Investment Q&A

Q: I am looking to take advantage (through leverage) of the OIL world as it slowly moves toward a profitable revival & for a 6 -12 month trade to include: TVE, SGY, BTE, PPY, CJ & TOG. Would appreciate your opinion on these as well as any others that meet your criteria with particular emphasis on their current financial condition.

Q: Hi Peter! If an oil rally occurs over the next 18 months what are some of the companies that you feel will do well? Ian

Q: What is your position on the price of oil and nat gas going forward?

Q: Hi there,

I currently own Freehold Royalties and was thinking to sell and switch to either WCP or RRX. I follow your BE portfolio and noticed that WCP is owned in it but not RRX - but RRX has been spoken of with quite high positivity. Which of the two would you own at this current time and do you think switching FRU into WCP or RRX would be a better way to play energy?

Thanks!

Q: I request your opinion on National Oilwell Varco (NOV.us). I have been holding NOV. Didn’t cut my losses . Just as the behavioral science fellows correctly say, I held on to NOV, BHI, and many other oil-related 'enterprises'. I dreamt of fabulous wealth gushing from this black gold. I have now been rudely awakened from slumber. Oil is not, after all, the black gold one thought. Gold remains yellow and elusive, while oil is apparently plentiful. In your opinion , based on your experience, instinct and the data on your Bloomberg , are oil service companies more likely than not to rise in value by end of year ? Is NOV’s dividend safe... or did the Doha Club just pull the rug under us?

I will nurse my many painful wounds as I await your thoughtful response, O Wise One (I am bowing). and thank you for creating 5i and making it available to us.
Best wishes
AO:ls
New York, 12919

Q: I would like to sell one of my pipelines- which one

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.