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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: What would be your top picks in this environment meeting these criterias: low debt, low payout, 3%+ yield. 5 names+ would be great. Long term investment. No financials or real estate. Thank you!
Read Answer Asked by Pierre on March 12, 2020
Q: I have held LIF for a few years now and have used its cyclical nature to take profits at its highs by selling down to my initial position and when the cycle bottoms add back again to my initial position. In the meantime I collect a very nice dividend. We appear to be approaching the bottom part of the cycle and would like your view on why LIFs share price is currently depressed and when market conditions will improve again.
I am currently at a 1.5% weighting and would be looking to add back to a 3% position to ride the next wave.
Thank you for your perspective.
Read Answer Asked by Bruce on February 05, 2020
Q: Looking for income and capital gain for 1 year or more. LIF seems to have bottomed and rising while CHR dropped back and now might be going forward again. Which one would you go with? Without regard to portfolio diversity and only $5k for this investment. Or a better suggestion ?
Thanks,
Mark
Read Answer Asked by Mark on January 29, 2020
Q: You've commented favourably about LIF several times earlier this year. Since then it's dropped like a stone. Given it's record of conservative management would you still recommend it? Do you see these moves as reactions (or over reactions)to events in China as well as their trade situation with the US? My understanding is that they produce high quality pellets that command a higher price on the market. This may insulate them somewhat from global events but there may also be material supply problems like Vale resuming production in Brazil.
I'd be interested to hear your take on this. I like the way you stand by your recommendations if you still believe in them or kick them to the curb in a second if you don't.

Read Answer Asked by Larry on October 02, 2019
Q: Good afternoon,

I need to diversified investments from the Finance sector, which I am little bit over expose. I have no investment in the Material sector. This is in my RRSP Portfolio and the investment will not exceed 5% of my total portfolio. I am a long term investor and looking mainly for income. Which of these two companies do you recommend Chemtrade or Labrador Iron Ore?

Thank you.
Read Answer Asked by Paul on October 02, 2019
Q: Is LIF selling more pellets this year or is the price of the pellets simply higher. I do find it odd that the prices of other industrial minerals (copper, zinc, etc.) are weak but iron ore seems to be strong or possibly just stronger than prior years. I would have thought the prices of industrial minerals would move as a group. I have always assumed iron ore pellets are too large a market to be manipulated. Do you agree?
Thanks,
Jim
Read Answer Asked by James on July 15, 2019
Q: Would you be able to compare these two companies or are they too different? If I understand correctly they are both in the materials sector, are well managed and are companies which combine some growth along with a healthy dividend. Possibly MX has more of a global reach and so has some control over its destiny while LIF is a royalty company and simply reflects the current price of iron ore pellets. If I understand correctly LIF would have a risk of ore exhaustion or depletion even though the Labrador Trough has been a source of high quality pellets for years now. MX buys hydrocarbons (oil and gas) to make methanol so their input costs should be low yet methanol prices must be even lower so we have a problem. You note MX is projected to have 60% growth next year which is a high number but the stock continues to decline. Based on your years of experience do you feel this is a valid projection? Is the 60% number based on anticipated recovering demand or is the company opening a bunch of new factories next year?
Any other thoughts you have would be appreciated.
Thanks,
Jim
Read Answer Asked by James on July 15, 2019
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
Read Answer Asked by Gordon on November 14, 2018
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.
Read Answer Asked by kelly on November 09, 2018
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.
Read Answer Asked by Gordon on October 17, 2018
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
Read Answer Asked by Dennis on August 23, 2018
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