Investment Q&A

Q: Hi 5i
Regarding the deal announced this morning concerning TOG and Whitecap all stock deal, expected to close in Feb 2021.
"Under the deal announced on Tuesday, shareholders of TORC will receive 0.57 Whitecap shares in exchange for each TORC share, representing a discount of about 4.3% "

What is your opinion? Is this a good deal and should I continue to hold my position to receive Whitecap shares or sell and move on or does Whitecap present a good opportunity?
What is the likley hood offer could improve?
Thx
jim

Q: I own these three energy stocks. They are now in the positive, WCP up 74%, CPG 12% and TVE 7%. I think I'll keep WCP a little longer based on your answer to an earlier question, but with respect to the other two, should I just be happy I'm green again and cut and run? Or, do you see them rising with the sector in the coming period of positivity? Thanks!

Q: I have a large position in Whitecap with TD Waterhouse and am doing very well as it increases in share price. Please outline a "trailing stop loss" strategy that can protect my gains.

Q: Good snowy morning team,
I've owned WCP for the last year and am now ahead 25% since the stock price "took off" two weeks ago.I realize there is much optimism in the market since the positive announcements on vaccines.Is the stock ahead of itself or should I take some $$ of the table.Analysts have a 4.25 high target price.
Many thanks,
Jean

Q: Should I double my position in WCP to cut my losses

Q: Which of these two is more likely to survive? And thrive longer term?

Thanks.

Q: I hold all 4 of these stocks in my portfolio and because of the decrease in the price of oil all are on the small side as a percentage of my portfolio. Thinking of rolling all into one stock and wondering what stock you feel will recover quickest in an oil recovery and which stock do you feel is the safest.

W

Q: Hello,
What do you think of WCP ?
Thanks!

Q: Will there be a lot of selling pressure on the these stocks during tax loss season. Should I sell now and buy back at the end of the year.

Q: Please rate the above for survival and continued Div. payout in the next 5 years, based on cash- flow that well covers the dividend . I am a senior and need income. I have a position in all the above and would like a rating best first. Please insert your suggestions for the above criteria.
thanks
Yossi

Q: Hello and thank you for the great advices as always! In a locked-in RSP, about 10% of my portfolio is exposed to oil&gas since I bought WCP, ERF, BIR, TOG AND VII in the big drop of March. Although I am Extremely happy with the run up so far, I've started to add stop limits to TOG, BIR and VII as I am A) scared of another downturn in the second half of 2020 (COVID related risks and current valuations) and B) I've also noted from reading the Q&A section that 5i isn't particularly bullish on oil short term and that you often categorize these companies as not a ''must have'' for the sector.

1) I haven't been able to get myself to think of selling or putting a limit on WCP. I know you aren't too much excited about the company, but I am emotionally attached to it. One of my best play. Love their Greener-ish Footprint. Love the monthly dividend(DRIP). Love that the operations are located in Canada. I think it will be a good consolidator (Manulife's NAL resources for a start). What's your view on the company today and would you consider my sentiment for the company irrational (or financially dangerous)? I've seen 5i recommend VET over WCP, but I don't understand why. I find VET very disappointing this year, not well paid to wait and its geographic dispersion a headache.

2) Similar story about ERF. They have one of the stronger balance sheet for the sector I hear and wanted your take as well on the company as of today. I found their planned approach for the future a little too conservative on their latest earning call. My two fears with them is that they are a much smaller player and with the US elections coming up, their Dakota operations are stressing me more especially with Biden's statements on energy.

3) I hold some Suncor&CNQ in other accounts and I will eventually reduce my total exposure to the sector, but for fun's sake : If you could only keep one position between ERF and WCP (drip active) for the next 5-10 years, which one would it be and why?

Thank you very much again for the help and the great service.
- Michael

Q: Your thoughts on their acquisition of NAL?

Q: Hello 5i, I purchased these stocks at a much higher (higher) price. As we approach tax loss selling , which ones are worth keeping? and which ones sell now?
Thanks for your great service.
Carlo

Q: Why doesn't the company suspend the dividend and divert the money to debt. It can be reinstated later when it is more viable. Most investors would not miss it. If you own ten thousand shares you only get one hundred dollars a month dividend. I would gladly give it up if it went directly to debt. It seems pragmatic.

Q: Your thoughts on earnings? Thanks!

Q: Will there be a tipping point on oil prices for these stocks to move ? At what price will WCS have to hold for these companies to make money? Thx

Q: I am seeing lots of insider buying in the junior oil and gas area. Is there a good etf that represents the sector or could you give me a couple oil and a couple gas stocks that could do well in a recovery. Thx

Q: Hi, on a risk reward basis , what are the 3 oil companies you would invest with the highest leverage to oil prices ?, this will be no more than 2% of my portfolio, so I can take the risk of losing it if they go bankrupt . My exposure to oil is rather small and limited to large companies like Enbridge and Suncor. My view is that oil will have a come back in a 3 to 5 years time.

Q: I own the following and thought: WCP ( good assets good balance sheet),
CJ ( slow decline rates), VET ( Brent prices) And they were all paying great dividends ! What could go wrong eh?
The model of great dividends in this sector is broken and not to return.
These stocks represent a small part of my portfolio.
Believing that the market will do its work eventually , I am looking at selling these and replacing with PXT which is one of your favourites in this sector. Would you expect it to bounce back to the same degree as the others or more / less?
Emotionally it is very difficult to sell your losers, always hoping they will come back, but have found once I sell them, they are not daily reminders of the money I have lost.
PXT has a strong balance sheet, good assets and management. Is their oil sold and refined within the region? Would you buy in RRSP,TFSA or CASH account.? Thanks. Derek

Q: I am a "buy and hold" long term investor. I have held these stocks for over five years on the assumption that at least one of the pipelines would be built and the stocks would regain at least some of their losses. Of course that hasn't happened. With the Covid-19 situation I am concerned about a serious downturn in the economy during the next 18 months. As these stocks are already extrememly low, I am wondering if they will survive, let alone improve, during the next year or so. Based on income, debt levels, and future prospects, please rank each company according the possibility of failure.