Investment Q&A

Q: Good Morning With all the talk of pey cutting there dividends in half how do think share prices will react in the medium term and what are your thoughts of canada working on clearing up some of the bottlenecks in the oil and gas delivery systems

Q: I see PEY is down 5% this morning and I am looking for your opinion on it as a long term hold. I have a full position in PEY (showing a big loss) and was expecting to see it bounce back somewhat in the New Year with tax loss selling off the table. I have always confidently felt PEY was a best in class NG producer with low production costs and strong management. Is it being taken to the woodshed strictly based on investors hating the sector or is there something specific about PEY making investors nervous? Am I wrong to be losing confidence in this investment?

Q: Currently, I am down over 50% on PEY. I don't really want to sell at the bottom but am concerned about the sustainability of the dividend. I don't necessarily need the dividend, so would it be a good move right now to replace PEY with BIR?

Q: Looking for a best pick for natural gas exposure. BIR & PEY have sold off significantly and pay dividends. Is PEY dividend sustainable? Overall thoughts?

Q: What are your predictions for Peyto over the winter months?

Q: Hi,
Peyto seems very attractive from Dividend perspective. would you consider dividend safe? what is the free cash flow and payout ratio?
other than whole sector being down, any reason for recent decline in share price.
Thanks

Q: This is a follow up to David’s question(05.12.17). If one sells PEY for a tax loss would you replace with another oil or gas company? If no, why? If yes, which companies (say 2 or 3)?
Thanks, Bryn

Q: If you owned PEY and had a 47% tax loss potential, would you crystallize the gain or hold the stock? Is there another equity that you would recommend replacing PEY with in the same sector if you recommend crystallizing the gain?

Q: Hi,

On Thursday there was a 10 Million block of shares traded near close on PEY.un. The volume for the day was more than 10x the average daily volume and the stock closed down. Is this something significant that should be noted by investors? Do your terminals provide any additional insight? Thank you for your comments.

Q: good day i have these canadian gas plays for long term investments do you think i should continue holding ? thank you

Q: I am looking at selling CVE for the tax-loss. Would PEY be a suitable replacement, or would you stay away from it? Any better ideas?

Q: You have indicated the payout ratio for PEY based on cash flow is 42%. Morningstar says the payout ratio is 153% for dividend and capital spending. When judging the safety of the dividend why would the capital spending not be considered? When the dividend and capital spending are not covered by cash flow is the difference made up from borrowings?
Thanks
Mike

Q: An interesting summary of Cdn. Nat Gas prospects in general and Peyto
below:
https://www.investorvillage.com/groups.asp?mb=6781&mn=91904&pt=msg&mid=17726895
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Q: Hi 5i,

Which of these two companies do you prefer? Is there a different nat gas stock you'd prefer?

Thanks!

Q: Hello Peter and Team, in a response to Michael (November 6th) you say that Peyto’s payout ratio is 41%. Using the Peyto data provided by TMX Money, and after a quick calculation I get a payout ratio that would be 153% (0.110 DIV x 12 months / 0.86 EPS). Could you tell me where is my mistake in making this calculation? In the event that the payout ratio is in fact 153%, then would you consided the dividend at risk? Best regards, Gervais

Q: Would you consider Peyto Exploration a good value at its current share price?

Q: I am a retired, conservative, dividend-income investor. I normally would describe myself as a "buy and hold" investor, using a "trim and add" strategy that has served me well over the years. I am also aware that one should expect roughly a third of one's stock picks to not work out, although my track record is better than that.

The quandary I am in relates to PEY. Great stock, good management, nice dividend, however poor capital appreciation since I bought in Nov '16. My current allocation to energy is 10% of my equity portfolio. Fortunately PEY has only a small weighting (<2%).

Question 1 = I am down roughly 45% including dividends. We are now in tax loss selling season, so expect some more downside to PEY. I could definitely use the capital loss, to offset significant capital gains this year. Sell now, wait 30 days, rebuy?

Q2 = There is also the "trapped due to no pipeline access" theory...any light to shed on this? If PEY is trapped, is this worth rebuying, until the pipeline issue is remedied? If I wanted to replace PEY with another dividend payer = any suggestions for those that are not "trapped"?

Q3 = I see the average 1 year target price is $27---based on what?

Again, I usually hold for the long term...eventually good stocks work their way through these things...not sure this time. Your thoughts please.

Thanks...Steve

Q: Hello good 5i people,
I haven't owned any energy stocks for years. But I would like to add some. Could you recommend 3-4 top picks in the sector for long term growth?

Thx,
Mike

Q: Hi 5i,

Plz comment on the Q from PEY.

Thanks,
Dave

Q: Hello 5i, I am considering on taking a position in either Peyto or Arc. Could you comment on a comparison of the 2 as to what their payout ratio is and how safe the distribution is also your opinion on these 2 companies. Would you have a better recommendation on an energy company and if so which one. Also on your old website on the right side there was a selection by year and month of questions answered I see that it is now gone or how do I find this info.
Thanks