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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: Hi there,

I am considering Raging River for a position but hope for your comments on Parsley Energy as an alternative. I already own Spartan Energy. Eric Nuttall seems high on the US producers and has mentioned this as a favourite. Currency movement may add appeal on Parsley? Which would you suggest for a new position and why? Energy would remain a small part of my portfolio.
Read Answer Asked by Tim on November 06, 2017
Q: Hello,

Hello 5i. We hold some Bonavista in our modest energy sector holdings. To sell low after buying near its high (currently underwater by $20k) seems crazy, not to mention embarrassing. Yet, I'm mulling selling before end of year and replacing (probably also in energy?). My objective is a more reliable dividend payer to replace it with and one that should also respond well when the energy sector eventually comes back, as it always has. This change would be in our corporate account; please also advise if I'm right in understanding this loss could be carried forward and/or offset gains sold last year. Your thoughts and advice on these two points will be much appreciated. Thank you.
Read Answer Asked by Bill on November 06, 2017
Q: In your recent response to Margita you recommended holding Enbridge for the dividend. As a retiree I purchased 1k shares of ENB not only for the dividend income but also the projected dividend growth of 10-12%. What are your thoughts on the later? Is there anything in the latest financials or management comments (or lack thereof) that would cause you to re-consider ENB for the balanced portfolio.
Many thanks
Mike
Read Answer Asked by michael on November 06, 2017
Q: I am considering selling my position in TOG and replacing it with ENB. I have held TOG for 3 years, its finally increasing in price ( I am down approx. 13%) and ENB is becoming a more attractive price, with a higher yield. I have equal weighting of 15% in both. Would this be a good decision going forward.
Thank you!
Read Answer Asked by Donna on November 06, 2017
Q: I have owned these stock in substantial amounts for approx 3 years. I like the dividends. Last Jan/Feb they peaked at approx the same value oil is today.
Today oils up but as a group they are down. Am I crazy to think these companies are going to rebound even to levels of early 2017?
Is there an explanation for these stock prices? The dividends are attractive enough to keep me in - but better stock valuations seem elusive.
Read Answer Asked by David on November 02, 2017
Q: You answered a question the other day about Cardinal Energy suggesting they were highly leveraged at 4x cash flow. Their presentation at $50 WTI and a .80c Cdn dollar, suggests they are just above 2x cash flow not 4X , that their POR is 40% regarding the dividend. Since 2014 and thru much lower oil prices they have kept that ratio between 31 to 49%, given the higher oil prices now it seems to be sustainable. WTI now exceeds their guidance as well as the CDN dollar at .77c they should be in fine shape on both counts. The company is looking at increasing amounts of free cash flow in 2018 given where WTI is today and the exchange rate, not to mention the WCS differential which is in their favour as well. Cardinal has one of the lowest decline rates in the industry so can spend less on maintaining or growing production as well. Those numbers you used look more like Bonterras- BNE then Cardinals. I don't understand where you are getting your numbers, please help me understand?
Read Answer Asked by Wyatt on November 02, 2017
Q: I am considering to re-enter the energy market. Of the four stocks here, CJ, WCP, VET and TOG, how would you rank them in terms of their potential combined returns (growth + dividends, and dividend sustainability). Thanks.
Read Answer Asked by Victor on November 01, 2017
Q: QST has really started to move in the past 10 days. Could we get your assessment of what is driving the move and how confident one should be with the firm. It almost looks like the stars are starting to align for it (higher oil prices, new government methane gas reduction targets, proven technology). If it reports a strong quarter, what is the upside? Would you complete a position in it now?
Read Answer Asked on November 01, 2017
Q: I used to own CJ and with the downturn in the energy market I sold all my O&G holdings along with CJ. I just noticed in the last week or so that insiders who already own substantial shares in CJ have been adding more company's stocks to their portfolio.

Can I used a horse betting analogy of "following the trainer to the betting window" here? I notice the company has already cut its monthly payout by half earlier this year (since 2/2017). Is this payout at a rather enticing level (still about 8%+) sustainable based on its current production level? Do you foresee further dividend cuts?

Thanks for your insight.
Read Answer Asked by Victor on November 01, 2017
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