Investment Q&A

Q: On March 4th, you gave a fairly negative view of Baytex Energy. They have just announced a new issue of common shares at $17.35. Is this now a decent entry point and would the added revenue alter your opinion on the company going forward?

Q: Hi,

I'm interested in your thoughts on Baytex Energy in light of the recent decline in share price. Is this a chance to pick up some shares at a bargain price? Thanks!

Q: Would you recommend trading baytex bte for bonterra .DO you think bonterra will recover faster than baytex. I want bonterra for income. THANKS

Q: what is your opinion of this company?

Q: I would like to sell Baytex to offset the capital gains that I made this year. I hold other oil and gas stocks already so I don't need to replace it with another oil and gas stock. I don't have much weight in the technology industry except for Enghouse Systems and it is about 2% weight. Should I add another name or invest more in this name? I also have no stocks or ETF in the health industry.I also have cash that I can invest as well but not quite sure where is the best place at the moment. I am a long term investor.

Thanks
Dolores

Q: What is your outlook and opinion on BTE.T and can it be bought now?

Q: Hi Peter & 5i: I heard mention recently of the prospect of Canadian O&G producers running into debt problems as a result of current debt covenants that require them to maintain threshold ratios on metrics like debt/cash flow. Lower oil prices would mean significantly lower cash flow and potential difficulty maintaining the required ratios. Also, with the prospect of the lower oil prices extending at least well into 2015, IFIRS requirements may also have them writing down their oilfield values by the February-March timeframe, which could be detrimental with any similar provisions using metrics that involve asset values. What are your thoughts regarding these concerns for the O&G stocks generally and, more particularly, for Baytex? Thanks.

Q: Was the huge cut in the dividend done out of need to preserve cash or more from the point of view of sustaining the stock price? Should we expect large and fast dividend increases once the price of oil stabilizes and presumably increases?

Thanks for being a voice of reason in these times!

Paul F.

Q: I hold Baytex in my TFSA. If I sell, I cannot claim any capital loss in this account. With COS cutting their dividend, I'm starting to think Baytex will be next, and then go down even more? What do you recommend - sell and replace with a better energy stock with a brighter future and better chance of recovery - or hang in for the long term with Baytex?
Thank you.

Q: Baytex is having a bad day, trading at $26.40 as I am writing this. Falling knife or good entry point?

Q: As you know there have been concerns regarding Baytex debt level in the face of falling oil prices and the falloff in stock price is blamed on the risk of a cut in the dividend. Information on the company website shows that their heavy oil is 51% hedged at $96.45 for Q4 2014 and 45% hedged at $96.45 for Q1 2015. They do have $1.38 billion in long term debt but almost none matures until 2021, and they have a very low payout ratio. It seems to me that the concerns are overblown, what is your opinion?
Many thanks.

Q: Recent questions & comments about BTE mention the recent large acquisition & > debt.; however, they did just divest of a property and commit almost $300M to paying down their debt.? Comments please as I do own this one & was thinking of buying more.

Q: Until recently, BTE always won out over CPG for stock selection, and in early Sept. it still traded at a $3.50 premium over CPG. Now it trades $5 lower than CPG. What has happened? Is it time to kiss Baytex goodbye?
Thanks! Chris

Q: Hi team:
I lost some money on the above, I will hang on to WCP, SU, CNQ
HSE, I heard that there could be more negative reports to come shortly on BTE
I wonder if I sell BTE and move to CEU (Canadian energy services) which pays a nice dividend would be a wise move ? thanks!

Q: Hi Peter, Can you give us your opinion on Baytex with this tax bill that they could be hit with. Linc is http://business.financialpost.com/2014/11/04/baytex-energy-faces-57-million-tax-penalty/?__lsa=b8fc-2bc7. We are hugely underwater and the situation seems to get worse every day. Is there any reason to continue to hold this stock or should we throw in the towel.

Q: This is more of a tax question than a Baytex question. I sold Batex Energy on October 9th and it had a settlement date of October 15th. I sold for a loss to offset some capital gains. I sold it at $38.00 and had purchased it at roughly $46.00 On what day can I purchase it back and still get the tax loss and is there any rush to buy it back? Thanks so much.

Also this service is amazing. Thanks for the awesome research.

Jimmy

Q: What are your thoughts on purchasing Baytex at this time. Is the dividend safe?

Thanks
Bill

Q: Hi Guys any comments on BTE results Stan

Q: Hi 5i team. I am 15% energy with WCP, SGY, BTE, TOU, VET for 7.5%
ENB 3% VNR 2.5% and BDI 2%. I also hold all of the stocks in the two model
Portfolios plus a few extra large caps.
Should I stay the course with energy or trim some?
Thanks for your assistance
Kevin

Q: More of a comment than a question Sept is now behind us and in review of my portfolio I took a bit of a spanking on my energy stocks about 13% but on balance only down about 3% in total which if this was a correction I did ok .My frustration when I talk to the people at wcp sgy bte their hedging is excellent were as wcp is hedged out for the balance of the year 95%@$99 a barrel what could put a company this well managed under so much downward pressure ?
Many Thanks Stan