Investment Q&A

Q: Hello 5i. Are the energy royalty companies like FRU and PSK exposed to the same kind of risks as individual energy companies, or are they different? Are they likely to cut their dividends in the current environment? Thanks.

Q: Freehold is down considerably and now paying an ten percent plus dividend. Even with a slow oil recovery, is this dividend safe and would you buy it now?
Thanks.

Q: Do you think that dividend is safe here? If they cut it in half, would this still be worth holding for a few years in registered acct?
Thanks.

Q: I have been holding shares of Freehold Royalty for 4 years - they seem to be heading downwards - what is your opinion on this company - hold or sell.
Thanks for your help- Hanna

Q: Hello 5i Team
I am looking at adding funds to the small/mid cap energy companies, as I already own my desired holding in the majors (CNQ, IMO, SU) as a base position.

I am reviewing the royalty plays Prairie Sky Royalty and Freehold Royalty as potential companies due to the royalty companies having no exposure to operating costs/risks.

Please provide your opinion which is the better company of the two to purchase or should I split the dollar amount between the two companies? Should I wait till the Q4 results are published (Feb 10 for PSK, unknown for FRU) before making my final decision?

I note that CN Pension trust through Rife Resources Ltd. and Canpar Holdings Ltd. has a related interest, however I could not find how many shares CN Pension trust actually owns. Would you be able to provide the ownership of FRU by CN Pension trust.
Is there a major shareholder of PSK?
Thank you

Q: Do you consider any of these dividends to be unsustainable? Any other comments on these companies?

Q: 5i
Oil represents about 5% of my portfolio and is comprised of Freehold, Vermillion, Surge and Whitecap. I cannot get a good feel as to where the price of oil is headed in the next 2 years. Appears to me there are conflicting views. Should I get out of the oil sector, invest in good dividend paying stocks that would be more stable and re enter the oil market or not at a later date. All my oil stocks do pay high dividends, are they sustainable. Appreciate your insight on both the oil market and potential stocks to invest in regardless of sector if you feel exiting the oil market may be the way to go.

W

Q: What are your thoughts on Fru thankyou

Q: I split a full position between these 2 recently. I was wondering if you preferred one to the other and if so, for what reasons?

Q: As I hold a position in Freehold Royalties could you please give me your opinion on the company and if I should hold or sell this stock.
Thank you for your reply.

Q: Hi 5iR Team, TD puts out a monthly consolidated report of its stock coverage universe. In the Sept. 30th report I looked at their Junior/Intermediate O&G stocks. I noticed that if I arbitrarily picked an upside % of 70% i.e. current price and TD's Target Price there were 13 stocks. The lowest was TOG at 70% upside and the highest NVA at 152%. In addition, some of the stocks like WCP and FRU are yielding 8%+. For me as an investor this is compelling data. Lastly, reading further into the report TD's O&G sector thinking as stated by their senior analyst is not Bullish. In other words TD does not appear to be exaggerating the facts, attempting to make some case for investors buying O&G stocks.........but the analysts in the field certainly feel incredibly positive on a number of Junior/Intermediate names.
How do I sort this out??
What would be 5iR's top Jr/Int. O&G picks?
Thanks team. Cheers, Chris

Q: I am seeking dividends. What do you thunk of FRU?

Q: I picked up some FRU on the recent sell off. At the time I thought PSK was the more stable stock! How does FRU compare to PSK now? Is FRU in danger of succumbing to the same problems that have just hit PSK? Which do you consider the better stock?

Q: At around $7 it looks as tho FRU is heading for its IPO price almost 20 years ago, and PSK is not much better. the question seems to be - is this an indicator of future oil price and its value to the economy? Both these equities used to be considered relatively stable and possessing underlying value, current and future. Is this no longer true?

Q: Any thoughts on why this one is dropping so much lately?

Q: Is Teine Energy financially sound, and has it been a consistently solid, private energy producer over the years? Does 5i consider them to be a good, and sustainable, partner for Freehold Royalty? Thank you for your comments.

Q: I've been looking over FRU since I saw your most recent answer to a Q about it. Seems remarkable the it is now trading at a price last seen in 2000! It is trading below it's 2008 low. My question is: Considering that oil is a declining asset has this company managed to increase its land holdings in oil over the last 20 years or is it on a slow decline? Also, how did it perform in the 2008 Great Recession?

Q: Peter; Which of these two would be suitable for a senior looking for safety and income? Thanks.
Rod

Q: What do you think of this stock at current level
Phil

Q: At $50ish WTI, if all I cared about was the DIV. sustainability and no bankruptcy, which of the above would you list as best.
thanks
Yossi