Investment Q&A

Q: When do they report? What do you anticipate the results to be? They claim very low break even costs that would support working capital and dividend. As well as growth. Are you able to validate their p/e? the company looks attractive based on potential and monthly div yield.

Q: Any thought on Tamarack Valley. Oil is hanging around $75-$80 yet its price keeps falling. My understanding is they have low cost and good producing properties.

Q: Which one of these do you prefer and with what rationale? Does it makes sense to own both at low weighting.

Q: I purchased Tamarak(TVE) based on many recommendations, as well as yours
- Many people and firms continue to like and recommend this name...

- CFRA has a Hold, with a Negative Growth Rating...

- Price , Chart/Trend have Not been doing well...

- There is a nibble of insider buying

Questions:
1. Would you suggest Hold, Buy more or Sell for another...

2. Why does it seem like negative trading sentiment these days and poor current stock performance, when overall the stock is liked and recommended by many...?

3. Paramount Resources(POU) - I have heard a few Positive recommendations on this company... I think Leon Cooperman had good things to say as well...
- CFRA has a Hold, but gives a Positive Growth Rating

4. Would you recommend staying with TVE or consider POU...? Or Others..?

Thanks

Q: Energy is a small portion of my overall portfolio. TVE is one of my larger holdings but it has lagged other energy names in the past few months. Do you still like TVE and should I be adding to bring my average cost down.

What are your three favourite Canadian Energy Names in current market?

Thanks
Tim

Q: I own a basket of energy stocks but among them TVE is the worst performer. Yet it is frequently recommended. Would you give me the rationale for the positive views on this company. Thank you.

Q: If you held the following smaller cap stocks in positions of 0.5% to 1.0% of your total stock portfolio, and wanted to reduce the number of holdings by selling several of them and using the money to add to others, which ones would you sell and which ones would you add to: ACQ, ADEN, AEP, AND, CHW, CJ, DCM, ECN, GEO, HPS.A, LNF, NOA, PRL, QIPT, RCH, RET.A, SFC, STLC, SVI, TVE, WELL, XTC. Assume overall portfolio is well diversified so sectors not a consideration, and that this is the riskier part of portfolio, so, higher risk is fine. Would be great if you could pare this list of 22 stocks down to about 10-15. Thanks.

Q: How do you think SU will do in the next couple years and what would be your top 5 favorite energy plays in the Canadian Market? Also, with China reopening, US dollar on a downtrend and noticing several major Metal/Copper stocks gapping up like FCX and VALE, SCCO, how would you rank these and what are your top 5 companies domestic or international to take adv of rising commoditiy/metal prices

Q: hi guys i hold all 3 of these stocks , which one has the best up side and would you keep all 3 thanks

Q: What makes Tamarack Valley so unique amongst the small-mid cap oil/gas producers in Canada? Just curious to know if there are others you also recommend or is this one at the top of the list?

Q: In a response to Chris on February 27th, you indicated OBE was OK but you thought TVE was better. I am curious what brought you to that conclusion. Maybe I get too caught up in simple metrics. For example, OBE has a PE of 1.0 and a PB of 0.52 compared to TBE where the same ratios are 4.3 and 1.3. I realize it is not as simple as that. I hope you can educate me on how to dig deeper into your preference for TVE. Thanks again for helping the little person.

Q: would appreciate your current thoughts on YGR. is there a name you would prefer rather than YGR?

thanks
Don

Q: How did you like the results. Still viewed as one of your favourites?

Q: I want to re-visit a question I asked previously (based on Eric Nuttall's appearance on BNN Bloomberg) and Lionel's input on it. I've reproduced those questions and answers below for reference.

To clarify, Eric was not bullish on natural gas, at least over the next year. What he was feverish on was heavy oil, and his top picks were the three companies above.

I had mentioned Tourmaline Oil which perhaps shifted the conversation toward natural gas, but I was really interested in your take on the heavy oil companies.

Do you share his enthusiasm about heavy oil? I'd appreciate if you could rank these companies. CVE seems the biggest but I sense he sees more potential in the other two which are smaller.



Q: Eric Nuttall was very bullish, almost feverish, on oil (represented by the companies above) while being down on natural gas. To what extent do you agree?

Asked by Kevin on February 27, 2023
5I RESEARCH ANSWER:
We like Eric and used to work right beside him (Peter answering). He is bright and gained lots of experience over the past 20 years. He showed a lot of guts in the oil crash when his fund dropped 70% in three months and fell to $20M in assets (he now manages more than $2B). The sector is very cheap, and vs past cycles corporate balance sheets are very strong. Certainly the lack of spending may results in higher prices over the next three years (depending on the economy). But...it will always be cyclical. The price of oil in fact is even down 14% from before the Ukraine war started. But we think some sector representation certainly makes sense. The TSX is currently at 17.4% energy. We might consider that a bit on the high side. In terms of natural gas, it can be very weather dependent, but we would be more bullish than Eric; the price has dropped so much this year, but it is also dependent on drilling, and the price drop is going to cause even less spending to be done on new gas wells.

Q: I am optomistic that Peter and Eric Nuttall are bullish on the gas sector, as in the 5i reply to Kevin's query (Feb 27). What are your views on XES? Technically, it looks like it has a huge runway to the upside ...Thanks....Lionel

5I RESEARCH ANSWER:
XES is the SPDR Oil and Gas Equipment & Services ETF. Certainly there is upside potential as oil and gas companies spend. However, there has been a trend in the industry towards dividends and buybacks, so spending this cycle may be less than in other periods. Still, the fund is up 38% in the past year, and its 35 holdings look solid. We would be OK owning this for sector exposure, with the understanding that it is always going to be cyclical.

Q: What if anything can be read into the recent disposition of TVE shares by ARC Energy fund?

Thanks,

John

Q: How would you rank these at todays price and future potential over the next 2-3years?

Q: how come TVE wouldn't go up in price , I own it and it looks like it should be doing great compared to some companies that are.

Q: I'm having difficultiy deciding whether to take a position in Whictecap or Tamarck. Which of these 2 companies has the best prospects for 2023?

Q: Good morning 5i team!

May I please get your thoughts on ERF. I've held it for a while and have done well. I'm concidering rotating out of this name and shifting to either WCP, HWX or TVE all of which have better dividends and could run harder if oil catches a bid (as many oil bulls are expecting). Do you prefer any of these name over the others....or, stay the course. Thoughts?

Thanks

Dave

Q: Hi Peter, Ryan and 5i team,
It’s that time of year to contribute to our grandson’s RESP (age 9). After rebalancing and adding new money we can add two stocks to the portfolio. To broaden the sectors , we are looking at utilities, healthcare, and real estate. Could you please suggest a name in each sector .
Thank you for your opinion.