Investment Q&A

Q: Looking for a best pick for natural gas exposure. BIR & PEY have sold off significantly and pay dividends. Is PEY dividend sustainable? Overall thoughts?

Q: Any comments about the recent ENB rate reset preferred issue....it seems to have a very favourable floor reset rate although the spread off 5 year Canada's does seem a little rich.
In addition, any new comments ZPR
Thanks

Q: What are your predictions for Peyto over the winter months?

Q: Hi,
Unfortunately I bought some of these energy stocks back in 2014 and I am down +30% on all of these. I have just over a 5% weight currently in energy (not including ALA, ENB and TRP which I've included as part of utilities). Which do you think I should continue to hold and which ones should I just throw in the towel and sell?? I am a long term growth investor.

Q: Why is the stock dropping so much, and is this an entry point or wait until the new year

Q: Can I get your view on CVE, Is it a buy at this price. How it is going to perform long-term ( 3-5 years)

Kuldip

Q: What do you think of this company overall and is a candidate for tax loss selling?
Keep up your good work.
Vic

Q: I just read your comments regarding MLP’s, including AMZA as your preferred way to go. My question: the dividend on Globe Investor shows a dividend rate of approx. 25%. Even with the withholding tax that would still leave a dividend of about 15%.

Too good to be true? If so what are the downside risks?

Thanks.

Q: What are your thoughts on Mammoth Energy Service (TUSK)? Although it is a young American oilfield service provider it seems to be doing the right thing in vertically integrating their operations so they can provide frack sand from their own mines and pressure pump it into wells with their own equipment and even cement the well. Is this are a smart idea or should smaller companies just try to concentrate on one part of the horizontal/fracking boom.

Q: What do you think of the prospects for this company with a 5 year time frame. If you were an employee and were offered stock options on it would you be inclined to buy the shares.

Q: Good morning, if one was to look for international oil and gas exposure, other than through a Canadian listed company like VET, would you prefer a service company like SLB, or a large integrated like XOM, CVX, BP, or RDS. Although you don't follow these, is there anything that you particularly like? Thanks!

Q: To cut down on the length, let me get directly to the questions. Is your tax lost list periodically updated to add potential new candidates?

In the daily 52 week lows, a number of energy names reappear. Looking at them as part of an out of favour sector rather than a January bump play, what should I focus on? Clearly location is gaining importance but which financial measures would you focus on to start? The industry experts talk of their benchmarks such as excessive debt or value, often based on cash flow. Depletion rates and reserve life , the type and quality of the wells other considerations. Would they cover the basics and above/below what ratios would make you interested to look closer at any company? If not, what would you focus on?
Keeping with the spirit of the season, If one were seeking a last minute shopping list, would you kindly provide your top 1 or 2 best investment ideas in the oil, gas and service sectors? A basic reason why would be helpful and most appreciated.

Thank you for the education, as well as, the very good guidance you provide in making more informed investment decisions.

Season's greeting,
Mike

Q: Please explain the difference between ENB and ENF.
Thanks for your ongoing excellent service.
Frank

Q: Good Morning: I have been selling down my shares in Crescent Point (finally throwing in the towel) but want to keep some exposure to oil/gas in case of a turn. I grant that it's hard to be optimistic about the sector at the moment, but would you please share your 3 or 4 "best bets" for the space. I would prefer to stay in the Canadian sector and I generally prefer, but am not insistent upon, dividend paying names. Thanks.

Q: Hi there,

Spartan is sitting about $1.80 above it's 52 week low. WCP is just $.20 or so above its 52 week low and pays a 3%+ dividend. Can you offer an opinion on why Spartan has had a greater bounce (WCP didn't decline as much?). Also, if someone wants to own one of the two which would you pick today and why?

Thanks!

Q: I need to take a loss what would you swap to to stay in the oil sector.

Q: I appreciate that to date, you haven't been overly enthusiastic about TWM, however, given that its recent results seemed to be good, the POR on its 2.5% dividend is only 34%, it just graduated to the TSX and finally, two days ago it entered into an agreement with TransAlta to build an inter-Alberta pipeline, might it perhaps be worth closer scrutiny?

Management certainly seem to have their eye on the ball.

Regards. Karl

Q: Six questions regarding pipelines:
(1) I understand that Enbridge finances most capital expenditures by way of debt or new equity, not retained earnings. I am thinking that this would be OK if its GAAP earnings per share are keeping pace with dividend increases and its debt service coverage is stable. Do you agree with these comments?
(2) I assume that the prospects for ENF are tied to ENB. Do you agree?
(3) Do PPL and IPL have the same policy as ENB regarding the financing of capital expenditures?
(4) Do you have preferences among ENB, IPL and PPL and, if so, why?
(5) If I am correct, ENB is mostly pipelines, PPL is mostly other midstream and IPL is somewhere in between. I have this idea that pipelines are more stable than other midstream activities. Is this simply wrong or an over-simplication?
(6) ENF, IPL and PPL represent 10% of my portfolio. Would you suggest lightening up? (I am retired and my portfolio is geared to income.)

Q: Peter and His Wonder Team
Please give your current assessment of BXE. It has crashed since the 5 for 1 consolidation and also hit with tax loss selling. Would you rate this a hold because it may be over sold or just sell and take the loss even though it does not qualify as a tax loss. On the other hand would it be a reasonable contrarian play going into 2018 with more optimism concerning global growth?
Dr.Ernest Rivait

Q: In their Second Quarter Report 2017 at page 9 and Note 3 CQE took a $96,200,000 "Impairment Loss". Presumably no company wants to conduct impairment tests and publish the results, so I assume IFRS or TSE or CPPIB (lender) is the driver. The future price deck shown in Note 3 seems to me to be quite optimistic and minimize the amount of impairment, and they do state that a 10% decrease across the deck would produce further impairment of $107,000,000! A partial reversal therefor seems unlikely. So the questions - 1) Is CQE really the only O&G so challenged that it has to do impairment tests - I haven't seen any others? 2) in your view is bankruptcy more likely than a takeout?