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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: This financing news really rubs me the wrong way. The issue price is deeply discounted and the units come with a warrant that is also really cheep assuming the company has any type of decent future. The insiders are participating. This looks like the insiders are taking advantage of the weak current share price to stuff their own pockets and the pockets of their buddies with cheep shares and warrants at the expense of longer term shareholders.
Read Answer Asked by Joel on August 02, 2019
Q: What is meant by 'Charity arrangement' and 'Presidents List' in this news release?
Is this NR positive for shareholders?
Thanks,
KELOWNA, BC, Aug. 1, 2019 /CNW/ - Cantex Mine Development Corp. (the "Corporation" or "Cantex") (TSX-V: CD) is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. and Leede Jones Gable Inc. (the "Underwriters") in connection with a "bought deal" private placement of an aggregate of 1,588,000 common shares of the Corporation that will qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) ("Flow-Through Shares") for aggregate gross proceeds of C$10 million (the "Offering"). In connection with the Offering; (i) 921,000 Flow-Through Shares will be issued as part of a charity arrangement at an issue price of C$6.52 per Flow-Through Share (the "Charity Issue Price") for gross proceeds of C$6,004,920; and (ii) 667,000 Flow-Through Shares will be issued at C$6.00 per Flow-Through Share (the "FT Issue Price") for gross proceeds of C$4,002,000.

In addition, the Underwriters have been granted an option to sell up to that number of an additional Flow-Through Shares at the Charity Issue Price and/or the FT Issue Price for additional gross proceeds of up to C$2,000,000.

The gross proceeds from the Offering will be used by the Corporation to incur eligible "Canadian exploration expenses" that will qualify as "flow-through mining expenditures" as such terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") related to the Corporation's projects in Canada. All Qualifying Expenditures will be renounced in favour of the subscribers of the Flow-Through Shares effective December 31, 2019.

The Offering is expected to close on or about August 22, 2019 and is subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals including the conditional listing approval of the TSX Venture Exchange and the applicable securities regulatory authorities. The Offering is being made by way of private placement in Canada. The securities issued under the Offering will be subject to a hold period in Canada expiring four months and one day from the closing date of the Offering. The Offering is subject to final acceptance of the TSX Venture Exchange.

The Underwriters will receive a cash commission equal to 6.0% of the gross proceeds of the sale of the Flow-Through Shares, payable on Closing to the Underwriters (other than in respect of sales of Flow-Through Shares to those persons on the "Presidents List" on which the fee shall be 3%).
Read Answer Asked by Tim on August 02, 2019
Q: Guys...I have some room in my portfolio for a few high risk, high reward stocks. Can you give me one or two from Canada and the U.S. that you like currently...this is long term money...doesn't have to be on your model portfolios either...thx
Read Answer Asked by dan on August 02, 2019
Q: Good morning. I sold these company for tax-loss selling purposes and are wondering if I should buy them back or is there better options? they are all small positions in my well diversified portfolio . wcp and vet are my only oil and gas holdings. i'm a long term investor and can wait but not if any are loss causes. you can deduct as many question as u like .

Thx
Read Answer Asked by Stuart on August 02, 2019
Q: Hi,

Quick thoughts on these companies. I'm doing some clean up and these positions are under 1% in my portfolio. Which ones would you continue to hold, add to or just sell? Can you please rank. I have a diversified portfolio. Thanks!
Read Answer Asked by Keith on August 02, 2019
Q: Hi 5i Team,
After reading your response to Glen's question I just wanted to clarify this. It looks like 5i balanced portfolio is flat relative to the bench mark (XIC) in long term basis(3 years) . However in my opinion, it's fair to expect an active portfolio to beat a market index in long term to justify the extra cost and effort. So I am wondering if there is anything that can be changed to improve the value to us (as investors). Thank you.
Read Answer Asked by Dineth on August 02, 2019
Q: COV has a history of private placements, this includes in 2013, 2017, and now. And insiders can buy provided the Venture exchange provides waivers, including fair value. With 22M common shares outstanding, the just announced offering waters down current shareholders by 10% and if the warrants are exericed, another 10%. WOW, management friendly or what?! Has management stated the use of these funds? And is management attempted to put a floor to the current decline? And as for the warrant exercise price, about 17.5 % higher the offer price, and over 5 years, is management saying the COV price will be range bound for years to come?.......oh, so many un-answered question......wish they would sit down with me for a java talk and provide direct responses!
......bewildering, eh?!.......Tom
Read Answer Asked by Tom on August 02, 2019
Q: Hello Peter,
How do you view the earnings report from Altagas? Do you think it was better than what market has priced for? My conundrum is this. With a 4.7% dividend and an average price estimate of 22.10 we are looking at an approx return of 10% with the risk factor reduced considerably - rate cut by BoC, current quarter performance and deleveraging. However, I can take a tax loss and put the money in BEP which I do not own. What would you suggest?
On FSZ, you have a B+ rating for a dividend in excess of 7% and above average growth prospect within the sector. An answer to a question recently, you seem to think that it is strictly income. When I look at the average analyst price estimates of 15, that is about 40% upside. With the dividend factored in, that would be a steal. I have held it for a few years and down on it a bit. Even if you do not agree with the analysts on price, would you still factor in some growth and hence would you modify your opinion - buy for dividend, stability, growth and a 15-20% total return?
Appreciate your opinion as always.
Regards
Read Answer Asked by Rajiv on August 02, 2019
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