Sherritt International Corp. | StockChase
699
Sherritt International Corp. (S-T)

Last Price Recorded: $1.5000 on 2017-12-15

ON STOCKCHASE SINCE Nov 2000

60% coal, 30% Cuba in oils and nickel mines.

integrated mines
699
Sherritt International Corp. (S-T)

Last Price Recorded: $1.5000 on 2017-12-15

ON STOCKCHASE SINCE Nov 2000

60% coal, 30% Cuba in oils and nickel mines.

integrated mines

Sherritt International Corp.


Signal Opinion Expert
TOP PICK

He bought it last month.  They are capable of extremely high purity in nickel, which is very much in demand for batteries.  (Analysts’ target: $1.60).

integrated mines

He bought it last month.  They are capable of extremely high purity in nickel, which is very much in demand for batteries.  (Analysts’ target: $1.60).

integrated mines
Michael Smedley

Exec VP & Chief Investment Officer, Morgan Meighan & Ass...

PricePrice
$1.390
Owned Owned
Yes

COMMENT

A big international mining company.  You have to assume electric cars going forward are all they are hyped up to be.  You also have to assume S-T is going to be a major beneficiary.  There has been and continues to be stronger demand for base metals that they dig out of the ground all over the world, which provides diversification and they could also be subject to political risk.

integrated mines

A big international mining company.  You have to assume electric cars going forward are all they are hyped up to be.  You also have to assume S-T is going to be a major beneficiary.  There has been and continues to be stronger demand for base metals that they dig out of the ground all over the world, which provides diversification and they could also be subject to political risk.

integrated mines
Brendan Caldwell

President, Caldwell Securities...

PricePrice
$1.470
Owned Owned
Unknown

COMMENT

Used to own many years ago. It’s doing better lately, because of nickel prices. In battery technology, there is some nickel and cobalt. They also have an oil/gas side in Cuba. Prospects are better. To really super prosper and be back to a $3 stock again, you probably need $7 nickel, and we are quite some ways from that. The trend is in the right direction. The bonds got down to $.60 on the dollar, yielding 20%. They are now back to about $.78 and yields are still 12%-13%. It is now positive.

integrated mines

Used to own many years ago. It’s doing better lately, because of nickel prices. In battery technology, there is some nickel and cobalt. They also have an oil/gas side in Cuba. Prospects are better. To really super prosper and be back to a $3 stock again, you probably need $7 nickel, and we are quite some ways from that. The trend is in the right direction. The bonds got down to $.60 on the dollar, yielding 20%. They are now back to about $.78 and yields are still 12%-13%. It is now positive.

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Bruce Campbell (1)

President, Campbell and Lee Inv...

PricePrice
$1.460
Owned Owned
No

WATCH

Golden Cross?  It implies a break through a shorter moving average by a longer moving average.  It is in a sideways pattern and you will get a lot of these.  It does not mean it is a good thing because it has done it a few times.  He would want to see it break $1.50. 

integrated mines

Golden Cross?  It implies a break through a shorter moving average by a longer moving average.  It is in a sideways pattern and you will get a lot of these.  It does not mean it is a good thing because it has done it a few times.  He would want to see it break $1.50. 

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Keith Richards

Portfolio Manager, ValueTrend Wealth Ma...

PricePrice
$1.280
Owned Owned
Unknown

HOLD

He is not familiar with the seasonality of this, but logic would suggest that since it is involved in the base metal sector, it should normally be doing well near the end of the year. Technically, the stock has completed a nice little base, and has just broken above the base, which is quite encouraging. It fits in with something else. The price of nickel, a major part of this company’s production, has recently broken on the upside, and looks like it wants to move higher with other base metals.

integrated mines

He is not familiar with the seasonality of this, but logic would suggest that since it is involved in the base metal sector, it should normally be doing well near the end of the year. Technically, the stock has completed a nice little base, and has just broken above the base, which is quite encouraging. It fits in with something else. The price of nickel, a major part of this company’s production, has recently broken on the upside, and looks like it wants to move higher with other base metals.

integrated mines
Don Vialoux

Research Analyst, TimingTheMarket.CA &...

PricePrice
$1.130
Owned Owned
Unknown

COMMENT

This has always been a very difficult one. It is a Cuba thing. It sold off a lot of its Canadian assets. Has a bit of cobalt which is strong nowadays.

integrated mines

This has always been a very difficult one. It is a Cuba thing. It sold off a lot of its Canadian assets. Has a bit of cobalt which is strong nowadays.

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Michael Smedley

Exec VP & Chief Investment Officer, Morgan Meighan & Ass...

PricePrice
$1.070
Owned Owned
Unknown

DON'T BUY

A nickel producer and the stock has been in a long slump. There have been some signs of life in the last few weeks. It is trading in sympathy with all the base metal commodities, most notably nickel. Emerging markets have been growing their economies faster this year than last. The problem he would have is with the quality of the assets and the financial strength of the company.

integrated mines

A nickel producer and the stock has been in a long slump. There have been some signs of life in the last few weeks. It is trading in sympathy with all the base metal commodities, most notably nickel. Emerging markets have been growing their economies faster this year than last. The problem he would have is with the quality of the assets and the financial strength of the company.

integrated mines
Brian Madden

Senior VP & Portfolio Manager, Goodreid Investment ...

PricePrice
$1.090
Owned Owned
No

DON'T BUY

It has been on his watch list for years.  He used to not like the management and they have not done well recently. 

integrated mines

It has been on his watch list for years.  He used to not like the management and they have not done well recently. 

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Benj Gallander

President, Contra the Heard Inv...

PricePrice
$0.790
Owned Owned
Unknown

WATCH

It has been trapped lately.  It is pulling back to the old support level of 70-75 cents.  He would expect it to bounce, but would want it to take out the last peak before buying. 

integrated mines

It has been trapped lately.  It is pulling back to the old support level of 70-75 cents.  He would expect it to bounce, but would want it to take out the last peak before buying. 

integrated mines
Keith Richards

Portfolio Manager, ValueTrend Wealth Ma...

PricePrice
$0.800
Owned Owned
Unknown

DON'T BUY

Hasn’t followed this closely over the past couple of months, but did do a lot of work on it 6 months ago. Had a lot of debt they were trying to get rid of, at which time the multiple would expand. That has happened, but the stock really didn’t react the way people expected. He would stay on the sidelines.

integrated mines

Hasn’t followed this closely over the past couple of months, but did do a lot of work on it 6 months ago. Had a lot of debt they were trying to get rid of, at which time the multiple would expand. That has happened, but the stock really didn’t react the way people expected. He would stay on the sidelines.

integrated mines
Peter Imhof

Vice President & Portfolio Manager, AGF Investments Inc...

PricePrice
$0.800
Owned Owned
No

COMMENT

A nickel producer in Cuba and Madagascar. They’ve renegotiated their position in Madagascar and have gone from 40% ownership to 12% of equity and debt. Their balance sheet is now in much better shape. It is fully expected this will be completed by the end of June. It will leave them with 2 nickel projects. About $3.50 nickel would be their breakeven, and it is currently trading at $4.15. They really need higher nickel prices. They can survive, because they have cash in the bank and cash from these projects.

integrated mines

A nickel producer in Cuba and Madagascar. They’ve renegotiated their position in Madagascar and have gone from 40% ownership to 12% of equity and debt. Their balance sheet is now in much better shape. It is fully expected this will be completed by the end of June. It will leave them with 2 nickel projects. About $3.50 nickel would be their breakeven, and it is currently trading at $4.15. They really need higher nickel prices. They can survive, because they have cash in the bank and cash from these projects.

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Douglas Kee

Chief Investment Officer, Leon Frazer & Associ...

PricePrice
$0.800
Owned Owned
Yes

COMMENT

Reached an agreement with Ambatovy on a joint venture partnership structure, with Sherritt reducing its interest from 40% to 12%, and got forgiven $1.3 billion of debt. This gives them a better balance sheet. You need higher nickel prices. If nickel were to go to $7, this stock would be worth a couple of dollars. It has huge leverage on nickel which overwhelms every other single thing about it.

integrated mines

Reached an agreement with Ambatovy on a joint venture partnership structure, with Sherritt reducing its interest from 40% to 12%, and got forgiven $1.3 billion of debt. This gives them a better balance sheet. You need higher nickel prices. If nickel were to go to $7, this stock would be worth a couple of dollars. It has huge leverage on nickel which overwhelms every other single thing about it.

integrated mines
Bruce Campbell (1)

President, Campbell and Lee Inv...

PricePrice
$0.840
Owned Owned
Unknown

COMMENT

His issue has to do with 1) what is happening with the commodities they are in and 2) the geography that they operate in. Madagascar and Cuba are their 2 major markets. He would rather not invest in companies that operate in countries that he is not sure of.

integrated mines

His issue has to do with 1) what is happening with the commodities they are in and 2) the geography that they operate in. Madagascar and Cuba are their 2 major markets. He would rather not invest in companies that operate in countries that he is not sure of.

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Norman Levine

Managing Director, Portfolio Management...

PricePrice
$1.340
Owned Owned
No

COMMENT

Nickel mining in Cuba. The stock has been up a little over the last while. For basic raw materials stocks, so much is dependent on growth in Asia. Doesn’t think we are going to see the same sort of structural buildout of China for a while. Wouldn’t bet on this company or any other basic raw material producer, on whether or not we are going to see demand in North America.

integrated mines

Nickel mining in Cuba. The stock has been up a little over the last while. For basic raw materials stocks, so much is dependent on growth in Asia. Doesn’t think we are going to see the same sort of structural buildout of China for a while. Wouldn’t bet on this company or any other basic raw material producer, on whether or not we are going to see demand in North America.

integrated mines
Brendan Caldwell

President, Caldwell Securities...

