Investment Q&A

Q: sog is offering current shareholders to participate in a debenture offering. The way that I read it the proceeds will be used to pay off the Bank lines and the excess will be used to fund operations. The debentures< I assume would be the 1st charge on the assets and would be paid 1st in case of banktruptcy, is this the case? They pay 8% and are convertible into shares at $.09. Seems like the insiders are going to fund the major portion.How do you feel about this Debenture.

Thanks for your thoughts

Q: Hi 5i: I've been searching for info on existing North American LNG plants. Three questions (please charge as you see fit): (1) do you know if the US currently have any working export LNG plants? (2) if there are working export plants, which (if any) Canadian companies will be piping gas to them? (3) are there any Canadian companies planning to pipe gas to any US LNG plants that are under development? Many thanks.

Q: I currently have these energy stocks in my portfolio: BAD, BNK, RRX, AAV, WCP. Please advise which are the two weakest as I want to sell some and buy a global energy ETF instead to better capture the eventual rebounce.
Which global energy ETF, in C$, would be your top pick? Thanks for your advice.

Q: I have decided to lower my exposure to the energy sector. I currently own both WCP and CJ in roughly equal amounts. If I want to sell only one, which would you keep and which would you let go.

Q: Dear sirs,

Loking for your insights on the price movement of PPY, noting its weakness on a day where most oil/gas equities are moving higher.

Thanks,
Brad

Q: I assume that Vermilion trade more in line with Brent crude than WTI. Can you tell me whether the Brent contract trade different hours through the day than WTI, like the hours of the London Stock Exchange. Thanks.

Q: Please advise if you know why Badger is not only not particpating in today's gains, but actually going the wrong way.
Thanks

Q: My energy weight is very small overall. Currently holding CPG, VET, CNQ, SU, ENB and TOU. The only energy position not paying me a dividend to wait for a recovery is TOU. Would a switch to PEY be prudent to collect a dividend? Would PEY carry more risk than TOU. Do have have concerns with any of my other energy holding? Best, Don

Q: You last commented on BIR on Dec 17th. Year-end results were recently released which appeared reasonably positive given the difficult environment. I would appreciate if you could update your comments/opinion.
Thanks

Q: Good afternoon,
My wife's non-registered account holds ARX, BNE, and VET with still a capital gain in each of these positions. Would you recommend holding these positions for the longer term or liquidating now?
Thank you.

Q: You previously mentioned that VET has "a fairly large debt level based on cash flow". and that "in the 3Q had $122 million in cash flow and paid $26 million in dividends, for a ratio of 21%".
Have these numbers changed at all - ie.- how much cushion does VET have to continue paying their dividend at the current level going forward or has their ability to continue "not cutting" their dividend been compromised?

Q: Undiscovered oil is owned by the provinces and in the case of the Artic by Canada. The price is ridiculously low. Should we not be seeking some kind of political ban on future exploration to protect our children's interest in this resource? If we leave the pricing mechanism to the market and the market price is controlled by sovereigns (Saudi Arabia, Russa, Venezula etc)then you would think there has to be a floor price that Canada should set. I'm sure this question becomes mute when oil rebounds but nevertheless world markets are being adversely effected by someone trying to corner the oil market. Perhaps oil should be classified as too big to fail.

Q: What Canadian companies represent the best promise is liquefied natural gas gets exported from north America. Could you please give pipelines as well as producers. Thanks all your the best.
Chris

Q: What would you see as the best play on LNG type stocks?

Q: So now that Sinoenergy has been announced as the buyer, what do you think of the risk/reward in realizing the buyout price of 52 cents, an almost 45% upside form the current share price (36 cents).

Q: Hello Peter
Further to your response to Steve this morning, would you recommend a sell and reset on the entire sector? I hold TOU WCP PPY RMP
Regards

Q: Have been away from 5i for a while, hope you will consider this as one question.
Kinda stupid, but I am still holding Husky and Cenovus, down a lot of course. What do you think of their future, and which might be the best one [if either] to hold, or should I cash out and look for something else?
Thanks

Q: I have almost no direct energy exposure except for 2% in a services firm with high recurring revenue. Of course, there is lots of indirect exposure through banks, industrials, etc. I am interested in wading in, mostly for a yield play with some growth, not looking for a ton of torque. I understand that no dividends are entirely safe in this environment. I was wondering if it is better to go for a mid-size E&P such as Whitecap or Cabot, a pipeline such as Interpipe, a services firm such as Gibson Energy, or a global giant such as Chevron? Generally my portfolio is diversified across geography, industry sector, and market cap. I would look for an initial half-position and prefer a yield above 4%. Which names would you recommend? Thanks as always!

Q: This morning Kel announced operating results for ye Dec 31/15 & provided updated 2016 guidance.Please comment.On BNN today,2 guests said that it is well managed,but "short" by investors especially Americans to the tune of 10m shares.Please confirm & what is the percentage of outstanding shares.Bouht a small portion @ $12.66.Buy,sell or hold.Appreciate your usual great views & services

Q: I've held this for a while will they come out of this or should I just sell it. It's a small position in my energy sector