Investment Q&A

Q: Thoughts on their results and guidance ? Thank you.

Q: I’m a little underweight the oil and gas sector. What’s a good entry point for Suncor for a long term position?

Q: Hi. I own these oil stocks and have to get rid of two or three. Which three would you sell first and in what order? Thanks Paul

Q: Thanks to your wonderful Portfolio Tracking and Analysis, I know that Energy makes up 11.07 % of my portfolio. Your statistical recommendation is that energy should be 5 % of my personalized portfolio. In order of rate of return, I have Tourmaline Oil, Enbridge, Whitecap, Suncor, Athabasca and Tamarack Valley. I am more heavily weighted in Tourmaline and Enbridge but my question is twofold. Am I really overweight in energy at this time and if so other than trimming from my two big winners, which two or three companies would you eliminate to pare back closer to 5%? The proceeds would go to buying ATD.b and Loblaws. Thanks for this wonderful service.

Q: I searched past questions/answers with no luck so here goes. If Suncor sold its gas stations, what would they do with the money? What effect would the sale have on the stock/dividend? Thanks.

Q: Hello,
In reading submitted questions and your answers about SU, TOU and even CNQ over the past little while, and seeing recent activities, I was wondering if you can provide the reasoning for having SU in the balanced portfolio as opposed to the other two. TOU in particular seems to be one of your favourite energy companies, albeit with a lower dividend. Thank you!

Q: I own each of these companies in my RSP and have done very well on all three over the past year. A couple of months ago, I trimmed my positions in CNQ and SU as they had more than doubled. With the recent sector pull back, I'm now considering selling some Parex and redirecting the proceeds to Suncor.
It seems Suncor currently has a number of positive catalysts which may result in it outperforming Parex over the next couple of years. Both companies have a similar beta and yield, with SU having much more diversified operations.
Exclusive of position weightings, your thoughts on this strategy please.
Thanks, Rick

Q: Suncor










Read your answers to questions but still confused. Is this still a buy?

Q: If Warren Buffet would buy a stock in Canada that has many of the features of OXY which one would it be?

Q: Can you comment on recent developments at Suncor? For new money, would you go with SU at this time or a different large-cap Canadian oil and gas issuer (if so, which one)?

Q: Hi 5i,

Looks like Suncor is working with activist investor Elliot, and is looking at possibly selling their retail business. My question is, what would be the most logical suitors, and what possible regulatory hurdles would they face.

Thx

Q: Hi, Current Energy Sector weight in 5i Portfolios is as follows:

Balanced : 10.10 % ( SU,ENB)
Income : 7.00 % ( ENB)
Growth : 3.00 % ( KEL,TVE)

Your general recommendation is 7-10% weighting in the Energy Sector, based on individual investor profile/risk/objectives. Could you help understand following:

1. Should we include ENB, as a part of Energy Sector exposure in our personal portfolio like 5i does. Or, ENB should only be considered as Energy Sector exposure for individuals with low/moderate risk tolerance and objectives, suitable for Balanced or Income Portfolio allocation - Not for individuals with Growth as primary Objective.

2. Your general recommended allocation to Energy sector is 7-10%. Do you see current valuations in Energy sector, specially after a recent 15-20% pullback, attractive to increase the weight in Balanced and Growth Portfolio ( specially Growth portfolio - from current 3% ). Any reason Growth portfolio has a low allocation?

In your recent responses, you have made a strong case that the sector still has legs and investors should continue to have a reasonable exposure to the sector. Your recommendation is also well supported by Demand/supply factors, Ukraine and China situation etc. We currently have a 9% weight through CNQ,SU and TOU and an additional 6% through ENB. Just reviewed all 5i portfolios and trying to assess, if there is a need to reduce some positions. Our main objective is income but we are also comfortable to participate, if Sector shows promise of Growth ( of course, with attached risk ). Thanks

Q: Hi, Any comments/change about our Energy Sector Holdings strategy of 7.5-10% weighting, in light of Oil prices tumbling below US$100 today. Oil and Gas equities are taking a big hit and now trading back at the most recent lows made a few weeks ago when oil price dropped to $104. Do you think, sector could see more pressure in coming weeks/months, with fear of recession growing ? Is any action warranted ?Thank You

Q: Good Morning,

I have stayed away from Oil and Gas during the current resurgence having been been burned badly in the past.

The sector, however, has become very hard to ignore.

What would be your top 2 - 3 picks for a conservative retired income investor?

Thanks very much.

Q: I own SU and looking to add to energy in unregistered account. WCP looks very good now. What do you think or is there a better one in your opinion? Thanks again.

Q: Hi, Oil and Gas sector has come under pressure for past two weeks, with above equities declining 20-30% from their respective highs. Volatility in oil and gas prices could be a reason and other days, it could simply be in sympathy with general markets.
This is in the backdrop of analysts forecasting very strong cash flow generation by all these companies, resulting in outsized shareholder returns and much higher equity prices. We have 10% weighting in the sector ( Not including 5.5% ENB ). Based on the geo-political, demand/supply and other relevant factors, do you believe, this sector still has legs, say another 6-12 months or longer and equities should recover over time. Also, what would cause, in your opinion, for market to change course for this sector, in near future. Thank You

Q: Dear 5i,
I currently have an approx. 3% holding in each of these energy stocks in my TFSA; TOU, SU and WCP. Do these three provide reasonable exposure to the energy sector? If there is too much overlap can you suggest which ones I might want to sell. If you think I should add more different types of energy stocks can you suggest ones to add with a 3% weighting. Thanks for all your help.

Q: After the large run-up in oil & gas stocks, would now still be a reasonable time to invest in them and, if so, what would be your top 3 picks for dividend plus growth, US and Cdn? Thank you.

Q: What is your opinion of this ETF for a core long term holding for exposure to the oil and gas industry? Is the MER high/low in your opinion. What alternatives if any would you suggest? Thanks

Q: I hold SU PSK and WCP. I don't want to hold oil and gas in the long term, so want to eventually sell these three stocks. Do you feel this sector will likely perform well through a recession and would you tend to continue to hold them through the next year? Could you suggest a target price for each. Could you suggest what I might replace these with in the alternative energy sector - with dividend. Thank you!