Investment Q&A

Q: Could I have an updated comment on ATH given that they have no dividend to cut and how much cash do they have in the bank?
Many thanks!

Q: Thanks for your service! Curious about the portfolio review you offer but couldn't find info on the website.

I currently have minimal exposure to the energy sector, and am thinking about dipping my toes in the water for about a 5% weight that could be added to if oil had another shock to the downside. I'm looking at adding a few lowest-cost larger-cap producers that would be the "last men standing" should oil stay at these levels for an extended period. What would be your choices for core holdings in the space?

Also, why do you think OPEC kept production level?

Thanks!

Q: Hi Guys,

I am a dividend investor and one of my rules in my portfolio management is to immediately sell any company that cuts it dividend without thought or question. I can repurchase the stock after a 60 day waiting period. This has helped in the past as the stock price usually keeps falling.

I own SGY and CPG in my portfolio in equal weight of 3% each. I am considering not using my "sell on dividend cut" rule as these stocks have dropped prior to a POSSIBLE dividend cut and may even rise if a cut is announced.

I would appreciate your comments.

Regards
John

Q: Peter, only for the information file, I spoke with management at Surge this week. They told me the dividend is safe and they will protect it at all costs. They said they had prepared for this scenario in oil and would see there commitment on dividend through. Who do you believe, analysts or the boss of the company. I will take the boss of the company, Ken

Q: Will these companies have to cut their dividend, it oil stays between 55- 65. For the next year or is the dividend safe . Dave

Q: I am holding a basket of energy, of which are underwater at present and would appreciate your comments on which to hold a which to sell. With the sales proceeds I will redeploy the funds into the "keepers" or alternately add a new holding(s) that you might feel will provide best opportunity for go forward hold.The holdings are BTE,POU,CPG,BNE WCP,TOU,SGY,TVE.
Thanks

Q: It seems oil investors are throwing the baby out with the bathwater,two companies in particular-WCP has 48%of its 2015 production hedged @ $98/barrel,SGY P.O.ratio is @95% and its drilling new wells with a payout of less then 1 yr.even at $60 oil according Dundee.I own both companies and am considering gradually doubling my position.A good idea?

Q: I currently do not have any exposure to the energy sector. I am starting to get attracted to the high dividends of some of the higher quality companies such as WCP. I am thinking of a pairs trade; shorting XEG and buying WCP long. This would allow me to collect the dividend but protect me on any further down side. Once the energy sector calms down and starts to behave rationally I could slowly take off the short position leaving me with a long position in WCP. What do you think of a strategy like this?

Thanks, Darcy

Q: I need some capital loss to use because of capital gain I have.I have CNQ and VERMILLION.Of th e 2 which one is safer to keep in present oil uncertaity.?I appreciate your advise and thank you.Ebrahim

Q: Hi Petr and team

Could you give your opinion on 7 Generations Energy

Thanks

Ross

Q: 1. If Oil prices do not recover in the next couple of years, is HNL at risk?
2. Does it have any significant debt maturing in the next 2 years that they might not be able to renew?
3. I know that you rated HNL as a C+ in October. Has your view changed in the last couple of months?
4. Would you recommend selling? It is a very small portion of my portfolio.

Thanks,
Hans

Q: Hi folks,
I'm asking you to think about a bottom in oil and how this will all play out. If you put aside the gripping fear for a moment around the oil "crash", calmer heads suggest these sort of events have happened before in history many times and we have a good idea how it plays out. Peter called it by saying dividend cuts and reigning in cap ex would occur. Where do we go from here? Insolvencies? Do you think when Buffet throws one of these oil majors a hefty lifeline that were close to a bottom? Remember when he bailed out GE at $3/sh or did the same to GS at $75 share. Thanks for your thoughts.

Q: Hi Peter
I suspect I have been overweight in oil/gas and have lost more "paper equity" as it has been dropping though I prefer to think I have still spent it on "good companies".
When you say 10-15% energy weighting and that TSX is 21% or 25% do you include
a)PIPELINES like ALA,ENB,IPL,KEY,PPL,TRP
b)SERVICES COMPANIES LIKE BDI,CFW,FRC,HWO,PHX,PD,SVY
c)OIL BASED OTHERS LIKE BAD,MTL,PRW,QST
Thanks for all you do
Dennis

Q: Kevin O'Leary was on BNN and said he hopes oil goes to $35 a barrel. He mentioned that we should instead be investing in the S&P 500 like he has. Now he says a lot of junior oil and gas companies are going to go bankrupt. Why would a Canadian, and a owner of a fund company add fuel to the fire of panic. Do they have alterior motives to help drive the price of oil and gas stocks down?. Are they shorting? CNQ chairman Murray Edwards said that he predicts oil will drop to $30.00 a barrel before it rises again. Why don't they just keep quiet rather than add to the panic selling? What is in it for them to say these things which are only their opinions.

Q: Thanks for a great service...I hold both wcp and bdi and a little sgy...my energy holdings are 3.5% of my portfolio ...my question is with wcp and bdi down approx. the same would a sell of bdi and a buy in wcp make any sense as the producers will probably go up quicker than the service related stocks.

Q: When an oil company announced a reduction in capital expenditures for the coming year, how quickly does that reduction get put into effect? Do they actually start reducing spending immediately or is just an indication of where they think they will be going? I am wondering if the announcements coming out of the oil patch are as much for PR purposes to calm investors or if they are real. I ask from the point of view as to how these announcements should be viewed as they affect oil service companies like BDI, BAD etc

Thanks.

Paul F

Q: This is just an information post relating to the concerns about the oil glut. I found the attached post useful and informative. Like 5i I find Jeff Miller to be a voice of reason in times of tumult. As he notes, when consumption is 92.5 million barrels a day how significant is a "glut" of a few billion barrels. Next year consumption is projected to grow by almost 700k bbls/day and that's based on $100 a barrel. At todays prices will consumption increase. Will production drop.Are all geo-political risks off the table.
5i has has identified some excellent companies in the energy sector, some might appeal to a contrarian investor.
Just some thoughts as Christmas music plays on the radio and snow blankets the trees in the back yard.
Happy investing
Mike

http://dashofinsight.com/crucial-facts-energy/

Q: Being small do you feel the yoho can grow at this stage?

Q: PLZ RECOMMEND A CANADIAN DIVIDEND ETF OTHER THAN ZDV WITH LIMITED OR NO EXPOSURE TO THE OIL PATCH.
MANY THANKS

ROGER

Q: Energy and related stocks.
Like me many subscribers are seniors. I have a large holding in the above ( oil, NG, pipe line, services ect.) and am worried.

How do you see 3 TO 5 YEAR OUTLOOK for the above and what factors might play in to a reasonable assumption. How long might it take to balance supply and demand, as many say that $60ish oil will weed out some producers and reduce capex spending on new drilling . I understand that it is impossible to time the market but can you assume a reasonable oil price at sustainable levels of $70 to $80 oil and $4 for NG. any comments would be very helpful.
thanks
Yossi