PricePrice
$1.440
Owned Owned
Unknown

COMMENT

He prefers Hudbay Minerals (HBM-T). Sherritt is nickel, which is finally perking up for the 1st time in quite a while. Their Madagascar mine has a cost of about $4.40. Nickel got over $5 recently, and this spent a lot of time below its breakeven point for quite a while. They have extended their bonds out 5 years, and have done a deal where they no longer fund their 40% of Ambitovy mine, they are only funding 12%, so the balance sheet looks okay. If you believe in the whole economy growing because the US is fiscal stimulating and these prices go higher, he still finds Hudbay safer with a better balance sheet with better zinc prices and a better copper price, and it could go to $10.

integrated mines

He prefers Hudbay Minerals (HBM-T). Sherritt is nickel, which is finally perking up for the 1st time in quite a while. Their Madagascar mine has a cost of about $4.40. Nickel got over $5 recently, and this spent a lot of time below its breakeven point for quite a while. They have extended their bonds out 5 years, and have done a deal where they no longer fund their 40% of Ambitovy mine, they are only funding 12%, so the balance sheet looks okay. If you believe in the whole economy growing because the US is fiscal stimulating and these prices go higher, he still finds Hudbay safer with a better balance sheet with better zinc prices and a better copper price, and it could go to $10.

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Bruce Campbell (1)

President, Campbell and Lee Inv...

PricePrice
$1.340
Owned Owned
No

BUY

Just recently it moved above a key resistance level and started to show an upward trend.  Nickel prices are starting to move higher.  You are into a good position technically and seasonally these stocks do well now.

integrated mines

Just recently it moved above a key resistance level and started to show an upward trend.  Nickel prices are starting to move higher.  You are into a good position technically and seasonally these stocks do well now.

integrated mines
Don Vialoux

Research Analyst, TimingTheMarket.CA &...

PricePrice
$1.390
Owned Owned
Unknown

COMMENT

This has gone into the tank, and the balance sheet has fallen away as they have taken off write-offs. It is now rallying with the metals. They are scheduled to lose another $.89 a share this year, which could erode the BV even further.

integrated mines

This has gone into the tank, and the balance sheet has fallen away as they have taken off write-offs. It is now rallying with the metals. They are scheduled to lose another $.89 a share this year, which could erode the BV even further.

integrated mines
Ross Healy

Chairman, Strategic Analysis C...

PricePrice
$1.240
Owned Owned
Unknown

COMMENT

Management has done a great job in doing the things that are necessary. However, a tough problem to overcome is that they have a market cap of over $3 million, which needs to get to $1 billion before institutions get on board. They’ve fixed their debt, but they have to fix the mine in Madagascar. The only pure play in the nickel market, but unfortunately, too small of a market cap for many companies.

integrated mines

Management has done a great job in doing the things that are necessary. However, a tough problem to overcome is that they have a market cap of over $3 million, which needs to get to $1 billion before institutions get on board. They’ve fixed their debt, but they have to fix the mine in Madagascar. The only pure play in the nickel market, but unfortunately, too small of a market cap for many companies.

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Lyle Stein

Sr. Portfolio & Managing Director, Vestcap Investment M...

PricePrice
$1.220
Owned Owned
No

SPECULATIVE BUY

You have issues with it being leveraged, issues with nickel and political issues in Madagascar.  It could be interesting as a lottery ticket.  They re-structured some of the debt, but that does not mean the equity is going to be worth anything at the end of it.

integrated mines

You have issues with it being leveraged, issues with nickel and political issues in Madagascar.  It could be interesting as a lottery ticket.  They re-structured some of the debt, but that does not mean the equity is going to be worth anything at the end of it.

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Daniel Lloyd

Portfolio Manager, Forge First Asset Ma...

PricePrice
$0.810
Owned Owned
Unknown

SELL

(Market Call Minute.) Good, long term nickel opportunity, but an over levered balance sheet. A lot of risk.

integrated mines

(Market Call Minute.) Good, long term nickel opportunity, but an over levered balance sheet. A lot of risk.

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Alex Ruus

Portfolio Manager, Arrow Capital Manage...

PricePrice
$0.830
Owned Owned
Unknown

DON'T BUY

(Market Call Minute.) They extended the life of their debentures by 3 years, but this is a company that needed 3 years to survive, so you don’t need to be there.

integrated mines

(Market Call Minute.) They extended the life of their debentures by 3 years, but this is a company that needed 3 years to survive, so you don’t need to be there.

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Peter Hodson

CEO & Head of Research, 5i Research Inc....

PricePrice
$0.790
Owned Owned
No

DON'T BUY

This has been a relative, long term underperformer. When you are an underperformer, you can stay that way for a very long time.

integrated mines

This has been a relative, long term underperformer. When you are an underperformer, you can stay that way for a very long time.

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Bill Carrigan

Technical Analyst, Getting Technical In...

PricePrice
$0.800
Owned Owned
Unknown

DON'T BUY

Had owned the 8% bonds for very specific reasons. Cuba is essentially a ringed fence and so is the Manitoba smelter. There was $600 million in debt, and he thought the coal assets in Western Canada were worth $1-$1.5 billion. Bond agencies wouldn’t rate this because they didn’t know how to rate the Cuban risk. He didn’t care about that risk because it was offset by the Western Canadian coal. On the hint the company was going to sell the coal, he got rid of the bonds as fast as he could. You are now exposed to the Cuban issue, which is a wildcard. Madagascar, depending on the nickel price, might never make money.

integrated mines

Had owned the 8% bonds for very specific reasons. Cuba is essentially a ringed fence and so is the Manitoba smelter. There was $600 million in debt, and he thought the coal assets in Western Canada were worth $1-$1.5 billion. Bond agencies wouldn’t rate this because they didn’t know how to rate the Cuban risk. He didn’t care about that risk because it was offset by the Western Canadian coal. On the hint the company was going to sell the coal, he got rid of the bonds as fast as he could. You are now exposed to the Cuban issue, which is a wildcard. Madagascar, depending on the nickel price, might never make money.

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Bill Harris, CFA

Portfolio Manager, Avenue Investment Ma...

PricePrice
$0.840
Owned Owned
No

COMMENT

For 3 to 5 years? A very interesting company. Not overly diversified and sitting on a fairly good chunk of cash. Has some assets, nickel mining and oil/gas and power, in Cuba which have been phenomenal. Has fallen down on its nickel mine in Madagascar. The CapX, which is mostly behind them right now, has kind of blown their brains out. They have 3 bonds outstanding, 2018, 2020 and 2022, and are trading at roughly $.50 on the dollar, very, very distressed with a high yield. They are in a position where they could, and should, buy back debt in the open market. If the nickel market turned around, this has a lot of leverage to nickel.

integrated mines

For 3 to 5 years? A very interesting company. Not overly diversified and sitting on a fairly good chunk of cash. Has some assets, nickel mining and oil/gas and power, in Cuba which have been phenomenal. Has fallen down on its nickel mine in Madagascar. The CapX, which is mostly behind them right now, has kind of blown their brains out. They have 3 bonds outstanding, 2018, 2020 and 2022, and are trading at roughly $.50 on the dollar, very, very distressed with a high yield. They are in a position where they could, and should, buy back debt in the open market. If the nickel market turned around, this has a lot of leverage to nickel.

integrated mines
Paul Tepsich

Portfolio Manager, High Rock Capital Ma...

PricePrice
$0.910
Owned Owned
Unknown

DON'T BUY

(Market Call Minute.) He would avoid this. Their debt load always scares him. Not keen on management.

integrated mines

(Market Call Minute.) He would avoid this. Their debt load always scares him. Not keen on management.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$0.910
Owned Owned
No

DON'T BUY

We are getting a rebound in a lot of commodities, which could be the beginning of the inflationary wave that he has been waiting for. However, this would not be the way he would play it. He would use Teck Resources (TCK.B-T) as it is a much bigger leveraged type company. His company has this as a sector outperform with a $1.07 target.

integrated mines

We are getting a rebound in a lot of commodities, which could be the beginning of the inflationary wave that he has been waiting for. However, this would not be the way he would play it. He would use Teck Resources (TCK.B-T) as it is a much bigger leveraged type company. His company has this as a sector outperform with a $1.07 target.

integrated mines
Jaime Carrasco

Director & Associate Portfolio Manager, Scotiabank, Global W...

PricePrice
$0.800
Owned Owned
No

COMMENT

(Market Call Minute.) Took on too much debt. He is Short this.

integrated mines

(Market Call Minute.) Took on too much debt. He is Short this.

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James Hodgins

Chief Investment Officer, Curvature Hedge Stra...

PricePrice
$0.820
Owned Owned
Yes

COMMENT

Not comfortable with management. Debt load is too high. Has a big project in Madagascar that has not worked out. It is always one of the dangers when you put a lot of money into something that is far away. As commodity prices come back, it should help them. The company has tremendous upside, but feels bankruptcy is not out of the question.

integrated mines

Not comfortable with management. Debt load is too high. Has a big project in Madagascar that has not worked out. It is always one of the dangers when you put a lot of money into something that is far away. As commodity prices come back, it should help them. The company has tremendous upside, but feels bankruptcy is not out of the question.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$0.750
Owned Owned
Unknown

DON'T BUY

It has had its ups and downs, and mostly downs.  The commodity price has been a huge detractor.  There are regulatory issues in Madagascar now.  The Cuba businesses are safer, but you have the uncertainty of a new US government coming in. 

integrated mines

It has had its ups and downs, and mostly downs.  The commodity price has been a huge detractor.  There are regulatory issues in Madagascar now.  The Cuba businesses are safer, but you have the uncertainty of a new US government coming in. 

integrated mines
Mohsin Bashir

VP Investments, Stone Asset Manageme...

PricePrice
$0.710
Owned Owned
Unknown

DON'T BUY

This is a commodity stock with debt on the balance sheet which impacts the valuation. All commodities are in decline and at record lows.

integrated mines

This is a commodity stock with debt on the balance sheet which impacts the valuation. All commodities are in decline and at record lows.

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Peter Hodson

CEO & Head of Research, 5i Research Inc....

PricePrice
$0.590
Owned Owned
No

COMMENT

Holds this and it has been painful. The only pure play on nickel that you can buy globally today. A market cap of about $250 million Cdn. They have been chopping and chopping costs, and is roughly at $4 a pound, just about where the nickel price is. A great Hold if you’ve got some patience. The stock is well worth more than $2. We need a nickel price recovery. When inventories hit below 400,000 tons, they creep back up, and that is what he is watching.

integrated mines

Holds this and it has been painful. The only pure play on nickel that you can buy globally today. A market cap of about $250 million Cdn. They have been chopping and chopping costs, and is roughly at $4 a pound, just about where the nickel price is. A great Hold if you’ve got some patience. The stock is well worth more than $2. We need a nickel price recovery. When inventories hit below 400,000 tons, they creep back up, and that is what he is watching.

integrated mines
Lyle Stein

Sr. Portfolio & Managing Director, Vestcap Investment M...

