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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: Who should i focus on for copper. Manageable debt to survive any economic down turn, mining in stable political countries, low cost production, reasonable life of current mine(s) for future supply. Trading on the Canadian exchanges With EV etc I expect supply of copper will be another metal that will be in short supply but will have its ups and downs in the short term.

Read Answer Asked by Tim on May 26, 2023

Q: Teck is starting to drift downwards again, including a big drop today. Donít see any news. Any reason you can see for the drifting down? Just fading confidence that an acquisition is going to happen? Seemed like there may be new/different offers on the acquisition the horizon a few weeks ago, has that changed? Would you recommend holding on in anticipation of acquisition offers coming in again? Not in a rush to sell, but donít want to hold on if pricing is going to continue to move down to pre-acquisition offer levels.

Read Answer Asked by Jason on May 25, 2023

Q: Can you please give us your recommendations what will be minimum / maximum CDN dollar amount for Teck resource shares if someone gives offer. I just want to analyze if it is worth holding until offer comes or add more.

Thanks for the great service

Read Answer Asked by Hector on April 27, 2023

Q: Bit of a gong show. Initial plans to spin off (with royalty attached so how much of a real spin off was it?). Change the spin off plan plan with shorter royalty life. Decide to can the spin off plan after spending substantial time and money (I have the half inch thick Proxy Circular). Now their Q1 is over of mine costs and short on revenue.

Is this company really a hold or should I give up and take the gain?

Read Answer Asked by Gregory on April 26, 2023

Q: Hi, I have held Teck for many years and watched the stock linger much below my purchase price for years. I am now finally up 30%. I did buy it for diversification in my portfolio which is heavy on dividend payers such as financials, pipes, telecoms, utilities.
I am now much older and retired and need to be more conservative with my investments. Would you advise selling on this price, the highest on the 20 year chart, or hold on to catch proceeds of the planned spinoff of EVR? Teck is held in a registered account.

Read Answer Asked by MANFRED on April 17, 2023

Q: Hi Team

In general it seems like commodity stocks underperform the markets. Letís look at SU, ABX and TECK which are large cap stocks in the oil, gold and copper categories. It seems commodity stocks had a good run from about 2003 - 2008. Since 2008, each of these three commodity stocks have traded in a range and are currently close to the top of said range. It seems like the commodity stocks have underperformed the overall market for the past 15 years by quite a bit because the commodity stocks are about the same price as they were in 2008. There have been times when buying commodity stocks as a ďtradeĒ was great like in 2020 when SU was $15 or in 2015 when TECK was $5 and in 2015 when ABX was $10. But today these stocks are all at the top of the range. They never break out of this range and I donít see any evidence that they will break out of the range. If they donít break out of the range the only direction from here is down. For example, gold is a whopping $2000, and ABX is still only $25. Oil was over $100 recently and SU still never broke out of the range. When the markets tank the commodity stocks usually tank as wellÖ. they donít act as a hedge. There are exceptions like in March 2020 when the market tanked, and ABX did quite well for 4 months. But today, ABX is back to $25 where it was in Feb 2020. I understand diversification is important but why add commodity stocks to a (long term) portfolio if they never perform well. The commodity stocks are finally paying good dividends but so do many other stocks in different sectors.

Question #1 Ė please let me know if you agree or disagree to the above. If you disagree, what is the compelling argument to buy large cap (safe) commodity stocks unless they are trading at the bottom of the range.

Question #2 Ė is there an etf that tracks the Canadian stock market that does not include commodity stocks?

Thanks for your great input to your members questions.
Greg

Read Answer Asked by Greg on March 28, 2023

Q: A number of precious metals companies have exposure to copper as well. Which ones in your opinion (large cap, mid-cap & small cap) are best positioned to benefit from a rise in copper demand?

Read Answer Asked by Brian on March 23, 2023

Q: Good morning,

Could you please offer your opinion on companies like Teck, Rio Tinto , Freeport McMoran or others who may be best positioned to profit from increasing copper demand ?


Thank you,

Read Answer Asked by Brad on March 08, 2023

Q: What are your preferences for copper producers?
Is there an ETF that specialises in AI?

Read Answer Asked by Anthony on March 06, 2023

Q: Good Morning

Todays Globe and Mail watchlist chart showed a 53% increase in Teck a shares and very little change in Teck B shares yesterday. Would you kindly explain the difference in the share structure and why the difference in stock price. I understand they decided to spin out the coal business could you elaborate on the reason for this. ? Environment concerns ??

Thank you

Read Answer Asked by Michael on February 22, 2023

Q: I AM TECH HEAVY AND WANT TO REBALANCE MY PORTFOLIO. WOULD YOU PLEASE SUGGEST TWO CANADIAN AND TWO US STOCKS IN EACH OF THE FOLLOWING SECTORS. CONSUMER DISCRETIONARY, CONSUMER STAPLES, MATERIALS AND COMMUNICATIONS. I HAVE BEEN A MEMBER SINCE DAY ONE OF 5I AND RATE YOU THE BEST OF THE SIX NEWSLETTERS I SUBSCRIBE TOO. THANKS FOR THE GREAT WORK AND TAKE AS MANY CREDITS AS NEEDED.

Read Answer Asked by Ross on February 21, 2023