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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I identified 9 companies that out performed the TSX 60 plus 3 energy companies that I believe have a bright future. All 12 failed the MACD. 5 are trading at double digit discounts to their 52 week highs; dsg,shop,l,tou and cve. P/E range from 85 to 6 etc, etc. Please pick your diversified top 6 for a 5 year hold, with consistent profitability, no crazy volatility and suggest a great entry price. Thank you
Read Answer Asked by Richard on August 22, 2023
Q: given debt reduction is a target for this company what is the likelihood they would buy up their pref's on the open mrkt....would be at a significant discount to maturity value...do they need to file paperwork to buy the pref's in the mrkt and as far as you can tell has the paperwork been filed ?...are they buying in the market ?...many thanks
Read Answer Asked by Cam on August 17, 2023
Q: Hi Team,
I own some Cenovus stock. Today's quarterly results were not great, and oil price is sliding along with the share price. I am debating whether I should keep holding this name. I don't really care if I have oil exposure on not, I am ultimately seeking the best long term growth I can achieve regardless of sector. This being said is there any stand out buy's that you would rather own today compared with continuing to hold CVE? I am looking mostly at Canadian names, or US names that CIBC has traded on the neo (Canadian hedged). Or...is this a bad time to sell oil names with the recent weakness in oil price ( if you believe oil price will stage a recovery here shortly). Your suggestions are appreciated. Thanks

Shane.
Read Answer Asked by Shane on April 27, 2023
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
Read Answer Asked by Sheldon on April 17, 2023
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.
Read Answer Asked by Kevin on March 02, 2023
Q: hi. can you rate these as a buy, sell or hold please. long term investor.
cheers, Chris
Read Answer Asked by chris on January 03, 2023
Q: Is there a particular reason that you do not own more energy stocks in the portfolio’s and are underweight the sector? Seems somewhat surprising in light of many companies returning capital to shareholders via significant dividend increases and share buybacks this year.
Read Answer Asked by Zach on November 28, 2022
Q: Hi Team,
With the recent slump in some of these oil names, do you see a name like WCP being bought out by a bigger company such as CVE that operate in some of the same area? You would think M&A would start happening with valuations where they are on some of these names. CVE with a P/E of 10.9, and WCP only having a P/E of a mere 2.0 (according to my trading platform numbers). This all being said, is it time to buy some of these high quality mid cap oil names that have been hit recently? Your comments are appreciated.
Read Answer Asked by Shane on September 09, 2022
Q: what are the current annual percentages of dividend, debt and free cash flow yield for each of these companies. use as many question credits as needed
Read Answer Asked by hal on September 06, 2022
Q: How would you classify the above stocks as to gas or oil. Thanks
Mike
Read Answer Asked by Michael on August 09, 2022
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
Read Answer Asked by Paul on July 29, 2022
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