Investment Q&A

Q: RMP Energy Inc hasn't seemed to rally with the other Energy equities. Can you think of any reason this is? Can you give your impression of their financial health and how they are doing?

thank you,

Wes

Q: How would you compare VSN and Gei going forward and dividends sustainability

Q: With a company such as FRU how are their royalties earned? Do they get a royalty on each barrel of oil pumped or do they charge "rent" on the land used or something different? Thanks

Q: Good morning
I am down about 35% on HLF...was thinking of shifting to RRX in hopes of recouping losses over the next 12 to 18 months...currently in one account do not have exposure to oil/gas sold off last year...no tax concerns...have quite diverse portfolio...hoping for growth will need to liquidate in 24/36 months...residency requirements...

Thanks

Q: I hold the following equities, among a variety of long-term positions.
I have lots of patience, can wait while the cycle turns, and in no need of cash. I would appreciate your view on each of the following as whether it is "dead money" for the foreseeable future and should be sold now. I will replace all sales by others. Athabasca Minerals ABM; Athabasca Oil ATH; Bellatrix BXE; Bombardier BBD.B; CSX (US); Essential Energy ESN; Gamehost GH; Gran Tierra GTE;Hudbay Minerals HBM; Ithaca IAE; Painted Pony PPY; Yoho Resources YO; Zargon ZAR.
Thank you in advance.

Q: What do you think of BHI as a two year investment? It has far more analyst recommendations and strong recommendations than others and yet doesen't seem to have participated in the recent oil rally? It's one year chart is ugly.
Why do analysts like it so much?
Is this a good time to start a position?
Is there a Canadian alternative you like better?

Q: You are generally supportive of TOU. For example in March you said “We think TOU is a fine company worth holding” .
I have not found much in the better financial press pointing to a higher or healthier price for Natural Gas. TOU pays no dividend and it has debt. Would you please expand on your previous positive comments on TOU. I need to make a decision on whether to throw in the towel on TOU ,or should one just ride it this calendar year? The latter would make sense if oil and gas prices will now continue their ascent but there isn't much support for that argument (that I have found). Thank you

Q: Of prairie sky and freehold which would you recommend and how would your preference stack up against vermilion?Thanks.

Q: I hold some GXO/PPY/SPE. I was thinking of adding RRX or increasing PPY. Or can you suggest something more suitable?

Q: I have held this for 4 years.Is there any hope for this one.
Thank you Chester

Q: Have read a few of your answers regarding Veresen and some concerns that there may be a dividend cut. I wonder if you realize that 61% of their cash flow (attributable to dividends) is retained for investment in the new Montney gas plants and they issue shares for that amount thru their DRIP. Unlike many capital intensive companies that do separate offerings for new projects Veresen uses the cash saved from the DRIP, same end result though, some dilution associated with each project. Only 39% of their dividend is actually paid out in cash. Actually companies like Inter Pipeline see 50% of their dividends also paid out thru their DRIP as well, but they also do offerings associated with individual projects. If you look thru Veresens 2016 guidance you will see $200 mill a year being reinvested from their DRIP into the $1 bill Montney plants under construction. Whether you do it thru a DRIP or a separate offerings it would seem so long as they are getting an appropriate ROI this may be prudent. It also suggests that there is less risk than might otherwise be considered here given their planning and guidance is based on these facts. They have met guidance three of the last three years if you look at what was said and what has happened. Any thoughts on this information? Of course I realize no dividend is 100% safe, just wanted to point out that the actual cash portion paid out is substantially lower than their annual cash flow.

Q: there is supposed to be a meeting on April 17 regarding the production of oil between opec and non opec members. could this possibly determine the direction of oil for the next while? would you suggest waiting to buy into oil or buying into it after the meeting IF production is cut?

Q: I have very small positions in WCP, VET, RRX, PEY, and TOG. Would you add to these now after the big gains this week, or do you wait for a retreat. Thanks!

Q: I currently own WCP and CJ for smaller cap oil exposure and would like to add two more names that have the potential to go up quickly if oil continues its up trend.

Q: After more than a thirty percent rise in the last week would you buy this stock or wait for a pullback?

Q: Can you comment on recent issue of 5% debenture by Kelt. They issued more shares earlier this year and now a debenture. Can they survive the downturn in oil prices without further financing?

Q: Can I have your comments on todays actions.
Stan

Q: If Oil goes to $ 50.00 I am considering these to buy TOU, CPG, WCP, BTE, SPE, SU. Are these the best plays or are there others ? Your thoughts please.

Q: I have a question about ARX. Would you consider holding shares for another year or two in the hope of them growing in value or would you advise selling them and investing elsewhere. My shares are presently in my RRIF

Q: I own SGY and is currently down 50% (ouch, yes!). The PR of yesterday to me is a mix signal. You cut dividends and sell assets and yet you maintain the capital spending level without reductions? Why sell asset on one hand and add more assets on the other hand (through capital spending)? Any reason that I should hold on or should I just throw in the towel (and take my tax losses)?

Your insight is much appreciated.