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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: Bought some shares of ASC this am and watched the stock climb 20%. What can you tell me about Athabasca Nuclear Corp? The company has a leading position in the Nemaska lithium deposit (Whabouchi Lithium District) and is currently arranging private placement to raise capital.

Would this seem a good way to play the Lithium/Uranium sector as a long term play on increasing need for electric car batteries and nuclear energy down the road. 180,00 Tesla fans have already put down desposits to reserve the Model 3 (expected to be delivered late 2017). reservations
Read Answer Asked by David on May 26, 2016
Q: On May 20th, I emailed you a question about the share offerings, each unit being at .375 cent, at the time I didn't realize that the company was doing a 10 to 1 stock swap. I didn't know about it until yesterday, when I saw the change of pricing through BMO Investor Line. I assume the people that bought the units at .375 cents was already based on the 10 to 1 share swap, and that is why there was such a demand for these units, but this was back on May 5. Can you explain this to me & really what took place.
Read Answer Asked by Earl on May 26, 2016
Q: On May 5, They offered a pursuant to private placement which consisted of 18,666,666 units @0.375cdn/each unit, consists of 1 share & a warrant for another share for .50 with a 5 yr. duration. My question is does this company appear that attractive to you. Why would the share price climb after that amount of dilution. I assume there must be other news as for what they are going to use the funds for that I'm not aware of.
Read Answer Asked by Earl on May 20, 2016
Q: This company makes up a very small percentage of an overall balanced portfolio. Last quarter was obviously a mess. Market is pricing in a reduction in the dividend. From it's current valuation, what would you expect the market reaction to be if they reduced their dividend by 50%? Further decline/appreciation or are we now in a basing/trading range for the next few quarters?

Regards,

Robert
Read Answer Asked by Robert on May 17, 2016
Q: Good afternoon,
As part of an overall portfolio, I hold some speculative positions in precious metal stocks. These are somewhat balanced between names like FNV, THO, and PG on the one hand, and smaller and riskier names on the other. In the latter category I do hold some shares of ORG. I believe it is run by the former Red Back team, but would appreciate your views on whether a position should be maintained.
Thank you.
Read Answer Asked by Peter on May 17, 2016
Q: A recent questioner addressed the issue of identifying high growth and high momentum stocks at attractive valuations that remain under the radar but have the potential to become investor and fund manager "favorites".

I am wondering if PIH could be such a stock. With increasing share price and trade volume appreciation, and rising growth in revenues/earnings, but attractive valuation (around 11 trailing P/E), am I wrong in thinking this one could start to gain increasing attention? Does it make sense to average up on a stock like this as I have been doing over the past couple weeks (the full position would be quite a small fraction of my overall portfolio)?
Read Answer Asked by David on May 17, 2016
Q: Glacier has just announced a rights offering. Could you please explain how this works, what the advantages are for the investor and for the company, why would they do this and is this typically a prudent move by the company. Putting Glacier aside, do you recommend investing during a time when a company has made such an offering? Also, how do the backstop agreements work? Thanks for your great work.
Read Answer Asked by Robert on May 15, 2016