Investment Q&A

Q: There are few renewable companies but lots of money to invest in them. Will they become artificially inflated?
Is is better to go direct to GE, Easton, Emerson Electric etc.
10 years ago Coal companies were doing well but bankrupt now.
In 20 years will we need all of these pipelines?
I believe there will be millions of oil sands barrels left in the ground in Alberta.

Q: With the sale of US assets, is TCW now in a position to wait out the downturn and to benefit from a recovery in oil service work over the next couple of years ? Is this stock now a buy ?

Q: I understand it s a wild market out there but how can we explain price change in excess of 7% daily in the price of oil ? Short sellers covering ? Are they that big ? If somebody can influence the price that much in the short term is it not somewhat concerning ? Your general comments are appreciated. Thank you.

Q: I'm thinking of adding to the utilities sector of my portfolio. Considering all metrics, do you think this is an opportune time to be adding? Also, the companies I'm interested in are Fortis, Emera, Brookfield Renewable Energy Partners and Algonquin. Please rate your first, second, third and fourth choices, and explain your first choice.

Q: Peter and Team:

Even as oil turns and heads lower again and the Saudis confirm they are not going to blink, there is a general consensus that oil will eventually find a "stable" level i.e price higher than it is now.(2016/17?)

I am looking for your opinion on parking 50k in either XEG or ZEO. They are paying a respectable approx. 4%, and I would think would realize a pretty decent capital gain if held over a two or three year term. Would you have a preference, if one considers cheap oil may be around for a while and some companies might fold?

Thanks as always

Phil

Q: My equity holdings closely match your balanced equity portfolio, but in addition I have several other holdings most of which have garnered positive comments from 5i. Regardless, my performance is generally below that of your balanced portfolio, particularly as of late. I’ve come to the realization that the likely cause of this relative underperformance (at this time) is because so many of my other holdings while not energy companies per se, are “energy related” and seem to move in sync with the energy sector. I am looking to rectify this by dropping some of these holdings that are outside of you balanced portfolio. Of the following companies, can you list them in the order you would recommend dumping them at this time if I was so inclined.
BAD
QST
BDI
IPL
SGY
PKI

Q: Hi Peter, I know you guys does not closely cover US stocks. Although I am dire situation with this one, so I want your opinion. I bought CHK last winter and now down 80%. It has a 10% weighting on my portfolio(on the book value I meant). I know I did a bad mistake by betting(not investing according to your advice)on CHK. Although in my defense, I saw report from Goldman Sachs that it was their top pick for 2015 and also Carl Ichan owns quite a bit of it. Anyways, long story short now traders are discussing about possibility of debt default in 2017. I can hold this for 10 years, but with all this rumors around that this can go down to zero. I am not so sure that I should take my 20% and run or not. Anyways, your opinion please, and what do you say probability of CHK going bankrupt in 2017?

Also I understand it is in deep hole but I don't understand how can a large corporation like CHK will go belly up. Can't they just sell their asset OR issue more share OR debt exchange?

Q: Stock was up 25% on Friday. Don't see any news, but volume was double normal. CEO has lots of shares and seems to be a believer. Any ideas on this one?

Q: Encana and Crescent Point are my biggest investments from the old days. I was ridiculously overweight Energy ( and still am ) ... Now that I've absolutely lost my shirt on these , should I sell one , or both , or part of each . or do I stick it out . I can't stand the agony of losing hundreds of dollars a day ... If I dump these, where should I send the remains ?

Q: Why such huge swings in the oil stocks. Is it institutional investors buying large lots and buying and selling to make quick money? But someone is buying expecting to sell at a higher price. Every time crew goes up I think I should sell and then Ibdon't just to see it fall again. It is so confusing. There is an oil rout so why are these things moving up?



i

Q: Hello 5i, could I please have your opinion on RDS's update yesterday and do you think the dividend is fairly safe for income? Thank you

Q: I'm looking for dividend plays with "some" torque to oil price but with a definite downside floor. To date I've picked up IPL and VET. I'm looking at Secure now as well. What do you think about Secure here. How safe is the dividend? What is the payout ratio? How safe to you feel their business is? I know the environmental part of the business should remain intact but what are the contracts like, are they in danger of having the pricing renegotiated? Could they actually lose business?

Q: Any idea why Peyto has performed so much better than other oil companies? Down 15% over the last year which is isn't too bad compared to others. I know Peyto is primarily a gas producer.
1) Have natural gas prices been more stable than oil over the last year?
2) Has the production of natural gas been more stable? (Less dramatic increase from the shale plays and also harder for the house of Saud to flood the market from their own reserves)?
3) Is the demand for gas more constant than oil? I assume domestic house consumption, power plants and industrial users are the biggest users with long term purchase orders.
I am thinking of buying more PEY to increase my weighting to about 3.5%. The only other pure energy company I own is VET with a 2% weighting. (I also own some CMG which is a bit of a mixed bag).
I like the dividend percentage. What is the current pay-out ratio of PEY?
Deduct as many question credits as you wish - and thank you.

Q: Hello 5i:
another comment on Paul's question re: filling up the truck; now $58, used to be $80, and why is there not more of a saving. First, that is a 27.5% decrease. Stated another way: its like being paid 27.5% more. Who would not take that?
Additionally, that is $22 on one fill. How many times do you fill the truck per week, per month, per year. The savings really begin to accumulate (or more money to spend). I lived in samll town BC for quite some time, and remember paying $1.42/litre. Try that one on for size and watch the paycheque disappear.
just my opinion, publish if you feel like it
Paul L

Q: CAN I GET YOUR OPINON ON OXF..... FIRST ASSET CAN ENERGY COVERED CALL.......LOOKING FOR INCOME AND GROWTH THANKS FOR YOUR WONDERFUL SERVICE ........ BARRY

Q: dear 5i team: can you tell me what happens if i do not tender ? does cos still survive? and also could you advise ? I am considering taking a 45% loss on cpg and purchasing xeg do you think this could be a better way to hope to recover my loss? or what? thanks for input Larry; if possible as an add to my previous question would a switch from cpg at a 45% loss to rus be a better bet to regain this loss than xeg? thanks Larry

Q: How do you feel about Vet and Arx maintaining their dividends going forward.

Q: In response to Paul's question re; $58.00 to fill his tank-don't forget the incredible amount of TAXES that are in a litre of oil as a factor.

Derek

Q: Hello Team,
Of the big major oil companies, Exxon, Chevon, Royal Dutch Shell and Total, which has the best balance sheet in the event oil gets into the sub $20.00. Would Suncor be in this league as well.
Thank You,
Barry

Q: Hi 5i: The only oil/gas producer I own is Tourmaline, and I'm thinking of adding one oil stock to be ready for an uptick if that ever happens. Suncor is looking relatively good but I'd like something with a bit more torque. You report that RRX has a very good balance sheet, and I see that it still has positive earnings. However, it does seem expensive. I'd appreciate your thoughts. Are there any better prospects? Thanks in advance for your good advice.