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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: I read in the G&M that iron ore prices were basically at their peak, by some estimates. I bought LIF in January, knowing it in a cyclical industry. I am a buy and hold investor but I knew I would not hold on to LIF for very long i.e. 1-2 years at most I made a nice profit since then and received 2 delightful dividends… How can one estimate the likelihood that LIF’s share price can grow from here and jump out if in all probability it is not going to materially grow in the next year or so? The SP has not been this high in 10 years. What would be factors that would lead us to believe the SP will continue marching higher in this case? Thanks.
Read Answer Asked by Martin on July 21, 2021
Q: Hi 5i,

Please help me understand something. Was the recent substantial run up in LIF's price since mid June followed by today's substantial decline of over 6% all attributable to the special dividend of $1.75 that was announced on June 15 with an ex-date of today? Are there those out there who chase dividend payouts even if it means putting up 40K to realize 1.75K, while also assuming the risk that the stock might head south?

If so, is there anything to be learned about LIF's future prospects from the recent dividend driven activity and, if not dividend driven, what else might have caused such a decline today? For such a pricey stock it seems pretty volatile.

Thanks for your insight.

Peter
Read Answer Asked by Peter on June 30, 2021
Q: If I were to pick one of these three - STLC, RUS and LIF - strictly on SP growth in the next two year time span, which would be the choice? Also, on a scale of 1 to 10 for SP growth what would be your ratings of the three? Thanks.
Read Answer Asked by Victor on June 24, 2021
Q: I would appreciate your thoughts on holdings in the portfolio. All have been winners - I am fairly prudent yet always looking for trends and will hold long term. I don't rely on dividends though they are preferable. Would you make changes for another holding(s)?

Petroleum: TOU, FRU, ENB
Finance: GWO, NVEI
Steel: STLC, LIF (Watching cyclical trends)
Auto: MG
Mining: CXB, KL, (TRQ - I expect an upturn in 2 quarters)
Software: CTS, LSPD, TOI
Healthcare: WELL

Thank you for your support.
Read Answer Asked by Martin on June 15, 2021
Q: LIF announced:
"TORONTO, May 28, 2021 /CNW/ - Labrador Iron Ore Royalty Corporation (the "Corporation") announced that Iron Ore Company of Canada ("IOC") has declared a dividend payable on June 25, 2021. The Corporation's portion is U.S. $60,400,000 or about CDN. $73.0 million"
This is over a dollar per share by itself (their last "quarterly" dividend), and doesn't account for royalties. Yet there is no announcement of their new "quarterly" dividend, or a date for same. Is there any further information besides this? ... and is this not a bit odd for them not to be able to make some decision in this regard, given that they had committed to a quarterly dividend? Perhaps you could suggest a reason(s) for this "delay"?
Thanks!
Paul K
Read Answer Asked by Paul on June 14, 2021
Q: This is my margin portfolio, all position weightings are between 3%-5%.

The projected yield is 3.31% with a 3-5 year hold.

I realize 24 positions is a bit overkill but I can't seem to choose which to remove, which would you recommend?

What positions would you add to the portfolio?

Take as many credits as needed.

Thanks for the great service

Read Answer Asked by Robert on April 26, 2021
Q: I have never been a fan of timing the commodity cycle. However, I am looking at taking positions in one or more of LUN, LIF and TECK.B. While TECK has been higher the other two are at new or near their all time highs. In your estimation, do these stocks (all company specific issues aside) just keep going higher while the global environment is positive? Can you please rank them on overall gains on the one hand and relative safety on the other? But do you think they will all just be pummeled (as per usual) during the next global recession and/or first signs of overcapacity? Thank-you.
Read Answer Asked by Alex on April 21, 2021
Q: Hi 5i Team
I'm considering inserting a materials sector in portfolio as I am suspecting they are undervalued. Looking at 5 stocks for 1.5% each. 1 each for Gold, Silver, Copper, Steel and Agriculture. Would the 5 names submitted be the best in your opinion or would you change any. Looking for reasonable safety and growth.
Thanks. Gilles
Read Answer Asked by Gilles on March 24, 2021
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