Investment Q&A

Q: Any news why LIF dropped $3.25 today?

Q: I have a question about LIF.
In the OUTLOOK section of their 3Q press release the company commented.....In its press release dated June 18, 2018, the LIORC Board indicated its intention to call a special meeting of shareholders to approve amendments to the articles of incorporation to, among other things, allow the corporation to invest in other mining royalties. While the immediate opportunity referred to in the press release remains a possibility, the Board has decided to defer the calling of the meeting.

You commented to a previous question that the takeover chatter on LIF is ongoing....with the above comment in their Outlook is the ongoing takeover chatter excellerating? do you have insight into who is speculated to take them out and what might be a friendly price? Thanks

Q: Greetings 5i team:

Once again, thanks for all your sage advice through the latest correction. I am really appreciative of having stocks/etfs like MFT that really held very steady through the latest correction - without you guys i would never have known about it. The value of having a diversified portfolio.
My question is about LIF -it has been on a tear lately with the special dividend etc but what is driving the underlying fundamentals. I didn't think Iron ore was in that much demand but would appreciate your comments. Its the only materials stock i own as i have had real difficultly making any money in the sector.

Q: LIF has yet to send out a circular for shareholders to consider and vote on changing the Articles of Incorporation. Today in the Globe and Mail, David Taylor of Taylor Asset Mgmt has recommended LIF as a turnaround pick given the significant premium it receives for hits higher-grade ore favoured by China's steel mills. He also suggests Rio Tinto PLC may sell it's 59% stake in IOC or take it public which could be a possible catalyst for LIF and that LIF could be a takeover candidate by someone interested in IOC. Would purchasing the 59% stake in IOC if it became available be the transaction LIF board has been hinting at for the reason to change it's articles of incorp as it seems like more of the same income and do you think LIF could be a takeover candidate?
Thank you.

Q: I was talking to my financial advisor about getting into a couple of high dividend securities north of 4% with some growth. They mentioned AW.UN, LIF, CGX, EXE. They said most of them have had a run except for the KEG and they said that one might be the better one. Which ones do you like of this group I have mentioned or are there any that you could recommend?
Thank you, Dennis

Q: Would appreciate your view of the Anglo Pacific Group PLC 4.25% investment in LIF. Thanks

Q: I would appreciate your overview of Labrador Iron Ore Royalty Corporation - Shareholder Meeting to Amend Business Restrictions whereby the corporation would be able to invest more timely with less shareholder approval in other royalty streams. Also, with this change should there also be a change in the number and/or background of the board of directors?

Q: Can you comment on their most recent results. The results and impact of the strike and the stock jump seem at odds.

Thanks for all you do.

Q: Stock price is down over 7% this morning. Could you comment on earnings release which seem a bit disappointing. Are market conditions still favourable going forward?
Currently have a 2% position and am considering increasing to a 3% position on current pullback.

Q: I hold Teck and Nutrien with the balance of my resource holdings in XMA. I have an equal amount of funds in each. I am considering selling XMA to purchase LIF. I know this will give me less diversity, but Teck and Nutrien are major weights in XMA which is otherwise heavy in gold stocks with low dividends and weak growth. At least LIF would give me decent dividends. What do you think? Thanks.

Q: Hello,
Why would LIF announce a shareholders rights plan just after their tentative agreement was rejected by union members? Doesn't the timing of this seem unusual? Should we read anything into this or something that was likely in the works for a long time?
Regards,
Robert

Q: Hello,

Is there a trade to be had while workers are on strike at IOC?

Regards,

Robert

Q: Iron ore is a mined and concentrated product. Steel is a manufactured product. While it may be possible to move a steel mill from one country to another or move steel production, you can't move an orebody.
I've only heard Trump's threats to put tarrifs on steel and aluminum. Is there anything in that regarding iron ore? Even if he succeeded in moving steel production to the US, they would still need iron ore, presumably from the Labrador trough, to feed those mills. Any thoughts on this?

Q: Scotia just published an upbeat analysis of LIF which indicated a 10 per cent yield. However, other sources indicate much lower yields, which may be due to varying quarterly payouts. Your opinion, please.
Thank you.

Q: Hi there,
LIF has seen a nice little correction here - would you support jumping in here. I only own Methanex on the materials side so looking for another name? If not LIF, what would you recommend today.

Q: Originally purchased LIF for income and some materials exposure. Capital appreciation in 2017 has been a bonus. How cyclical/volatile do you consider the underlying commodity? Does the company go through periods where it reduces/suspends their regular dividend?

Thanks,

Robert

Q: These are my only two commodity stocks. They have done quite well. Up around 25% on both. Would you be a long time holder of these? is it wise to trim the position after a decent gain?

Q: I was considering buying some LIF for it's recent momentum and dividend, even though it seems to have exceeded analyst price targets. But then I noticed that the CFO and CEO own only a few thousand shares each. Is that info incorrect? Does this indicate their own lack of confidence in their share price? It seems fair to expect them to have a bit of skin on the game.

Q: A couple of recent sources have suggested lower iron ore prices next year. I own LIF in several accounts and I'm wondering about selling about 25% at current prices and buying back next year at lower prices. I am enjoying the last two dividends of about 5% each. Do you see this as a reasonable approach to bring down my average cost as I purchased at much higher prices years ago. Thanks, love your service.
Earl

Q: Hi Peter, Is there a co-relation between growth factors and share price. MY screener shows some stocks with great growth ratios Like EPS, SALES AND INCOME growth in double digits but very poor performance ( LIF). Also, some with 2/3 negative growth ratios have stellar performance (BLX).
Am I missing something or the correlation is not straightforward? Which is the more reliable indicator? What is your favorite screening things. Thanks.