PricePrice
$0.730
Owned Owned
Yes

SELL

Sell and put into Bank of Nova Scotia (BNS-T)? Two very different stocks. This one ranks 613 in his dividend model. Earnings are expected to improve, but still be negative going from a loss of $1.14 to a loss of $0.82. In comparison, BNS ranks much higher and it looks like the banks as a group are going to improve. He would agree with your thinking.

integrated mines

Sell and put into Bank of Nova Scotia (BNS-T)? Two very different stocks. This one ranks 613 in his dividend model. Earnings are expected to improve, but still be negative going from a loss of $1.14 to a loss of $0.82. In comparison, BNS ranks much higher and it looks like the banks as a group are going to improve. He would agree with your thinking.

integrated mines
Robert McWhirter

President, Selective Asset Mana...

PricePrice
$0.770
Owned Owned
Unknown

DON'T BUY

How many Canadian mining companies have stumbled at attempts at mining in Africa?  They are going to write a lot off of their balance sheet.  They have a big hunk of debt and lot of Nickel at a very low price.  The question is if they can finance their debt.  It smells like a value trap to him.

integrated mines

How many Canadian mining companies have stumbled at attempts at mining in Africa?  They are going to write a lot off of their balance sheet.  They have a big hunk of debt and lot of Nickel at a very low price.  The question is if they can finance their debt.  It smells like a value trap to him.

integrated mines
David Baskin

President, Baskin Wealth Manage...

PricePrice
$0.790
Owned Owned
Unknown

DON'T BUY

You have to know what the commodity is going to do before investing.  S-T has built one of the biggest nickel mines in the world.  But it is a relatively small company and he would go to a larger one if he wanted metals exposure.  He is worried about this one.

integrated mines

You have to know what the commodity is going to do before investing.  S-T has built one of the biggest nickel mines in the world.  But it is a relatively small company and he would go to a larger one if he wanted metals exposure.  He is worried about this one.

integrated mines
Alex Ruus

Portfolio Manager, Arrow Capital Manage...

PricePrice
$0.890
Owned Owned
Unknown

COMMENT

Primarily nickel and cobalt. Have projects in Madagascar. Just eliminated the dividend. Thinks they are buckling down the hatches and making sure they can ride out this low based metal environment. The depressed nickel prices are going to be weighing on them for some time.

integrated mines

Primarily nickel and cobalt. Have projects in Madagascar. Just eliminated the dividend. Thinks they are buckling down the hatches and making sure they can ride out this low based metal environment. The depressed nickel prices are going to be weighing on them for some time.

integrated mines
Mohsin Bashir

VP Investments, Stone Asset Manageme...

PricePrice
$0.940
Owned Owned
No

DON'T BUY

Just eliminated their dividend. Debt level is very, very high. If you have a lot of guts and intestinal fortitude, he could see buying it. Anything you put in it, you have to think that you could lose at all. He wouldn’t buy it now.

integrated mines

Just eliminated their dividend. Debt level is very, very high. If you have a lot of guts and intestinal fortitude, he could see buying it. Anything you put in it, you have to think that you could lose at all. He wouldn’t buy it now.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$0.940
Owned Owned
No

HOLD

It has been a tough road.  They have a new nickel mine in Madagascar.  He would be concerned about mine construction, but they are basically done now.  Nickel prices are below $5 now so it is tough for the miners.  Longer term he likes the base metal side of things.  He thinks they have a good mine in Madagascar. 

integrated mines

It has been a tough road.  They have a new nickel mine in Madagascar.  He would be concerned about mine construction, but they are basically done now.  Nickel prices are below $5 now so it is tough for the miners.  Longer term he likes the base metal side of things.  He thinks they have a good mine in Madagascar. 

integrated mines
Ryan Bushell

V. P. & Portfolio Manager, Leon Frazer and Asso...

PricePrice
$1.120
Owned Owned
Yes

DON'T BUY

She owns very little in base metals.  They have a new mine coming on and it has had some production problems.  You want to see stabilization in the commodities.  The strong US dollar is impacting demand for all the commodities.

integrated mines

She owns very little in base metals.  They have a new mine coming on and it has had some production problems.  You want to see stabilization in the commodities.  The strong US dollar is impacting demand for all the commodities.

integrated mines
Christine Poole

CEO & Managing Director, GlobeInvest Capital ...

PricePrice
$1.230
Owned Owned
No

DON'T BUY

Currently at an all-time low. A few years ago he was interested in this and went to their AGM. After the meeting he decided he did not have enough confidence in management. Debt load was high and management didn’t have the skill level he was looking at for a turnaround. Since then, they have been hammered by commodity prices. Nickel prices are down at a 5-6 year low. It would not surprise him to see them go bankrupt. It really needs cooperation from commodity prices. Very, very dangerous situation.

integrated mines

Currently at an all-time low. A few years ago he was interested in this and went to their AGM. After the meeting he decided he did not have enough confidence in management. Debt load was high and management didn’t have the skill level he was looking at for a turnaround. Since then, they have been hammered by commodity prices. Nickel prices are down at a 5-6 year low. It would not surprise him to see them go bankrupt. It really needs cooperation from commodity prices. Very, very dangerous situation.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$1.270
Owned Owned
No

COMMENT

His view is that this will survive. The balance sheet has been fixed. If nickel prices stay below $5 for more than 2.5-3 years, they may have some issues. Nickel prices have been very low for a long time, but this company is at the 50th percentile in terms of costs. Half of the world can’t produce nickel at current prices and make cash money. The thinks it is a pretty reasonable bet that nickel will be in deficit in 2016.

integrated mines

His view is that this will survive. The balance sheet has been fixed. If nickel prices stay below $5 for more than 2.5-3 years, they may have some issues. Nickel prices have been very low for a long time, but this company is at the 50th percentile in terms of costs. Half of the world can’t produce nickel at current prices and make cash money. The thinks it is a pretty reasonable bet that nickel will be in deficit in 2016.

integrated mines
Lyle Stein

Sr. Portfolio & Managing Director, Vestcap Investment M...

PricePrice
$1.340
Owned Owned
No

COMMENT

Just hit a record low. They had a change of management and he is not up to speed on the reasons. Between the nickel situation in Cuba and Madagascar, it is just too scary. Madagascar hasn’t gotten up to speed quite as fast as it needs to. There is a huge amount of debt. Way too difficult for him to figure out.

integrated mines

Just hit a record low. They had a change of management and he is not up to speed on the reasons. Between the nickel situation in Cuba and Madagascar, it is just too scary. Madagascar hasn’t gotten up to speed quite as fast as it needs to. There is a huge amount of debt. Way too difficult for him to figure out.

integrated mines
Bill Harris, CFA

Portfolio Manager, Avenue Investment Ma...

PricePrice
$1.350
Owned Owned
No

PAST TOP PICK

(A Top Pick Sept 3/14. Down 67.82%.) The story is that they are building the big mine in Madagascar. They built the mine expecting nickel prices were going to go up. That was working for a while, but then China slowed down greater than had been expected. They also have a lot of debt. A bit of a dicey situation right now. Sold his holdings at a loss.

integrated mines

(A Top Pick Sept 3/14. Down 67.82%.) The story is that they are building the big mine in Madagascar. They built the mine expecting nickel prices were going to go up. That was working for a while, but then China slowed down greater than had been expected. They also have a lot of debt. A bit of a dicey situation right now. Sold his holdings at a loss.

integrated mines
Jim Huang

President, T.I.P. Wealth Manage...

PricePrice
$1.350
Owned Owned
No

DON'T BUY

This, with a $10 Book Value, has something like an $8-$9 asset value. The stock is cheap. This is nickel which has been getting hit, oil and gas which has been getting hit and it is coal which is getting hit. It is completely out of favour. Have had cost overruns in Madagascar, but are getting closer to getting it fixed. There are better places to be.

integrated mines

This, with a $10 Book Value, has something like an $8-$9 asset value. The stock is cheap. This is nickel which has been getting hit, oil and gas which has been getting hit and it is coal which is getting hit. It is completely out of favour. Have had cost overruns in Madagascar, but are getting closer to getting it fixed. There are better places to be.

integrated mines
Bruce Campbell (1)

President, Campbell and Lee Inv...

PricePrice
$1.350
Owned Owned
No

DON'T BUY

It has been beaten up but he does not like the debt load and is not overly impressed with the management.  Maybe he will look more closely at the end of the year.

integrated mines

It has been beaten up but he does not like the debt load and is not overly impressed with the management.  Maybe he will look more closely at the end of the year.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$2.230
Owned Owned
No

DON'T BUY

This company has always had headwinds and is underperforming its peers. Chart shows a downward channel, and he would just avoid it and consider it as dead money.

integrated mines

This company has always had headwinds and is underperforming its peers. Chart shows a downward channel, and he would just avoid it and consider it as dead money.

integrated mines
Bill Carrigan

Technical Analyst, Getting Technical In...

PricePrice
$2.470
Owned Owned
Unknown

DON'T BUY

Would you buy their 8% - 2017 bond? He likes the bond side, simply because when they owned the Saskatchewan metallurgical coal deposits, if Cuba and Madagascar failed, he would at least have an asset that he could grab and would make him whole. They have since sold the Saskatchewan holdings and are now left with Madagascar and Cuba, so you are now dealing with the underlying commodity price that keeps rolling off. The bond is being offered out at around 9% in today’s market, which tells you it is distressed. High-yield bonds should be trading at around 7%. Secondly you are going to have to deal with Madagascar, where the operations seem to be coming on, but there was a big delay.

integrated mines

Would you buy their 8% - 2017 bond? He likes the bond side, simply because when they owned the Saskatchewan metallurgical coal deposits, if Cuba and Madagascar failed, he would at least have an asset that he could grab and would make him whole. They have since sold the Saskatchewan holdings and are now left with Madagascar and Cuba, so you are now dealing with the underlying commodity price that keeps rolling off. The bond is being offered out at around 9% in today’s market, which tells you it is distressed. High-yield bonds should be trading at around 7%. Secondly you are going to have to deal with Madagascar, where the operations seem to be coming on, but there was a big delay.

integrated mines
Paul Gardner, CFA

Partner and Portfolio Manager, Avenue Investment Ma...

