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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Dear 5i

In 2016, BNP expects a payout ratio of only 85-90% of FFO, only $25M of its debt is due and its Debt/EBIDTA is expected to be 3.3X with much of its production hedged. How safe do you think BNP if these low natural gas/oil prices persist? Will they be okay every if oil goes down to US$25 per barrel or gas prices fall. Do you think they could refinance their long term bank facilities at favorable terms in 2019 at these low current prices?

thanks very much.
Read Answer Asked by Ken on February 08, 2016
Q: hi
I hold Peyto in a number of non taxable account to back 15 years its been great. In January 2016 I made RRSP contributions in 3 accounts, mine, wife and daughter, I bought pey the stock has gone from 23 to $31 plus I get the Jan divi. I have sold 1/2 smiling at my luck. The question is why the big move up and why gas is still low $2.00 ?
Read Answer Asked by Hugh on February 08, 2016
Q: Can you comment and give your opinion on Cerf's acquisition of Zedcor Oilfield Rentals. They have suspended their dividend to preserve/assist the balance sheet as part of this acquisition. Your take on this move is most appreciated. Bill Y.
Read Answer Asked by Bill on February 04, 2016
Q: Hi,
Is Prairie Sky a good investment? The float is small compared to the OSS otherwise it looks pretty good.
Thank you,
Lillian
Read Answer Asked by Helen on February 04, 2016
Q: Would you consider cke a buy at this level or is it likely to go under because of the weak oil price? It used to have a good balance sheet with little debt. Is that still the case?It closed at $.46 today & I'm wondering if that is a good entry point or should I run from it? Thanks as always for your help.
Read Answer Asked by Dave on February 04, 2016
Q: I was disappointed to see PMI sell its prize asset before being able to realize its true potential. True, the holes were horribly expensive which meant that gambling on a wildcat in Molisht pretty much did this company in. Would you agree with this assertion? Or would you think it is the oil price crash that has made pure exploration play unpalatable for financings?
Read Answer Asked by Kreshnik on February 04, 2016
Q: Hello, I sold RRX today with the intension to replace it with another energy stock with your guidance. I'm aware that RRX is a great company with a good balance sheet and excellent management but have decided to purchase only dividend paying stocks from now on as it has been painful to see RRX and TOU go down with no benifit to it's shareholders. Could you please suggest a dividend paying stock that you believe will survive this cycle.I presently own TOU, WCP and a very small position in TOG. Thank you.
Read Answer Asked by Cheryl on February 04, 2016
Q: Which of the below have a chance to meet the flowing criteria best, when energy stocks rebound (oil $50ish NG $2.50ish :

- survival
- yield an capital appreciation
- good balance sheet
- good conservative and experienced management that have gone through this kind of cycle
- lots of reserves
- no or marginal need to raise capital

I would appreciate you grading the following ( I understand that some criteria are right for some and not for other)

CNQ
PEY
SU
SGY
PPL
IPL
TOG
VET
TDG


feel free to add some of you own stocks.
thanks you
Yossi
Read Answer Asked by JOSEPH on February 03, 2016
Q: Please disregard my symbol here (XEG.TO). My question is: I wanna have some exposure on CND oil industry or oil-related companies cuz I wanna bet on rebound of oil in the long term. Is there any good-fundemental stocks or ETFs that you will recommend to hold to have the oil exposure I want? Much appreciated! Tony
Read Answer Asked by Tao on February 02, 2016
Q: Hello,

What are your thoughts on XEG? Would buying shares of XEG.TO be a good strategy for getting exposure to an oil price recovery without the risk of holding individual oil companies?

Thanks
Read Answer Asked by Alex on February 01, 2016
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
Read Answer Asked by Gary on February 01, 2016
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?

Read Answer Asked by Carla on February 01, 2016
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
Read Answer Asked by Charlie on January 29, 2016
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.
Read Answer Asked by blake on January 28, 2016
Q: Please assess BP. Do you still consider it "very buyable"? Thanks.
Read Answer Asked by Brian on January 28, 2016
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
Read Answer Asked by Kathy on January 28, 2016
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.
Read Answer Asked by ian on January 28, 2016
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