Investment Q&A

Q: Do you believe sustained low energy prices could significantly impact business of renewable energy cos., specifically BEP, RNW, AQN, NPI, BIP.UN per the IEA comments below. How could this play out and which companies would be most vulnerable? Thanks.

The IEA fears that low prices for all fossil fuels, including coal and natural gas, will sideline the renewable energy push in some countries. In the developing world, coal is becoming irresistibly cheap, encouraging the construction of coal-fired generating plants that spew out horrendous amounts of pollutants and greenhouse gases.
“We see the cost of renewables going down, but in a low-oil-price environment, we may well see that some governments may weaken their support for renewable energies or efficiency improvements,” Mr. Birol said. “We have been telling governments that it would be a historical mistake to lessen the support on renewables and efficiency as the price of fossil fuels becomes cheap. Let me be clear: Lower oil prices are a risk for the transformation of energy.”

Q: I originally purchased Enbridge early this year at $65. I purchased more at $49. Today it is $43 . I am contemplating averaging down again and buying more. Do you think that is a good idea or do you think Enbridge is still likely to go lower still?? (I thought $49 was a low). Thanks for your opinion.

Q: Hi team:

SGY just released its 2016 capital budget and guidance after closing today. Do you think their presented scenarios are realistic and attainable?

I'm down close to 50% on this name and I wonder if I should rough it out for another year, or just give up and do a tax loss selling before YE. I would have done that already if not for I'm already sitting on a big capital loss position for 2015. No need benefit to add more tax losses at this stage.

Your insight is much appreciated.

Q: Hello Peter and Team,

My direct Energy exposure is down to 2.5%. The only 2 that I have now are TOU and RMP. What are their survivability? Do you recommend I replace them for anything else? And what other company would you recommend for the other another 2.5% of my portfolio or would you recommend topping up my existing 2? Thank you,

Wes.

Q: Comparing CU, EMA and FTS three Canadian Electric Utilities over a 1 year period shows CU is down almost 25%, FTS down 6% and EMA up 6.5% (not counting dividends but EMA leads here as well). Can you explain why CU is under performing by such a wide margin. They do have 2 coal fired generating stations in Alberta. Which of there three would you buy here for a long term hold and why?
Appreciate your insight as usual.
Steve

Q: I am doing some bottom feeding for income - but am wary of being burned!


so, could you shed some light on the relationship between Enbridge ENB and Enbridge Energy Partners EEQ. I know you are positive on ENB. Would that therefore apply to EEQ as well - or are they different entities?
EEQ of course has been pummelled like most other energy names, and now shows a yield of 11%. So is EEQ buyable here or too good to be true?

Thanks for your help.

Q: Hi Peter Ryan and Team;
Do you have an idea of a few companies that would have the greatest chance of surviving these low oil prices, and until a recovery.

Q: Hi, I would appreciate your latest opinion on PPY. Thank you for the great service. Tim

Q: Striker Exploration's November 2015 presentation on their website indicates debt at 1.2, $38 Million in unused credit, 33% insider ownership and "no chance of insolvency".
It is always difficult to ask about a company's survivability considering livelihoods are involved and lives are affected. Given that, how would you rate Surge Energy, Spartan Energy and Striker surviving through this pricing war based on the assumption that it will take twenty-four to thirty months before prices regain their footing to at least the $60-$65 level?
Thank you.

Q: I have almost bought Vermillion several times, but each time I find that the Corrib gas development is "almost ready" to begin production. That's been going on for years and was the situation when BNN interviewed the CEO this past September. Has it finally started to produce, or are they still "almost there", waiting for those last two environmental approvals?

Thanks Roland

Q: Enbridge took a nasty hit today,down 7%. Any reason for the fall outside general meltdown on price of oil? Good opportunity to pick up some share on the cheap here?

Q: Do you feel the dividend is sustainable for this company at $35 oil? Thanks.

Q: Hi Peter, in O/G we have only Tou. While the small/mid caps may rebound higher on a percentage basis when things turn, it's certain the large caps will be around a long time to come and likely benefit if they buy up smaller/depressed Co's at lower costs. Of the larger caps who do think will fare the best 2-3 years out ? In the shorter term which of the larger caps do you feel has the best current business (inc refining etc) ? Thank you.

Q: No one wants to try and catch the falling knife, but would you be adding to oil positions in this sector pounding?

Thanks,

Eric

Q: Just confirming that todays down turn is oil related. Do you foresee this as a short term event and if so would you put money into oil stocks as the powers that talk on TV say to do. Where would you place your money in this sector.
Thanks Bob

Q: Coudn't find any industry news but WCP is down a whopping 12% today.

Have you heard anything?

I don't own it yet cause I hate the business right now. Given the steep decline would you suggest stepping up or standing on the side lines at this point?

Thanks

Q: If I believe the price of oil will rise what Etfs would be appropriate to buy to take advantage of that rise in oil? Thanks.

Q: Is there particular reason for Husky's share price to fall so sharply in the past few days with respect to the shares of another integrated producer like Suncor?

Thanks!

Q: What a mess. Where is the bottom on this. Have to admit about throwing in towel. Its recent dividend announcement was especially disconcerting. The money flow is pathetic and management does not inspire.

Q: Is the game over here? Should I sell and not for tax reasons.