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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: I keep reading all the questions about oil and gas stocks and I can't help but think "why do we keep holding on?"
I signed on with Liberty International (David Driscoll) a few years ago, When I handed over my portfolio, I had 40 names in the oil and natural gas space, He looked at them and asked "what"s with all the oil and gas stocks?" I didn't know how to answer him. They were all the usual suspects we keep hearing about on BNN. He said "we're getting rid of them all." I refused. He said "fine, we'll keep a pipeline."
That was the best investment advice in my life. That moment saved me hundreds and hundreds of thousands of dollars...literally...and a ton of grief.

To my fellow 5i investors, my 2 cents of advice: don't overload on the oil and gas names. If you must, pick one, And only give it 5% of your allocation.
I've been trying to do this myself for 40 years. Some things are just better left to the pros: doctors, accountants, lawyers, chefs, general contractors, dentists, drywall tapers, money managers...
Read Answer Asked by Carlo on August 07, 2019
Q: I hold VET and PXT as my exposure to energy in a non registered account. (I also hold ENB and PPL but consider them more utility). I am thinking of replacing VET with WCP for the following reasons: 1) I get a big tax loss but keep my energy exposure the same. 2) I do not lose much on the dividend and, although I think it unlikely for both, VET is more likely to cut than WCP nad 3) if oil finally recovers, WCP has more torque. Does this make sense?
Read Answer Asked by Don on August 06, 2019
Q: This name had a run up to about $107 (when I bought) and has since pulled back. They announce earnings next week. Any idea why it’s down other than general market issues? It makes me concerned that it’s going down so much prior to earnings release. Should I sell or hold? It’s in my rrsp so should be long term but I have an aversion to holding a losing position and don’t know what to do. Thanks.
Read Answer Asked by Jason on August 02, 2019
Q: I was listening to the CEO on BNN a couple of days ago and he seemed quite surprised where the price of the stock was given the state of the company. He also reiterated the priority on the distribution. VET is considered, by many, as a well run company in a really bad sector. You would have to go back to 2005 to see the stock below its current value. Given their "rep" as a good company, their current low stock price and their diversification of assets, could one of the big guys (Exxon, etc) take a run them? Would you be comfortable taking a position here?
Read Answer Asked by David on August 01, 2019
Q: Is this a good time to get into North American Construction Group? It seems to be stabilizing a bit, and wondered if its more stable trajectory is due to the recent blip uptick in oil/energy, or whether it's more company-specific? I note that in a comment last month you had said that its oil sands exposure was balanced by non-oil sands projects. What percentage, for instance, would projects in non-oil be compared to oil sands projects?
Read Answer Asked by Sylvia on August 01, 2019
Q: I am in receipt of a Dutch Auction offer from Encanna with a price range of $4.70-$5.40 USD.
I hold the shares in CDN dollars in my Investorline Account.
1. why would they offer me USD?
2. why do companies do Dutch Auctions?
3. do I incur any risk if I do not respond to the offer?
Read Answer Asked by Paul on August 01, 2019
Q: Hi,

I've owned CNQ in the past and it is approaching a level ($30) that I would deem quite attractive. While sentiment is terrible, do you still see value in the Canadian oil sector long-term? A lot of large international companies have pulled out and pipeline progress has been a disaster. It may take a while for sentiment to change and policy to change depending on election results. Do you still see value investing in Canadian energy or has there been an irreversible structural shift/decline?

Thanks,
Jason
Read Answer Asked by Jason on July 31, 2019
Q: How would you rank these based on valuation, growth and management. Market seemed to yawn at CPX results, it isn’t as high profile as FTS but seems to have gotten more shareholder friendly, sixth consecutive annual dividend increase, wondering if this one and NPI are flying under the radar, Thank-you.
Read Answer Asked by Albert on July 31, 2019
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