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: Hey Peter & Team,

Have approx 25% cash on the side and am waiting for something of value to appear.

I have been watching Whitecap closely and noticed today @$14.04 it is trading below it's 200 day moving average ($14.08) and considerably below it's 50 day moving average ($14.47)

At the same time on a technical basis it has been showing higher lows and higher highs since it's low point Jan 12.

Please provide advice regarding whether now would be a good time or not necessarily a good to take a 5% position and why you think as such?

The balance of my portfolio contains 7% in O&G. (TOU & BTE) and I recently put new U$ money into BP (20% of my US portfolio) @ $39.64.

As always, thanks for all you do

Gord
Read Answer Asked by Gord on May 26, 2015
Q: Hi 5i,

Thank you for you answer today on Royal Dutch Shell RDS.B. I have a follow up question please.

I own Chevron (CVX) (which you also mentioned in your earlier answer), Husky (HSE), Peyto (PEY), and while not directly comparable, Methanex (MX). I am contemplating one more energy stock which is why I asked about RDS.B.

If you could buy only one more energy stock for some growth but also a high sustainable and hopefully growing dividend, which would it be?

My research indicates RDS.B looks attractive, but so does Whitecap Resources (WCP) and possibly Vermillion (VET). The latter two are obviously Canadian which means I can buy them in $CDN of course, which may be doubly beneficial when oil prices recover and move the Canadian dollar.

Thank you again.

Michael
Read Answer Asked by Michael on May 19, 2015
Q: I currently own WCP, SPE,TOU,ESN,PPY,TOG but each stock holding is less than 1% of total portfolio weight. Since reading Ryan blog about weight allocation I am wondering if it would be best to sell some of these stocks and use the proceed to increase the weight in only 2-3 at this time. I am thinking that it would be best to keep WCP,SPE and TOU. Your thoughts on this move?

Thanks
Dolores
Read Answer Asked on May 14, 2015
Q: Hi team. I have 16% of my portfolio in these energy, with WCP being my largest holding at 6%, and SPE my smallest at 1%, the remaining about 2.5-3.5% each. My portfolio is quite balanced sector-wise. It looks like oil is going down again, and I am wondering if it would be wise to lower one or more of my holdings, or just stay for the ride. Thanks as always.
Read Answer Asked by Kim on March 16, 2015
Q: What Oil/Gas companies do you believe have the greatest upside from the current environment? Under what scenario would you invest in them now? Ex. Waiting for oil to stabilize or if underweight and having a longer term horizon

I currently have about 15% in Oil and related sectors in the following: SGY, MMT,DEE, ELK, PPL,BDI, QST

Thank you
Read Answer Asked by Marty on January 19, 2015
Q: I currently do not have any exposure to the energy sector. I am starting to get attracted to the high dividends of some of the higher quality companies such as WCP. I am thinking of a pairs trade; shorting XEG and buying WCP long. This would allow me to collect the dividend but protect me on any further down side. Once the energy sector calms down and starts to behave rationally I could slowly take off the short position leaving me with a long position in WCP. What do you think of a strategy like this?

Thanks, Darcy
Read Answer Asked by Darcy on December 12, 2014
Q: Hello 5i team,

I would like your opinion please...

Warren Buffet is not the end all do all but there is no question he has some very solid insights. One of his idioms is "be fearful when others are greedy, and be greedy when others are fearful."

With the recent falling of O&G stocks like WCP, I have been watching Relative Strength Index (RSI) with the hopes of finding an over sold equity and taking advantage.

On a RSI scale of 0 - 100 it is widely thought a stock is considered to be oversold if the RSI falls below 30.

on Thursday WCP RSI was 29.5 after changing hands as low as $11.395 per share. By comparison, the current RSI reading of the S&P/TSX Composite Index is 44.9.

Today WCP is trading around $11.60. Would you consider WCP oversold at this time and that taking on a "greedy" attitude would be wise? Or would you advise to wait until after tax loss season is over before moving in today?

Thanks for all you do

Gord
Read Answer Asked by Gord on December 05, 2014
Q: Hello Peter and Staff,
I own a diversified portfolio inspired by your own and I have done OK thank you. My question is regarding my energy portion.
CWC,KEL,PEY,PD,RRX,WCP represent now about 7% of my portfolio after the recent pull back.
Should I hold, average down or sell for better opportunities ?
Thank you for your excellent service.
Regards, Raouf
Read Answer Asked by Raoul on November 04, 2014
Q: Hi 5i Team. Perhaps one thing to remember in these times is that, if you are lucky enough to hold cash and is waiting to get in, you could do it in steps. Take for example, Whitecap. It got to over $18 before the drop. When it got down to 13.95, I went in with half a position. It bounced up violently the following day (2 days later? whatever), I went in with the other half at 14.90. Of course, there could still be another drop in oil prices. For the long run though, we are addicted to the stuff. So it is a hold. I am able to stay calm during all this turmoil because I was unlucky enough to have been invested through Black Monday. 20% drop in one day! This one we are experiencing is a picnic. You don't need to remind me that anniversary will be in a couple of days. Cheers. Henry
Read Answer Asked by Henry on October 19, 2014
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!