skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

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

Q: Do you have any sense of what the intensity of a dividend cut would be? Cardinal certainly got hammered when they last cut, but that cut was widely unexpected. In other cases a cut almost seems to give people 'permission' to start buying again, as they've got the expected cut out of the way. Where do you think VET would lie on this continuum?
Read Answer Asked by Peter on July 30, 2019
Q: Please assess the following:

1. they cut did by half
2. stock price goes up a little due to renewed positive sentiment
3. current market reaction overdone ( due partially to "stops"
3. buy backs lift stock price a little.
4. the market still believes in management and business plan and will act accordingly long term
feel free to comment in any way
thanks
yossi
Read Answer Asked by JOSEPH on July 30, 2019
Q: RE: Vermilion Energy results. In a previous answer to a question asked by Mike you said, "There was no word on the dividend". That makes it sound like the company avoided addressing their very high dividend. Not true..
They actually mentioned the high dividend many times today:
1- in the Q2 results
2- twice, answering 2 different questions during the conference call
3- and during a post results interview on BNN
Read Answer Asked by kelsi on July 30, 2019
Q: Good morning
As retirees, and still with a longer-term horizon, my wife and I own (and like) Suncor (integrated), Prairie Sky (no debt) and Peyto (low cost producer) for minimal risk; second, dividend income, and third, capital growth. Oil & Gas is 4% of our diversified portfolio. We plan to keep Suncor. I am considering Freehold Royalty, Tourmaline, and Ensign Energy Services as possible replacements for PSK and PEY.
Q1: Do you feel the stock price declines in the Canadian oil and gas sector represent investor capitulation?
Q2: I would appreciate your comments on the 3 stocks being considered. Would any of TOU, FRU or ESI better meet our investment objectives, compared to our current holdings, PSK and PEY?
Thank you for your advice on this.
Edward
Read Answer Asked by Edward on July 29, 2019
Q: Seems like fear has overtaken reason in Cdn oil stocks, would you take a position in the above names? All are very profitable even under present circumstances. Thanks.
Read Answer Asked by Curtis on July 29, 2019
Q: Hello 5i,
This is not a question, merely a comment from my perspective. I hold VET in two separate account and it is held for dividend income as opposed to looking for any significant capital gains.
On paper, my "losses" are substantial. However, in reality, unlike others who have sold, I have actually lost absolutely nothing - and I fully expect that by keeping this holding for the dividend (cut or not), should the time arrive when I do choose to sell, it will likely be because I am back in the black on it and will realize a gain. Meanwhile the dividend helps keep me "in the lifestyle to which I have become accustomed".
While it could happen that VET will go to Zero, be de-listed and cease to exist as a viable company, I am betting against it.
In a sector decline such as we are seeing in the Canadian energy space, I am not sure selling out at a significant loss is necessarily the only solution unless one can really benefit from the tax benefit on the loss - and in the case of VET, they have a great deal of exposure outside of Canada as well.
Anyway, I am happy to hold, collect the dividend and wait until the tide turns, which I am convinced it will do over some unknown period of time.
Just my perspective, nothing more.....
Cheers,
Mike
Read Answer Asked by Mike on July 26, 2019
Q: Husky is in an unloved sector and has never been a preferred name in that sector for various reasons, but at $10.70 is it getting to a point where it should be considered over some of the usual go to names. The yield is decent and the balance sheet is good... not sure why it is getting punished so severely for a q that seemed within expectations.
Read Answer Asked by Jason on July 26, 2019
Q: Hi 5i

Can't help notice the Q's on Canadian energy companies, and how the common theme leads me to think capitulation is close.

My questions is: Given the current political distaste for Canadian oil and gas, what would be your recommendation for an alternative investment in the energy sector? I already own BEP.UN, AQN, and ENB for disclosure, hopefully this won't instigate more sector Q's ;)

Please note my views on Canadian companies are severely restricted due to the duality of the current government.

Thanks,
Chris
Read Answer Asked by Christopher on July 26, 2019
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!