Noranda Income Fund

NIF.UN-T

Analysis and Opinions about NIF.UN-T

Signal
Opinion
Expert
SELL
SELL
July 24, 2018

There is no dividend. Sales are up but earnings are less negative rather than positive. Earnings growth forecast for this year is zero.

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There is no dividend. Sales are up but earnings are less negative rather than positive. Earnings growth forecast for this year is zero.

COMMENT
COMMENT
May 26, 2017

This has been absolutely taken through the wringer. There is a massive strike going on, with no end to it. There are 3 zinc smelters in all of North America, and this is one of them. Realistically, it is a recovery situation of some sort. Management has been running the operation. Glencore is the all-powerful tool behind this company, and they are going to need to have one of the smelters to stay in place. He is not going to leave this one.

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This has been absolutely taken through the wringer. There is a massive strike going on, with no end to it. There are 3 zinc smelters in all of North America, and this is one of them. Realistically, it is a recovery situation of some sort. Management has been running the operation. Glencore is the all-powerful tool behind this company, and they are going to need to have one of the smelters to stay in place. He is not going to leave this one.

COMMENT
COMMENT
May 25, 2017

They had to eliminate their dividend, and the stock has come off. Believes there is still a strike going on, so this company is struggling.

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They had to eliminate their dividend, and the stock has come off. Believes there is still a strike going on, so this company is struggling.

WATCH
WATCH
November 3, 2016

They have one client: Gencore. The contract has been renewed, but the challenge is that it is at market pricing. The company may not be able to make a profit at these prices and may not be able to maintain the yield. Stay clear until you get a sense of what the financials look like and what will the yield be.

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They have one client: Gencore. The contract has been renewed, but the challenge is that it is at market pricing. The company may not be able to make a profit at these prices and may not be able to maintain the yield. Stay clear until you get a sense of what the financials look like and what will the yield be.

COMMENT
COMMENT
September 2, 2016

This is a play on their one-time contract with Glencore which is up in November. Valuation looks great at 2X cash flow, 1.8X EBITDA with an 11% yield, but it is a fictional yield if that contract winds up. This is much more of an events stock than what he would look for.

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This is a play on their one-time contract with Glencore which is up in November. Valuation looks great at 2X cash flow, 1.8X EBITDA with an 11% yield, but it is a fictional yield if that contract winds up. This is much more of an events stock than what he would look for.

COMMENT
COMMENT
August 19, 2016

Had bought this for its extraordinarily high dividend. Is there a zinc situation that is going to run through this company when the time comes? He just continues collecting his money. Dividend yield of 11%.

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Had bought this for its extraordinarily high dividend. Is there a zinc situation that is going to run through this company when the time comes? He just continues collecting his money. Dividend yield of 11%.

COMMENT
COMMENT
April 25, 2016

The units have done pretty well over the last little while. Noranda is tricky, and is hard to wrap your mind around. It is effectively a “pass-through” for zinc processing. Really a toll booth. Not sure he would be jumping into this, especially after its recent movement. The “units” effectively have a priority to receive dividends.

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The units have done pretty well over the last little while. Noranda is tricky, and is hard to wrap your mind around. It is effectively a “pass-through” for zinc processing. Really a toll booth. Not sure he would be jumping into this, especially after its recent movement. The “units” effectively have a priority to receive dividends.

HOLD
HOLD
April 6, 2016

A zinc processing plant, with Glencore (GLEN-LSE) being the primary customer. The yield seems too good to be true. In this case it is not, because the stock can sustain their yield. An extremely cheap stock. Trades at 2X Price to Earnings, 1.6X EBITDA and has a 17% yield. The contract runs out in 2017, and it is unclear what is going to happen at that point. Trading at about .5X BV. The assets are worth something even after the 1 year is up. If you hold it today, you are going to get 17% of your money back in yield between now and 2017, and then you have optionality beyond that. Not a bad place to be.