PricePrice
$2.540
Owned Owned
No

PAST TOP PICK

(A Top Pick May 12/14. Down 40.54%.) The thesis was based on their leverage to the nickel price. In the meantime, Indonesia decided they were not going to export raw ore to China, which is 25% of the total supply. Also, the Chinese economy has slowed down more than he thought it would. Sold his holdings, but that is not to say he won’t get back in.

integrated mines

(A Top Pick May 12/14. Down 40.54%.) The thesis was based on their leverage to the nickel price. In the meantime, Indonesia decided they were not going to export raw ore to China, which is 25% of the total supply. Also, the Chinese economy has slowed down more than he thought it would. Sold his holdings, but that is not to say he won’t get back in.

integrated mines
Jim Huang

President, T.I.P. Wealth Manage...

PricePrice
$2.770
Owned Owned
No

COMMENT

Looked at this closely, but didn’t have a tremendous amount of confidence in management. This is based on the price of nickel, what is going on in Cuba and what is happening in Madagascar. It has a lot of potential.

integrated mines

Looked at this closely, but didn’t have a tremendous amount of confidence in management. This is based on the price of nickel, what is going on in Cuba and what is happening in Madagascar. It has a lot of potential.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$3.050
Owned Owned
No

PARTIAL BUY

Still an attractive company. Cuban relations seem to be improving with the US. The Ambatovy nickel project seems to be moving forward. He can’t see any reason why you wouldn’t consider a small allocation of this.

integrated mines

Still an attractive company. Cuban relations seem to be improving with the US. The Ambatovy nickel project seems to be moving forward. He can’t see any reason why you wouldn’t consider a small allocation of this.

integrated mines
John Stephenson

President & CEO, Stephenson & Company...

PricePrice
$3.040
Owned Owned
No

COMMENT

If you do an asset value, you get a vote $8 on it. He owns the fixed income on this. It is moving nicely. Nickel prices have finally rebounded this week. Ambatovy just achieved 90 and 90, meaning running at 90% capacity of the mine for 90 days. That is a big deal, and costs came down. If they can keep that going and costs come down a bit further, the stock probably goes into the mid-$3.

integrated mines

If you do an asset value, you get a vote $8 on it. He owns the fixed income on this. It is moving nicely. Nickel prices have finally rebounded this week. Ambatovy just achieved 90 and 90, meaning running at 90% capacity of the mine for 90 days. That is a big deal, and costs came down. If they can keep that going and costs come down a bit further, the stock probably goes into the mid-$3.

integrated mines
Bruce Campbell (1)

President, Campbell and Lee Inv...

PricePrice
$2.660
Owned Owned
Yes

DON'T BUY

Bonds? He doesn’t own any thing in this company because of 1) the big Ambatovy mine in Madagascar took a little longer and the overall nickel market is terrible. 2.) He had owned their bonds because of their Saskatchewan assets, but once they sold off, it became a lot riskier. The underlying commodity has now sewered. For the bond, they have enough cash flow to do all right, but you need a recovery in the price of nickel.

integrated mines

Bonds? He doesn’t own any thing in this company because of 1) the big Ambatovy mine in Madagascar took a little longer and the overall nickel market is terrible. 2.) He had owned their bonds because of their Saskatchewan assets, but once they sold off, it became a lot riskier. The underlying commodity has now sewered. For the bond, they have enough cash flow to do all right, but you need a recovery in the price of nickel.

integrated mines
Paul Gardner, CFA

Partner and Portfolio Manager, Avenue Investment Ma...

PricePrice
$2.090
Owned Owned
No

DON'T BUY

Lots of difficulties.  He did not come away from the AGM with their management.  It could be a success but right now he is just too scared.  They likely won’t go bankrupt but he does not have confidence in their management.

integrated mines

Lots of difficulties.  He did not come away from the AGM with their management.  It could be a success but right now he is just too scared.  They likely won’t go bankrupt but he does not have confidence in their management.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$2.210
Owned Owned
Unknown

BUY

Nickel is necessary to make stainless steel.  The problem is relatively weak demand and good supply.  Nickel is fine and S-T would be a way to play it.

integrated mines

Nickel is necessary to make stainless steel.  The problem is relatively weak demand and good supply.  Nickel is fine and S-T would be a way to play it.

integrated mines
John Stephenson

President & CEO, Stephenson & Company...

PricePrice
$2.290
Owned Owned
No

COMMENT

One of the big issues around nickel as a commodity is the export ban in Indonesia. They would like to have smelters built within the country for more value added revenue, rather than just exporting raw material. This has provided a bit of a support mechanism for nickel. This company is a very unique way to play the nickel side of the market. They sold their thermal coal royalty business, so really putting themselves in a more leveraged nickel business. Their Ambatovy mine in Madagascar is still in the ramp up stage, so there is still the sensitivity in ramp up risks. He sees good progress. With a couple more quarters of ramp up progress, with no negative surprises, this is something he might look at in the 4th quarter going into a stronger market in 2016.

integrated mines

One of the big issues around nickel as a commodity is the export ban in Indonesia. They would like to have smelters built within the country for more value added revenue, rather than just exporting raw material. This has provided a bit of a support mechanism for nickel. This company is a very unique way to play the nickel side of the market. They sold their thermal coal royalty business, so really putting themselves in a more leveraged nickel business. Their Ambatovy mine in Madagascar is still in the ramp up stage, so there is still the sensitivity in ramp up risks. He sees good progress. With a couple more quarters of ramp up progress, with no negative surprises, this is something he might look at in the 4th quarter going into a stronger market in 2016.

integrated mines
Dennis da Silva

Managing Director & Sr Portfolio Manager, Middlefield Capital ...

PricePrice
$2.390
Owned Owned
No

COMMENT

It will be interesting to see what the new rapprochement between Cuba and the US, will actually mean for this company over the next while. Not surprised the company has taken a bit of a hit since that announcement. Speculation might be that Freeport-McMoran (FCX-N) may want their property back, but he thinks that is a long ways from actually happening.

integrated mines

It will be interesting to see what the new rapprochement between Cuba and the US, will actually mean for this company over the next while. Not surprised the company has taken a bit of a hit since that announcement. Speculation might be that Freeport-McMoran (FCX-N) may want their property back, but he thinks that is a long ways from actually happening.

integrated mines
Brendan Caldwell

President, Caldwell Securities...

PricePrice
$2.330
Owned Owned
Unknown

PAST TOP PICK

(A Top Pick Feb 24/14. Up 2.9%.) Sept 24, 2020, 7.5%. He still likes this. Did a great job of terming out their debt right before the meltdown.

integrated mines

(A Top Pick Feb 24/14. Up 2.9%.) Sept 24, 2020, 7.5%. He still likes this. Did a great job of terming out their debt right before the meltdown.

integrated mines
Joey Mack

Director, Fixed Income, ScotiaCapital...

PricePrice
$2.140
Owned Owned
Yes

HOLD

His company has it with a sector outperform, but with a high level of risk. Target of $4 in 12 months. He hasn’t had any base metals for a while. Nickel prices are going to be in check because of the rise of the US$.

integrated mines

His company has it with a sector outperform, but with a high level of risk. Target of $4 in 12 months. He hasn’t had any base metals for a while. Nickel prices are going to be in check because of the rise of the US$.

integrated mines
Jaime Carrasco

Director & Associate Portfolio Manager, Scotiabank, Global W...

PricePrice
$2.150
Owned Owned
No

HOLD

The world demand for nickel of this type has gotten really subdued.  The key is how good their margins are going to be in Madagascar.  He considers it interesting, but is not comfortable with the risk.

integrated mines

The world demand for nickel of this type has gotten really subdued.  The key is how good their margins are going to be in Madagascar.  He considers it interesting, but is not comfortable with the risk.

integrated mines
David Cockfield

Managing Director, Northland Wealth Man...

PricePrice
$2.200
Owned Owned
Unknown

COMMENT

The stock has fallen, but not because the company is doing anything different. The mining space has been quite volatile. Especially with the oil price falling you see a lot of volatility in the mining space. They continue to ramp up their project in Madagascar and are set to produce a lot more nickel this year, which will drastically improve their earnings profile. Also, the partial lifting of sanctions to Cuba by the US is going to help them.

integrated mines

The stock has fallen, but not because the company is doing anything different. The mining space has been quite volatile. Especially with the oil price falling you see a lot of volatility in the mining space. They continue to ramp up their project in Madagascar and are set to produce a lot more nickel this year, which will drastically improve their earnings profile. Also, the partial lifting of sanctions to Cuba by the US is going to help them.

integrated mines
Jim Huang

President, T.I.P. Wealth Manage...

PricePrice
$2.790
Owned Owned
Yes

COMMENT

Kicked the tires on this one. Went to the AGM and management didn’t make him jump for joy. Doesn’t like the debt load. He is wary of it. Has a lot of potential upside, but there is a lot of danger.

integrated mines

Kicked the tires on this one. Went to the AGM and management didn’t make him jump for joy. Doesn’t like the debt load. He is wary of it. Has a lot of potential upside, but there is a lot of danger.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$2.880
Owned Owned
No

COMMENT

The story around Cuba is a fascinating one, but he thinks this is a coal story as well. You have to have an expectation of what is going to happen to coal and what is going to happen in terms of natural gas. When you buy commodities, you buy them when they are on sale, and they are at the moment. If you have a long enough time frame, you’ll probably do okay.

integrated mines

The story around Cuba is a fascinating one, but he thinks this is a coal story as well. You have to have an expectation of what is going to happen to coal and what is going to happen in terms of natural gas. When you buy commodities, you buy them when they are on sale, and they are at the moment. If you have a long enough time frame, you’ll probably do okay.

integrated mines
Darren Sissons

Vice President and Partner, Campbell Lee & Ross...

