skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

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

Q: Hi Peter, Do you think the persistent low oil prices will affect LNG price? LNG export to Asian countries is profitable as long as there is a significant amount of price differential of NG between the exporter and the importing countries. Cheniere Energy (LNG) will be exporting later this year from Sabine Pass. I have significant gain from LNG. While it has not pulled back to my trailing stop to trigger a sell, under this environment, do you think it is wise to reduce or sell this position and move on to other growth areas? Various analysts have diametrically different opinions on this from "great time to buy with this pull back" to "a scary overvalued stock to sell". My best regards.
Read Answer Asked by Ford on February 02, 2015
Q: Good morning 5i team,
In december i sold surge energy for a cap loss and bought Whitecap to replace it. It is now time to buy Surge back again but i have been leaning towards keeping Whitecap instead. Am i right in thinking that you seem to show more confidence in Whitecap than Surge?
Thanks
Read Answer Asked by joseph on February 02, 2015
Q: Hi Folks,

Thanks for your great work!
I don't want to abandon the energy space completely as it will bounce back. I'm thinking of sticking with PPY and DEE while waiting for the turn - naturally I'm down a lot in both. They probably won't disappear and could experience a quick and substantial rebound when energy comes back. I'm a long term investor with a balanced portfolio. What do you think of this strategy and these two companies?

Read Answer Asked by Dennis on February 02, 2015
Q: Hello Peter:

I decided to buy a small quantity (200 shares) of the HOD ETF to hedge a bit against my oil stock holdings (Ithaca, Iona, Surge and Freeport McMoran). It fell hard yesterday with the news of the 8% cut in drilling rigs on the continental US. I am still expecting the oil price to fall further between now and the next OPEC meeting on June 5th.

My strategy is that I will use the gain that I will get in HOD to eventually buy more of my oil stocks when the oil market turns around. If OPEC in June does not cut their production then the oil price will fall much further before it bounces back. The U.S. inventories have gone up in the last two weeks at unbelievable levels - 10.7M two weeks ago and 8.2M last week. The reduction in rigs will not have a quick effect on the U.S. daily production numbers for at least 6 months. I believe yesterday's bump inthe oil price is a bit of an over reaction and will go down again next week when the inventory numbers come out for last week.

When you look at the HOD it states that it is a daily calculation based on the WTI price. How does the ETF actually work because it has increased more than the stated 2 times the drop in oil price? If my hedge is wrong I will still be very happy because my oil stocks will go up instead. I am banking on a increase in the oil price 2 to 3 years from now so I am not concerned about this blip but would like to hedge a little bit right now to make some money on the downside trend. What is your opinion of this strategy?

Thanks,

Brendan
Read Answer Asked by Brendan on February 02, 2015
Q: 1/30/15 - Oil had a big move up of $3.75. Most oil stocks moved up with the oil move - example - SGY up 10.3% - 3 stocks you support ROCK, PRW and QST moved down. Any explanation why didn't participate in the rally?

Dennis
Read Answer Asked by Dennis on February 02, 2015
Q: From what I've read today (01/02/15) it seems the reason why oil appreciated on Friday is because of the strike by "USW". It's a nation wide strike. If I remember correctly the last time the "USW" went on strike an agreement wasn't reached until after a month. If this is the reason why oil spiked on Friday what do you make of it?
Read Answer Asked by Michel on February 02, 2015
Q: do you think this would still be okay to buy? thanks
Read Answer Asked by jim on February 02, 2015
Q: Peter and team
I have one trading account that holds fairly aggressive and volatile securities. The oil portion of this is: BDI, DEE, PD,PPY,SGY,SPE, and QST.

I am willing to wait things out, but my question is are there any of these that are not likely to survive a prolonged downturn. IE could you please rank in order of "survival".

Thanks for all you do

Phil
Read Answer Asked by Phil on January 30, 2015
Q: I have just read your answer to Dale (Jan 29) and would like to know if you believe DEE and Surge have "survivability" in this downward spiral of oil prices?
Thank you and your service is much appreciated.
Deborah
Read Answer Asked by Deborah on January 30, 2015
Q: A follow up question to Hugh's question earlier, understand this is not a good entry point to buy, what is your view if it is part of a portfolio with 8% in energy and is 1 of 6 stocks in the mix (Purchased at ~$16).

Thanks
Read Answer Asked by Steve on January 29, 2015
Q: Could I get your opinion on this company? They seem to have a fixed price of $77/barrel in Argentina and some properties in Canada. The CAPEX is set for 2015. Lots of reported resources to drill up. Sounds like they have some new board additions recently. Given our low spot price for oil, how does it look to you for the next few quarters? Is it somewhat sheltered vs other energy companies by Argentine fixed price of $77/barrel?
Read Answer Asked by Randy on January 29, 2015
Q: Hi Team. Can you tell me how Canyon (FRC) is doing? Can they survive? It just keeps going down and down. I bought at the top in May. :(
thank you
Read Answer Asked by El-ann on January 29, 2015
Q: Hi Peter,
I've heard you say in the past a healthy buy signal for a company is when it announces its first dividend. In keeping with buy signal strategy, what sort of signals are the professionals looking for when they start buying oil equities? What would you consider a buy signal in the oil patch? My concern is that the non-professionals almost always are too early or too late which kills return. Thank you for your time.
Read Answer Asked by mark on January 29, 2015
Q: Hi Peter and team.
Warren Buffet says to buy steak on sale.
I am thinking of EnCana for a three to five year hold for appreciation.
What do you think of the quality of this steak?
Gord
Read Answer Asked by Gord on January 29, 2015
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!