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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: Hi Peter and team, my question is about Morningstar rating system. There is something I do not understand, when I look at their latest report (December 13th)on Iamgold, I see a 5-star rating for that stock. On the other hand, 5iResearch is negative on the same stock. Is there something wrong with Morningstar rating system? Merry Christmas and a Happy New Year! Thanks, Gervais
Read Answer Asked by Gervais on December 26, 2013
Q: Hello. I wanted to get your take on the Altius Minerals transaction from today. It appears to be a solid use of the cash on hand and sets the company up for a long life as a prospect generator and dividend paying royalty machine (dividends at some point in the near future I'm assuming). Is all well from your vantage point with this deal and the transformation of Altius? Happy Holidays. Thanks.
Read Answer Asked by Brad on December 24, 2013
Q: Peter & Co., thank you for your revolutionary service and its role in helping to level the investment playing field for retail investors. The lack of conflict of interest is refreshing.
I own SilverCrest Mines (SVL) at a moderate loss. I have a 3-5 year time horizon. Do you see SLV as a survivor in the precious metals sector. Would you recommend selling SVL and replacing it with a pm stock that you would prefer?
With appreciation,
Ed
Read Answer Asked by Ed on December 24, 2013
Q: I am getting comfortable enough with the gold sector to actually purchase a few more stocks. On the more speculative side, I want to take a half position in Mandalay and on the more reasoned side, I am having a personal tug-of-war between XGD (I shares ETF) and GDX (Market Vectors ETF in the US). The purchase will be hidden within an RRSP portfolio, wherein I am ready to sit it out for a year or two, and I wish to begin with 2.5% position.

My question is in regard to the huge weighting that Barrick comprises in these 2 ETFs. Within XGD, Barrick has a 17.9% weight while GDX carries a 10.57% weight. Would this weighting have an abnormally negative impact on the ETFs if Barrick starts to circle the drain one last time?

I am less concerned about the currency differential than I am about the Barrick weighting: thinking GDX has a healthier percentage of Barrick than does XGD. Your thoughts would be sincerely appreciated.

I would also like to extend a Merry Christmas to the entire staff at 5i! Thank you for your helpful comments and insightful analyses on various topics, from individual stocks, to resources and strategies. Since joining 5i, and while following Peter on BNN, I have seen my portfolio strengthen enormously and is now consistently delivering my desired returns. I also feel more protected from the vagaries of the market, having chosen the 5i approach. All these letters of praise coming in to you must feel like a revivalist meeting of born-again-stock-pickers, but it is only because you really have made a huge difference in how people approach their portfolios. At this time of year, it only seems fitting that I add my voice to the choir, and say Thank You!
Read Answer Asked by Sylvia on December 24, 2013
Q: The Globe & Mail today indicated that in 2013 gold had the worst performance in three decades. (I'm not sure how they define worst - possibly percentage drop for spot gold on the LME). On Thursday gold seemed to sell off - however I'm not sure if there was an increase in volume. On Friday the price was stronger - again I'm not sure on volume. My question is - do you think gold bottomed on Thursday?

It would seem to be unlikely that the price of gold for 2014 would drop enough to "beat" 2013. Of course the price of gold could still drop in 2014 just less than 2013.

At these prices it would seem Barrick and Kinross are coming near bankruptcy even though it almost unthinkable to me that the lenders would call the loans.
Read Answer Asked by James on December 23, 2013
Q: Hi Peter, I have read your comments about IAMGOLD. I unfortunately hold the stock in my RRSP, this is about 5% of my portfolio. As of now, I have lost almost 35% with IMG. Should I sell now, accept the lost and move on? Since I have no exposure at all to the healthcare sector, would it make sense if I use the proceeds to buy Johnson & Johnson (JNJ)? Thank you, Gervais
Read Answer Asked by Gervais on December 23, 2013
Q: Christmas Greeting, Peter Co.
I am considering a purchase of Mandalay Resources (MND) shares for small cap precious metals exposure. Is the announced purchase of Challacollo from Silver Standard a material event to consider? Do you see MND as a survivor in this harsh precious metals climate? Is there a small cap, dividend paying PM stock that you would prefer?
Thanks,
Ed
Read Answer Asked by Ed on December 23, 2013
Q: Could I get your opinion of Silvercorp (SVM), I hold PAA and MND I like precious metals but also like a dividend. Any other ideas on dividend paying precious metals producers would be appreciated..
Thanks
Read Answer Asked by Doug on December 23, 2013
Q: reguarding the question asked by BOB on dec.20th. for gold recomendation? just wondering why you did not also suggest the etf xgd as used in the moneysaver etf portfolio?
Read Answer Asked by Larry on December 22, 2013
Q: Hi team and Merry Christmas,
I have held Argonaut Gold off and on over the past several years and have generally done well by it. My latest foray into this stock has me about 15% under water. This is presently my only exposure to gold and it is about a 1/2 position for me. Do you think I should bail or hang on?
Read Answer Asked by John on December 22, 2013
Q: EGZ-Energizer Res.Graphite project in Madagascar. What are the chances of getting into production without much further dilution?
Your thoughts please.
Bill
Read Answer Asked by Bill on December 22, 2013
Q: So why did Sherrit S pop almost 9 percent yesterday?
Read Answer Asked by MANFRED on December 20, 2013
Q: Hi Peter and team and all the best of the season to you...
What do you think of Rio Tinto? I have been holding it for some time and am wondering whether I should continue or if I should bail out since it hasn't performed well.

Regards, Joanne
Read Answer Asked by Joanne on December 19, 2013
Q: goodday, ive held MUX for several yrs. most of the shares were bought at 4.50, participated in the rights issue @ 2.30 plus,and today there at 1.90 or so. they are probably a victim of tax-loss selling and just a terrible 2013 for gold and silver.iwant to avg. in again before tax-loss season is over. good/bad idea. I plan to hold this stock forever if I have to.
Read Answer Asked by patrick on December 19, 2013
Q: Hi there, thanks for the great service this year!

I've been writing down names of gold and silver companies over the last few months when they have been mentioned - thinking that I would look at them at year end for possibly a good time to purchase a couple. However, I've lost track of why some of them were on the list.

Could you please pick 2-3 that you would consider the best choices, or alternatively the ones you would stay away from. Thanks!

mnd, tgz, rio, lyd, pg, sas, osk, ar, bto, svl
Read Answer Asked by Kel on December 18, 2013
Q: Hello, I'm astounded by Ford Equity Research's recent sell recommendations on many of my junior Canadian mining stocks ( they have sells on NGD,HBM,DML,CS,PG,AUG for example). I checked with their website and they apparently provide independent unbiased research on approximately 4000 companies from their US headquarters. How much weight do you think a person should place on their recommendations on Canadian junior mining stocks?
Read Answer Asked by dan on December 18, 2013
Q: goodday,i remember you liked keegan res. yrs. ago now AKG .looks pretty tempting today on the price drop, yes/no ? tkx pat
Read Answer Asked by patrick on December 17, 2013