Investment Q&A

Q: Peter and Team,

There is a bond in the "high yield" category available through my broker for Vermillion Energy. The Maturity is Feb. 2016 and it is showing a coupon of 6.5% and an ask price of $101.850. I like the short duration and I think the yield looks good. Any thoughts and buying or not buying this bond? My aim is simply to buy the bond and hold to maturity to collect the yield and then get my principal returned.

Marc

Q: I know one can't time the bottom. In your opinion, are we near a bottom or at a point where you would be comfortable suggesting some buying opportunities in this sector, or would you advocate waiting longer?

Thanks for your advice.

Q: Your expert view on Kel's results today.Is it a entry point or add-on in light of the terrible sector( oil & gas down quite sharply today).Appreciate your normal excellent services and opinions.

Q: Painted Pony Petroleum reported November 11 and is down around $1 today. What did you think of their results and also the bought deal financing that has been over subscribed?

Q: Peter & Team, back to Delphi, I am afraid. We have been floundering to explain the precipitous share price decline over past 2 months. A BNN market call participant was asked about DEE recently. While a core hold of his, he was critical of management for not raising capital when prices were in the high's of $4 citing an over geared balance sheet. I wonder if we have been underestimating the adverse impact on the balance sheet of the Wapiti sale collapsing? Is the leverage all that bad? Debt to equity is $165 million on $255 million; debt to assets is $165 million on $518 million; net debt to annualized FFO is 1.9x (albeit higher than the Crescent Point "gold standard" of 1.1x); adjusted quarter EBT is $6.6 million (adjusting for property gains and financial contracts) about 2.3x interest cost- does seem a bit tight.

I also note projected gas price looks low at $3.80 per mcf and they have done a lousy job hedging where contract prices are on the $3.70 per mcf range.

Your comments, please. Thank you.

Q: Northern Offshore, NFSHF on the pink sheets has really dropped and the yield is very high right now. Do you think dividend will be cut? I was also wondering if the dividend as well as any possible capital gains would be exempt from any witholding tax if I bought it in my TFSA account. Would now be a good time to buy?

Q: Hello Peter and team,

The carnage in the energy sector continues, so it is time to see where my non-registered portfolio really is on its energy weighting. Please help me understand if I am really overweight in energy. I know it is a personal choice what percentage of a portfolio is exposed to energy, and the numbers being tossed around are 10% to 15% being ideal for most investors.

If I use the TMX sector categorization then I have 33% of my portfolio in energy. As of the close on Nov 13th the stocks are:

PPL (+52%)
IPL (+37%)
ENB (+29%)
WCP (+22%)
SCL (-3.5%)
CPG (-7.6%)
SGY (-10%)
TOU (-18%)

But your sector categorization is a little different. You consider PPL/IPL/ENB as utilities, and SCL seems to be a basic material. If you slice it that way my energy component is 16%, utilities 14%, and basic material at 2.8%

When you say a weighting in energy of around 10% to 15% is ideal, would you include the pipelines, and material stocks like SCL in that weighting?

Which one(s) would you trim or eliminate to reduce the energy weighting?


Paul J.

Q: Hi Peter & Co,
The energy sector (10%)of my RRIF portfolio contains BTE, CPG, TOU, VET and WCP. I intend to sell the first 2 sometime in the spring of 2015 and in the meantime to add now to the last 3 and take advantage of the lower prices.
Do I make sense to you?
Thanks,
Tony

Q: Good morning,
How did HWO's latest release look to you guys?
Thanks
John

Q: Now that WEQ has reported its latest results, with a further (19%) drop in its stock price, what is your assessment going forward? I'm down 40%, though have only a small holding. Am reluctant to sell based on one quarter's results, and have it in a registered account so couldn't claim a tax loss. Thanks.

Q: Peter In six weeks were into a new year and what a opportunity to move my surge shares into our tsfa and enjoy the tax free income.This is to me the silver lining of the low oil price .

Regards Stan

Q: With the bought deal at 8.00$ and the continual downslide of Weq -it certainly would appear that insiders knew beforehand of the bad results to be released.Does the Securities ever investigate this stuff or is anyone accountable-looks shabby

Q: What do you suggest with WEQ, now that they have reported Q3? Is this big drop simply earnings-based or have they adjusted the dividend as well? I couldn't find anywhere that they are adjusting the dividend.

Q: Hi Peter

I know you have made a few comments on WEQ over the past few days, but now that the Q3 #'s are out what are your thoughts?
The quarter wasn't great, but not a complete disaster, Payout ratio for the quarter was 150% which I know is high, but for YTD only 68%...seems to be overly punished/sold here.

Thanks,

Q: Can you please comment on their results. Thanks

Q: Please comment on q3 results and buying at this price +- now
thanks
yossi

Q: What is the insider ownership on torc? earning results out, Would you buy for a new position. Already own whitecap and surge but no large cap oil or gas company. Thanks.

Q: What's your view of GPE as a speculative buy?

Q: peter could you comment on YGR Q3 result thanks

Q: Hi, if you had to choose between SUN & TOG for the future, where would you put your money?
Thanks
Carlo