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A zinc processing plant, with Glencore (GLEN-LSE) being the primary customer. The yield seems too good to be true. In this case it is not, because the stock can sustain their yield. An extremely cheap stock. Trades at 2X Price to Earnings, 1.6X EBITDA and has a 17% yield. The contract runs out in 2017, and it is unclear what is going to happen at that point. Trading at about .5X BV. The assets are worth something even after the 1 year is up. If you hold it today, you are going to get 17% of your money back in yield between now and 2017, and then you have optionality beyond that. Not a bad place to be.

COMMENT
COMMENT
November 26, 2015

A zinc processing facility. Zinc used to be sourced from a closer mine, but mines locally have closed down. One facility in Quebec is very efficient and it is just a matter of getting the zinc out of it. 21% yield.

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A zinc processing facility. Zinc used to be sourced from a closer mine, but mines locally have closed down. One facility in Quebec is very efficient and it is just a matter of getting the zinc out of it. 21% yield.

COMMENT
COMMENT
June 30, 2015

Still likes this. Up about 50% from where he bought it. He maintains the view that because it has very important metals processing facilities, it is going to have life after death, which occurs after the end of their contract. It doesn’t make sense that no one buys it or that the contract is not renewed.

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Still likes this. Up about 50% from where he bought it. He maintains the view that because it has very important metals processing facilities, it is going to have life after death, which occurs after the end of their contract. It doesn’t make sense that no one buys it or that the contract is not renewed.

DON'T BUY
DON'T BUY
June 29, 2015

Zinc processing facility in Quebec. Some of their mines are depleting. Getting zinc from further away makes the plant less attractive.

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Zinc processing facility in Quebec. Some of their mines are depleting. Getting zinc from further away makes the plant less attractive.

COMMENT
COMMENT
May 11, 2015

There are 3 zinc smelters in North America and there is a need for more zinc. They have an agreement to supply zinc that runs until 2017, and he would speculate that it will run past that date.

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There are 3 zinc smelters in North America and there is a need for more zinc. They have an agreement to supply zinc that runs until 2017, and he would speculate that it will run past that date.

SELL
SELL
November 19, 2014

Have a ton of trouble on their hands. A classic case of financial engineering going bad. Noranda sold it into this fund at the highest price they possibly could, to make it look like an attractive investment to unsuspecting retail investors. This is a mess.

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Have a ton of trouble on their hands. A classic case of financial engineering going bad. Noranda sold it into this fund at the highest price they possibly could, to make it look like an attractive investment to unsuspecting retail investors. This is a mess.

SPECULATIVE BUY
SPECULATIVE BUY
November 17, 2014

On his watch list. He has always been afraid of it to some degree. They may not have a business after 2017. That is a major, major danger signal. The value is questionable, even if it is contrarian.

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On his watch list. He has always been afraid of it to some degree. They may not have a business after 2017. That is a major, major danger signal. The value is questionable, even if it is contrarian.

COMMENT
COMMENT
August 26, 2014

Looking at this right now. An absolutely tremendous payout. He doesn’t know the company well enough to Buy into it, but he loves dividends. This company is giving money back all the time. 9% dividend yield.

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Looking at this right now. An absolutely tremendous payout. He doesn’t know the company well enough to Buy into it, but he loves dividends. This company is giving money back all the time. 9% dividend yield.

BUY
BUY
June 16, 2014

A fund that doesn’t get talked about a lot but it is a pretty solid group of people that own it. Really inexpensive, and pays a nice dividend of 9.36%, which is sustainable. He thinks it has a bright future in front of it.

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A fund that doesn’t get talked about a lot but it is a pretty solid group of people that own it. Really inexpensive, and pays a nice dividend of 9.36%, which is sustainable. He thinks it has a bright future in front of it.

BUY
BUY
March 27, 2013

Not a direct mining company but a processor. Great zinc smelter on the East Coast and is really, really undervalued.

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Not a direct mining company but a processor. Great zinc smelter on the East Coast and is really, really undervalued.

