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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: How is a metals producer usually valued? I see Scotiabank has an adjusted eps calculation, but I wonder if book value should also be considered. I calculate an BV/sh of approx. $15 form their recent filings today. In your opinion what would be a reasonable price range for this company at todays copper/gold prices +/-10%?
Thanks, Gordon
Read Answer Asked by gordon on May 02, 2016
Q: just did a deal with suimitomo for $1 billion for a 13 %interest in a US copper mine.(morenci).
according to the talking heads this deal values copper at a minimum $3 per pound and has moved FCX stock nicely.
my question is with FM. this announcement seems to have moved the stock.would a small position be advisable 1 or 2% As I have learned these stocks move quickly in both directions.If you believe the sky is not falling ,there should be a bid for copper as this deal indicates.
Thx Blake

Read Answer Asked by blake on February 17, 2016
Q: Hi, my holdings in basic materials is presently below my target of 5% for the group (Stella Jones, Goldcorp and First Quantum). I was thinking of purchasing more First Quantum hoping to take part in the eventual recovery in this sector. Just curious of your thoughts. What is the likelyhood that FM will not survive? Are they holding too much debt? Would you recommend a different move? Thanks. Mario.
Read Answer Asked by Mario on August 24, 2015
Q: I was stupid enough to hold onto FM after you removed it from your model portfolio and now sitting at 55% loss that grows every day. It currently represents less than 1% of my portfolio, so I may eventually sell for tax loss. Yet, I don't understand why we got such a quick decline in just a few months... China worries and power concerns cannot explain such a drop, especially, as you confirmed in the answer to another question, for the stock that has 20 Buy recommendations and only 1 Sell recommendation. Something is very strange going on there and that's why I am hesitant to sell... Do you expect a recovery within 3 years? Do you see any bottom for the stock price? How bad is the company's debt situation?
Read Answer Asked by Michael on August 18, 2015
Q: Hi Peter and team,

When you remove FM from a model portfolio, does that mean a sell for us even if we do not hold the same positions as the portfolio. Would you recommend swapping FM for another company in the sector (e.g HBM or LUN) or just getting out of the sector at this time?

Also, what's you take on PRW's survivability in the current environment?

Thanks for all you do for us.

BK
Read Answer Asked by Bekaye on August 06, 2015
Q: I have only 3 resource stocks. RMP, FM and THO. RMP is down 55% from my pruchase price over three months, FM is down 21% in less than a week and THO is down 31% in 2 weeks. What should be my strategy here. Should I bail out on these 3, take the hit and invest in some healthcare or technology stock or shoudl I keep holding on and expect they will recover sometime. Please advise.
Read Answer Asked by Imtiaz on July 27, 2015
Q: Hello Team, I only have a small position in Gold Corp, and I would like to increase my exposure in the mining sector. I was thinking of purchasing FM, and I would like to hear if you feel that now is a good time to jump in. Also I would like to hear your opinion on any other candidates for the sector that you feel are worth holding. As with all my stocks, my intention is to hold onto them for a couple years.
Have a good weekend!
Patrick
Read Answer Asked by Patrick on April 27, 2015
Q: Hi 5i: I've held FM for about a year, having bought it as part of a diversification effort. Everything I read and hear suggests that the price of copper is unlikely to move until 2016, and then relatively slowly. I'm considering getting out and switching to something that will provide some growth in the interim. Your advice would be appreciated. If you think getting out is OK, any suggestions on what to buy instead?
Read Answer Asked by Roland on March 24, 2015
Q: Hello,
I was doing tax loss sale in December and you suggested replacing TCK.B with FM. As you were recommending this stock before (and as a better company than TCK.B), I replaced TCK with FM but the stock started going south rather rapidly. It is about 3% of my portfolio and I am now down about $10K on this stock since my purchase on Dec 11. I am wondering whether I should patiently wait for recovery (I noticed that you added FM to model portfolio), sell it and take a loss, swap back to TCK.B. etc. What do you recommend? What are your short term and long term projections for this stock?
Thanks.
Read Answer Asked by Michael on January 23, 2015
Q: Hello,
What are your thoughts on First Mineral? I hold half position in FM and was planning to increase it to a full position. The stock is down 13% in the past 3 days - should I take it as an opportunity or a warning? I am considering holding the stock for 2-3 years. (My current exposure to energy and materials combined is 25%)
Thanks.
Read Answer Asked by Michael on January 13, 2015
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