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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 am beginning to think that the market is starting to factor in a permanent reset (downward) in the evaluation of all things to do with the oil industry - service cos, drillers, e&p, integrated, midstream and pipelines.

The 2 basic elements of economics seem to be working against oil. SUPPLY is in excess with easy access shale. DEMAND is poised to fall with the sooner than expected arrival of affordable electric cars. Shell Oil expects peak demand for oil is a decade away. Prices will reflect this reality long before then.

Do you believe this to be true. Is it time to wean off oil stocks. Is this why IPL is yielding 7%?

Thanks

Derek
Read Answer Asked by Derek on August 21, 2017
Q: Do you have any insights into Smart Sand versus Fairmont Santrol.
The price has dropped significantly and usage of sand within the industry is falling at this point in time. Is Smart Sand highly leveraged or do they have a good balance sheet and will survive ...... maybe it's time to add to my position.
Thanks DAN
Read Answer Asked by Daniel on August 18, 2017
Q: Please deduct credits as required.
You recently published an excellent report of Midstream Oil and Gas Companies. I would like to compare them with ENF so I would like you to provide the same metrics;
Image5-D/E,
Image2-YoY %Dividend Growth from 2016 to 2020 with 4 Yr CAGR,
Image3-Payout Ratio from 2012 to 2016
Image4-Valuation, P/E, EV/EBITDA, EV/Sales, P/CF, P/B
Read Answer Asked by Ian on August 18, 2017
Q: Hi Ryan, I've held theses two companies from 2012 when they were doing well, in your opinion what would it take for oil to get back to a level where these two companies would not be worth selling or is it even worth waiting. BTE is a .52% and CPG 2.07% weighting in this RRSP stock account. Thanks, Nick
Read Answer Asked by Nick on August 17, 2017
Q: Could I get an opinion on "Timing the Market" vs "Protecting my Capital"? If I use my RRX position as an example, I have a good company but with big oil industry head winds. I am in at about $9 on the stock (2.5% position at the time so less now). There were a number of "new 52 week lows" where technically I "should" have sold but I held onto the "quality" company.
Basically, whats a good strategy to prevent large losses in these type of situations when they come along----trade technically, or use a stop loss strategy, or other? No single stock more than %3-%5 of my portfolio is helping in this RRX example.
Read Answer Asked by Randy on August 16, 2017
Q: What are your thoughts on Badger daylighting and Suncor energy. Currently only have Suncor in my portfolio. Wondering if it's time to sell Suncor and also wondering about picking up some Badger. Thanks.
Read Answer Asked by Chris on August 15, 2017
Q: Hi 5i: I have two oil stocks (RRX and TOG) and two nat gas stocks (BIR and TOU). I want to reduce this to one oil and one nat gas. Which two would you suggest I sell, and why? Thanks again for your great advice.
Read Answer Asked by Roland on August 14, 2017
Q: May I have your comments on Parex Resources Q2 release.
My reading is positive on all metrics, but I have no idea what estimates were or street expectations. A 6% drop on the release seems overdone? Am I missing something?
I have a small (1%), recent position, in my TFSA, so 6% isn't overly worrying, but does it illustrate growing unease among investors?
Read Answer Asked by Lotar on August 11, 2017
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