Investment Q&A

Q: I am thinking that the oil glut is a lot larger than prices are indicating. I base on the very unscientific observation that even with the record long term freezing temperatures in the US, the price of oil seems to actually be dropping(although apparently heating oil is up). In the past, again based only only my recollections, a weekend of cold weather seemed to cause a spike in the price of oil.

I am therefore left wondering if there is too much optimism in oil prices and are we really looking at an extreme glut? Or is all this quite quantifiable and the market probably has it right?

Thanks.

Paul F.

Q: I recently noticed that Acker Finley came out with a model price of 16.83 on this stock which is a bit shocking. Do you have any thoughts on the fair value of this company?

Q: In reference to Sheldon's question (Feb 20th) regarding the recent rise in BDI's share price. It is no doubt partially due to the tax incentives announced by Stephen Harper recently....

"The federal government is hoping to kickstart a multibillion-dollar industry that, according to one analyst, is currently suffering an anxiety attack. Speaking in B.C., Prime Minister Stephen Harper unveiled new tax breaks for investment in liquefied natural gas.

The new measures mean companies will now get a capital cost allowance of 30 per cent for LNG equipment. And 10 per cent for buildings at LNG facilities. The government projects the tax break will save the industry about $50 million over the first five years.

Another estimate says it will allow companies to write off 90 per cent of their investments in seven years, instead of 27."

The above is taken from CBC.ca
http://www.cbc.ca/news/business/lng-tax-breaks-will-help-but-is-it-too-little-too-late-1.2965444

Q: Held on to Legacy and Surge for too long I think. Would you sell and rotate into some stronger names you have mentioned or would you recommend holding? Thank you.

Q: Hello Peter et al.

There was a surprising news release that came out last night on Mart Resources and I have been reading a lot of different speculation into it. Their CEO has been releived of his duties pending and investigation internally. He sold a lot of shares 6M from Dec to early Jan. He is in personal trouble with payments in divorce court with the judge in the UK. They have put the company under strategic review for possible sale etc. They have only just started to get production to higher levels with the new pipeline. Would you please comment on this for me. Is the shares going to crash when the market opens Monday? The uncertainty and speculation because of the strange news release might cause the share price to crater. The risk of Nigeria I guess.

Regards,

Brendan

Q: Hi, poe, should I hold or sell? Greetings Peter.

Q: Hi Peter,

This name was recently on a list you gave me priortizing how to integrate the 5i port into my own.

However BDI is up approx 40% in 2 weeks. Has there been substantial news to legitimize this move?

Or should I wait for a pullback? Have not purchased (unfortunately) as yet.

Would appreciate your opinion of a buy strategy on this one.

Thanks

Q: Do you have an opinion on this more speculative oil company? They have a fairly strong balance sheet but their best oil wells are located in northern Iraq.

Q: Peter; Reading about all the new pipelines I always see that the oil is going to Cushing, Oklahoma. Who are the refiners there receiving all this oil and are they something you would reccomend? Thanks. Rod

Q: I took a 1/2 position Dec.1st. in wcp,vet,tou and pey. So far so good. I'm considering increasing my positions and would very much appreciate you thoughts. Current energy holdings represent 7% of our equity holdings.
Thank you
Les

Q: EGL.UN - T 0.5 2.96 · 2.98 0.6 2.96 +0.27 10.0

- EAGLE ENERGY TRUST is up 10% today while other oil companies are down .It has been up 50% in the last week. Any expatiation and would you buy more ?
thanks
Yossi

Q: Your view on this news :

Cenovus Energy Inc, Canada's No. 2 independent oil producer, said on Tuesday that it had agreed to sell 67.5 million shares to a group of underwriters as it seeks to raise about C$1.5 billion for its 2015 capital spending budget as oil prices remain weak.

Q: Hi Peter and Staff
Member 5 months, great advice, only one buy so far not worked out being BDI at about $21.50.Should have averaged down when you did the report a month ago..up 15% plus since then.
You have been asked today about dividend safety...small holding,dont own Horizon and dont want it...is your outlook on its customers expansion long term enough to make it still a buy at this price with capital appreciation for long term holder to average down
Thanks for all you do
Dennis

Q: When NBZ done its december 22 revision it was based on 65 WTI,could you make a comment with regards to it's hedges and where it would stand on current price or lower ?

Q: Hi Peter
I bought Petrowest a year ago. I have now lost about 50% and it does not show any recovery. Should I sell?

Q: Hi Peter and Team, regarding Pinecrest, PRY, can you please help understand, in as much detail as possible, what their news release today all means to current share holders? Huge volume today so obviously the towel is being thrown in, by whom? Also, any sign's of insider/management buying, or selling in past six months to date? Seems like same same old Board in the new company! Any value in PRY at half of one cent to one cent here? My average cost per share is .22 cents, Ouch it hurts big time! Thanks!

PS: I know, I know...should have dumped this dogger a long time ago but felt the water floods would have helped increase production significantly by now, up slightly though!!! Thanks!

Q: could you tell me rtk, is it a hold or sell?

Q: could you tell me bkx at 0.36 cents,is it a buy? what would be the down side.

Q: hi from the big Island of Hawaii, I'm on holidays. Anyway I would like your opinion on after oil stabilizes , how long do you think an investor should wait before the energy service companies that are still in good shape become good buys. thanks jim a.

Q: Hi Peter and team,
I hold SGY and HWO as part of my O&G portfolio, you used to recommend these two for income. I am surprised with the lack of correlation with oil prices for HWO stock (is it due to small size?) and with unexpected behaviour for SGY stock today: the oil is up, Canaccord Genuity raised stock price target to C$4, yet the stock is down? Any explanations? Any thoughts on HWO and SGY perspectives and risk level? I have losses on both stocks but don't mind holding them if there is a light at the end of the tunnel :-)
Also, what do you think of CVE situation, is it a buy opportunity?