PricePrice
$3.070
Owned Owned
No

SELL

This is a news event type of stock, which is being driven by 2 major things. First of all is the news from Cuba. They are the largest corporation that is dealing in Cuba right now. Has had a huge move this month percentage wise. It is also becoming a major nickel producer. Have had some problems getting their nickel mine up and running, which is why the stock continues to be under pressure. With the blip we have seen recently, the technicals are not that great. Thinks there are better opportunities over the next couple of months in other areas. If you own, consider taking some profits.

integrated mines

This is a news event type of stock, which is being driven by 2 major things. First of all is the news from Cuba. They are the largest corporation that is dealing in Cuba right now. Has had a huge move this month percentage wise. It is also becoming a major nickel producer. Have had some problems getting their nickel mine up and running, which is why the stock continues to be under pressure. With the blip we have seen recently, the technicals are not that great. Thinks there are better opportunities over the next couple of months in other areas. If you own, consider taking some profits.

integrated mines
Don Vialoux

Research Analyst, TimingTheMarket.CA &...

PricePrice
$3.070
Owned Owned
Unknown

DON'T BUY

This company, like most of the industrial type companies, is trending down. As a technical analyst, he wouldn’t even look at the stock at this time. Until he sees the trend line broken and some sort of a base, there is no reason to own the stock when there are so many great looking charts out there which are actually doing what he wants them to do.

integrated mines

This company, like most of the industrial type companies, is trending down. As a technical analyst, he wouldn’t even look at the stock at this time. Until he sees the trend line broken and some sort of a base, there is no reason to own the stock when there are so many great looking charts out there which are actually doing what he wants them to do.

integrated mines
Keith Richards

Portfolio Manager, ValueTrend Wealth Ma...

PricePrice
$3.230
Owned Owned
Unknown

DON'T BUY

They have exposure in Cuba on one side, but then they have the big mine on the other side.  He would not buy just on the change in political situation in Cuba.

integrated mines

They have exposure in Cuba on one side, but then they have the big mine on the other side.  He would not buy just on the change in political situation in Cuba.

integrated mines
David Burrows

President & Chief Investment Strategist, Barometer Capital Ma...

PricePrice
$2.960
Owned Owned
Unknown

COMMENT

It took a while for Cuba to start opening up with the US. On today’s news, this stock went up over 25%. However, they are still not out of the woods. There is going to be tremendous opposition from the Republicans in Congress, particularly the 3 Republicans of Cuban-American heritage. It is far from clear whether Obama will have the clout, as a lame-duck president, to do what he really wants to do, which is to end the embargo. If he ends the embargo, then there can be trade between the 2 countries of all kinds of assets, and not just this opening salvo of $100 worth of cigars and a trip to a resort.

integrated mines

It took a while for Cuba to start opening up with the US. On today’s news, this stock went up over 25%. However, they are still not out of the woods. There is going to be tremendous opposition from the Republicans in Congress, particularly the 3 Republicans of Cuban-American heritage. It is far from clear whether Obama will have the clout, as a lame-duck president, to do what he really wants to do, which is to end the embargo. If he ends the embargo, then there can be trade between the 2 countries of all kinds of assets, and not just this opening salvo of $100 worth of cigars and a trip to a resort.

integrated mines
David Baskin

President, Baskin Wealth Manage...

PricePrice
$2.870
Owned Owned
No

COMMENT

Copper’s outlook in the next 6-12 months is a challenge. Zinc and nickel have better looking outlooks. This company is a pure play nickel producer, but they haven’t been a terrific operator. Wouldn’t be his 1st choice.

integrated mines

Copper’s outlook in the next 6-12 months is a challenge. Zinc and nickel have better looking outlooks. This company is a pure play nickel producer, but they haven’t been a terrific operator. Wouldn’t be his 1st choice.

integrated mines
Bruce Tatters

Founding Partner and CIO, Triumph Asset Manage...

PricePrice
$2.260
Owned Owned
No

HOLD

Thoughts on the 2018 and 2020 bonds considering the recent events? The company just redeemed a lot of its earlier bonds and issued the bond in 2022, to put out the maturity date so there is less pressure for the company to meet any principal maturities short term. If you own, he would Hold. This company has always had a good rapport with the street.

integrated mines

Thoughts on the 2018 and 2020 bonds considering the recent events? The company just redeemed a lot of its earlier bonds and issued the bond in 2022, to put out the maturity date so there is less pressure for the company to meet any principal maturities short term. If you own, he would Hold. This company has always had a good rapport with the street.

integrated mines
Hank Cunningham

Fixed Income Strategist, Odlum Brown Limited...

PricePrice
$2.680
Owned Owned
No

HOLD

7.5% Sept 24/2020 bond? This is one of the better firms that is dealing with the street. Just redeemed a lot of their bonds early and replaced them with a longer term bond. They have a balance sheet where there are no forthcoming principal maturities that will cause them any anxiousness in the bond market.

integrated mines

7.5% Sept 24/2020 bond? This is one of the better firms that is dealing with the street. Just redeemed a lot of their bonds early and replaced them with a longer term bond. They have a balance sheet where there are no forthcoming principal maturities that will cause them any anxiousness in the bond market.

integrated mines
Hank Cunningham

Fixed Income Strategist, Odlum Brown Limited...

PricePrice
$2.680
Owned Owned
Unknown

WATCH

Never had the stomach to go in and buy it.  Does not have as much confidence in management as he would like.  Has always seen a lot of risk with it.  At the last AGM he was not encouraged by their strategy.

integrated mines

Never had the stomach to go in and buy it.  Does not have as much confidence in management as he would like.  Has always seen a lot of risk with it.  At the last AGM he was not encouraged by their strategy.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$2.760
Owned Owned
No

HOLD

It is more than the commodity price itself.  The Madagascar facility is mostly to blame.  Costs are coming in quite high.  2015 will be seen as a period of difficulty for them.

integrated mines

It is more than the commodity price itself.  The Madagascar facility is mostly to blame.  Costs are coming in quite high.  2015 will be seen as a period of difficulty for them.

integrated mines
Mohsin Bashir

VP Investments, Stone Asset Manageme...

PricePrice
$2.710
Owned Owned
Unknown

SELL

2018 & 2020 Bonds.  They missed earnings and cut jobs.  He has held the bonds for a long time.  He exited about a year ago because they sold off their Saskatchewan coal assets.  You would have always had the ability to grab the Saskatchewan assets if things went wrong so he sold the bonds since they sold the Canadian assets.  He exited the stock as well.

integrated mines

2018 & 2020 Bonds.  They missed earnings and cut jobs.  He has held the bonds for a long time.  He exited about a year ago because they sold off their Saskatchewan coal assets.  You would have always had the ability to grab the Saskatchewan assets if things went wrong so he sold the bonds since they sold the Canadian assets.  He exited the stock as well.

integrated mines
Paul Gardner, CFA

Partner and Portfolio Manager, Avenue Investment Ma...

PricePrice
$2.660
Owned Owned
No

TOP PICK

Sherrit 8% bonds maturing Nov. 15, 2018. Sold their coal business and restructured their balance sheet. This is the shortest term maturity the company has. It is a good time to take a look at them because of the balance sheet restructuring.

integrated mines

Sherrit 8% bonds maturing Nov. 15, 2018. Sold their coal business and restructured their balance sheet. This is the shortest term maturity the company has. It is a good time to take a look at them because of the balance sheet restructuring.

integrated mines
Joey Mack

Director, Fixed Income, ScotiaCapital...

PricePrice
$2.600
Owned Owned
Yes

DON'T BUY

A leverage play on nickel prices. Lowered the amount of production coming out of the Madagascar mine, and pushed out and lengthened the life of the mine. Also, the ban on iron ore in Indonesia affected the price. There will be a lot of torque to the upside when nickel prices get back on firm ground. Believes there are better names and better sectors to be.

integrated mines

A leverage play on nickel prices. Lowered the amount of production coming out of the Madagascar mine, and pushed out and lengthened the life of the mine. Also, the ban on iron ore in Indonesia affected the price. There will be a lot of torque to the upside when nickel prices get back on firm ground. Believes there are better names and better sectors to be.

integrated mines
Mike S. Newton, CIM FCSI

Director & Portfolio Manager, Scotia Wealth Manage...

PricePrice
$2.690
Owned Owned
No

COMMENT

Never had the courage to buy this. Went to their AGM this year, but management did not give him enough confidence to buy into the company. Doesn’t particularly like the financials. There is a lot of debt there. A lot of this company is based on the Madagascar play, which could turn out to be very good for them. On his Watch List.

integrated mines

Never had the courage to buy this. Went to their AGM this year, but management did not give him enough confidence to buy into the company. Doesn’t particularly like the financials. There is a lot of debt there. A lot of this company is based on the Madagascar play, which could turn out to be very good for them. On his Watch List.

integrated mines
Benj Gallander

President, Contra the Heard Inv...

PricePrice
$2.840
Owned Owned
No

DON'T BUY

We are testing a multi-year low.  The trend is down.  These are not good signs.  Performance relative to market is negative and it is trading below its 20 day moving average.

integrated mines

We are testing a multi-year low.  The trend is down.  These are not good signs.  Performance relative to market is negative and it is trading below its 20 day moving average.

integrated mines
Don Vialoux

Research Analyst, TimingTheMarket.CA &...

PricePrice
$3.140
Owned Owned
Unknown

DON'T BUY

Failed in cash flow and earnings per share and did not have a great quarter at all.  Thinks there will be planned outages on the Madagascar mine.  Once that is up and running he thinks they can cut costs.  His exposure to miners is minimal right now.

integrated mines

Failed in cash flow and earnings per share and did not have a great quarter at all.  Thinks there will be planned outages on the Madagascar mine.  Once that is up and running he thinks they can cut costs.  His exposure to miners is minimal right now.

integrated mines
Michael Bowman

Portfolio Manager, Wickham Investment M...

PricePrice
$3.590
Owned Owned
Unknown

DON'T BUY

He used to own it as well as the bonds.  There is zinc and coal.  The commodities have come off.  He would stay away from these companies now.

integrated mines

He used to own it as well as the bonds.  There is zinc and coal.  The commodities have come off.  He would stay away from these companies now.

integrated mines
Paul Harris, CFA

Portfolio Manager and Partner, Avenue Investment Ma...

