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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 hold TOU, ALA, KEY. Down 18%, 24% and 13% respectively. This is all my direct oil/natural gas exposure which represents 17% of my entire portfolio.
I have 10+ years investment horizon for these stocks. These stocks fluctuate a lot which I don't mind but I dislike being underwater for a prolong period of time.

Should I stick with these names or should I make a switch to other oil companies like VET? If yes what names would you suggest and how should I divide the investment % wise? Which stock(s) to sell and which one to keep? Switch now or later?

The goal of the switch is to position myself for eventual(I believe) oil recovery.

Appreciate your insight.
Read Answer Asked by JR on June 15, 2016
Q: I am a retired, conservative, dividend-income investor with a pension, CPP, annuities and hold the following securities (AD, AQN, ALA, BCE, BNS, CPG, CGX, ECI, FTS, PBH, RY, WCP, WEF, WSP, ZLB, XIT, RBC Cdn Equity Inc, Sentry Cdn Inc, Sentry REIT, and Fisgard Capital).

I plan to sell CPG and capture a capital loss, while at the same time put some or all of the proceeds towards another energy name, thereby increasing my dividend income. I have filtered the following names, using P/BV, D/CF, Beta, Div Yield => CJ, FRU, VET (I already own WCP, ALA, TRP).

Which do you see as a good fit with my other holdings? I am leaning towards CJ (more torque) or VET (due to the larger size). Are both of their respective dividend "safe"?

Thanks...Steve
Read Answer Asked by Stephen on May 30, 2016
Q: I have TORC (TOG)and Whitecap (WCP) each representing a little over 1% of my portfolio. I am up on TOG and down on WCP.

I was thinking of selling Whitecap to capture the capital loss and to replace that stock with a name of equal (or greater quality) that also pays a monthly dividend. What would your top suggestions be? I was thinking perhaps Cardinal (CJ) or Vermillion (VET) but I'd greatly appreciate your opinion and insight.

Thanks.

John
Read Answer Asked by john on May 06, 2016
Q: Thinking of dipping my toe back in the energy sector. Many co's stocks have made significant moves already, even following last weekends failed agreement. Vermillion seems to be well regarded, is 50% off it's high and yet hasn't jumped, so would this be a good choice? Are there others similarly lagging the early leaders that are worth considering.
Thanks Peter.
Read Answer Asked by Peter on April 20, 2016
Q: I have a good proportion of my portfolio in the US, so its value is very dependent on the US$/CAN$ exchange rate. Now I would like to increase my investment in energy with a view to a hedge against the rising CAN$. Can you recommend two reliable dividend paying stocks whose value is highly correlated to the CAN$, and which preferably have some growth potential too. I already own SU and CNQ.
Thanks for your help.
Chris
Read Answer Asked by Christopher on April 20, 2016
Q: Hello Peter and the 5i team

I have been starting to look into the energy sector as I think there will be a slow and steady increase in oil prices over the year (I think there will be dips back down but these dips will not be as low as the previous ones higher lows and higher highs as the year goes). What do you think of Vermilion energy? I look at the numbers and it seems to actually have a fairly large amount of debt (comparable to that of BTE on a total debt to capital ratio, although it hasn't had the bad press about its debt compared to BTE). It has a higher price to book. Management seems very good though and I like that it is diversified on a global scale and doesn't have its oil land locked in Alberta like many Canadian oil companies. What are your thoughts on the company? If you don't like it what energy names do you like better.
Read Answer Asked by Darren on March 08, 2016
Q: You previously mentioned that VET has "a fairly large debt level based on cash flow". and that "in the 3Q had $122 million in cash flow and paid $26 million in dividends, for a ratio of 21%".
Have these numbers changed at all - ie.- how much cushion does VET have to continue paying their dividend at the current level going forward or has their ability to continue "not cutting" their dividend been compromised?
Read Answer Asked by Alan on February 11, 2016
Q: I spoke to the head of IR at this company based in Calgary a few weeks ago because I am a long-time SH and was concerned about the dividend being cut going fwd. He was quite sure it would not be cut even though, as I pointed out, they carried a fair bit of debt. - build out Corrib in IRE - on stream soon - Dec. 30th started pumping - 30% increase in cash flow: pay down debt. As well reduced capital budget for 2016 which would support the dividend which he deemed quite sacred. Comments please?
Read Answer Asked by James on January 04, 2016
Q: I have almost bought Vermillion several times, but each time I find that the Corrib gas development is "almost ready" to begin production. That's been going on for years and was the situation when BNN interviewed the CEO this past September. Has it finally started to produce, or are they still "almost there", waiting for those last two environmental approvals?

Thanks Roland
Read Answer Asked by Roland on December 08, 2015
Q: Good Day,
I see today that CEO and co-founder Lorenzo Donadeo has decided to retire on March 1,2016 as CEO and become chairman of the Board. Any thoughts? The share price is up today so the market doesn't seem to be concerned with this news. Obviously he won't be running the show day to day but as Chairman of the Board will be instrumental in guiding the company.
Thank-you
Read Answer Asked by Chris on December 01, 2015
Q: I have hung on to VET because I didn't want to get out of energy completely. I understand that they have a significant share in a new natural gas supply for Ireland which was due to come on stream this Summer.
Is the new revenue stream enough to warrant continued holding, or would I be better to buy something with more immediate prospects of price appreciation?
Read Answer Asked by Graham on September 11, 2015
Q: Our weight in VET has now dropped to 1.9% so I think I should either sell it or buy another $15,000 to increase the weighting back up to 3%. The only other energy stocks we own are CMG and PEY with a 2.5% weighting each. We have 27 separate stocks & ETF's and I believe you think 20 is the right number so selling VET may make some sense. Do you still feel VET's dividend is secure? Maybe I should just do nothing - any suggestions?
Read Answer Asked by James on August 24, 2015
Q: I sold VET in May at 55.31. I'm looking at it now at 50, with a dividend of over 5%. Do you think this is a good time to get back in or would you wait to see some strength in the share price. My other energy holdings are IPL, PPL and PEY. They are around 7% of my portfolio.
Thanks for your invaluable insight.
Read Answer Asked by Andrew on July 15, 2015
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