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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: My question is to do with more general knowledge of the products available, especially in some ETF's. My question is regarding Hedged to Canadian ETFs. When they say "Hedged", does that mean the Canadian Dollar is Hedged to the US $ in both directions, up and down? In effect, does the Canadian dollar become a US $? We would then not get the benefit from a Canadian $ that is dropping in relation to the US$, nor would a rise in the Canadian $ in relation to the US$ hurt us?

I hope you understand my meaning in this question and I thank you for your answer.
Read Answer Asked by Alex on February 21, 2019
Q: Recently you stated "We find it a bit interesting today. Management is under the gun to show it did the right thing by fighting the HSE takeover attempt. " My impression of the CEO interview on BNN last Friday was they are focusing on debt reduction with no intention of production increase. I'm pretty sure your not "a bit interested" because you expect a jump in the price of oil , management has indicated no production increase, I'm curious as to your rationale here?
Read Answer Asked by Charles on February 20, 2019
Q: I bought WCP at the end of December for "bounce" factor at $4, and still hold. It has come up significantly this week. Is there some fundamental reason for this? In other words, does it have the potential to stay over $5 longer term? I'm wondering whether to continue to hold long term or sell and take the short-term gain, as was my original intention.
Read Answer Asked by Kim on February 20, 2019
Q: This may be of interest to some members:
https://www.bloomberg.com/news/articles/2019-02-14/energy-companies-perform-better-when-ceo-pay-isn-t-tied-to-production
Read Answer Asked by Ronald on February 19, 2019
Q: I am not an accountant or financial guru but I have learnt a few things. One thing I thought I learnt was to value resource companies, particularly oil companies, on a cash flow per share basis instead of an income per share (P & E). I assumed that is due to the fact the product that is being produce is non-renewable. I am I right on this point? If so, then why do people who are supposedly financial gurus who appear on BNN continue to evaluate a resource company on a P/E basis. This happened last night with Ross Healy. Healy has been in the business for decades so he should know that P/E are not a good way to evaluate resource companies, yet that was the metric he used. He is not the only guest on BNN that has done this. On the other side are the Eric Nuttall types who appear on BNN and spew out cash flow numbers that sound amazing but when you dig a little deeper his numbers don't take into account sustaining capital that is required to offset declining production. Who cares if a oil company has $300 million of cash flow when they need to spend $300 million to offset declines. I use the word free cash flow meaning any cash that is left over after enough money is spent to keep production steady. Is this the right term? I know that guests' opinions on BNN should be taken with a large grain of salt but do you think these guests are trying to sway the viewers opinion to move a share price. Apparently foreigners ae not interested in Canadian resource stocks and most of the big Canadian money managers don't seem too keen on them either. So who is left to buy Canadian resource stocks? Us little retail investors. Can a comment on BNN's market call actually move the needle on smaller companies by influencing us little retail investors, in your opinion?(I guess there are three questions here.)
Read Answer Asked by Paul on February 14, 2019
Q: Please could you rate the below best first. Amusing WTI oil stays $55- 60.

SGY
BNE
CJ
LXE
WCP
TOG
BTE
SDX
Feel free to add your own selections
1. As per most leverage to higher oil prices
2. quality of balance sheet
3. paying/suntanning/initiating/raising dividends
Thanks for you help and service
Yossi
Read Answer Asked by JOSEPH on February 13, 2019
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