Investment Q&A

Q: The Q3 results seemed fine, and guidance is positive so why did CJ get hit so hard today (down 12 per cent). Other oil names were down as well but nothing was down as sharply as CJ. Is there something that I missed? I like the 6 cent per month divvy and now that the debt has been dramatically reduced I feel CJ can continue to pay the divvy even if WTI drops down to the $70 ish range. Is there something here not to like than a recession pulling down demand for oil and subsequently price per barrel?

Q: Parex is starting to look so tempting that I am considering it again despite an anti-oil government now in charge in Columbia. The dollar a year dividend now yields well over 5 per cent and I estimate that at least 20 per cent of PXT's market cap is covered by net cash on the balance sheet. I sold out of PXT in the high $20's before the Columbian elections but I promised to revisit is it went sub$20. It is now below hence the revisit. If the Petro government were to get really radical and decide to nationalize the foreign oil and gas (and mining for that matter) companies what kind of compensation might be paid (I am sure had some experience with that back in your Sprott days!!) I recall The Harper government getting a free trade deal between Canada and Columbia. Does a deal like that make nationalization much more difficult? I wouldn't waste your time on PXT but at sub $19 it is really tempting!!!

Q: A follow up on y PXT question. On the stockhouse bullboard someone posted that the Gustav Petro (sounds more like a Russian that a Latino) government announced a new 10 per cent tax on 'exports' of Columbian crude. Is the oil that PXT extracts in Columbia used domestically or does it go for export? Or am I spitting hairs on the definition of the word export? Also the same post said that royality payments would no longer be tax deductible which is a drag on post tax profit but it can't be that big of a hit?

Q: Good morning team, thoughts on the quarter for Innergex.
Thanks
Rob

Q: Was there a dividend increase announced in their last report?

Q: What do you think of that news, the company offers to buy $100M worth of their shares in a Dutch auction. What proportion of the float would that represent say at today's price plus 15% ? Does this make it buyable? Thanks

Yves

Q: If a 2% tax is imposed upon oil and gas co. share buybacks, I assume that free cash flow will be directed toward debt repayment and dividend increases, with low debt companies raising dividends the most. Which O&G companies would you recommend, ( if my assumption is correct )?

Q: Does PKI's current unattractiveness come down to its debt ratio or to end-of-year selling-the-losers? Everything else in energy is doing so well. Supposing tax loss sales peter-out and interest rates stabilize, does PKI become attractive as an income investment?

Q: RNW attributes much of the bad news in its Q3 results to lost income from and rebuilding expenses at Kent Hills, and given management's comments ("Rehabilitation is targeted to be completed by the second half of 2023 for the Kent Hills 1 and 2 wind facilities"; MD&A p14), it looks like these losses will continue for at least three quarters (possibly offset by cost-recovery from third parties and their insurers.) All that admitted, is there some forward-looking point at which RNW becomes attractive again?

Q: Can you please rank the above utilities for Value. I used EV/EBITA data from Yahoo Finance and got this: NPI (8), BIP.UN (11), FTS (12.7), BLX (13), BEP.UN (15), NEE (26), AQN (28)
Thanks!

Q: Hello:
Appreciate your ongoing honest and open approach. I know many of us find these challenging times. It feels like many "truths" of investing are no longer true. (i.e. how bonds respond to various market periods, whether preferred shares will ever behave as expected and how valuations of growing companies can swing so wildly.)
I need some help (I know, you can't personalize advice...) with SELL strategies. I am tempted to sell part of some holdings at all-time highs such as XOM. Is this ridiculous? If it's down 30% in January I will be kicking myself. I did NOT sell during very high valuations for a lot of growth stocks and I don't mind being patient while those recover but in hindsight selling half positions would have been a great way to solidify paper gains. I have held XOM for a long time as it was under water from my buy-in position, and it swings so widely on demand and oil price.
Is it crazy to be reducing positions in oil and gas now? Any SELL strategy thoughts appreciated.
Thank you!

Q: In your response to a question you stated "ENB. & FTS would also be highly correlated"
Can you explain? Did you mean if you owned ENB you don't need to own FTS?

Q: Your opinion on Tou reaching the 100.00 area in the next year?

Q: JOY
FRU
ATH
BIR
PXT
TCW
WCP
TVE
ARX
CPG
VET
ERF
MEG
BTE

Which three of the above fourteen oil & gas stocks would you sell first to bring my sector allocation back to my normal weight? This is assuming 100 WTI oil in 2023. Could you also provide a brief reason for each of the three stocks that you would get rid of first. Thanks.

Q: Hello i'm a long time shareholder of Telus at about 6% of my holdings i'm a little concerned about all the aquiring being done by Telus International, what percent of T earnings are made up of TIXT earnings.Do you like Telus 3-5 year hold here and any concerns with TIXT thanks Greg

Q: I've been building out a sub portfolio in my registered account with the above stocks. It's hard to turn down 5-7% yields + growth potential.

Do you perceive any major crossover/risk with the holding all of the above / should I consider consolidating?

Q: Hi 5i
5i's thoughts on the quarter and current price vs valuation - I have been scratching my head with this one for a while ....the market keeps trading it down, even with the decent certainty of inflation protected future cash flows. Appreciate your reply.

Q: Could you explain why you sold this stock in your income portfolio? Is it not a stock you would recommend for income? Thanks

Q: What does this new purchase do to Surge's schedule to pay down debit and their schedule to increase dividends going forward? Seems the purchase does involve debt financing which you would think would put the debt level back up to more than they were able to pay down in 2022.

Q: Thanks for the recent report on DIR.UN.

What is the current FFO payout ratio, and is it sustainable in a prolonged stagflationary environment should it occur ?

I was thinking of pairing this REIT with something in the Self Storage sector such as LSI. Would this be a good plan, or is there a better REIT pairing ?

In general, I thought REITs overall would be performing better in this current bout of inflation. Is it all about interest rates?