Investment Q&A

Q: Hi Peter.
I am bullish long term on NML, however, I always try to keep my enthusiasm in check. I know there is alot of cost pressure in the trough right now and I'm growing concerned that capex & opex are on the rise. Maybe I'm overthinking this but the fact that they have recently announced a normal course issuer bid to buy back shares tells me perhaps they are anticipating a negative reaction to the release of the upcoming FS and want to defend the share price?? Not typical for a junior mining co. to intiate a buy back. Also do you have any intention of covering this company going forward? I have seen NPV calculations using $125-$150 iron prices ( 8% discount rate) that peg this at $3.50-$4.50/share for the DSO and of course a much higher NPV on the LabMag and Kemag deposits. Any thoughts/opinions would be greatly appreciated. Thanks.

Q: Peter do you have an opinion on STB for steady income and stability of stock price.

Q: Hi Peter, how do we deal with low trading volume? Example: your recommended MDF has 300 shares traded today. Thanks

Q: Hi Peter any view or opinion on "ROZ" how speculative is this one, I hear the board has well known members. Is it a lottery ticket and what is the strategic review all about. I have held some shares at .10 cents just wondering if I should move on. Thanks, Nick

Q: I read yesterday's news entitled "Pacific Rubiales confirms oil discovery on the Karoon blocks, offshore Brazil" from PRE with great interest. Your analysis would be highly valued.

Q: Hi Peter Can I have your opinion on FTP thanks!

Q: Hi Guys! Can you explain how split shares work, such as SBC?

Q: Dear 5i

Do you have any plans to cover WFI or have any comments on its current value?

Thank you

Q: Peter, Rays question on Game Host made me take an interest as the Dividend is appealing. I cant seem to find much information on them. Do they have a history of raising div? Does the liquidity scare you? Would you mind giving a ranking on it so that we may get a better handle on it? Would it be as safe as say A&W ? They have about the same yield. Thanks Ken

Q: Today (24/Jan/13) you answered a question (from Sam) comparing 2 pipelines (PPL & IPL.UN) for growth & dividends. You favoured PPL for higher dividend & faster expected earnings. I see the higher dividend but PPL also has a higher P/E (from Globe & Mail) - wouldn't that make it more expensive? or does one compare the P/Es to the Forward P/Es to determine expected growth on earnings? Please could you explain.

Q: Would you give your view on FIE.A. It holds canadian banks, some reits and insurance companies. Dividend sames OK.I currently hold it in my investment acct.
Thanks Harold.

Q: Hi Peter,

I found the info you provided to an investor question previously on Solium Capital (T.SUM) to be very interesting and led me to do more digging (an equally valuable part of this service!). Indeed Solium is carving out an ambitious and interesting niche for itself as the global 'go-to' organization for a wide swath of services regarding equity compensation (e.g. even extending past software to include brokerage, trust etc.)

Some factoids that I found of particular interest - 93% of revenues are recurring; management owns approx. 35% of outstanding shares (all acquired via cash purchases as there are no 'founder shares') and so very much aligned with shareholders.

SUM has finally attracted an analyst (Pardeep Sangha from PI) who has set a $4.50 target in his Jan 22 report. His basis for the price is that "Solium is currently valued on an EV/Sales ratio of 1.7x and an EV/EBITDA ratio of 7.1x FY13 estimates. Meanwhile, Solium’s peer group, is currently valued at an EV/Sales multiple of 3.4x and an EV/EBITDA multiple of 12.6x consensus FY13 estimates."

Question: is his EV methodology perhaps more useful than using a straight P/E analysis for assessing this type of high growth company.

Sign me,

A happily renewed 5i subscriber!

Q: Hi Peter, I would like your opinion on XTR, XDV and XEI
From ishares website XTR is 60% bonds, XDV has 30 stocks with 60% financial and XEI has 75 stocks with 30% financial and 30% energy. Going forward and for income in an RRSP, I favor XEI. Do you agree? What is your recommendation please? Is now a good time to get in?
Thanks a lot.

Q: Hi Peter, EDV ,Endeavour mining had some splendid production numbers recently. I find this stock very undervalued. Would you care to comment on it? Sincerely,

Q: Hi Peter can you give me your outlook for "QEC" is there any hope for this one, I've held it since Nov. 2010 or is it time to let it go.

Q: I'm curious how you decide which securities you will report on next. Ones that you like? Ones that are interesting? Random selection?

Q: I previously asked about a replacement for Bloomberg's 5-yr Breakeven index USGGBE05:IND (no longer available for free). I used this for future inflation expectations. I think I have stumbled on a replacement here ==> http://research.stlouisfed.org/fred2/graph/?g=efF
Comments ??

Q: I'd like your opinion on a choice between Pembina or Inter Pipe for growth and dividens ?
Which rail company will have the most upside with oil shipping?
With a 5 year window for both.
Thx
Guys

Q: This is a follow-up to the answer to the "hold winners vs sell part of winners which are too large a percentage of your portfolio".

It is often hard to sell any part of something which is doing well and lookss to be doing more of the same in the future.


What I have done instead of selling to bring the percentage in line is to place a trailing stop on the amount which you would have to sell to bring the diversification back in line. Obviously trying to get the best of both worlds.

Would you have any comments on the validity of this strategy?

Q: Hi, guys. question: why would kingsett chose to buy up to 5% of primaris' shares now? even with this 5% block, I find it unlikely that their bid would receive enough support to go through. seems like an inefficient use of cash buying primaris in the high $26s and $27s when the value of pmz.un's shares based on hr.un's current share price is lower. seems to me like kingsett could get an better immediate return buying hr.un. your thoughts are always appreciated.