Investment Q&A

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Hebba Investments, Hebba Investments LLC (983 clicks)
Long only, value, contrarian, gold & precious metals
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Index Rebalancing Creates An Opportunity In Timmins Gold
Sep. 16, 2015 8:19 AM ET | About: Timmins Gold Corp (TGD)



Index Rebalancing Creates An Opportunity In Timmins Gold
Sep. 16, 2015 8:19 AM ET | About: Timmins Gold Corp (TGD)
Disclosure: I am/we are long TGD, GPL. (More...)
Profile| Send Message| Follow (3,856 followers) Performance
Index Rebalancing Creates An Opportunity In Timmins Gold
Sep. 16, 2015 8:19 AM ET | About: Timmins Gold Corp (TGD)
Disclosure: I am/we are long TGD, GPL. (More...)
Summary

Index related selling based on purely technical reasons has pummeled Timmins Gold's share price.

We saw the same thing last quarter with Great Panther Silver and it created an opportunity for investors.

At the current valuation, Timmins "sum-of-the-parts" valuation is much greater than its current market capitalization.

For value investors this makes an excellent speculative buy as soon as the GDXJ index unloads its shares this Friday.
WOULD THIS UPCOMING EVENT ACCOUNT FOR THE STEEP SLIDE IN TMM? THANKS

Q: TCN is offering its subsidiary Tricon Investment Partners in new IPO.
What is your opinion comparing these two, which one will be a better investment? Is TCN already fully priced?

Q: AW has kind of dropped from its 30$ in June,is it the general market and how do you feel about it going forward? A good add to holding at this point ?

Q: Sitting on 4100 of these shares. if I cash out now at $18.55 I will lose $810 for not waiting. The Teachers bailed out on a bid for BCE some years ago. What would you do?

Q: Hello 5i team

I have invested in BAD in the past and did well, I still own a small position in this company ( I am not concerned with the weighting in my portfolio ). I work in the oil and gas field and I see BAD trucks at my work place, I drive home from work and see BAD trucks working on city Infrastructure projects. I like the idea that they can allocate their trucks away from slower areas (oil and gas sector) and move them to more profitable areas very quickly. I believe they have a good reputation in the field. I like that they build their own trucks and can ramp up assembly of these trucks on a whim. In having control of the construction of these trucks they have slashed the price of the trucks compared to buying them from a middle man dealer (a huge competitive advantage in my opinion) they have also maximized the usability of the truck since they have ultimate control of the product.

I have noticed over the years that large corporations ( In the O&G field and utility sectors) are becoming more focused on safety (probably due to wanting to keep insurance costs minimal) and in these slower times in the oil patch are starting to pinch their pennies harder. I see BAD as the safest, fastest and cheapest way of excavating pipes, cables etc which is just what their customers or potential customers should be wanting. I also see BAD as a excellent take out prospect maybe not today, maybe not tomorrow but some day. As they become more dominant in the north american hydro vac world they should look more attractive to some larger service companies. BAD seems to have a manageable debt load, good ROE and pays a div which hasn't grown but they have been in a aggressive growth phase and I expect after that phase is over that the div will begin to climb.

My question to you is why should a guy not back the truck up on this stock now (sector weighting not begin a concern to me)?? It should be able to easily survive this oil market slow down and come out the other end looking pretty good since it has plenty of business happening in the Infrastructure and utilities areas. What are the potential down falls of this stock?? What is your opinion of the management??

Thanks

Q: I would like your view on TMM.

Q: I am looking for an income stock that has enough growth potential to overcome the double whammy of a lowwr P/E when interest rates eventually rise and the effects of inflation on operating costs. Do you think Fortis fits the bill? Would you be able to reccpmmend others?
Thanks,

Q: Hi there, instead of complicating my Us and international positions, I was considering VTthx as an idea since the mers are low as well. I was considering 50% of my Rrsp for this since it is diversified. What do you think of this approach for a 20 year hold...do you think this can come out more successful than multiple positions?if you suggest multiple positions can you provide some suggestions for a long term hold.

Q: Hello Peter,
I can`t decide between Prism and Savaria. Purchasing either one will make me a little heavy on Healthcare ( 10%+), but by design, considering the sector`s shine in an otherwise bleek market. I currently own a 1/2 position in PHM and a full postion in SIA as well. I can only pick one of either PM / SIS for a full position ... can you give me your usual steady-handed guidance towards this decision for a long term hold? (2-3 years)
Thank as always!
Rick

Q: Could you please provide an update on SYZ?
Thanks - Richard

Q: Would please give me your thoughts on the company.

Q: What's your opinion of Harmony Gold and of gold stock in general?
Thanks - Richard

Q: I'm gradually transitioning more and more of my portfolio, so as to mirror your model and growth portfolios. Which companies in each of those portfolios would you see as the best buys at this time? My portfolio is relatively well balanced, but I'm a bit heavy in financials and technology. I'm under weight in energy and materials, but a bit nervous about adding in those areas at this time. Thx for keeping me sane during this tumultuous time in the markets!

Q: What do you think of Boyd's inclusion to the S&P/TSX Composite Index announced yesterday? I thought this would be a positive for the stock, but it's off ~4% since the news release.

Q: Just a comment regarding Dave's question on HCG...
When I have a stock that is overweight in my portfolio (or I have made a nice profit on), I often will write a covered call at a strike price that I am comfortable with. This ensures that I keep my weighting appropriate and removes the "emotion" from the decision to sell. Why not get a premium for selling a stock you had planned on trimming in the first place.

Please publish if you think this would benefit others.

Thanks,

Q: In your opinion, is there more upside potential in purchasing Concordia over Valeant at today's prices?
Thanks in advance

Q: Not seeing any news that would drive the volume increase. What am I missing?
Thank you,
Nancy

Q: I have a similar (nice) problem to that posted by David. I bought a half position in HCG and saw it go up 15% in a couple of weeks. Tempting though it is to cash out and take my wife out for a good dinner, I still want to purchase the other half position as it was my intention all along (I am a long term invester). I am not trying to "time" the market, but it is 1) a small cap (the other financials I hold are RY, BNS and MFC); and 2) the market is gittery to say the least. So the question is: what is the reason for HCG to rise so fast? Short covering? As always, thanks again. Henry

Q: On BNN this am Lmp was listed as one of the top 5 stocks increase in short interest. Can you comment as to why this is the case.

I realize the stock is struggling and down 30% since June.

Q: What effect do you think a minority Gov't might have on Canadian stocks? Perhaps consider if it was to be Conservative or some other dreaded party. Thanks