BUY
BUY
February 4, 2013

Zinc processor. High quality assets. Decent company but he is cautious over the long-term. Should be stable earnings until 2017 when they renegotiate the contract. In the next 3-4 years you can rest assured the dividend is safe.

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Zinc processor. High quality assets. Decent company but he is cautious over the long-term. Should be stable earnings until 2017 when they renegotiate the contract. In the next 3-4 years you can rest assured the dividend is safe.

BUY
BUY
January 28, 2013

Represents pretty good value at this level. Doesn’t see any risk of a dividend cut. 10.4% yield.

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Represents pretty good value at this level. Doesn’t see any risk of a dividend cut. 10.4% yield.

DON'T BUY
DON'T BUY
November 22, 2012

Not well followed. Zinc processor. Used for Galvanized steel. Has a contract for their customer. When the contract runs out in 2017 what is going to happen to this one.

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Not well followed. Zinc processor. Used for Galvanized steel. Has a contract for their customer. When the contract runs out in 2017 what is going to happen to this one.

COMMENT
COMMENT
October 22, 2012

Generally speaking, commodity related income is risky income. At the end of the day you are dealing with commodities and whether it’s prices or volumes, you can get bit on these things so he would be careful of this.

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Generally speaking, commodity related income is risky income. At the end of the day you are dealing with commodities and whether it’s prices or volumes, you can get bit on these things so he would be careful of this.

