Investment Q&A

Q: Hi,

I have energy positions in SGY, DEE, RE and TNP all of which have suffered a lot in the recent correction. Do you see a higher risk in holding any of these. Also, DEE is in natural gas why is not holding up with gas prices not dropping compared to oil prices?

Q: Where is the low for the price of oil and is surges div safe at these levels. thanks

Q: Why would Surge be outperforming the decline in the market for energy sector, after all, ownership buys lots, pays good dividend, what gives?

Q: Everything is getting hammered this week, but i do not understand the complete devastation in surge, if as you say the payout ratio is 65 per cent with oil at 90. Dollars, then at what point will surge have to cut there payout, now yielding over 9 per cent at a price of 6.60. It seems to me like this selling in surge is way over done, it is down at least 25 percent in less than a month. And why are insiders buying, they are getting killed. Dave

Q: Surge Energy and Spartan Energy have taken a hit along with most in the sector. I am thinking of "diving in" but the flood of negative news on the future price of oil has left me a little gun-shy. Would you buy these companies now?
Thanks.
Steven

Q: Is it a good opportunity to buy Surge for a 12 yr olds Resp ? For a seniors Tfsa ? Thank you

Q: This is not a question; just sharing information.

Subject: Surge Energy (SGY)
There is an interesting article at www.seekingalpha.com. Title:
Surge Energy: Has The Surge Come To An End?

Q: Are you at all concerned that Surge Energy will cut its dividend?

Also, do see Badger Daylighting recovering anytime soon. It seems odd that it headed south (~ 20% now) after a decent quarterly report about a month ago.

Thanks for a lll your good work, Bob.

Q: Why is Surge Energy, for several days now, going into the tank?

Q: Hi Team, As of writing this email, SGY (Surge Energy) has a yield of 7.9%.
Is that not to high? The share price needs to move up and we should be around a 5% div yield level which is closer to where most of the small-mid cap oil & gas dividend payers are. Could you enlighten me? Thanks,

Q: Hi,
I hold SGY but continue to be concerned about the backdrop on oil. Looks like oil is headed resistance at $86. What is your take on the mid & long term prospects for oil price & how SGY will fare in a lower oil price environment if that is what you foresee.
thx

Q: Hi Peter and Team: Hope all is well with your ride. How would you rate Surge Energy, (SGY) vs. Rock Energy, (RE), or is their another similar energy play you would rate higher.

Thanks, David

Q: SGY Surge energy , Can you please update me on the 3 biggest inside
holders of this stock , No of shares held , average purchase price .
What is the percentage owned by the top combined 3 versus
the total number of shares issued . Many thanks Rick

Q: Hi Peter. I've been reading that the US has been steadily reducing its foreign oil imports from most countries except Canada. I'm sure Canada's turn will come. Oil prices are dropping. Do you see the cost of production in Canada too high and thus reducing profits for Canadian companies. I have done well with Surge and Suncor thus far. Would you recommend reducing my position in these companies. (taking some profits)
Thanks for your great advice over the last year.
Cam

Q: Hi Peter. There have been some negative articles regarding Surge energy. Are you still comfortable with it. I'm up over 30%. Is it time to sell?
Thanks. Cam

Q: Morning Peter & Team,

I am looking to gain exposure to the following three sectors/industries for my dividend portfolio:

- Energy
- Pipelines
- REITS

What would be your pick if I were to buy full position for each next week?

Cheers,

Richard

Q: Hi Peter and Team, I have recently heard a number of analysts/portfolio managers comment on Surge Energy as having an unsustainable model due to their strategy of acquiring assets past their prime , with high decline rates. The preferred model would be one such as Crescent Point Energy which owns assets where future production has more upside. Could I please have your thoughts.

Thanks, David

Q: Hi Peter & Team, SGY (Surge Energy) has a yield now over 7%. Should i be concerned? Seems like to me that the market is still perceiving this stock as high risk. What are your views? Thanks

Q: I see the techinicals on oil have broken down with a next support at $86. Would this be a good time to step out of SGY or partialy step out due to its normal volitility as a junior?

Q: re: SGY Surge & John O'Connell' comments

One of my biggest challenges is "sifting through" comments made by industry guests/pundits/experts whether on the TV, radio or in an article. I often wonder if there is any ulterior motives at work behind what they say and have no doubt at times there is. After all we are talking about money.

Mr. O'Connell' comments on Surge for me however made sense, and it isn't the first time I have heard similar comments of this kind regarding this company.

He feels the growth per share would be considerably inferior if the company wasn't paying such a large dividend. He was very complimentary regarding Paul Colburn' management abilities and referenced what he did at Cresent Point. However when it comes to Surge, John mentioned Paul made allot of acquisitions, paid brokers allot of money in commissions, and that production/share growth hasn't been all that spectacular. He went on to say he wished Paul wouldn't pay such a high dividend and that he's "on a bit of a treadmill" trying to keep up with high decline rates and that the high dividend is a crushing problem for him as it is very expensive money.

I have done very well with Surge up to this point (40% after dividend) and would like to hear your thoughts regarding Mr. O'Connell' comments and what the 5i Team expects for Surge moving forward.

As usual, thank you for all you do... would be lost without you

Gord