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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Good Evening
I own both IPL and PPL
I understand that the drop in oil prices is causing stocks like Vermillion and Whitecap to plummet. However, I am very surprised with the 23% drop in IPL, and PPL.
Can you please provide some explanation as to why there was such a huge drop in the prices of IPL and PPL today? After all these companies are not oil producers.
I will also appreciate it if you could provide some insight whether it is now time to average down on IPL and PPL , hold them or sell them.
I will appreciate your comments. Please deduct two credits.
Read Answer Asked by Terry on March 10, 2020
Q: Hi 5i team,

I have never been an oil guy or a commodities guy for that matter. However, I don’t fully get this latest oil plunge impact on the markets, other than the scare factor. I generally thought lower oil prices were beneficial for the economy. It lowers the cost of transportation for people and freight movers. It puts disposable income into the pockets of the consumer. So, is it more psychological than anything, being a further scare in scary times?

As a side note, I think Eric Nuttall must have the toughest job in Canada. I don’t watch much BNN anymore but I did happen to see a bit of Eric on Friday. Is he the last standing oil bull in the country? He continues to just gush over all the opportunities out there on mispriced assets and cash flows. Maybe the reality is that fossil fuels are in a long-term secular decline and no one cares how underpriced they are. Millennials are more in tune with climate change than trying to catch a bid on an oil stock. I think it may be time for Eric to move to renewables.

Thanks again.
Dave
Read Answer Asked by Dave on March 09, 2020
Q: Timing for the special report was timely and very instructive. I am presently 41% cash and of your watch list I am already invested in 3 of them and I have the intention to buy more when things get better, I presently have a watchlist of 16 companies and have added the ones you suggested that were not in my list. I noticed you have nothing in alternative energy which has been performing very well and have had very little correction VS the market. Thank-you for the excellent report and may I add that this kind of help is exactly why I renewed my subscription
Read Answer Asked by James on March 09, 2020
Q: Any idea why ppl which currently yields 5.27% was down last week while the above other defensive stocks were up?
Read Answer Asked by Terry on March 09, 2020
Q: It looks as though utilities, and renewable utilities in particular, have taken off, while Canadian pipelines, which are also traditionally stable investments, are either flat or dropping.
Do you have any comments on whether:
1. this is a short term disparity or a fundamental shift,
2. whether one group is better than the others at current prices, and
3. If the recent drop now otherwise creates a good point of entry for any or all?
Read Answer Asked by Peter on March 09, 2020
Q: On today (Friday) .... and on the Half Time Report, Rob Sechan expressed the opinion that, for investors looking for long term reliable dividends, HIGH QUALITY MLP’s could play an important role. I believe you have had justifiable reservations in the past ( just don’t remember the details). I would appreciate your thoughts on this as part of a dividend/ income focused portfolio.
Can you recommend a few high quality MLP’s that might be part of his thought process .... and I do understand your more limited focus on US markets.

I do not believe there are any MLP’s in Canada. Or am I wrong? Thanks once again.
Read Answer Asked by Donald on March 09, 2020
Q: In this market turmoil, with a bear market and very low yields, I would expect the safest stocks both for yield and low price volatility would be REITS and utilities. Both will benefit from low interest rates. I figure utilities will likely benefit from low natural gas and oil prices too. Neither is likely to see profits and revenue impacted due to either the virus or the oil war. Still, both are falling heavily today, anywhere from 5%-9%. I'm assuming these falls are mostly index related, and that over the coming days as the panic selling fades they will start to head up again as people seek safe, reliable yield. Please critique my thinking. Are there REITS and utilities which are Alberta focused you think would diverge from the rest?
Read Answer Asked by John on March 09, 2020
Q: Hi team,

My first time real bloodbath experience. Just wanted to ask if you change your comment about not taking an aggressive stance on VET after this past weekend. Can the company survive with say $30 oil prices for the next 6 months, given the fact their debt to cash flow situation is going to get much worse. Would you buy today or would you expect the price to go even lower?

Thanks for being with us during such exciting times! :)
Read Answer Asked by Saeed on March 09, 2020
Q: Hi Peter and Staff
Please deduct as many questions as you see fit. I have a basket of oil stocks which of course I have wished I did not own for quite a while. Monday will be brutal. My question is surrounding the fact that some of our companies have significant hedges in place at higher $ per barrel while others will not have any or many. In the event that the market torches them all on Monday equally would you please research and provide details on hedging % , period and $ for a large list below
ARX,CPG,ERF,GTE,KEL,PXT,SGY,TOG,VET,WCP,YGR

Secondly could you advise of the debt to cash flow of the worst 4 of the above and the best 4 of the above.

Please provide detailed response with as many questions deducted as you see fit.

Thanks for all you do

Dennis
Read Answer Asked by Dennis on March 09, 2020
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