Investment Q&A

Q: hi. in regards these pipelines: 1) how much are these stocks dependent on the price of oil, on the volumes of oil through their pipes, and where that oil is being shipped from (eg Canada) to ( eg Canada or the US ). 2) do these stocks need growth in the tar sands for their growth? 3) how long a runway do they have with our weaning off oil?

Q: There is no doubt carbon energy stocks are out of favour for many reasons, not least of which is the green movement. The future is all leaning toward electric vehicles (which I agree with), but I also realize electricity isn't going to appear out of nowhere. I could be completely wrong, but I don't believe wind and solar will be able to replace fossil fuels anytime soon. It's "very" possible more sustainable energy will appear down the road to replace fossil fuels, but so far I haven't seen a golden goose. I also think the Big Tech Companies are getting away easy when it comes to climate change. They are using a lot of electricity (and producing Co2) to run the steadily growing Data Centers (the Cloud). They claim they are using mostly sustainable energy, but I don't buy it. At work, even small communication rooms need a fair amount of cooling. Also most computer components, phones, etc. are throw away items filling landfills. So this is just an opinion I have today which could change, but wondering what your thoughts are on this?

Q: I have a fairly large position on VET averaging at $5.27/share, comprising of 13% of overall portfolio, which I can hold on for 1 - 2 years. With the price now at $3.94.. I am considering if I should hold on or buy more to lower my average cost. If I recall correctly, you mentioned earlier about VET having a going concern issue.. and also having a good bounce in recovery; if it survives till then. I'd rather hold than book a loss; I'll sell only if its a major going concern issue.

Can you please advise if I should hold, buy or sell. I will make my own decision on what works best for you me; but your candid advise would be very helpful. Much thanks for your excellent service!

Q: Do you have a view for TOG.
I am down 57%. 1.2 % of portfolio.
Bite the bullet or move on ?

Q: What is your view on QSR ?
Should I hold or move on? down 13%. 5 % of portfolio.

Q: CNQ is very attractive at the current level. Is the payout level for their dividend a problem? Thank you.

Q: Good day, 5i According to my information, Suncor has a -43% payout ratio for their dividend. Is this accurate, and what do you think of the chance of a dividend cut? Thank you in advance.

Q: your thought about SU and the electric culture going forward.

Q: I have some GUSH in my higher risk portfolio expecting it to return somewhat to pre-pandemic levels. What is your outlook on the oil and gas sector over the next year or so?

Q: Hello 5i, could you comment on Bonterra

Q: SU had been performing poorly with price back to April levels. Warren Buffett added more of the stock recently and company seems to have a strong balance sheet. How much do you think the stock is undervalued at current levels? And how do you see vaccine news affect its recovery? Thanks a lot.

Q: 1. what is your 1-2yr prospect for natural gas price?
2. what are your top 5 suggestions for Canadian publicly listed companies that are pure conventional natural gas plays?

my reasoning for conventional natural gas is we can't rely on unreliable and difficult to store 'green energy' to supply all our needs and there is much less by-product natural gas from fracking for oil. As well, liquid natural gas imports into Canada/US from other countries results in a loss during compression/decompression stage along with difficult transport in specialized tankers - it makes more sense to produce in North America for local consumption doesn't it?

A related queston is what do you speculate the price of natural gas will be for the next 1-5 years?

Q: What’s advice on these stocks. Sale or hold ?

Q: I thought I had asked this earlier to day, however haven’t seen a response.

My question relates to the usable life of solar panels and the blades used for generating power via wind. I don’t know of anybody recycling the panels or the big blades. Is there a way to economically recycle or use these things at the end of their usable lives. Or are we setting up our children to find an answer to a mess we created like we have done with radioactive waste.

Q: Good afternoon 5iR,
I am requesting help with understanding why Manulife would trade 22,000 boe/d for 12.5% of Whitecap’s and NAL’s combined 82,000 boe/d, which amounts to 10,250 boe/d. All numbers from Whitecap’s August 31, 2020 press release. Why is a barrel of Whitecap’s oil worth over 2 barrels of NAL’s oil. Are NAL’s reserves much lower than Whitecap’s. Otherwise Manulife is to be lauded for taking the long term view for value of a growing, progressive Whitecap and Whitecap is to be congratulated for making a great deal especially with respect to deleveraging the balance sheet.
I do not own shares in WCP or MFC either directly or indirectly.
Thank you for your highly valued assistance.
Cyril

Q: What are the reasons it trades below the market price of silver?

tia pat

Q: In your opinion which company would provide the best return over the next 5 years if Biden becomes president and the Democrats take over both houses?

Q: Hello and thank you for the great advices as always! In a locked-in RSP, about 10% of my portfolio is exposed to oil&gas since I bought WCP, ERF, BIR, TOG AND VII in the big drop of March. Although I am Extremely happy with the run up so far, I've started to add stop limits to TOG, BIR and VII as I am A) scared of another downturn in the second half of 2020 (COVID related risks and current valuations) and B) I've also noted from reading the Q&A section that 5i isn't particularly bullish on oil short term and that you often categorize these companies as not a ''must have'' for the sector.

1) I haven't been able to get myself to think of selling or putting a limit on WCP. I know you aren't too much excited about the company, but I am emotionally attached to it. One of my best play. Love their Greener-ish Footprint. Love the monthly dividend(DRIP). Love that the operations are located in Canada. I think it will be a good consolidator (Manulife's NAL resources for a start). What's your view on the company today and would you consider my sentiment for the company irrational (or financially dangerous)? I've seen 5i recommend VET over WCP, but I don't understand why. I find VET very disappointing this year, not well paid to wait and its geographic dispersion a headache.

2) Similar story about ERF. They have one of the stronger balance sheet for the sector I hear and wanted your take as well on the company as of today. I found their planned approach for the future a little too conservative on their latest earning call. My two fears with them is that they are a much smaller player and with the US elections coming up, their Dakota operations are stressing me more especially with Biden's statements on energy.

3) I hold some Suncor&CNQ in other accounts and I will eventually reduce my total exposure to the sector, but for fun's sake : If you could only keep one position between ERF and WCP (drip active) for the next 5-10 years, which one would it be and why?

Thank you very much again for the help and the great service.
- Michael

Q: Your thoughts on their acquisition of NAL?

Q: Wondering about getting returns from non-tech companies, since I have plenty of tech. The world largely still runs on oil. Of course Russia and Saudi Arabia can swing the market, as we have seen. I have some Suncor (SU) and Exxon (XOM). Is Exxon's (XOM) dividend safe? Any wild guesses as for how many quarters out an upswing for energy might be? Thoughts on adding to XOM or SU? I feel like there is potential there that might be better than say Loblaws or other basics.
I appreciate any insights.