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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: Imperial oil has posted this on June 21st:
Imperial Oil Limited today announced it has received final acceptance from the Toronto Stock Exchange (TSX) for a normal course issuer bid (NCIB) to repurchase up to five percent of its 764,221,735 outstanding common shares as of June 13, 2019,....
The value of their has not moved much for the last few years. I would like your thoughts about this company.
Read Answer Asked by Serge on June 24, 2019
Q: CVE and MEG are considerably under-performing the energy sector this week, I'm guessing partially due to investors are doing some profit-taking since the TMX just got announced as the market has been hoping for. I have some decent unrealized gain in CVE and MEG, and noticed WCP was down a lot this Monday on unusual high volume, do you think it's a good idea to swap my energy holding from either MEG or CVE into WCP?
Read Answer Asked by yun on June 24, 2019
Q: We are seeking income (although capital retention is also important) and wonder if we would be wise to sell IPL which you don't seem big on and replace it with BPY.UN which you seem to like. The sector is not too important as the portfolio has a good balance of pipelines and REIT's. Both companies mentioned have a very good yield.
Read Answer Asked by David on June 18, 2019
Q: TRP, ENB, CJ, SGY, IPL, SU, TOU, VET, TOG, CPG.

At $50 - 55 WTI which of the following would have the best possible chance at :

A. Enough cash flow to cover dividends.
B. Enough cash to sustain or improve current balance sheet.
C. Able to sustain current production levels that would not negatively affect the above from the above.

please list the stocks order of best first for each category
thanks Yossi
Read Answer Asked by JOSEPH on June 18, 2019
Q: I have had this stock for quite some time and people were concerned when it was $45 last year. Now that it is $26 and there have been recent calls to BNN by investors concerned about it. Some of the guests of BNN answering questions have recently sold it. What is your recommendation? Also, WSP Global, I have had for a couple of years with a small dividend has been flat. I could probably get a GIC which pays the same amount of money as WSP's dividend. Your thoughts? Thanks again, Dennis
Read Answer Asked by Dennis on June 17, 2019
Q: Further to my question on this company back in April, after their switch to a C suite company now do you see any hope for this company in terms of tailwinds or do you see this as a looser short term?
Am under water considerably but have patience if you see any hope for some price appreciation?
Thanks again Gary
Read Answer Asked by Gary on June 17, 2019
Q: Hi there, regarding the following you answered today, isn't this exactly the right time to start picking away at real good names that are well managed in the energy sector, specifically higher dividend paying names that have top quality management/board and good balance sheets, that are just being thrown away with the bathwater? Getting paid well to wait after so many years in a down cycle, ie Vermillion, VET. (they performed well in previous down cycle, and have proven themselves).

Is this not what Warren Buffet tells us to do, start adding when no one cares or wants them at all? Especially after four/five years of a down cycle already in the sector!

Income Portfolio Question;
Isn't this the right time to add something like VET to your income portfolio with cash on hand, 2% starting position, considering it seems way better then when you had Crius, KWH.UN, in there as a risky income play?

Even if they cut the dividend in half, it still seems like a good return for the income portfolio, and for them to use the funds to pay down debt, while also supporting their shares, with a normal course issuer bid buying back even more shares?

Thanks!

Q: Peter; Do you think selling all your energy stocks now is a typical “retail” investor panicking at the bottom- conversely is this a contrarian’s dream? Thanks. Rod

Asked by Rodney on June 13, 2019
5I RESEARCH ANSWER:
Probably; we do not think we have seen the 'capitulation' volume where everyone just wants out, but it still 'feels' that way without the volume. Oil is up 3% this morning so it will be interesting to see if anyone cares about the sector. We would still suggest more than a 0% weighting, but don't think an investor needs much of the sector right now.
Read Answer Asked by Hussein on June 14, 2019
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