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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: Good morning All. I am contemplating returning to the oil and gas sector. From a growth point of view how would you rate in order PPY, TOU (Tourmaline), RRX (Raging River), WCP (White Cap) and TOG (Torc Oil & Gas) and why. Also from a growth and income point of view how would you rate in order TOG and WCP and why. Thanks in advance. You are doing a great job.
Mike
Read Answer Asked by Michael on September 01, 2015
Q: I have an Athabaska bond (7.5% coupon; maturity 19-Nov-2017) that is currently trading below par. Given the news about the additional cash payment just received by ATH, it seems to me that they should easily be able to repay this bond upon maturity in just over two years.

Do you have any idea why this bond is trading below its par value? Is there a significant risk of default by Athabaska over such a short time period?

Thanks!
Read Answer Asked by Gregory on September 01, 2015
Q: What is you opinion on the latest rise in Oil stocks (Ithaca and Surge) and more specifically the latest bounce in the oil price? Is there anything fundamentally behind it or is it just a dead-cat bounce and it will turn much lower in the fall with the inventory build ups due to the refinery maintenance season being soon upon us? I can't find anything fundamentally to explain the sudden rise. Many analysts are predicting anywhere from $30 to $85 a barrel by Christmas? What is your viewpoint on where you think the oil price will be by the end of 2015 and more importantly for me the end of 2016?

Thanks,

Brendan
Read Answer Asked by Brendan on August 31, 2015
Q: Hi Peter
What do you think the reason is that stalled wcp today most seemed to rally ?
Kind Regards Stan
Read Answer Asked by Stan on August 31, 2015
Q: Can you please give your outlook for oil short term (6months) and longer term (3-5 years). I have hard time to wrap my head around $40 oil assuming supply destruction and the world still growing... Would you know the average or lower cost to produce with current fracking methods ? As many i am down on my oil stocks but don t really feel the need to sell. Thank you for your general comments
Read Answer Asked by Pierre on August 27, 2015
Q: Peter et al.:

I noticed in your recent blog that you have IAE listed as one of the oil stocks that will be in a pinch if the oil price stays low or goes lower. Does this take into account their hedges out to mid 2016 and their hedges out to mid 2017? Assuming that Stella starts producing in mid 2016 there should be a large increase in cash flow with the 16K of extra production, is this taken into account. I think past mid 2016 there will be some risk but their break even price is stated at $10/B until Stella produces. They have been rescued in my opinion by their hedging regime and are seen as a show me stock. In this down energy market I think they have reduced their risk to the low oil price as reseasonably possible. Many companies have not done this but IAE's stock price does not reflect this. Also they are planning in this quarter to start to reduce their debt and they do no even have production from Stella yet - this surprised me actually. Yes it will move as the oil market moves but I believe it has a low probability of insolvency even with 800M of debt. I believe there are more companies that have a greater chance like my lottery ticket - INA (last time upgraded to 2 lotto tickets from 1 -LOL). I just hope I am right.
Waiting for an energy turnaround

Thanks,

Brendan
Read Answer Asked by Brendan on August 26, 2015
Q: Hi, I have no US exposure or Energy stocks so was looking to buy 1/2 of ETP.US for dividends but with the drop in price I am now looking at growth for the same stock.
Any comments would be helpful.
Read Answer Asked by Paul on August 26, 2015
Q: surge is now trading at a similar value to what it sold the asset to torc for.( 500 million) I know 5 i sold this stock but am I missing something else here or should I sell and move on.
Read Answer Asked by blake on August 25, 2015
Q: I am losing big time with my COS shares which were purchased at $21 and are now trading around $6.00. Since COS has only one asset and a lot of debt are they in a financial position where they may have to go bankrupt or can it be an interesting buy for another oil producer? I am wondering if I should sell my shares or hang on to them. I would appreciate having your comments. Thank you.
Read Answer Asked by Monique on August 24, 2015
Q: Our weight in VET has now dropped to 1.9% so I think I should either sell it or buy another $15,000 to increase the weighting back up to 3%. The only other energy stocks we own are CMG and PEY with a 2.5% weighting each. We have 27 separate stocks & ETF's and I believe you think 20 is the right number so selling VET may make some sense. Do you still feel VET's dividend is secure? Maybe I should just do nothing - any suggestions?
Read Answer Asked by James on August 24, 2015
Q: I haven't owned energy for a while and am waiting to buy 2-4 of these: HSE,WCP,PKI,IPL,ARX,GH. Please rank them in priority. Assume I'll buy them today.

Would you replace any of the energy stocks with SU or CNQ? Thanks
Read Answer Asked by Tim on August 21, 2015
Q: You suggest a 5% weighting in energy at this time. If I were to reduce my energy holdings to 5 %, it would involve taking a significant loss (and buying high, selling low). I'm ok with just holding on unless you think that's a bad idea. What are your thoughts on this? Many thanks for your steadying hand.
Read Answer Asked by M.S. on August 21, 2015
Q: Good morning - I own the above stocks in the energy sector and they make up a total of 9% of my portfolio. I am obviously down considerably. I own all of them for income purposes, but of course would like to see growth over the long term as well. With a long term outlook (3-5 years), does it makes sense to just sit on these stocks and collect the dividend? Or, do you suggest selling one ore more at a loss (CPG at a 55% loss) and redeploying the funds in something other than energy once things settle down.
Read Answer Asked by Kim on August 21, 2015
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