PricePrice
$3.620
Owned Owned
No

HOLD

Nickel prices have gone to $9, but doesn’t seem to drag this one along. Right now they are in the midst of refinancing and rejigging their balance sheet. Sold their coal assets for roughly $900 million. They are just restructuring. Have 3 debt issues that mature 2015, 2018 and 2020, and they are changing that to 2018, 2020 and 2022, and taking enough in that they’ll fix the balance sheet. NAV is over $10. It should be higher, but there is no US involvement because of Cuba. He prefers HudBay Minerals (HBM-T). If you have some patience, it is super cheap and should move over the next few quarters when they demonstrate higher earnings.

integrated mines

Nickel prices have gone to $9, but doesn’t seem to drag this one along. Right now they are in the midst of refinancing and rejigging their balance sheet. Sold their coal assets for roughly $900 million. They are just restructuring. Have 3 debt issues that mature 2015, 2018 and 2020, and they are changing that to 2018, 2020 and 2022, and taking enough in that they’ll fix the balance sheet. NAV is over $10. It should be higher, but there is no US involvement because of Cuba. He prefers HudBay Minerals (HBM-T). If you have some patience, it is super cheap and should move over the next few quarters when they demonstrate higher earnings.

integrated mines
Bruce Campbell (1)

President, Campbell and Lee Inv...

PricePrice
$3.820
Owned Owned
Yes

TOP PICK

Has been a chronic underperformer for many reasons. They are in nickel, which is the right place to be for the next 6 months and probably for the next 2 years. Indonesia banned the export of nickel 100% from the beginning of this year. Also, the Philippines are talking about banning it. That takes about 40% of the supply out of the market. He expects nickel prices to maintain and even grow higher from here. The most leveraged, pure play you can find is this company.

integrated mines

Has been a chronic underperformer for many reasons. They are in nickel, which is the right place to be for the next 6 months and probably for the next 2 years. Indonesia banned the export of nickel 100% from the beginning of this year. Also, the Philippines are talking about banning it. That takes about 40% of the supply out of the market. He expects nickel prices to maintain and even grow higher from here. The most leveraged, pure play you can find is this company.

integrated mines
Jim Huang

President, T.I.P. Wealth Manage...

PricePrice
$4.260
Owned Owned
Yes

DON'T BUY

This is the worst company out there. Its management is poor. An activist investor tried turning this thing around, but didn’t succeed. It trades under his last support line of EBV-3. The market is saying the state of the assets is not what it is worth.

integrated mines

This is the worst company out there. Its management is poor. An activist investor tried turning this thing around, but didn’t succeed. It trades under his last support line of EBV-3. The market is saying the state of the assets is not what it is worth.

integrated mines
Brian Acker, CA

Chief Executive Officer, President and Chief Inves, Acker Finley Inc....

PricePrice
$4.060
Owned Owned
No

WEAK BUY

This is a speculative stock. They have a major project in Madagascar with great partners, but the politics are questionable. There are some environmental aspects to it, but the deposit is excellent. Their technology really fits that particular ore deposit. If this project goes bad, he doesn’t know where the stock will go from there.

integrated mines

This is a speculative stock. They have a major project in Madagascar with great partners, but the politics are questionable. There are some environmental aspects to it, but the deposit is excellent. Their technology really fits that particular ore deposit. If this project goes bad, he doesn’t know where the stock will go from there.

integrated mines
David Cockfield

Managing Director, Northland Wealth Man...

PricePrice
$4.060
Owned Owned
No

WAIT

If you are looking at base metals, this would be one he would be interested in. It is well run, well diversified and controls a lot of resource. It might be a little early, but this is definitely one he would be looking at when the time is right.

integrated mines

If you are looking at base metals, this would be one he would be interested in. It is well run, well diversified and controls a lot of resource. It might be a little early, but this is definitely one he would be looking at when the time is right.

integrated mines
Jaime Carrasco

Director & Associate Portfolio Manager, Scotiabank, Global W...

PricePrice
$4.000
Owned Owned
No

SELL

Bonds.  He was a long term holder of their bonds.  There was execution risk, but you had the Saskatchewan assets. Once they sold those, he got out. 

integrated mines

Bonds.  He was a long term holder of their bonds.  There was execution risk, but you had the Saskatchewan assets. Once they sold those, he got out. 

integrated mines
Paul Gardner, CFA

Partner and Portfolio Manager, Avenue Investment Ma...

PricePrice
$4.690
Owned Owned
No

BUY

Bond 8.0% November 2017.  It is an improving story.  They sold down some existing gas assets.  Nickel prices are rising.  They are paying down debt.  A good yield enhancer and a short maturity date.

integrated mines

Bond 8.0% November 2017.  It is an improving story.  They sold down some existing gas assets.  Nickel prices are rising.  They are paying down debt.  A good yield enhancer and a short maturity date.

integrated mines
James Dutkiewicz

Chief Inv Strategist & Sr. Portfolio Manager, Sentry Investments...

PricePrice
$4.710
Owned Owned
Yes

HOLD

Sold their thermal coal business, and have about a year to either 1) find an acquisition or 2) pay down existing debt. About as pure a way to play nickel as you’ll find. Just ramping up their Madagascar project. Indonesia has an export ban on iron ore, and if you think that will continue for at least another 6-12 months, there will be continued erosion in nickel inventories and continued strength in nickel. For every 10% increase you see in the price of nickel, you get a 30% increase in EBITDA. Tremendous leverage.

integrated mines

Sold their thermal coal business, and have about a year to either 1) find an acquisition or 2) pay down existing debt. About as pure a way to play nickel as you’ll find. Just ramping up their Madagascar project. Indonesia has an export ban on iron ore, and if you think that will continue for at least another 6-12 months, there will be continued erosion in nickel inventories and continued strength in nickel. For every 10% increase you see in the price of nickel, you get a 30% increase in EBITDA. Tremendous leverage.

integrated mines
Dennis da Silva

Managing Director & Sr Portfolio Manager, Middlefield Capital ...

PricePrice
$4.320
Owned Owned
Yes

COMMENT

Has looked at this in the last couple of months, only because he has been looking at base metal producers. Not ready to invest in any of them because he is still uncomfortable with the global economy. There are issues with the shadow banking in China that are also starting to blow up over the last couple of weeks. Too much uncertainty.

integrated mines

Has looked at this in the last couple of months, only because he has been looking at base metal producers. Not ready to invest in any of them because he is still uncomfortable with the global economy. There are issues with the shadow banking in China that are also starting to blow up over the last couple of weeks. Too much uncertainty.

integrated mines
Jaime Carrasco

Director & Associate Portfolio Manager, Scotiabank, Global W...

PricePrice
$4.320
Owned Owned
No

HOLD

This is a perplexing one. Have gotten past all the proxy battles, and nickel prices have done extremely well. Sold their coal, so the balance sheet currently is very good. The asset value is around $10, so it should trade quite a bit higher. Haven’t totally de-risked their Madagascar holdings, but they will do so over the next few months.

integrated mines

This is a perplexing one. Have gotten past all the proxy battles, and nickel prices have done extremely well. Sold their coal, so the balance sheet currently is very good. The asset value is around $10, so it should trade quite a bit higher. Haven’t totally de-risked their Madagascar holdings, but they will do so over the next few months.

integrated mines
Bruce Campbell (1)

President, Campbell and Lee Inv...

PricePrice
$4.500
Owned Owned
No

PAST TOP PICK

(A Top Pick Feb 24/14. Up 6.65%.) 7.5% Sept 24, 2020. The real story was that the company had just sold their coal business for $900 million. In the indenture for these bonds, they did have to put a bid in at 101. At this point they will be negotiating with bondholders. This company would like to pay down its short-term debt.

integrated mines

(A Top Pick Feb 24/14. Up 6.65%.) 7.5% Sept 24, 2020. The real story was that the company had just sold their coal business for $900 million. In the indenture for these bonds, they did have to put a bid in at 101. At this point they will be negotiating with bondholders. This company would like to pay down its short-term debt.

integrated mines
Joey Mack

Director, Fixed Income, ScotiaCapital...

PricePrice
$4.680
Owned Owned
Yes

BUY

This is the cleanest play on the nickel market in Canada.  They have reduced exports out of Madagascar which lead to a huge increase in nickel prices.  As blocks of sellers get cleared out you could see the stock go higher.  He holds First Quantum.

integrated mines

This is the cleanest play on the nickel market in Canada.  They have reduced exports out of Madagascar which lead to a huge increase in nickel prices.  As blocks of sellers get cleared out you could see the stock go higher.  He holds First Quantum.

integrated mines
John Zechner

Chairman, J. Zechner & Assoc...

PricePrice
$4.670
Owned Owned
No

HOLD

(Market Call Minute.) Had some corporate activist investors thinking management was doing a bad job, but the big thing is the new massive nickel mine in Madagascar, which is on stream and producing.

integrated mines

(Market Call Minute.) Had some corporate activist investors thinking management was doing a bad job, but the big thing is the new massive nickel mine in Madagascar, which is on stream and producing.

integrated mines
Gavin Graham

Trustee, Pointbreak ETFs...

PricePrice
$4.830
Owned Owned
Yes

COMMENT

The volatility you have seen is very much a play on nickel prices, which were high a few years ago and plummeted to a very low level about 6 months ago. This has impacted the share price. He has found money in this company through their debt. They are rated just below investment grade and have bonds in 2018 and 2020 that yield roughly 7.5%. A much safer way to play this company.

integrated mines

The volatility you have seen is very much a play on nickel prices, which were high a few years ago and plummeted to a very low level about 6 months ago. This has impacted the share price. He has found money in this company through their debt. They are rated just below investment grade and have bonds in 2018 and 2020 that yield roughly 7.5%. A much safer way to play this company.

integrated mines
Todd Johnson

Portfolio Manager, BCV Asset Management...

PricePrice
$4.360
Owned Owned
Yes

WAIT

Nickel has performed extremely well. It came back from a strong run.  We are close to a mid-2012 resistance level.  Seasonally it does not do well this time of year.  He would wait until fall.

integrated mines

Nickel has performed extremely well. It came back from a strong run.  We are close to a mid-2012 resistance level.  Seasonally it does not do well this time of year.  He would wait until fall.

integrated mines
Brooke Thackray

President, Jov Investment Manag...

