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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: Hi Peter. Keep up the excellent work. I am interested in starting to accumulate a position in gold/silver bullion. I was looking at Central Fund of Canada (CEF.A.TO). As far as I know, it is a closed-end fund which is equally weighted between gold & silver and has typically traded for a 5-10% premium to net asset value. Today, it is available for a 2% discount to net asset value (which I assume is because investor sentiment is just brutal). Do you generally like closed-end bullion funds like this one or would you prefer the open-ended bullion funds like GLD & SLV instead? I must admit the gold bugs have got me worried about the open-ended ones as they question whether you can be certain the etf is really backed by physical bullion. Do you think that is a legitimate concern or something not to worry about?

Thanks
Anthony
Read Answer Asked by Anthony on May 24, 2012
Q: Your thoughts on Madalena Ventures (MVN-V)? They announced a bought deal in Feb. at $1.25 and recent news in Argentina nationalizing parts of the oil industry is obviously bad news. That being said, it appears they have great assets, have satisfied the requirements of the ARG government and are close to profitability. Does this look like a good entry point in the low $0.40's?
Read Answer Asked by Kevin on May 24, 2012
Q: Company named DirectCash Payments Inc. (DCI-TSX). While their latest quarter is somewhat disappointing, they are in the midst of purchasing an Australian ATM company. Have you done any work on this company? Has a nice yield.
Read Answer Asked by Greg on May 24, 2012
Q: My question is on a small oil company called Solara Exploration [saa.a]which has had a large drop in price and trades very few shares.
Read Answer Asked by garry on May 24, 2012
Q: Good morning,
I would appreciate any comments you may have respecting par.un
Thank you.
Peter
Read Answer Asked by Peter on May 24, 2012
Q: Re your response to Loni - May 19 re Golden Star; in the last 2 days, Tues and Wed, 7 insiders were buying at between C$.96 to C$1.04
Read Answer Asked by Gregory on May 24, 2012
Q: Hi Peter and group, regarding your response about WIN on May 9th; do you have an update from the company yet?

"The company has responded to us, but only to say they will provide an answer in a few days. Thank you for your patience"

Also, is there a posibility that 5i members can get your favorite 'quarterly' buy, hold and sell picks on junior and midcap companies for various categories such as oil and gas, golds, metals and minerals, etc...maybe a new area for 5i to expand into? Could be a very simple rating signal of buy, hold and sell...honest advice from an honest guy/company that members can really trust!

I bought a bunch of Spartan Oil, STO, Pinecrest, PRY, Novus, NVS and New Millenium, NML a while back and still holding onto all of them but having a real tough time getting good honest advise about whether to continue to hold or to sell these companies!!!

Thanks much, Hussein
Read Answer Asked by Hussein on May 23, 2012
Q: Do you have any experience/knowledge regarding forfeited mining claims and their subsequent scoop by a different company? I ask because I've been following Rye Patch Gold (RPM). Coeur d'Alene Mines failed/forgot to pay their mandatory annual mining maintenance fees in Nevada. Rye Patch applied for them after about 2 months of waiting. Would appreciate your thoughts on the matter.
Read Answer Asked by Frederick on May 23, 2012
Q: Hi Peter. I started looking into some of the other restaurant royalties after following your recommendations on A&W (6.5% yield) and Boston Pizza (6.9% yield). I found a few others with even better yields like 8.5% from Second Cup Royalty (SCU) and 9.0% from Sir Royalty (SRV.UN). Are you as familiar with these names and would you count these as worthy of investment as well?

Many thanks,
Anthony
Read Answer Asked by Anthony on May 23, 2012
Q: Further to AM, is the high yield due to the fact the stock has been trending down since the mid-80's?
Read Answer Asked by Art on May 23, 2012
Q: I'm carrying AM in my TFSA, based on good yields and growth.
Lately it's been smacked hard - is this just mkt trend or something co. specific?
Read Answer Asked by robert on May 23, 2012
Q: My broker recently put me into egl.un,Eagle Energy Trust,@ 11.07-currently about 10.50,good dividend.I am retired senior& like income.Your thoughts please.
Read Answer Asked by Gerald on May 23, 2012