Investment Q&A

Q: Peter and Team,

Any thoughts on Pretium Resources' recent results. Looks pretty explosive in a good way. I've stayed away because I was scared of an over-promise/under-deliver situation with their extremely high-grade Valley of the Kings. The latest results make me wonder if I should be moving money from some other gold plays to this.

Your thoughts?

Q: While on the hunt for a lottery ticket or two I keep running across the management teams of Stan Bharti and Sheldon Inwentosh. Can you give me any info on these guys ??--(good bad or indifferent). Thanx Robbie

Q: I have a question about Avigilon Corporation
Good Morning Crew
I'm invested in AVO and wondering what significant catalysts/events/dates you see in the near future that would effect share price. If AVO is added to TSX index in December - what are anticipated effects on share price? Thanks for all that you do as it has really added value to my portfolio. Best regards!

Q: Hi:
I purchased some Parkland fuels recently (partial position) and BKL
the former has dropped a bit
is it time to add more ?
as for BKL, pays a good dividend, is there any upside potential ? thanks!

Q: Recently commentators have been predicting that the price of oil is going to decrease due to the large amounts of oil and gas that the USA is predicted to produce in the near future. However I read an article in a newspaper where the columnist suggested that consumption in the USA will exceed the production of the USA and all of its friendly suppliers. What are your thoughts on this? Thx in advance. Gary

Q: Peter,
As not much seems to matter anymore (LARRY SUMMERS THINKS THAT BUBBLES ARE "THE"PANACEA FOR BOOSTING ECONOMiES... Well.. we knew that all along, but neither Greenspan nor Bernake dared to say it openly before him but he obviously had the excuse of being rejected from the job lately and we understand his frustration..) I would be happy to share a little trivia on the market:

What was the lowest in 2002, 2009 for the S/P?
2002: 777
2009: 666

What was the Dow closing price on the first day it passed 16000
11/21/ 2013: 16009.99

The nagging question that remains is: will the Nasdaq close its highest at 5222, 5333 5444 5555 or 5888(5666 and 5777 have already been taken)?
who dared say blondes had more fun when we have Wall Street??

Cheers, and publish at your own discretion, of course!

Q: Would HGD be a good stock to consider these days as the price of gold appears to be deteriorating again? THANKS!

Q: will there ever be a time when you start commenting on sprott . thanks

Q: Received a voluntary purchase offer for all outstanding RDZ.DB (6.75 due dec. 31/17) at $1010.00. Capstone Infrastructures recently took over RDZ. Should I tender or hold. The 90% rule could come into play.
Thanks Team as always

Q: Hi
can i get your opinion on SPLK.

Q: I bought into MRE at about $9.50 so I haven't lost much. Do you see it as a hold or let it go until the situation is resolved and how long do you think this will take? Thanks

Q: Hi Peter,
Just a quick question in response to one of your responses to another fellow - you mentioned you pay a lot of money for the "bloomberg terminal" at your office. I have always been curious as to what exactly the fee is for one of those terminals? I've heard in the neighbourhood of 1k/month?
Also, what do you find to me the most useful benefits/characteristics of such terminals? Is it the research they provide or charting or what?
Many thanks for your response - sincerely love your service!

Q: Would you consider providing a model portfolio consisting solely of ETFs? Your current stock model portfolio is helpful but I think that an ETF portfolio would be valuable to your members.

Thank you.

Q: MRE: not a question but a comment. CIBC posted the following early on 22nd, which should explain today's drop. "Nat Rea Comes Out Swinging In His Defense To The Counterclaim
 In Nat Rea's reply and defense to the counterclaim issued by the MRE group, additional issues were raised that appear to be of greater materiality than the original statement of claim. Clearly, the Rea claim will weigh on the stock until a resolution, which will take months.
 One of the most impactful statements was that current CEO Nick Orlando and former CEO Fred Jaekel have collectively steered $50M to $100M out of MRE via kickbacks and misappropriations. For context, MRE reported EBIT of ~$450M from 2001 to Q3 2013. 2013 adj. EBIT est. is $158M.  MRE executives were also said to have overstated earnings of one of MRE's international plants in 2012 and early 2013. In early 2013, several million
dollars were said to be booked retroactively to 2012, with the plant
subsequently instructed to book periodic losses in 2013 to offset the profits.
 These new claims are troubling and given the internal detail only MRE can
put them to rest. Our view remains that we like MRE's fundamentals (better
margins and exposure to light weighting). The timing of realizing this value
has been pushed out which will cap its valuation (2014 P/E 8x, peers 11x+)."

Q: Just saw that many financial institutions have just changed Potash to a hold. We own it.. bought 200 shares at $55. Would it be better to sell and buy something else?

Q: If you had to choose between FSV and HCG, which would you buy?
Thanks for your great service!

Q: Mre has dropped over 11 percent plus yesterdays decline.Whats UP????? Thanks Don

Q: Peter and crew, Our holdings include AD/ACQ/BPF/FSZ/CSU/PKI/PPL/STN/WEF/BEP/ESL/HR.UN/IPL/KBL/TRP/CFN/HCG/MG. We are 8-10 years from retirement so don't need income now. However I've read a lot recently that says dividend growers are very important vs. dividend payers if you don't need income (we don't). Do our holdings in your view contain some good candidates for the 'dividend grower' category? Thanks, Bill Y.

Q: SES.t
I note with thanks, your general comments from Nov. 5/13 on this apparently outperforming it's sector company. It appears that Nov.20 they announced a bought deal financing of 6.2 million shares (approx. 15% of the current float) at $15.35 (today trading up to 16.20ish). So, I was a bit confounded that the stock price went up today, normally wouldn't one expect a dilution at a lower price to bring the price down? If the price continues to hold in the face of the BDF, does this speak positive for the company? I'm not not sure on the "ins and outs" of these deals so would much appreciate any education you could provide.
Thanks as always.
One of the Neil's

Q: I read RSI is doing a share buy back. In your opinion is this equal to a dividend increase? Will the share price reflect the concentration?