Investment Q&A

Q: Hi Team,

I have followed PM (TSX Venture) for a while and planed to buy the stock for long term holding. Its main business looks steady in a non-cyclical area. The company raised its dividend last December.

Do you think PM's current price is a good entry point?

Thank you.

Q: Peter, 2 companies you have written research about (MTY and XTC) have both increased their dividends over the past week. Thoughts ? does this warrant an "upgrade" in your ranking system ?

Q: Hello.
Your thoughts on Great Western Minerals Group (GWG).
Cheers - Chris

Q: I have been reviewing the data on Noranda Income Fund (NIF.UN). The yield and stability seem fine to me. Would you please share your analysis?
Thank you.
Ed

Q: Hi Peter and 5i: B2 Gold (BTO) and a tiny exploration partner, Calibre (CXB), issued a release today confirming that BTO had completed the expenditure required for a 51% earn-in on their joint exploration property in Nicaragua, set a $2m budget for further drilling etc in 2013, and disclosed some recent drill results on the property. The result was that CXB tanked by 40%. Can you explain the market reaction on this one? Thanks!

Q: Hi Peter could you give me your opinion on CFF thanks!

Q: This is a follow-up to your answer on DGI indicating you thought it was improving but still risky due to debt largely. They have a convertible debenture with a fair yield that is trading between 70-75. Would this be reasonable for a good yield to maturity?

Q: Hi Peter, quick thoughts on Canada Zinc Metals, CZX.

Q: Peter; When possible could you update comments on PBH? It just did a small acquisitions and is commissioning a new processing plant.Do you feel the dividend is safe and the debt level manageable ?Thanks.

Rod

Q: Low volume has always been a concern for me when choosing a company, yet 13 of the companies on this site regularly trade below 30,000 shares a day and 7 trade below 10,000. Could you share your thoughts on low volume and how that affects your choice of companies? Thank you.

Q: Hello 5i I would like to get your view of Edleun EDU-X.

Q: Hello 5i I would like your opinion on The Data Group DGI-T as it dropped in price and cut the dividend.Would this be a buy right now.Thanks

Q: Hello, I am wondering if you could comment on the recent story regarding uranium fracking, http://www.forbes.com/sites/christopherhelman/2013/01/23/fracking-for-uranium/ I am curious as to how you think this will affect the sp of other uranium miners, specifically DML. TIA

Q: Hi Peter, Can you give me your comments on CIN (Canadian International Minerals)... it's been quite a dog and I missed selling it late December for tax loss purposes. I was planning to hold CIN for the remainder of this year and sell in December of no improvement. Thanks DAN

Q: Can you please provide your insight into baj. Short term long term, buy sell,hold?
Thank-you

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

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: 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!