PricePrice
$4.470
Owned Owned
Unknown

TOP PICK

Fundamentally this is a nickel producer. Used to have a big coal business which they recently sold. Also, have an issue with being in Cuba, which precludes a US investor from buying the stock. The big reason why it has run up is because of the nickel price. The Indonesian government just declared that they would not export any unprocessed ore (mostly to China), which cuts out about 20% of global supply. Just bringing out one of the big mines in Madagascar, right place at the right time. Thinks there is a lot more upside here unless the ban gets lifted.

integrated mines

Fundamentally this is a nickel producer. Used to have a big coal business which they recently sold. Also, have an issue with being in Cuba, which precludes a US investor from buying the stock. The big reason why it has run up is because of the nickel price. The Indonesian government just declared that they would not export any unprocessed ore (mostly to China), which cuts out about 20% of global supply. Just bringing out one of the big mines in Madagascar, right place at the right time. Thinks there is a lot more upside here unless the ban gets lifted.

integrated mines
Jim Huang

President, T.I.P. Wealth Manage...

PricePrice
$4.720
Owned Owned
Yes

COMMENT

Nickel prices have been going crazy. This company is up 63% from its bottom in February. There is a proxy battle which is coming to a head this month. Doesn’t think it will succeed, but it will point out some inefficiencies that will now get fixed. There is a lot of talk about nickel going to $12 a pound, and if it should do that, this company is going to go quite a bit higher.

integrated mines

Nickel prices have been going crazy. This company is up 63% from its bottom in February. There is a proxy battle which is coming to a head this month. Doesn’t think it will succeed, but it will point out some inefficiencies that will now get fixed. There is a lot of talk about nickel going to $12 a pound, and if it should do that, this company is going to go quite a bit higher.

integrated mines
Bruce Campbell (1)

President, Campbell and Lee Inv...

PricePrice
$4.690
Owned Owned
Yes

COMMENT

This is always a stock that looks cheap because of the asset base. Has good assets, but they are in jurisdictions that cause people some headwinds. One of these days this thing will do better. Feels this is more of a trading situation than an investing situation. If you own and are not a trader, maybe you should take this as an opportunity to lighten up.

integrated mines

This is always a stock that looks cheap because of the asset base. Has good assets, but they are in jurisdictions that cause people some headwinds. One of these days this thing will do better. Feels this is more of a trading situation than an investing situation. If you own and are not a trader, maybe you should take this as an opportunity to lighten up.

integrated mines
Rick Stuchberry

Portfolio Manager, Richardson GMP...

PricePrice
$4.780
Owned Owned
No

DON'T BUY

Nickel has had a big run and is the superior of the three base metals.  Indonesia has a ban on export of ore.  They need to get the companies there to build a smelter.  This is a nice clean way to play nickel, but he has not done it.  Russia is a big nickel producer also.

integrated mines

Nickel has had a big run and is the superior of the three base metals.  Indonesia has a ban on export of ore.  They need to get the companies there to build a smelter.  This is a nice clean way to play nickel, but he has not done it.  Russia is a big nickel producer also.

integrated mines
Dennis da Silva

Managing Director & Sr Portfolio Manager, Middlefield Capital ...

PricePrice
$4.180
Owned Owned
No

HOLD

Thinks there is a lot more to the story. There is an activist investor now and we’ve never really had activist investors until just a while ago. He applauds activist investor that comes in and wants a seat on the board and wants to see the share price going higher. This creates a bit of a fire under stock prices. The company has a nickel mine in Madagascar and are anticipating by year-end that the mine will be up to 90%. Earnings on this company is at about $0.30 and next years earnings estimates are somewhere near $1. Stock has great momentum.

integrated mines

Thinks there is a lot more to the story. There is an activist investor now and we’ve never really had activist investors until just a while ago. He applauds activist investor that comes in and wants a seat on the board and wants to see the share price going higher. This creates a bit of a fire under stock prices. The company has a nickel mine in Madagascar and are anticipating by year-end that the mine will be up to 90%. Earnings on this company is at about $0.30 and next years earnings estimates are somewhere near $1. Stock has great momentum.

integrated mines
Michael Bowman

Portfolio Manager, Wickham Investment M...

PricePrice
$4.140
Owned Owned
No

DON'T BUY

If you are bullish on Nickel it is one of the more direct ways to play it.  He does not favour it and is not bullish on nickel. Prefers Hud Bay or First Quantum.

integrated mines

If you are bullish on Nickel it is one of the more direct ways to play it.  He does not favour it and is not bullish on nickel. Prefers Hud Bay or First Quantum.

integrated mines
John Zechner

Chairman, J. Zechner & Assoc...

PricePrice
$3.360
Owned Owned
No

BUY

Nickel is $7 a pound while it was $6 at the beginning of the year. Nickel prices have been going down for 3 years so, because of their Madagascar mine, this company has been suffering. Indonesia ruled that their ore cannot be taken out without processing it, so nickel prices have been rebounding. Oil business is very profitable and a good generator of free cash. This is a call on what nickel prices are 5 years from now. You want to buy mining assets when they are well below Book and this one is.

integrated mines

Nickel is $7 a pound while it was $6 at the beginning of the year. Nickel prices have been going down for 3 years so, because of their Madagascar mine, this company has been suffering. Indonesia ruled that their ore cannot be taken out without processing it, so nickel prices have been rebounding. Oil business is very profitable and a good generator of free cash. This is a call on what nickel prices are 5 years from now. You want to buy mining assets when they are well below Book and this one is.

integrated mines
Lyle Stein

Sr. Portfolio & Managing Director, Vestcap Investment M...

PricePrice
$3.310
Owned Owned
Yes

WATCH

Has done well with bonds over the last 7 years.  They have this window of time when they can decide what to do with the proceeds from the sale of the coal business without paying down the debt.  Nickel is the kind of market that it is supposed to have a floor.  He doesn’t have the stomach right now, but is watching it and might own it soon.

integrated mines

Has done well with bonds over the last 7 years.  They have this window of time when they can decide what to do with the proceeds from the sale of the coal business without paying down the debt.  Nickel is the kind of market that it is supposed to have a floor.  He doesn’t have the stomach right now, but is watching it and might own it soon.

integrated mines
Bill Harris, CFA

Portfolio Manager, Avenue Investment Ma...

PricePrice
$3.090
Owned Owned
No

TOP PICK

7.5% Sep 24, 2020.  They did an asset sale, but these bonds are protected from asset sales.  They may have to go and buy back all the bonds above par.  Putting all that money to debt reduction is good for credit.

integrated mines

7.5% Sep 24, 2020.  They did an asset sale, but these bonds are protected from asset sales.  They may have to go and buy back all the bonds above par.  Putting all that money to debt reduction is good for credit.

integrated mines
Joey Mack

Director, Fixed Income, ScotiaCapital...

PricePrice
$2.960
Owned Owned
Yes

WAIT

Owned in the distant past.  Moved out when they went to Madagascar because it was too big a jump into a questionable jurisdiction.  They moved into coal but it did not offset the risk factors there.  Follows it but is not anticipating jumping in.  Wait and see if the project pays off.

integrated mines

Owned in the distant past.  Moved out when they went to Madagascar because it was too big a jump into a questionable jurisdiction.  They moved into coal but it did not offset the risk factors there.  Follows it but is not anticipating jumping in.  Wait and see if the project pays off.

integrated mines
David Cockfield

Managing Director, Northland Wealth Man...

PricePrice
$2.930
Owned Owned
No

HOLD

They put so much capital into this project and usually there are massive cost overruns on a project this big and then the company would have to raise capital or cut the dividend.  Don’t buy more but it is worth holding if you have it.  If someone is bullish on Nickel then this would be something to look at.

integrated mines

They put so much capital into this project and usually there are massive cost overruns on a project this big and then the company would have to raise capital or cut the dividend.  Don’t buy more but it is worth holding if you have it.  If someone is bullish on Nickel then this would be something to look at.

integrated mines
Colin Stewart

CEO & Portfolio manager, JC Clark Investments...

PricePrice
$2.930
Owned Owned
No

WEAK BUY

The story is all about their massive project in Madagascar. The run right now is about 70%, which is really good as they have been delayed on getting up to full capacity. Great asset and great cash flow generator. The trouble is, they have entered loans between all the companies involved. It’s really all about nickel prices, which have not really recovered.

integrated mines

The story is all about their massive project in Madagascar. The run right now is about 70%, which is really good as they have been delayed on getting up to full capacity. Great asset and great cash flow generator. The trouble is, they have entered loans between all the companies involved. It’s really all about nickel prices, which have not really recovered.

integrated mines
Paul Gardner, CFA

Partner and Portfolio Manager, Avenue Investment Ma...

PricePrice
$3.380
Owned Owned
No

COMMENT

All eyes are focused on their nickel project in Madagascar. Just starting production. Until that really gets going and investors have a really good sense of the profile for that project, there is a question mark as to what that mine will be. Nickel as a commodity is not doing much. Yield of 5%.

integrated mines

All eyes are focused on their nickel project in Madagascar. Just starting production. Until that really gets going and investors have a really good sense of the profile for that project, there is a question mark as to what that mine will be. Nickel as a commodity is not doing much. Yield of 5%.

integrated mines
Christine Poole

CEO & Managing Director, GlobeInvest Capital ...

PricePrice
$3.300
Owned Owned
No

COMMENT

Your opinion on their bond maturing in 2020? This bond has had a history because of its involvement in Cuba. The major dealers in Canada would not underwrite their securities so it has always had a reasonably good balance sheet but is rated below investment grade. They have rallied lately and it has gone down about 150 basis points and its current level is at about 8%. Nickel production is up and running full time and the nickel glut has seemed to have come to an end. He would recommend that no more than 5% of a fixed income portfolio be in such securities, and even then, he is reluctant to buy individual bonds. He prefers ETFs if he were going to buy high yields at all.

integrated mines

Your opinion on their bond maturing in 2020? This bond has had a history because of its involvement in Cuba. The major dealers in Canada would not underwrite their securities so it has always had a reasonably good balance sheet but is rated below investment grade. They have rallied lately and it has gone down about 150 basis points and its current level is at about 8%. Nickel production is up and running full time and the nickel glut has seemed to have come to an end. He would recommend that no more than 5% of a fixed income portfolio be in such securities, and even then, he is reluctant to buy individual bonds. He prefers ETFs if he were going to buy high yields at all.

integrated mines
Hank Cunningham

Fixed Income Strategist, Odlum Brown Limited...

