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: I am the poster boy for what NOT TO DO in building a portfolio . 25% of my holdings are in energy stocks ( ALA , CPG, ECA , HSE, PGF, SGY ,PPY ,TOU, WCP , SU , VET, as well as PSK, and FRU ) and probably some others. Yesterday I sold RIG at an enormous loss . I see today will be another lousy day and I am already way down on every stock I own in the oil patch ... Question : Might this carnage continue for a year or more ?... If so, which names do you suggest that I dump ? : I am 64 and retired and live off dividend income... thanks so much.
Read Answer Asked by Thomas on November 27, 2014
Q: can you tell me what percentage oil is produced as compared to gas including their ireland field thanks
Read Answer Asked by neil on November 27, 2014
Q: With the focus on OPEC and oil prices, one pundit suggested that there are a number of companies operating in the marcellus and also shale plays that will be "just fine" even if oil goes as low as $60-65.

I would appreciate your 3 favorites that would fall into that category, assuming that you agree that they would be '"fine" at those bottom of the barrel prices.

Thank you.
Read Answer Asked by Donald on November 27, 2014
Q: I'm wondering you're opinion on RE. The stock has absolutely tanked with the recent downturn in energy. Is there a concern about debt in 2015? This stock seems to be getting hid harder than most in the sector. Thanks.
Read Answer Asked by Ian on November 26, 2014
Q: I own surge energy (Sgy) for growth and dividends and would like to own whitecap as well because of your recommendations
As well, on advice for stable dividend to ride out whatever the price of oil might be I just bought HSE (which immediately went down in price more than the declared dividend) however, listening to 'experts' opinions on oil prices into the future, I pose this question:

Would it be more wise to avoid this sector altogether now and wait for it to go very low (as some predict) and perhaps even bail out of this sector altogether until it proves that it can gather more steam?
Thanks
Read Answer Asked by lyle on November 26, 2014
Q: Hello Peter & Co,
6.3% of my RRIF portfolio is in this sector (HWO, TOU, VET and WCP).
Given the turbulence in this sector, I have 2 options:
1) sell my holdings and absorb a 7% loss (impact of 0.4% on the portfolio); buy holdings back after the dust settles
2) hang in there, grin and bear. However, given the supply situation, prices a year from now could very well be as low as now.
I have a strong feeling that you would lean towards option 2
Thanks in advance,
Tony
Read Answer Asked by Antoine on November 26, 2014
Q: If I can get COS at 16.75 would it be a good long term buy(3yrs). I would be buying it for the dividend and is the dividend safe for the long term?
Read Answer Asked by Cathleen on November 26, 2014
Q: Hello Peter & Co,
I'd like to know which energy producer ( one in oil, one in gas) you would choose to invest in (one with yield, one without yield).
Thanks,
Tony
Read Answer Asked by Antoine on November 26, 2014
Q: Hello Peter:

I am looking for your unbiased opinion on Ithaca Energy. I currently have it as a holding in my portfolio along with other energy stocks and it has been really beaten down this year. I have made money trading it in the past when I have sold it at $2.55 and again at $2.90. However in June and July I ended up obtaining my full position again with a current average cost of $2.50. With the current oil environment and the meeting of OPEC on Thursday would you think it would be wise to lower my average cost by buying more after this meeting in light of the potential positive catalysts of Stella doubling current production in the 3Q of 2015 and their current break even price is $20.00 per barrel for current production and hedging. I am expecting the price of oil to drop further after the OPEC meeting however I am thinking Ithaca will withstand the lower price and still remain profitable. They have had some setbacks over the last few years of either not meeting production targets or dates and have been hit hard because of it. Some of these setbacks are due to 3rd parties like TAQA and Petrofac but the management gets the blame on bullboards I also read for research.

At the current price of $1.40 it is extremely cheap. Other analysts have the stock still at $2.80 - $3.20 target. Their net backs are still high and will be higher when Stella comes on line, however I do not want to throw good money after bad.

Thanks in advance for your opinion.
Read Answer Asked by Brendan on November 26, 2014
Q: Hello Peter

I am wondering what your opinion on Iona Energy is since the last time I asked a question on this company. The management has changed and they have since signed a deal with CNRL for the Orlando field. This will be brought on in late 2016. Their current producing asset Huntington is planned to be re-started in early Dec after a 6 week shutdown due to gas pipeline maintenance (BP CATS pipeline). They currently are trading at less than $50M market cap which is less than 1 times cash flow. The new management has bought in at $0.40 a share and the current price is at $0.14. There is discussion that they can get a $500M RBL at a low rate if they buy another producing asset. They would be able to get rid of the $300M bond with that and it would be at a lower rate. Their are a lot of potential catalysts in the pipeline so is this a buy in your opinion?

Thanks in advance

P.S. Would IAE be a better NS oil investment over Iona?
Read Answer Asked by Brendan on November 26, 2014
Q: Morning guys, depending on the OPEP meeting result, I plan to open 2 new positions in the oil & Gas sector. I already have a half position in Chevron and a full position in CPG. What would be your top 2 recommendations. It would be for a buy & hold strategy (3+ years) within a div growth portfolio.

Thanks!
Read Answer Asked by Richard on November 25, 2014
Q: Hello peter

Can you give me your thoughts on pine cliff energy for a 3 to 5 year hold. They are banking on a natural gas recovery

Kevin
Read Answer Asked by Kevin on November 25, 2014
Q: As you know there have been concerns regarding Baytex debt level in the face of falling oil prices and the falloff in stock price is blamed on the risk of a cut in the dividend. Information on the company website shows that their heavy oil is 51% hedged at $96.45 for Q4 2014 and 45% hedged at $96.45 for Q1 2015. They do have $1.38 billion in long term debt but almost none matures until 2021, and they have a very low payout ratio. It seems to me that the concerns are overblown, what is your opinion?
Many thanks.
Read Answer Asked by richard on November 24, 2014
Q: I currently hold 10% of my portfolio in four energy companies.... CPG, FRU, SGY, and WCP. This morning the Globe is running an article that states oil could drop to $60 a barrel if the Saudi's don't cut their production. How will these four companies fare at $60 oil? I bought all four near the bottom and am up on all of them, with FRU being up over 10%. Thanks for your input.
Read Answer Asked by Paul W on November 24, 2014