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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: Good afternoon,

I need to diversified investments from the Finance sector, which I am little bit over expose. I have no investment in the Material sector. This is in my RRSP Portfolio and the investment will not exceed 5% of my total portfolio. I am a long term investor and looking mainly for income. Which of these two companies do you recommend Chemtrade or Labrador Iron Ore?

Thank you.
Read Answer Asked by Paul on October 02, 2019
Q: Is LIF selling more pellets this year or is the price of the pellets simply higher. I do find it odd that the prices of other industrial minerals (copper, zinc, etc.) are weak but iron ore seems to be strong or possibly just stronger than prior years. I would have thought the prices of industrial minerals would move as a group. I have always assumed iron ore pellets are too large a market to be manipulated. Do you agree?
Thanks,
Jim
Read Answer Asked by James on July 15, 2019
Q: Would you be able to compare these two companies or are they too different? If I understand correctly they are both in the materials sector, are well managed and are companies which combine some growth along with a healthy dividend. Possibly MX has more of a global reach and so has some control over its destiny while LIF is a royalty company and simply reflects the current price of iron ore pellets. If I understand correctly LIF would have a risk of ore exhaustion or depletion even though the Labrador Trough has been a source of high quality pellets for years now. MX buys hydrocarbons (oil and gas) to make methanol so their input costs should be low yet methanol prices must be even lower so we have a problem. You note MX is projected to have 60% growth next year which is a high number but the stock continues to decline. Based on your years of experience do you feel this is a valid projection? Is the 60% number based on anticipated recovering demand or is the company opening a bunch of new factories next year?
Any other thoughts you have would be appreciated.
Thanks,
Jim
Read Answer Asked by James on July 15, 2019
Q: I have a question about LIF.
In the OUTLOOK section of their 3Q press release the company commented.....In its press release dated June 18, 2018, the LIORC Board indicated its intention to call a special meeting of shareholders to approve amendments to the articles of incorporation to, among other things, allow the corporation to invest in other mining royalties. While the immediate opportunity referred to in the press release remains a possibility, the Board has decided to defer the calling of the meeting.

You commented to a previous question that the takeover chatter on LIF is ongoing....with the above comment in their Outlook is the ongoing takeover chatter excellerating? do you have insight into who is speculated to take them out and what might be a friendly price? Thanks
Read Answer Asked by Gordon on November 14, 2018
Q: Greetings 5i team:

Once again, thanks for all your sage advice through the latest correction. I am really appreciative of having stocks/etfs like MFT that really held very steady through the latest correction - without you guys i would never have known about it. The value of having a diversified portfolio.
My question is about LIF -it has been on a tear lately with the special dividend etc but what is driving the underlying fundamentals. I didn't think Iron ore was in that much demand but would appreciate your comments. Its the only materials stock i own as i have had real difficultly making any money in the sector.
Read Answer Asked by kelly on November 09, 2018
Q: LIF has yet to send out a circular for shareholders to consider and vote on changing the Articles of Incorporation. Today in the Globe and Mail, David Taylor of Taylor Asset Mgmt has recommended LIF as a turnaround pick given the significant premium it receives for hits higher-grade ore favoured by China's steel mills. He also suggests Rio Tinto PLC may sell it's 59% stake in IOC or take it public which could be a possible catalyst for LIF and that LIF could be a takeover candidate by someone interested in IOC. Would purchasing the 59% stake in IOC if it became available be the transaction LIF board has been hinting at for the reason to change it's articles of incorp as it seems like more of the same income and do you think LIF could be a takeover candidate?
Thank you.
Read Answer Asked by Gordon on October 17, 2018
Q: I was talking to my financial advisor about getting into a couple of high dividend securities north of 4% with some growth. They mentioned AW.UN, LIF, CGX, EXE. They said most of them have had a run except for the KEG and they said that one might be the better one. Which ones do you like of this group I have mentioned or are there any that you could recommend?
Thank you, Dennis
Read Answer Asked by Dennis on August 23, 2018
Q: I hold Teck and Nutrien with the balance of my resource holdings in XMA. I have an equal amount of funds in each. I am considering selling XMA to purchase LIF. I know this will give me less diversity, but Teck and Nutrien are major weights in XMA which is otherwise heavy in gold stocks with low dividends and weak growth. At least LIF would give me decent dividends. What do you think? Thanks.
Read Answer Asked by Ken on April 27, 2018
Q: Iron ore is a mined and concentrated product. Steel is a manufactured product. While it may be possible to move a steel mill from one country to another or move steel production, you can't move an orebody.
I've only heard Trump's threats to put tarrifs on steel and aluminum. Is there anything in that regarding iron ore? Even if he succeeded in moving steel production to the US, they would still need iron ore, presumably from the Labrador trough, to feed those mills. Any thoughts on this?
Read Answer Asked by Larry on March 07, 2018
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