Investment Q&A

Q: Peter,
Was hoping to get your comments on Kirkland Lake Gold. This is a company that seems to have a lot going for it but the stock has been sliding and today it got hammered. I don't really see anything to shake my confidence in the company other than typical project/operational type issues. Am I totally lost here or is thing getting hammered unreasonably? I'd imagine its getting hit by tax-loss selling too.

Q: Corby has two classes of shares, both trade about the same volume but one - CDL.A voting - trades about 50 cents higher than CDL.B non voting. Which is the better one to buy for a long term hold.

Q: Hello Peter and 5i staff, I wonder if you might have a comment on FM, First Quantum Minerals? Thanks, Frank

Q: Hi Peter,

What are your thoughts about NUS which is at an all time low? They have more cash then the current share price and are suffering from government interference. Is it worth buying here? Thanks

Q: Investment question. I appreciate we are all pretty much "fiscal cliff"ed out at this point. (Remember y2k?). However, I would be much interested in your take on the effect on the Canadian market should a resolution not occur by year end. Many seem to think that the resultant uncertainty would throw the U.S. market,at least, into turmoil (markets don't like uncertainty that they can't price in). No resolution raises the spectre of U.S. recession. They are our biggest trading partner. I'm just wondering what your thoughts would be on "going to cash" until the dust settles?
Thanks for all the work you do for us.
P.S. Do you send renewal reminders?

Q: Peter; The newspapers and Tv are awash with pipeline approval problems, plus the world , mostly the U.S. and Canada, are discovering new vast pools of tight oil. If this continues how will companies, like CPG etc,
get paid for their oil, besides hedging, and continue exploring and more importantly pay their dividends? Won't they have to basically lock in their oil, like the gas has producers do now? Thanks.
Rod

Q: I would appreciate any comments you might have on using David Stanley's "Beating the TSX" system as a basis for an RESP account with a 15 year time horizon. I understand that not all the current names are desirable (i.e. TA) and that the list is weighted more towards financials. Basically I would like your take on whether this approach has merit as a low cost, low maintenance, low risk way of investing for future education needs. Many thanks.

Q: Hi guys,

I'm a high school teacher in BC. I want to teach my class a unit on investing. Wondering a few things: a good stock or broker account simulation site for students, useful websites, videos and or decent books for teenagers, and other places to get information.

Thank you,

Brent

Q: Would you recommend Ag Growth (AFN) for a long term hold ? Thank you.

Q: Hi Peter & 5i: The market seems to be reacting very favourably to Just Energy's (JE) debenture financing announcement today. How do you think the financing effects JE's risk profile in the medium term? Is the size significant or a drop in the bucket? At 9.50% the coupon sounds high, but I don't know how burdensome the debt obligations were that they may be retiring with the new money. It is still 300 basis points below the common equity yield. Is there any significance to the identity of the lender? How, if at all, would this development impact your present view on JE? Thanks!

Q: Hello and thankyou. Would you buy BEP at the current price or would you expect a pullback over the next few months?

Q: http://business.financialpost.com/2012/12/11/wi-lan-makes-push-for-deals-with-rim-apple-and-others/
This article seems to indicate there is still lots of confidence in Wi-Lan. Are you in agreement with its content ?

Q: I have a question about Wi-LAN Inc.

I have heard commentary on BNN that WIN is ripe for a takeover considering the extreme SP discount. While, hostile takeovers are typically unsucessful & considering where the share price is currently , would it not be worth the risk to go the hostile route for one of it US Peer companies?
The US peer could buy WIN out for $6-7.50/ share and than get rewarded by the market by valueing its PE at $10-11 & get its future revenues for free.
Do you think someone will make a takeover attempt?
Shaun

Q: CF. In the hopes that M&A activity may pick up in 2013, do you like this company moving forward, in that it could stand to pick up more business in a heightened M&A environment? Does the purchase they themselves made a couple years ago in the UK still hold them back (bearing in mind that half their staff - if memory serves - jumped ship soon after the deal closed). Thanks for all your excellent advice and extremely thorough replies.

Q: I have a question about Badger Daylighting Ltd.
Hi Peter:
I worked for a multinational O&G for many years. Daylighting / Hydrovac has established itself as the new normal for the vast majority of maintenance related excavations. Although it's not necessarily the operatrional efficiency that drives the equation. It's risk management. Operations and Maintenance groups reduce any related uncertainty regarding potential underground contacts by either performing the entire excavation by hydrovac or identifying any existing underground infrastructure by spot hydrovacing to visually locate it prior to excavation by mechanical methods.

Peter: Do you believe it is inevitable that Badger will be taken over by one of the larger construction service providers in the next couple of years? Seems to me, there's just too much potential cash flow involved.

Q: What do you think the future holds for Torstar (TS.B)? Do you think can maintain the 7.79% dividend and do you see any support for growth prospects?

Q: hello 5i:
I've read the one question there was on DNG, in October. Wonder if anything has changed for your outlook (I realize this is a very short time lag, but.......). Here's what I have read about them:
As an ore processor alone, Dynacor is a great value play. It is currently trading at less than 0.5x sales, with a ROE of 36.01%, a current P/E of 6.67, and trade roughly at the net market value right now. This translates into a very efficient use of current assets that generate a return far superior to many other avenues in which a retail investor can invest. It's also a growth story - Dynacor has increased its daily ore processing capabilities to 220t of ore per day, and is self-financing the expansion of another processing facility. That translates into at least 50,000 ounces of gold processed for 2012 (revised up to 58,000 this month), with the new facility increasing expected production up to 100,000 ounces of gold for 2014. Its latest month saw over 6,000 ounces of gold and 14,000 ounces of silver processed, for sales of over $10 million. If monthly production is maintained or increased, Dynacor is trading at a mere 0.3x sales and an annual net profit closer to $0.28/share with four quarters at current operations, leaving Dynacor trading at a forward P/E of roughly 4.3. In other words, dirt cheap.
Very interested in this company, particularly since you say management is very good. Your opinion please.
Paul

Q: Hi Peter,
What are your thoughts on Renegade Petroleum? Also, should one buy into Canadian Phoenix Resources or straight into Renegade as I do not really understand the deal between the two. Who would be the better buy if any. Tickers are RPL and CXP.
Thanks.

Q: Canacol Energy[cne] on the TSX has had a bit of a run of late & yet it has a reverse split coming up.It seems to have large blocks of land & links with big companies. Your opinions on this company would be appreciated.Thanks for all your help.
Dave

Q: Peter: general question.
Your recommended segmentation of a portfolio of say $2,000,000 ie: 50-60-70 individual stocks in the 8 or 10 major market segments. Do you have a formula? Thanks & congrats on your first 5i year.