VP Investments & Portfolio Manager
Member since: May '12 · 339 Opinions
Silver. Thinks it will be challenged here. Investment demand is the key driver of demand and it is declining. Industrial demand is picking up. Longer term it should go up to $22-24, however. Be careful in this space short term.
Main driver is that it is under strategic review so will sell either part or all of itself. They are over 100% payout ratio so it would be good if they cut it.
It is hard to finance junior diamond miners. But once they line up all the partners, thinks this could be a potential mine, but high risk.
15.5% dividend because of high debt level. Production is strong. May have to tweak the dividend because payout ratio is about 130%.
He just took a position last week. Likes outlook on met coal and metals. China should be positive for these producers.
In process of expanding pipeline capacity at the oil sands. Thinks that its growth is not all priced in right now.
Got beaten up with the copper stories. Operations continue to do well and generate excellent cash flows. New Peru mine is going to be a large producer in one to two years. Downside is pretty minimal at this point.
14.2% dividend. There was some concern about the high dividend. High debt levels, plus lower cash flows mean that they should lower the dividend so they can meet their debt obligations. Short term it could take a hit but longer term it should do well.
(Top Pick Oct 9/12, Down 8.73%) Discount is sufficient for him to step into this name here.
(Top Pick Oct 9/12, Up 59.74%) Continues to be a core holding, healthy dividend. Buying companies on the cheap. Continue to get oil out of the ground from these companies. Down right now because of oil but thinks it will come back.
(Top Pick Oct 9/12, Down 45.61%) Gold has been a challenge to trade. The lack of inflation has depressed gold. There are better places to put your money but to be in the space, this is one of the better names to be in.
Has a deposit in Brazil very close to production. Continues to be challenged here. You have to hang in with this one. Small cap so high risk.
Price of crude has the most impact on oil sands. This will move with the price of oil. Decent dividend of 6.6%. Prefers other oils in his top picks today.
Such a small mine that they can’t get the cost down to a reasonable amount so they aren’t making any money. Investors are selling.
Markets. Resources continue to underperform. This is a reflection of the general economy. Low interest rates should filter down to the resources and have a beneficial effect. Europe is coming back from a two year slow down. Was positive one quarter ago. It will bounce around here for a bit, but lowering of interest rates should bode well, so it has bottomed. $100 plus for oil one year plus.