Investment Q&A

Q: Hi Peter
I'm still holding a small position in Bellatrix at $3.00. At the current price of $1.35 would consider it still too risky, or do you think there could be some upside?
Thanks for this wonderful service and best wishes to you and your staff and families for the coming holidays. And, dare I say it, Merry Christmas.
GUY R

Q: What is your opinion on Kelt. Do you think it will survive the current low commodity prices and could it be a takeout target?

Q: Dear Sirs,

Looking for a current commentary on POU, noting its high debt burden-is this debt load insurmountable and nearing a point of being unserviceable? As well, could you please pass along a few names that have more reasonable debt that could offer some torque on a recovery in the underlying commodity.

Many thanks,
Brad

Q: Peter, crude oil is below $40 but yet the gasoline price near where I live in Toronto is still around $1/litre. This gasoline price is the same as when oil was around $80 or so. What am I missing? Why the gasoline price doesn't come down. Thanks for the insights.

Q: Pure spec play. If one had some money and was going to risk some on betting oil goes back to $100.00 in the next year what is the most pure way to do this in Canadian dollars on the Toronto Stock Market? Buy a company or is the an ETF out there? This question is for my brother. I do not believe oil bounces back that high in a year. I also found this blog dated this July.

http://blog.modernadvisor.ca/the-best-oil-etf-choices/

Thanks Jimmy

Q: I am a bit surprised that there isn't more talk about the potential effect of lifting the U.S. oil export ban on WTI pricing, and of course, by extension, on Canadian oil. My thinking is that it narrows the gap between Brent and WTI favourably for WTI. I have read the recent EIA report which suggests the effect will likely be fairly neutral but I wonder what your thoughts are and if you know of any good links on the subject. Thank-you very much.

Q: Please provide your general insights about this company, the insider ownership levels and the quality of the stewardship, thank you.

Q: Peter et al.

With the current OPEC decision to raise the production ceiling to their current production level of 31.5M BOPD what is your current viewpoint of a timeline for a turnaround. We have had the following occur:
1. $200B worth of capital shelved worldwide in 2015 and it expected to be the same for 2016.
2. Rig counts at their lowest since 2010.
3. Production starting to decline in the US to about 8.7M BOPD
4. Inventories still at record highs of 487M barrels in the US.

When will these reductions start to appear. Heavy Oil in Canada has never made any sense to me economically as it gets a lower price (~$15 less than WTI) and it costs more per barrel to produce. It is impossible for non-Opec counties to reduce production because they are privately run so OPEC expecting this is impossible. This is reminding me of 1998 - 99. The worst part is I am heavily invested in the oil industry percentage wise and also it is where I work as well. What should I expect?

Thanks,

Brendan

Q: Hello Peter
I can't believe the price for some of these stocks,the banks, the pipelines, etc. etc. There are so many of them.
If one has some cash, is it better to wait for better opportunity or buy and collect the dividend and wait.
RRSP and TFSA season will soon be upon us. Is the world coming to an end or is this just a good buying opportunity.
If there was a sale like this at Best Buy or Apple Store or other major department stores, we would be running there in an instant. You understand these thing better than I do. What is your opinion? Would you wait or buy??
Merry Christmas to you all.

Q: In light of current oil prices,how safe is the dividend ? What is their payout ratio.
Thanks,
Phil

Q: What do you think of Torc at today's prices? It's my only holding in O & G right now, at 2.8% of my portfolio, down from 5% because of the beating it's taking with the rest of the sector. Is this a good time to add ... or is it a good time to sit on my hands? I would only take it back up to 5%. If I did this, I would be selling my position in Diversified Royalty. Any thoughts on this move? Thanks for your help!

Q: Other than I just switched into TOU from CPG, do you have any information as to why Tourmaline is falling 3 times as much as every other oil company today? Thanks.

Q: hi experts; if they get a sale what would be the possible out come be to the debentures. thanks brian

Q: Hi, I realize O&G is clearly out of favour right now, but would like your thoughts on Interpipe and Whitecap. Both seem to be very good companies with good managment, but both are being hammered by the general market, and oil in particular. Both are yielding about 7.5%. Do you prefer one over the other, or should we just stay away from both for now? Thanks

Q: Looking for your opinion / ideas on ways to play the renewable energy theme.

Thanks for your time.

Q: The best to Ryan, Peter (and staff) during the festive season. Could you please compare Surge and Twin Butte and comment on whether SGY could possibly take the same road as TBE ? TY.

Q: Hi Team! Looking at the XEI high-dividend ETF. The energy weighting is 27%. I believe that at some point next year, all energy companies will cut their dividends to below 2%. If that happens, wouldn't the ETF manager sell energy companies? It's called "high-dividend", so the rule must require a stock has a yield > 4% to remain included? If they didn't, it'd be a nice way to go long energy (diversification + 0.2% MER). Better go with ZEO or XEG and bite the 0.6% MER. What do you think?

Q: I am primarily an income investor (love a little growth too) and would like to pounce on a few tax loss bargains. Both of these seem overly beat up and their dividends are reaching inticing levels. Would you prefer one over the other, and which dividend might be safer. Thanks,
John

Q: Peter; First a Merry Christmas and the best in 2016- can you get oil up to $60.00 ! But I want to thank you for your comments in the spring of 2014 re TBE. I sold mine at $1.85 and sort of forgot about it until today when I saw the report on them trying to sell the company- and the price of just .12 cents. Really a lesson in taking a loss quickly and not averaging down. Hope the Fotums work out. Rod

Q: With all that has happened in the global oil patch, has your opinion of TVE changed or is it still a buy or hold? Ted