BUY
BUY
January 12, 2012
Basically a processing manufacturing company in the zinc business. Distribution is safe at 8%.
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Basically a processing manufacturing company in the zinc business. Distribution is safe at 8%.
BUY
BUY
January 11, 2012
Large zinc processing company in Canada. 50% of zinc is used for galvanized metal, such as nails. Low cost facility in Quebec, close to US market. Earns money through processing agreement, which generates 80% of earnings. This removes commodity risk. A risk is what happens in 2017 when the agreement runs out.
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Large zinc processing company in Canada. 50% of zinc is used for galvanized metal, such as nails. Low cost facility in Quebec, close to US market. Earns money through processing agreement, which generates 80% of earnings. This removes commodity risk. A risk is what happens in 2017 when the agreement runs out.
HOLD
HOLD
March 25, 2009
(Market Call Minute.) Primarily zinc processing.
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(Market Call Minute.) Primarily zinc processing.
SELL
SELL
February 11, 2009
Doesn't think the 24% yield is sustainable. Not seeing many good things in their fundamentals. Chart is not bad. Found a bottom, retraced and is holding its own however, today's movement does not look very good.
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Doesn't think the 24% yield is sustainable. Not seeing many good things in their fundamentals. Chart is not bad. Found a bottom, retraced and is holding its own however, today's movement does not look very good.
COMMENT
COMMENT
February 6, 2009
Zinc processor. Yield of about 22% and he is currently assessing this.
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Zinc processor. Yield of about 22% and he is currently assessing this.
COMMENT
COMMENT
December 19, 2008
Basically gives exposure to a smelter in North America. Very unlikely more will be built in North America. Earns margins on processing metals. Cash flow has been reasonably steady. Payout is relatively high. 40% yield tells you more about the markets outlook on commodities rather than the company itself.
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Basically gives exposure to a smelter in North America. Very unlikely more will be built in North America. Earns margins on processing metals. Cash flow has been reasonably steady. Payout is relatively high. 40% yield tells you more about the markets outlook on commodities rather than the company itself.
DON'T BUY
DON'T BUY
May 14, 2008
Zinc processing facility in Quebec. Not favourable on the price of zinc going forward. Distributions will depend on the cash flow they can generate.
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Zinc processing facility in Quebec. Not favourable on the price of zinc going forward. Distributions will depend on the cash flow they can generate.
BUY
BUY
November 2, 2007
Zinc refinery in Quebec. Stock does not swing widely with the commodity price. Very stable, visible cash flow stream.
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Zinc refinery in Quebec. Stock does not swing widely with the commodity price. Very stable, visible cash flow stream.
COMMENT
COMMENT
July 27, 2007
Based on the results of a smelter in Quebec. They are continuing to find new supplies for that refinery. Running close to 100%. Doubt if they will be allowed to expand. Very stable.
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Based on the results of a smelter in Quebec. They are continuing to find new supplies for that refinery. Running close to 100%. Doubt if they will be allowed to expand. Very stable.
BUY
BUY
June 20, 2007
Likes the zinc business generally. There is a possibility that it gets bought in with the acquisition of Noranda. Good solid business. 9% distribution.
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Likes the zinc business generally. There is a possibility that it gets bought in with the acquisition of Noranda. Good solid business. 9% distribution.
PAST TOP PICK
PAST TOP PICK
December 8, 2006
(A Top Pick Jan 6/06. Down 10.2%.) Primarily smelting of zinc. Largest in North America. Some question on the loss of clients, but so far are maintaining their earnings and distributions.
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(A Top Pick Jan 6/06. Down 10.2%.) Primarily smelting of zinc. Largest in North America. Some question on the loss of clients, but so far are maintaining their earnings and distributions.
PAST TOP PICK
PAST TOP PICK
July 18, 2006
(A Top Pick Mar 23/06. Down 1%.) This is a play on smelting which is currently in short supply. Will be a very steady producer over the next few years.
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(A Top Pick Mar 23/06. Down 1%.) This is a play on smelting which is currently in short supply. Will be a very steady producer over the next few years.
WEAK BUY
WEAK BUY
April 26, 2006
Nice, steady, stable performer. Had a run-up earlier this year on the basis that an increase in distributions would be forthcoming. Relatively fairly valued. Great, long-term holding.
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Nice, steady, stable performer. Had a run-up earlier this year on the basis that an increase in distributions would be forthcoming. Relatively fairly valued. Great, long-term holding.
BUY WEAKNESS
BUY WEAKNESS
March 24, 2006
Has a 30 year subordination agreement of the cash flow so a stable trust. Present price may be a little ahead of itself. Would buy below $13.
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Has a 30 year subordination agreement of the cash flow so a stable trust. Present price may be a little ahead of itself. Would buy below $13.
TOP PICK
TOP PICK
March 23, 2006
They have a zinc processing plant in Quebec and his outlook for zinc is very positive. Approximate 8% yield. On a P/E basis, it is trading at about 15 X’s.
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They have a zinc processing plant in Quebec and his outlook for zinc is very positive. Approximate 8% yield. On a P/E basis, it is trading at about 15 X’s.
HOLD
HOLD
February 17, 2006
Very stable and very predictable. Zinc processor. Have very good long-term contracts in play. Won't be a big growth trust. Fully valued.
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Very stable and very predictable. Zinc processor. Have very good long-term contracts in play. Won't be a big growth trust. Fully valued.
DON'T BUY
DON'T BUY
February 6, 2006
Not a fan of income funds as, long-term, they have some risk that really worry him. This one has a decent yield but hasn't gone anywhere. In a good market, this would ring alarm bells.
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Not a fan of income funds as, long-term, they have some risk that really worry him. This one has a decent yield but hasn't gone anywhere. In a good market, this would ring alarm bells.
COMMENT
COMMENT
January 30, 2006
It's in the wonderful space of commodities. A well-run company. This is an income fund, and if the price of commodities goes down, how will this affect the cash flow and future distributions.
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It's in the wonderful space of commodities. A well-run company. This is an income fund, and if the price of commodities goes down, how will this affect the cash flow and future distributions.
TOP PICK
TOP PICK
January 6, 2006
Likes basic commodities right now, particularly the materials. Outlook for copper and zinc are particularly good. This one is really a play on zinc. They have the 2nd largest smelter in North America located in Quebec. Payout ratio is about 70% which is good. Margins on smelting our particularly good at this time.
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Likes basic commodities right now, particularly the materials. Outlook for copper and zinc are particularly good. This one is really a play on zinc. They have the 2nd largest smelter in North America located in Quebec. Payout ratio is about 70% which is good. Margins on smelting our particularly good at this time.
BUY
BUY