skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

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

Q: I am considering adding a few long-term positions to my registered accounts and looking for ideas in oil & gas - income and growth. A few names are noted above, however, looking for your top 5 recommendations.
Read Answer Asked by Shyam on July 11, 2019
Q: I am trying to clean up my Energy sector. I have the following: CPG, CVE, ERF, HSE, IMO, SU, TRP, VET, MX Could you please place them in order, starting with first to sell.

Also, could you please let me know which companies I should buy with the proceeds. I have a very long timeline, and I feel that companies that are rather low right now may jump a fair bit when the price of oil rebounds.

If there are any other companies that you would suggest to buy, please include them as well.


Thank you once again,

Fed
Read Answer Asked by Federico on July 10, 2019
Q: Enb in my portfolio has a book value of $42.16
And a yield of 7%. It now represents 10% of my portfolio. This my largest position in a portfolio of $630000. I generally buy for dividend and growth. Maybe I should reduce my position in ENB and take a 5% position in another dividend paying stock with growth potential. eg. CM or other opportunities. Any suggestions.
Read Answer Asked by Roy on July 09, 2019
Q: I have had this stock for quite some time and people were concerned when it was $45 last year. Now that it is $26 and there have been recent calls to BNN by investors concerned about it. Some of the guests of BNN answering questions have recently sold it. What is your recommendation? Also, WSP Global, I have had for a couple of years with a small dividend has been flat. I could probably get a GIC which pays the same amount of money as WSP's dividend. Your thoughts? Thanks again, Dennis
Read Answer Asked by Dennis on June 17, 2019
Q: Hi 5iR, I have been out of investing in energy stocks for a while, however with oil back down in the low $50.00 range I'm reviewing a few names. TOG and SGY appear to be very attractively priced and pay an excellent dividend. I can't seem to find any negative analyst reporting on either one?? Maybe that's telling me something?? In addition, TD has just raised its' target price on both of them and TOG has increased it's dividend. TD's Target Price on TOG is $8.50, which would mean better than 100% upside at todays price of $4.00
The story with VET is a little cloudy......they do have a lot of debt, but the management team is excellent and the European exposure means more cash for their product.
My questions are: is the oil sector a place to start allocating some funds now and how do the above names stack up as investment choices?
Thanks Team. Cheers, Chris
Read Answer Asked by Chris on June 06, 2019
Q: Comment from Tony Marino president and CEO at VET at RBC global energy conference this week:
Under the current pricing environment, the company believes its dividend and capital program to be over-funded.
Vermilion expects to cover its dividend plus sustaining capital spend at a US$40/bbl WTI price, with growth capital covered
at US$50/bbl.
The company observed its elevated dividend yield but affirmed commitment to its current levels.
Reassuring for those worried!
Read Answer Asked by Denis on June 06, 2019
Q: I'm down on a full position in VET and thinking of swapping it for a reduced position in SU partially for the capital loss, partially to reduce my full energy holdings but also for more stability with SU. I think SU is vertically more diversified and bigger and therefore better for a conservative retired investor like me. Does this sound like a reasonable plan or should I just hold cash and rebuy VET in 30 days and go on enjoying the higher dividend it offers?

Another reason the Su interests me is that VET's high dividend is nice but worries me. Other times I've held on to a company with a high dividend I have ended up with a capital loss that far outweighs the accumulated dividends. I would like to know if you consider VET's or SU's dividends "safer"? What might cause either of them to cut their dividend.
Two questions I guess.
Read Answer Asked by Brian on June 03, 2019
Q: Hi 5i,

My question is in regards to tax loss harvesting. I am down, in our non-registered accounts, anywhere from 10-30% on Magna, Methanex, NFI, Vermilion, and Great Canadian Gaming.

I like all of these companies and would like to have them in my portfolio as long term holds. My time horizon is years, if not decades. I don't mind the volatility of these stocks at all, nor do I mind being down (on paper) significantly at any point in time with them - I understand these are cyclical names. Dividends, and dividend growth, from most of them ease any short term frustration.

All of that said, would you recommend crystalizing a loss on any of the above? Do you see any catalyst for short term price jumps (earnings?) that may cause me to get caught buying back in at a higher price in 30 days? And if harvesting a loss is the way to go, would I be better off keeping the proceeds in cash to buy back in after waiting? Or park it in comparable securities? If so, any suggestions?

Dollar-wise, the amounts are significant enough that trading costs aren't really material. The only other variable I should mention is that I don't have any capital gains (realized) to use the losses against, so it would just go "in the bank" to be carried forward to the future.

Lots of parts to that question so deduct credits as necessary.

Thanks, enjoy the long weekend!
Read Answer Asked by Ryan on May 21, 2019
Q: With the most recent slide I am sitting on a $3000 loss in VET, my only full position in Energy, also have a half position in Meg. For tax planning I'm considering selling VET. Do you have a recommendation for a replacement Energy company with a similar yield to replace, or would you sit in cash for 30 days and repurchase VET ?
Read Answer Asked by Charles on May 17, 2019
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!