Investment Q&A

Q: Looking at oil companies... How would you compare Whitecap and Raging River. Whitecap has a large dividend but has not done a particularly high bounce in this oil rally. RR has no dividend but has a good bounce. Since RRX has already gone up a lot and WCP has the dividend, would it be a better buy at this point?

Thanks

Q: Hello,

I started getting back into energy two weeks ago. I own WCP, CPG, SGY and XEG. Currently, combined they make up 2% of my portfolio. My plan is to continue nibbling away at them for the next few months as oil recovers. I would end up having an equal position in each which would total 6% of my portfolio. Does this plan make sense? Is 6% a good position or should I be aiming for a higher percentage? How high do you think would be reasonable? Could one go as high as 10%? Also, what other sectors will recover when energy does?

Q: Hey guys, novice question here, : looks like cos is trading above the take over price that Su has offerd (8.77 being the takeover price) - did I get something wrong? Does this have to do with the fact its a share deal, and as su shares climb, so do the value of COS? Thanks for clarifying.

Q: I have owned BNK and PGF for a long time and they have done nothing but lose value. I realize most oil companies won't recover until the price strengthens but I'm wondering if these two will survive and actually rise when or if the commodity price goes up. Is so, they could be good candidates to double easily from here if they are stable companies.

Thanks

Q: just a comment. There is presentation by Paul Colbourne at the CIBC oil and gas conference at Whistler from Jan. 21 that can be listened to via webcast for anyone still holding SGY.
SGY has moved more than 50 % since the presentation. Colbourne talks of his extensive experience and having managed companies and prospered thru 3 previous oil crashes. SGY is very well positioned to buy distressed assets as compared to other companies which will be forced to sell assets at distressed prices because of debtloads. Insiders continue to buy.

Q: Please assess BP. Do you still consider it "very buyable"? Thanks.

Q: Hi Peter and team,
In December, I sold my positions in Black Diamond and Questor for tax loss selling. I can now buy these back, but I am wondering if it would be wiser to use the money to buy different stocks that have been beaten up as much but have a better outlook in the next year. If so do you have any recommendations as to what stocks these may be? Is it wiser to just buy back in BDI and QST and wait for oil to bounce back?
Thanks
Kathy

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.