Investment Q&A

Q: Hi 5i team,
I would like to have your thoughts on ZCL, and an estimation of what would be your rating. Balance sheet is clean (no leverage, little other items on the asset side). Dividend is growing. Past management problems integrating acquisition seems no longer an issue. Insiders bought shares in late November. On the minus side: revenue growth has been variable, profit margins are close to their historical high, exposure to the oil industry.
Has ZCL stock price been hit too hard recently? What P/E multiple or P/CF should it trade at in the current environment? What could be a future catalyst (developing new geographical markets, acquisition)? Where would you classify ZCL: industrial or energy? Should it be a long term investment or a cyclical investment based on the economy? What is your view on this industry, and the position of ZCL in it?
Thank you for your help, Eric

Q: Peter and Team,
A quick question re: averaging down. First, we am doing very well with the overall portfolio; Thank you !! BDI is a outlier down 65% from where we bought and is now a minor player for us. With your positive outlook for BDI, is it time to average down ? Is this a typically a prudent strategy ? Many other "experts" frown on this. All the best to you all for a safe rest of the Christmas break and for a really Great 2015. Paul

Q: NAL : TSX. According to yahoo's website. NAL's projected revenue Est for 12/14/14 is 858.04M. It's projected revenue Est for 12/14/2015 is 994.56M. It's Est growth Est for 12/14/14 is 11%, it's Est growth for for 12/14/15 is 30%
It's growth Est for the next five years is 22.5% with a five year PEG of .80
All the numbers look good and it's not more than twice growth. I compared to same numbers to Canadian Oilsands, to my surprise the numbers tell me NAL : TSX is way better. What are your thoughts.

Q: I would like to buy a stock for my TFSA in January 2015 that will have a good chance of having a large gain and long term growth. I am thinking about beaten up stocks like BDI, CPG or Cos. What would you recommend?

Q: I am a retired dividend investor with 30% exposure to clobbered oil/gas stocks. When the price of oil finds a bottom and begins to rise again, should I increase my exposure at much cheaper prices to pursue potential capital gains?

Q: energy complex

I am heavily invested in the oil, gas, services and pipelines.
I would like your cometary oil prices as it pertains to the below areas:

1. cost of and continued use of gasoline additives and their impact?
2. economic lift to large economies from low oil prices and how that may influence demand?
3. how current prices might influence supply and how fast ?
4. supply disruption due to instability and political factors in many producing countries ?
5. how much supply will be deemed not profitable at $60 oil.
6. other then the weather where do you see NG prices long term 93 years) especially in light of NLG projects in North America

bottom line do you feel that oil price will be at a reasonable and sustainable $70- $80 when and why?

thanks
happy holidays to everyone at 5i and all subscribers
Yossi

Q: How is that no analyst ( to my knowledge) covering the oil and gas sector was able to predict the substantial imbalance between supply and demand of oil which lead to the ensuing collapse? The information was out there. Merry Christmas

Q: Please give me your opinion on Bankers Pet.bnk.Thank you for all your fantastic advise during the year.I have been investing for over 35 years and your advise is by far the best I've ever had.Merry Christmas and a Happy and PROSPEROUS New Year to you and your staff.Jim

Q: I would appreciate your expert opinion on Pengrowth Energy. It was just recommended on BNN as a top pick with a $15.00 target price.

Q: Hello 5i
I own Talisman and with the offer from Repsol on the table
I would like your opinion as to hold for a higher offer or
sell and take the tax loss.
Thanks

Q: Can you provide an update on your opinion of Enerplus? I have owned it since 2011 and have a significant unrealized loss. My question is should I sell for tax loss reasons (as I have a gain to offset) or just sell and get out altogether given its performance? The yield has been pushed up to 9.5% and I have 100% track record of incurring perm losses on stocks with yields that have risen above 10%. I have enough allocation in the O&G sector and would like to allocate to a mining/materials ETF (any recommendations?) where I have very little in that sector. Thanks again and enjoy the holiday break! Regards - John

Q: Convertible question (asked by Kelly)on Dec 22, 2014

The 5i response of Advantage AAV) convertibles being OK
is questionable as the bonds redeem on Jan 31/15 and trade at the redemption price. Publish at your discretion.

Q: Please rank these E & P's in order of preference-
Bte, Cpg, Sgy,Tog
Looking for Income & growth for a 3-5 yrs holding
Thank You

Q: would appreciate a comment on SGL and EGL.un after their recent deal. Thanks and Best for a Merry Christmas.

Q: This question is about tax loss selling & possible re-buying in 31 days. Legacy Oil & Gas; I am now down 82.25% (Bought at $12.45, today's price $2.21). I read about their high debt in the Dec. 14 post by Yanick. This makes me nervous. Assuming I could use some tax loss to offset gains, would it be best to sell this stock? Is this a company worth re-buying in Jan. or later, although most of my capital is gone? Are there some other oil, gas or energy stocks that it be far wiser to buy? My goal is decent growth and dividends in a non-reg. portfolio. Holding period, 5+ years. Same question re Whitecap (WCP), where I'm down 24%. (Bought at $15.4849, today's price $11.75) Thank you.

Q: Hi, I purchase Longrun Convirtible Debentures 1-2 years ago. The current price on them is well under 100. I don't expect capital gain of course, but how much risk is there to losing capital on these? Could they default or don't I need to worry about it? Along that vein, could some oil company CD's be undervalued right now, and how would you find a bargain versus ones with high risk?

Q: Would this be a good time to invest in the energy sector or would you recommend waiting? Also, if this is a good time, can you recommend a couple of names that you feel have the best chance of recovering. I prefer dividend paying companies, but not exclusively. Thank you

Q: Could you please comment on the advisability of buying peyto NOW with the EX div coming soon and todays drop in price... Any reason that you can see for the quick drop in price? And what do you see for fuure of this company 1 year, 3 years
Thanks

Q: Hello Peter & 5i team:

I currently hold shares in various quantities of Ithaca Energy, Iona Energy, Mart Resources and Surge Energy. During the oil price decline I have suffered through with these shares to nearly 50% decline in their share prices.

For Ithaca is a large holding in my portfolio and my current average price is over $2.00 and I have bought a small amount more at less than $1.00 to lower my average cost a bit but it is still over the $2.00 mark.

For Iona I had an average price of over $0.50 and it has dropped to less than 0.10 lately. I bought more to lower my average cost to $0.20.

For Mart Resources I have an average cost of about $1.40 and have not bought any recently in this downturn to lower my cost.

For Surge Energy my average cost was over $8.00 and I recently doubled my position to lower my average cost to about $6.00.

I have some extra cash at my disposal and I am wondering what your viewpoint on these four stocks would be before I make a further investment in any of them. I am heavily in oil at the moment with my portfolio about 60% which I know is not advisable but I have been in and out of Ithaca and Mart before and made money on them both and I am a long term investor and can stomach the huge variability in this sectors prices. I know that my money could be dead money for 2015 but this could be the buying opportunity of a lifetime in the oil industry. I am a bit of a contrarian that when people are saying buy it is time to sell and when people are saying it is time to sell it is time to buy. 2008 showed that to me for sure. All of these four stocks have great catalysts ahead and some have had execution setbacks but which or all four would you think is a better buy right now.

Thanks in advance,

Brendan

Q: May I have your thoughts on this contrarian play. Also interested in insider buying/selling.