Investment Q&A

Q: The chart for the above is interesting. Basically there has been a 10X return since the covid low several years ago. The oil price hit $115 in May 2022, but the share price for MEG was only 20% higher than it is today, with the oil price at a little over half of what it was in May 2022, at about $68.
Many expect oil to regain some footing here and rise, maybe to $100 or more over the next few years.
But from this price history, we should really only get about 20% higher on MEG shares even if the oil price climbs back to $115 right? Why would shareholders want to pay so much more for MEG shares with oil at $115 in the future than at a previous date where oil was at $115? It would seem that at the future date of $115 oil, we would be even closer to a renewable economy than we were in 2022 and therefore be even closer to the decline of an oil based economy, making the MEG shares less valuable? Thanks.

Q: Just a quick question. I have a TFSA and hold a few volatile companies that I like to trade. I have followed technical analysis for 40 years. I have read that a YFSA account can be taxed if there is too frequent trading. Is this true? And at what point will the trading be to frequent?
Thank You

Q: Peter, it is my understanding that all three of these companies now have very low debt. They also have a very low p.e. They also have a very long reserve life. Is it true that renewable energy is many years away from being a viable solution for energy for the world? The share price for renewables has certainly shown that. ie. RNW Algonquin.
Is this huge drop in these energy companies due to the no more piplelines and no case for LGN, the Trudeau effect. Are these three companies still overpriced?? What would be a good entry point?? Is not a 9.5% div on Peyto the same as a 12% GIC after tax is calculated?? I would like your opinion on these questions Thanks Ken

Q: JOY
FRU
ATH
BIR
PXT
TCW
WCP
TVE
ARX
CPG
VET
ERF
MEG
BTE

Which three of the above fourteen oil & gas stocks would you sell first to bring my sector allocation back to my normal weight? This is assuming 100 WTI oil in 2023. Could you also provide a brief reason for each of the three stocks that you would get rid of first. Thanks.

Q: As tourmaline has run up quite a bit I am hesitant to buy at this price, Considering MEG as an alternative buy.
Would you consider MEG as a good buy or stick with TOU?
Thank you

Q: I have no strictly energy companies and I am thinking of starting positions is TVE, MEG, and BTE. I would appreciate your comments on these as a good place to start building an energy position.

Q: Follow up to your answer to Charles , what companies have the best long life assets?

Q: Hi. What is your view of MEG's prospects in the next couple of years?

Q: what are the current annual percentages of dividend, debt and free cash flow yield for each of these companies. use as many question credits as needed

Q: Hi 5i,

Following Eric Nuttall's appearance on Market Call on March 4th this year, I invested roughly equal amounts in the above six oil and gas companies on March 7th. (Coincidentally, another 5i member posted questions about the exact same six companies that day.). As of yesterday's close, the results have been a mixed bag, ranging from TOU up 52% to TVE down 25%. Overall, though, up about 6% (not counting dividends).

My investing style is generally to buy and hold quality companies for the long-term, while this oil and gas play was intended to be a bit more of speculative. What is your current opinion of these six companies? Would it be wise to sell any now?

Q: Hi. I own these oil stocks and have to get rid of two or three. Which three would you sell first and in what order? Thanks Paul

Q: i am negative on above 5 companies. Do you recommend I keep all 5 or should I sell all or some, resp. sell and replace with other companies in the sector, such as Whitecap, Parex, SU and others?

I am primarily looking for growth.

Alternatively to energy companies what are the best Canadian growth companies you recommend. Thanks. Klaus

Q: Please rate these energy companies in order of your best choice for growth in the next 2 years.

Q: Eric Nuttal appeared on BNN on Friday. He is very bullish on both of these stocks. My questions 1) Do you still feel that there is a significant upside in oil stocks in general? 2) What are your thoughts on these two stocks 3) What is the better investment now - quality gas stocks or quality oil stocks

Q: Can I please get your outlook on the energy sector, and the holdings above- how would you rank them for a 1 year hold, would the ranking change for a 5 year hold?
There is the view that energy will come back to represent a larger % of the index again.

Q: In your answer to a recent question (Myron -June2) you rank MEG relatively low on upside potential, apparently well below CNQ and SU. Could you explain a little, please? thanks Jim

Q: I am thinking of buying these companies in my tfsa account in equal weights. Do you have any concern with any of these companies and would you be able to rank them in order of possible upside? Thank you

Q: Peter and Co, I am looking for a Canadian energy company that has good upside as well as large tax losses that could be used to offset any potential windfall taxes in Canada. I already have reasonable positions in CVE, VET, TOU and HWO.
With appreciation,
Ed

Q: On May 9th, there was a question from James about when MEG Energy might start a dividend. In their recent Q1 earnings report, they stated that once a debt level of $600 million was reached, which they expect by the 2nd half of 2023, 100% of free cash flow will be returned to shareholders. I would expect this means some combination of share buybacks and dividends.

In Q1, the company had approx $500 million of free cash flow, which is about $2.0 billion for a year at that rate. There are 307 million shares o/s currently, so that would equate to roughly $6.50 a share. If half went to share buybacks, then that would leave roughly $3.25 for a dividend, which would be about a 17% yield on the current share price. Of course, energy pricing could change significantly (up or down) between now and then.

Q: I have a small percentage in each of these companies, I would like to add to some or all can you tell me in order of preference you would suggest I add them.
Thanks, Dorothy