PricePrice
$3.500
Owned Owned
Unknown

WAIT

(Market Call Minute) It likes there will be too much nickel in the long term.

integrated mines

(Market Call Minute) It likes there will be too much nickel in the long term.

integrated mines
Bill Harris, CFA

Portfolio Manager, Avenue Investment Ma...

PricePrice
$3.540
Owned Owned
No

DON'T BUY

This is all about how they get the stuff out of the ground in Madagascar. It has been a huge science experiment and investing in science experiments is never a good idea. Has a lot of high-yield debt.

integrated mines

This is all about how they get the stuff out of the ground in Madagascar. It has been a huge science experiment and investing in science experiments is never a good idea. Has a lot of high-yield debt.

integrated mines
John O'Connell, CFA

Chairman and CEO, Davis Rea...

PricePrice
$3.760
Owned Owned
No

SELL ON STRENGTH

Been a disappointment.  They sold their coal assets last week, odd timing he thinks.  Balance sheet is better and dividend is safe.  It is much more of a nickel company now.  You have to focus on what’s the outlook for Nickel.  If you have a recovery, this one is levered and it should do great.  He would see if it hit $4.50.

integrated mines

Been a disappointment.  They sold their coal assets last week, odd timing he thinks.  Balance sheet is better and dividend is safe.  It is much more of a nickel company now.  You have to focus on what’s the outlook for Nickel.  If you have a recovery, this one is levered and it should do great.  He would see if it hit $4.50.

integrated mines
Bruce Campbell (1)

President, Campbell and Lee Inv...

PricePrice
$3.550
Owned Owned
Unknown

BUY

2017 bonds.  It is primarily dependant on Madagascar.  He has always been concerned about operations in Cuba, which closes them off to US, fixed income or capital markets.  He is more comfortable in the bonds than in the equity and the dividend.

integrated mines

2017 bonds.  It is primarily dependant on Madagascar.  He has always been concerned about operations in Cuba, which closes them off to US, fixed income or capital markets.  He is more comfortable in the bonds than in the equity and the dividend.

integrated mines
James Dutkiewicz

Chief Inv Strategist & Sr. Portfolio Manager, Sentry Investments...

PricePrice
$3.640
Owned Owned
Unknown

WATCH

Suffering from tax loss selling right now. Business is well known and well understood and run by pretty talented people. You have to get technical and ignore the fundamentals. He would not recommend buying this until it starts to break out.

integrated mines

Suffering from tax loss selling right now. Business is well known and well understood and run by pretty talented people. You have to get technical and ignore the fundamentals. He would not recommend buying this until it starts to break out.

integrated mines
Mike S. Newton, CIM FCSI

Director & Portfolio Manager, Scotia Wealth Manage...

PricePrice
$3.030
Owned Owned
No

BUY on WEAKNESS

Lots of value.  Not owned for a year or so.  $3 means you are getting paid to wait, 4%+ dividend.  Asset value of $10 to $11.  Nickel is out of favour.  Third nickel, oil and coal each.  Could be broken up to realize value.

integrated mines

Lots of value.  Not owned for a year or so.  $3 means you are getting paid to wait, 4%+ dividend.  Asset value of $10 to $11.  Nickel is out of favour.  Third nickel, oil and coal each.  Could be broken up to realize value.

integrated mines
Bruce Campbell (1)

President, Campbell and Lee Inv...

PricePrice
$3.050
Owned Owned
No

WATCH

Has been hitting new lows, partially due to tax loss selling. The big problem was when they went into the Madagascar project. Politics there are a little bit turbulent. There are a number of environmental issues and the press has not been good to them. The project has reached the point where it looks like it is going to be producing some reasonable cash flow, however, metal markets are not nearly as good as they were when they started the project. Their coal and Cuban assets are still quite good. After all the tax loss selling is done, we may see the stock turn up.

integrated mines

Has been hitting new lows, partially due to tax loss selling. The big problem was when they went into the Madagascar project. Politics there are a little bit turbulent. There are a number of environmental issues and the press has not been good to them. The project has reached the point where it looks like it is going to be producing some reasonable cash flow, however, metal markets are not nearly as good as they were when they started the project. Their coal and Cuban assets are still quite good. After all the tax loss selling is done, we may see the stock turn up.

integrated mines
David Cockfield

Managing Director, Northland Wealth Man...

PricePrice
$3.070
Owned Owned
Unknown

DON'T BUY

Has not bought this, but some clients brought some in with their accounts. He has been focusing on other players in the mining sector. Their big project, Ambatovy, in Madagascar is almost a make or break project for them. There have been a bit of cost escalations there along with some delays. On a price basis, the stock looks very, very cheap. There are other, more diversified plays that he would prefer. (See Top Picks.)

integrated mines

Has not bought this, but some clients brought some in with their accounts. He has been focusing on other players in the mining sector. Their big project, Ambatovy, in Madagascar is almost a make or break project for them. There have been a bit of cost escalations there along with some delays. On a price basis, the stock looks very, very cheap. There are other, more diversified plays that he would prefer. (See Top Picks.)

integrated mines
Michael Sprung

President, Sprung Investment Ma...

PricePrice
$3.090
Owned Owned
Yes

DON'T BUY

Normally you would think that a change in the nickel price would have impact on the stock. Nickel has very strong seasonality from around this time of year through until May of each year. However, the stock is not following that pattern. Chart shows the trend is still on the downside and, as yet, still hasn’t shown signs of bottoming. Significantly below its 20 day moving average.

integrated mines

Normally you would think that a change in the nickel price would have impact on the stock. Nickel has very strong seasonality from around this time of year through until May of each year. However, the stock is not following that pattern. Chart shows the trend is still on the downside and, as yet, still hasn’t shown signs of bottoming. Significantly below its 20 day moving average.

integrated mines
Don Vialoux

Research Analyst, TimingTheMarket.CA &...

PricePrice
$3.290
Owned Owned
Unknown

PAST TOP PICK

(Top Pick Nov 16/12, Down 25.74%)  It is a sum of the parts story.  It is the Madagascar project and people are looking at the nickel price.  If it stays down a long time a lot of their competitors will shut down.  Over 5% dividend.  He would like the company to buy back stock. 

integrated mines

(Top Pick Nov 16/12, Down 25.74%)  It is a sum of the parts story.  It is the Madagascar project and people are looking at the nickel price.  If it stays down a long time a lot of their competitors will shut down.  Over 5% dividend.  He would like the company to buy back stock. 

integrated mines
Irwin Michael, B.Com, MBA

Portfolio Manager, ABC Funds...

PricePrice
$3.330
Owned Owned
Yes

DON'T BUY

Liability with the spill in Alberta is not yet known.  Nickel prices are affecting the stock right now.  Madagascar ramp up is not going as expected and that is what people are concentrating on.  Dead money but with the 5% dividend.

integrated mines

Liability with the spill in Alberta is not yet known.  Nickel prices are affecting the stock right now.  Madagascar ramp up is not going as expected and that is what people are concentrating on.  Dead money but with the 5% dividend.

integrated mines
Laura Lau

Senior Portfolio Manager, Sentry Select Capita...

PricePrice
$3.390
Owned Owned
Unknown

COMMENT

This one always comes down to what you think will happen in the nickel market. There are a few people getting a little more positive on nickel recently in terms of a capital spending basis and in terms of supply and demand. Nickel has been under pressure for a number of years. If you are positive on nickel, this is the more direct play. On a seasonal basis, this would be the time to Buy.

integrated mines

This one always comes down to what you think will happen in the nickel market. There are a few people getting a little more positive on nickel recently in terms of a capital spending basis and in terms of supply and demand. Nickel has been under pressure for a number of years. If you are positive on nickel, this is the more direct play. On a seasonal basis, this would be the time to Buy.

integrated mines
John Zechner

Chairman, J. Zechner & Assoc...

PricePrice
$3.450
Owned Owned
No

HOLD

Tarnished with the materials brush. In the last year the materials sector, mining and gold, have been a rough place to be. Buyers were positioning themselves for growth that was coming down the road and that growth was postponed. China was slower than people thought, but really North America did not pick up and get going. We are running about 2%, which normally would be at about 2.5% or a bit higher. At some point we will get a recovery with some traction, and then the materials stocks will start to perform. If you own and can be patient a little bit longer, a couple of more months, and if things aren’t happening by this spring you’ve got to really take another good look at this. We are into some strong seasonal strength in the market here.

integrated mines

Tarnished with the materials brush. In the last year the materials sector, mining and gold, have been a rough place to be. Buyers were positioning themselves for growth that was coming down the road and that growth was postponed. China was slower than people thought, but really North America did not pick up and get going. We are running about 2%, which normally would be at about 2.5% or a bit higher. At some point we will get a recovery with some traction, and then the materials stocks will start to perform. If you own and can be patient a little bit longer, a couple of more months, and if things aren’t happening by this spring you’ve got to really take another good look at this. We are into some strong seasonal strength in the market here.

integrated mines
Rick Stuchberry

Portfolio Manager, Richardson GMP...

PricePrice
$3.500
Owned Owned
No

COMMENT

Has done a lot of work on this for the last 12 months and he believes the yield is safe. Basically the oil side of the business and royalties on the coal side are paying the dividends. Nickel operations in Cuba are very efficient and they are expanding those. Question mark is the Madagascar mine that is coming on stream. Those are running at about 50% now and really have to get over 70% to know if it is working. This is a long-term call on nickel prices. Nickel prices are basically determined by demand from China where the economy has slowed. A longer-term call.

integrated mines

Has done a lot of work on this for the last 12 months and he believes the yield is safe. Basically the oil side of the business and royalties on the coal side are paying the dividends. Nickel operations in Cuba are very efficient and they are expanding those. Question mark is the Madagascar mine that is coming on stream. Those are running at about 50% now and really have to get over 70% to know if it is working. This is a long-term call on nickel prices. Nickel prices are basically determined by demand from China where the economy has slowed. A longer-term call.

integrated mines
Douglas Kee

Chief Investment Officer, Leon Frazer & Associ...

PricePrice
$3.500
Owned Owned
Yes

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