skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I am not sure if you are following the NKL proxy fight with Pelham but both sides seem to have some valid points. However, I find it hard to believe that the Board was going to give themselves 5% of the company in stock based compensation this year for what appears to be a holding company with little need for strategic planning. When Pelham pointed this out the Board removed the stock based compensation for this year. I'm inclined to vote for Pelham's directors. Do you have any comments or insight for me and others?
Read Answer Asked by Earl on May 30, 2023
Q: I have relatively small speculative positions in these three companies and I am considering adding to them to reach the 1% level each. They have appreciated in price nicely. May I have your opinion on these three stocks?
With appreciation,
Ed
Read Answer Asked by Ed on April 11, 2022
Q: Peter & Co,
Nickel 28's Stock price (C$0.89) certainly does not appear to reflect the production, production growth, earnings or earnings growth of this nickel/cobalt miner.

EPS – Q3 US$0.07/share, Q1-3 US$0.19/share

P/E – 2.74x (assuming Q4 similar to Q3 and converting US$ to C$)

Debt - $79 million, down from 107.1 in Q3 2020

Cash – US$3.84 million

Product Pricing – Nickel and cobalt pricing is very strong and is projected to remain so.

I find this stock price to be very frustrating. What problem am I missing? Chinese partner? Venture Exchange? Microcap? Illiquid? Geography?
With appreciation,
Ed
Read Answer Asked by Ed on December 03, 2021
Q: Peter and Co,
What am I missing with Nickel 28? Please correct an inaccuracy or misunderstanding in my comments below.
Nickle 28 appears to be on a solid positive trajectory as a nickel-cobalt mining business yet the stock appears irrationally cheap. Net and diluted income has turned positive in recent quarters with Q1'21 registering $3.96 million, $0.05/share. If annualized, this provides a PE of 5. Debt during the period from Q! ’20 to Q1’21 dropped from $108 million to 92.8 million and a payment of $10.1 million is imminent. When this debt is retired Nickel 28’s interest in Ramu, the producing mine, will increase from 8.56% to 11.3% , a 31% increase in equity, at no further cost to NKL. With the current nickel and cobalt demand, I, a shareholder, am considering adding to my position but I have begun to wonder about management, the operating partner,...
With appreciation for your insight and opinion,
Ed
Read Answer Asked by Ed on June 14, 2021