large loss on ER shares while keeping my AUG exposure - however, if the deal goes through, would the conversion to .117 shares of the new company FURY be considered a deemed disposition of ER??? In that case if I do nothing I would be able to claim the capital loss of ER and still get the new Fury shares if/when the deal goes through? Correct?
Read Answer Asked by Scott on August 05, 2020
Q: Hi 5i team. Is it unusual for trading to be halted for over 6 hours today (so far), with no communication from anyone why?.. and no indication when trading will resume?

I see nothing in my TD Webroker news feed except for the news of the trading halt itself, and nothing published today on the Nuvo website.
Based on your info sources, are you able to discern and share what the reason for the trading halt may be? Typically where else would such information be available?
sgr


Read Answer Asked by SG on August 04, 2020
Q: I am holding this name, but at under 2% of RRSP. I also have a position in XGD, which obviously has not risen as smartly this year. I'm bullish on gold over the next year, but also don't want to be greedy, so I'm asking if I let PRYM run or churn out to XGD or elsewhere in this space? Thanks
Read Answer Asked by Darren on August 04, 2020
Q: Why is Maverix dropping while the others continue to rise with the price of gold?
Read Answer Asked by Allen on August 04, 2020
Q: I own a lot of ER stock in a non-registered account. Even with the run up in price with the announced takeover bid by AUG, I have a considerable Capital Loss. I would like to capture that loss but remain exposed to any further upside that this deal MAY unlock if it comes to fruition. 1) Does it make sense to sell my ER shares now and immediately purchase AUG with the proceeds......this should keep my exposure 100% intact would it not? 2) I assume that because the deal is not done and the two stocks are completely different entities that this would NOT be deemed a superficial loss......is that correct? 3) is it very likely that ER may receive a better bid from someone else and I would lose out by switching the shares to AUG? 4) What would you do in my situation?

Many Thanks
Scott
Read Answer Asked by Scott on August 04, 2020
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